Test Bank for New Venture Creation: Entrepreneurship for the 21st Century, 10th Edition – Stephen Spinelli Jr. & Robert J. Adams

Chapter 01 The Global Entrepreneurial Revolution for a Flatter World
Answer Key



True / False Questions



1. According to Thomas Friedman, his book titled "The World is Flat" refers to the convergence
(p. 05) of technology and world events that are playing a role in bringing about significant changes in

traditional value chains.


TRUE


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2. Gearing entrepreneurs for competitiveness is likely to hinder the process of entrepreneurial
(p. 05) revolution.



FALSE


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3. Entrepreneurship training works well in schools of business and engineering, but it has not
(p. 05) proven to be useful in fields such as architecture, medicine, and life sciences.



FALSE


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,4. Entrepreneurship educators believe that expertise, wisdom, and knowledge are housed solely
(p. 06) in the faculty brain or in the library.



FALSE


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5. The best entrepreneurship faculties are generally able to determine in advance who among
(p. 06) their incoming students will be the most effective entrepreneurs.



FALSE


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6. David Birch, an MIT researcher, found that new and growing smaller firms had little effect on
(p. 07) the economy as a whole.



FALSE


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7. According to the U.S. Small Business Administration's Office of Advocacy, small firms
(p. 08) accounted for all of the net new jobs in 2010.



TRUE


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,8. A 2010 report by The Guardian Life Small Business Research Institute indicated that women-
(p. 08) owned businesses have been steadily decreasing over the past few decades.



FALSE


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9. While various surveys of high school seniors indicate a strong interest in entrepreneurship, a
(p. 08) 2004 Gallup Poll showed that a large percentage of American parents would prefer that their

children pursue a less risky career.


FALSE


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10. According to a study conducted in 2006, the self-employed report the lowest levels of personal
(p. 09) satisfaction, challenge, pride, and remuneration.



FALSE


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11. Research in the 1980s and 1990s found that since World War II, small entrepreneurial firms
(p. 11) have been responsible for half of all innovation and a large percentage of all radical innovation

in the United States.


TRUE


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, 12. Studies indicate that smaller firms generate twice as many innovations per research and
(p. 11- development (R&D) dollar spent as the established multinationals.
12)

TRUE


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13. Value creation is a linear process as it requires a short-term perspective.
(p. 14)

FALSE


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14. Entrepreneurship will result in equal incomes among the masses.
(p. 15)

FALSE


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15. When the entrepreneurial process will take over, it will result in economic expansion and
(p. 15) accompanying social mobility.



TRUE


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Multiple Choice Questions




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McGraw-Hill Education.