CHAPTER 1 ENTREPRENEURS AND ENTREPRENEURSHIP
TRUE/FALSE
1. Successful entrepreneurship takes only a great idea.
(False; Easy; Misconceptions About Entrepreneurship)
2. Small businesses employ nearly 80% of all private workers.
(False; Moderate; The Current Importance of Entrepreneurship)
3. Entrepreneurship is more prevalent in for-profit than in not-for-profit organizations.
(False; Hard; Definition of Entrepreneurship)
4. All growth-oriented businesses can be considered entrepreneurial.
(False; Hard; Definition of Entrepreneurship)
5. Organizational creation is a common theme in definitions of entrepreneurship.
(True; Easy; Definition of Entrepreneurship)
6. Entrepreneurship is easy once you understand the process.
(False; Moderate; Misconceptions About Entrepreneurship)
7. Building an entrepreneurial company is more risky for a small business.
(False; Easy; Misconceptions About Entrepreneurship)
,8. Entrepreneurs exist primarily in the United States.
(False; Easy; The Current Importance of Entrepreneurship)
9. A small business is not necessarily entrepreneurial just because it is small.
(True; Easy; Entrepreneurial Ventures and Small Business—The Differences)
10. Small businesses represent around 70% of all employers.
(False; Easy; The Current Importance of Entrepreneurship)
11. Small businesses provide about 25% of private sector output.
(False; Moderate; The Current Importance of Entrepreneurship)
12. Wealth creation is typically a primary goal among entrepreneurs.
(False; Moderate; Definition of Entrepreneurship)
13. Entrepreneurship is more prevalent in small businesses than in large ones.
(False; Moderate; Misconceptions About Entrepreneurship)
14. During the 1990s large and small businesses continued to hire additional workers.
(False; Moderate; The Current Importance of Entrepreneurship)
15. Large firms are still more efficient in the pursuit of innovative ideas.
(True; Moderate; The Current Importance of Entrepreneurship)
,MULTIPLE CHOICE
16. Which of the following is a characteristic of an innovation?
a. Random change
b. Revolutionizing
c. Something never before done
d. All of the above
(b; Moderate; Definition of Entrepreneurship)
17. Which of the following risk factors are not inherent in the entrepreneurial process?
a. Financial risk
b. Psychological risk
c. Social risk
d. Currency risk
(d; Hard; Definition of Entrepreneurship)
18. Which of the following activities is associated with entrepreneurship?
a. Creating value by providing a new product or service
b. Going public
c. Harvesting value as soon as possible to launch a new venture
d. All of the above
(a; Moderate; Definition of Entrepreneurship)
19. Which of the following terms is associated with entrepreneurship?
a. Innovation
b. Wealth
c. Size
, d. All of the above
(a; Easy; Definition of Entrepreneurship)
20. Who proposed that the profits of entrepreneurship were separate from profits of capital
ownership?
a. Richard Cantillon
b. Jean Baptiste Say
c. Peter Drucker
d. Joseph Schumpeter
(b; Moderate; Historical Perspectives on Entrepreneurship)
21. Who defined the concept of creative destruction?
a. Richard Cantillon
b. Jean Baptiste Say
c. Peter Drucker
d. Joseph Schumpeter
(d; Easy; Historical Perspectives on Entrepreneurship)
22. Who viewed entrepreneurs as “opportunity maximizers”?
a. Richard Cantillon
b. Jean Baptiste Say
c. Peter Drucker
d. Joseph Schumpeter
(c; Moderate; Historical Perspectives on Entrepreneurship)
23. Who coined the term “entrepreneur”?
a. Richard Cantillon
TRUE/FALSE
1. Successful entrepreneurship takes only a great idea.
(False; Easy; Misconceptions About Entrepreneurship)
2. Small businesses employ nearly 80% of all private workers.
(False; Moderate; The Current Importance of Entrepreneurship)
3. Entrepreneurship is more prevalent in for-profit than in not-for-profit organizations.
(False; Hard; Definition of Entrepreneurship)
4. All growth-oriented businesses can be considered entrepreneurial.
(False; Hard; Definition of Entrepreneurship)
5. Organizational creation is a common theme in definitions of entrepreneurship.
(True; Easy; Definition of Entrepreneurship)
6. Entrepreneurship is easy once you understand the process.
(False; Moderate; Misconceptions About Entrepreneurship)
7. Building an entrepreneurial company is more risky for a small business.
(False; Easy; Misconceptions About Entrepreneurship)
,8. Entrepreneurs exist primarily in the United States.
(False; Easy; The Current Importance of Entrepreneurship)
9. A small business is not necessarily entrepreneurial just because it is small.
(True; Easy; Entrepreneurial Ventures and Small Business—The Differences)
10. Small businesses represent around 70% of all employers.
(False; Easy; The Current Importance of Entrepreneurship)
11. Small businesses provide about 25% of private sector output.
(False; Moderate; The Current Importance of Entrepreneurship)
12. Wealth creation is typically a primary goal among entrepreneurs.
(False; Moderate; Definition of Entrepreneurship)
13. Entrepreneurship is more prevalent in small businesses than in large ones.
(False; Moderate; Misconceptions About Entrepreneurship)
14. During the 1990s large and small businesses continued to hire additional workers.
(False; Moderate; The Current Importance of Entrepreneurship)
15. Large firms are still more efficient in the pursuit of innovative ideas.
(True; Moderate; The Current Importance of Entrepreneurship)
,MULTIPLE CHOICE
16. Which of the following is a characteristic of an innovation?
a. Random change
b. Revolutionizing
c. Something never before done
d. All of the above
(b; Moderate; Definition of Entrepreneurship)
17. Which of the following risk factors are not inherent in the entrepreneurial process?
a. Financial risk
b. Psychological risk
c. Social risk
d. Currency risk
(d; Hard; Definition of Entrepreneurship)
18. Which of the following activities is associated with entrepreneurship?
a. Creating value by providing a new product or service
b. Going public
c. Harvesting value as soon as possible to launch a new venture
d. All of the above
(a; Moderate; Definition of Entrepreneurship)
19. Which of the following terms is associated with entrepreneurship?
a. Innovation
b. Wealth
c. Size
, d. All of the above
(a; Easy; Definition of Entrepreneurship)
20. Who proposed that the profits of entrepreneurship were separate from profits of capital
ownership?
a. Richard Cantillon
b. Jean Baptiste Say
c. Peter Drucker
d. Joseph Schumpeter
(b; Moderate; Historical Perspectives on Entrepreneurship)
21. Who defined the concept of creative destruction?
a. Richard Cantillon
b. Jean Baptiste Say
c. Peter Drucker
d. Joseph Schumpeter
(d; Easy; Historical Perspectives on Entrepreneurship)
22. Who viewed entrepreneurs as “opportunity maximizers”?
a. Richard Cantillon
b. Jean Baptiste Say
c. Peter Drucker
d. Joseph Schumpeter
(c; Moderate; Historical Perspectives on Entrepreneurship)
23. Who coined the term “entrepreneur”?
a. Richard Cantillon
