CHAPTER 1:INTRODUCTION TO ENTREPRENEURSHIP(L1)

1) Which of the following is an accurate characterization of interest in entrepreneurship?

• A) There is tremendous interest in entrepreneurship across the world.

• B) There is minimal interest in entrepreneurship across the world.

• C) There is minimal interest in entrepreneurship in North America and Europe, but significant interest in Asia and Australia.

• D) There is significant interest in entrepreneurship in North America and Europe, but minimal interest in Asia and Australia.

• E) While interest in entrepreneurship was once high, it is waning in popularity across the world.

2) 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

3) 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

4) 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

5) 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

6) 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

7) 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

8) The three primary reasons that people become entrepreneurs and start their own firms are to ________.

• A) gain prestige, realize financial rewards, and eliminate risk in their lives

• B) do what they were "born" to do, be their own boss, and gain prestige

• C) take big risks, be their own boss, and do what they were "born" to do

• D) be their own boss, pursue their own ideas, and pursue financial rewards

• E) take advantage of government subsidies, pursue their own ideas, and realize financial rewards

9) According to the textbook, the number one reason that people become entrepreneurs is to ________.

• A) realize financial rewards

• B) gain prestige

• C) be their own boss

• D) continue a family tradition

• E) pursue their own ideas