Test Bank for Entrepreneurship: Successfully Launching New Ventures Ram Subramanian
Entrepreneurship Sixth Edition
Bruce R. Barringer Duane Ireland
Entrepreneurship: Successfully Launching New Ventures, 6e (Barringer/Ireland) Chapter 1 Introduction to Entrepreneurship 1) One of the businesses owned by Kirsten Blowers, the entrepreneur profiled in the opening feature of Chapter 1, is Riffraff. Riffraff sells ________. A) refurbished furniture B) clothing C) jewelry D) books E) t-shirts Answer: A Diff: 1 LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of entrepreneurial firms. AACSB: Reflective Thinking Quest. Category: Critical Thinking 2) Which of the following is an accurate characterization of interest in entrepreneurship? A) There is minimal interest in entrepreneurship across the world. B) There is minimal interest in entrepreneurship in North America and Europe, but significant interest in Asia and Australia. C) There is significant interest in entrepreneurship in North America and Europe, but minimal interest in Asia and Australia. D) While interest in entrepreneurship was once high, it is waning in popularity across the world. E) There is tremendous interest in entrepreneurship across the world. Answer: E Diff: 1 LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of entrepreneurial firms. AACSB: Application of Knowledge Quest. Category: Application 3) According to the Global Entrepreneurship Monitor (GEM) 2015-2016 survey, about ________ percent of adults in the United States are either starting a business or are running a business that has been in existence for less than 3 1/2 years. A) 3.8 B) 5.5 C) 7.6 D) 9.0 E) 11.9 Answer: E Diff: 3 LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of entrepreneurial firms. AACSB: Application of Knowledge Quest. Category: Application 1 .
4) According to the Global Entrepreneurship Monitor (GEM) 2015-2016 study, the majority of people in high-income countries are drawn to entrepreneurship ________. A) to take advantage of an attractive opportunity B) due to lack of career prospects C) as a result of government incentives D) because an important role model was an entrepreneur E) to gain prestige Answer: A Diff: 2 LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of entrepreneurial firms. AACSB: Reflective Thinking Quest. Category: Critical Thinking 5) Which of the following statements regarding survival rates of entrepreneurial firms in the United States is correct? A) As high as 50 percent after four years B) As high as 60 percent after four years C) As high as 70 percent after four years D) As high as 80 percent after four years E) As high as 90 percent after four years Answer: A Diff: 2 LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of entrepreneurial firms. AACSB: Reflective Thinking Quest. Category: Critical Thinking 6) Cody Rodgers is the founder of a company named Extreme Sports Apparel. The company makes apparel products for extreme sports enthusiasts such as rock climbers, triathletes, skateboarders, and BMX bikers. Cody wants his company to pursue a high level of corporate entrepreneurship. To achieve that goal, Cody's firm should be ________. A) innovative, risk averse, and take a "wait and see" posture B) taking a "wait and see" posture, innovative, and risk taking C) proactive, not innovative, and risk taking D) taking a "wait and see" posture, not innovative, and risk averse E) proactive, innovative, and risk taking Answer: E Diff: 2 LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of entrepreneurial firms. AACSB: Analytical Thinking Quest. Category: Analytical
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7) Google is a firm that is proactive, innovative and risk-taking. From this description, we can most accurately conclude that Google has a high level of ________. A) enterprise focus B) innovative intensity C) entrepreneurial intensity D) creative intensity E) innovative concentration Answer: C Diff: 2 LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of entrepreneurial firms. AACSB: Reflective Thinking Quest. Category: Critical Thinking 8) Apple is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions. According to the textbook, Apple practices ________ entrepreneurship. A) tactical B) corporate C) strategic D) business E) enterprise Answer: B Diff: 2 LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of entrepreneurial firms. AACSB: Reflective Thinking Quest. Category: Critical Thinking 9) According to the opening feature on Kirsten Blowers, Riffraff's early success was adversely affected by the actions of Pinterest. Answer: TRUE Diff: 1 LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of entrepreneurial firms. AACSB: Reflective Thinking Quest. Category: Critical Thinking 10) According to the results of the GEM 2015-2016 survey, about 1 out of every 8 and a ½ American adults is actively engaged in starting a business or is the owner/manager of a business that is less than 3 ½ years old. Answer: TRUE Diff: 2 LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of entrepreneurial firms. AACSB: Application of Knowledge Quest. Category: Application 3 .
11) According to reliable statistics, 9 out of 10 businesses fail in their first few years of existence. Answer: FALSE Diff: 2 LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of entrepreneurial firms. AACSB: Reflective Thinking Quest. Category: Critical Thinking 12) Entrepreneurship is the process by which individuals pursue opportunities within the constraints of the resources they control. Answer: FALSE Diff: 1 LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of entrepreneurial firms. AACSB: Reflective Thinking Quest. Category: Critical Thinking 13) Established firms with an entrepreneurial emphasis are proactive, innovative, and risk-taking. Answer: TRUE Diff: 2 LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of entrepreneurial firms. AACSB: Analytical Thinking Quest. Category: Analytical 14) What is entrepreneurship? What is the essence of entrepreneurial behavior? Answer: Entrepreneurship is the process by which individuals pursue opportunities without regard to the resources they currently control for the purpose of exploiting future goods and services. The essence of entrepreneurial behavior is identifying opportunities and putting useful ideas into practice. Diff: 1 LO: 1.1: Describe entrepreneurship, corporate entrepreneurship, and the characteristics of entrepreneurial firms. AACSB: Reflective Thinking Quest. Category: Critical Thinking
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