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Launching New Ventures An Entrepreneurial Approach 6th Edition By Kathleen R. Allen - Test Bank
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Launching New Ventures An Entrepreneurial Approach 6th Edition By Kathleen R. Allen - Test Bank
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,Chapter 1—Understanding EntrepreneurshipTRUE/FALSE
1. Entrepreneurship is a form of creative destruction.
ANS: T PTS: 1 REF: p. 4
2. The entrepreneurial mindset cannot be found within large corporations or socially responsible
nonprofit organizations.
ANS: F PTS: 1 REF: p. 5
3. Entrepreneurship can be found in some form in every country, race, age group, and (increasingly) in
women as often as in men.
ANS: T PTS: 1 REF: p. 5
4. Entrepreneurial ventures are not responsible for significant job creation.
ANS: F PTS: 1 REF: p. 10
5. Entrepreneurial ventures and small businesses are related, but they are not the same in most respects.
ANS: T PTS: 1 REF: p. 11
6. The vital issue for entrepreneurs is not avoiding failure but minimizing the cost of a possible failure.
ANS: T PTS: 1 REF: p. 15
7. The term entrepreneur has been in popular use for more than 100 years.
ANS: F PTS: 1 REF: p. 15
8. Economic turmoil has a plus side because it produces opportunities for entrepreneurs who are
comfortable with environmental factors outside their control.
ANS: T PTS: 1 REF: p. 16
9. Entrepreneurial ventures are responsible for job creation that is disproportionate to the net total new
jobs created in the U.S. over the past 25 years.
ANS: T PTS: 1 REF: p. 10
10. The time prior to a firm's birth is called the fuzzy front end.
ANS: T PTS: 1 REF: p. 12
MULTIPLE CHOICE
1. As entrepreneurial firms achieve noticeable levels of success and a new industry grows, it generally
becomes more ____ as a result of so many firms competing for position.
, a. stable
b. unstable
c. consolidated
d. fragmented
e. None of these choices
ANS: D PTS: 1 REF: p. 9
2. ____ entrepreneurship is characteristic of small lifestyle businesses.
a. Replicative
b. Innovative
c. Local
d. Fragmented
e. None of these choices
ANS: A PTS: 1 REF: p. 11
3. The ____ has been called the Decade of Entrepreneurship.
a. 1950s
b. 1960s
c. 1970s
d. 1980s
e. 1990s
ANS: D PTS: 1 REF: p.7
4. Women now comprise ____ of all entrepreneurial activity globally.
a. one-quarter
b. one-third
c. one-half
d. the majority
e. the highest levels
ANS: B PTS: 1 REF: p. 20
5. Entrepreneurs are taking advantage of several subtrends within the ____ sector, including eco-iconic
marketing.
a. international
b. technology
c. green power
d. educational
e. women's
ANS: C PTS: 1 REF: p. 20
6. Twitter has been the leader in facilitating a new trend known as ____.
a. social marketing
b. social mingling
c. mass networking
d. mass mingling
e. None of these choices
ANS: D PTS: 1 REF: p. 21
7. The late 1990s brought the "dot com" bubble and the rush of the ____ community to position itself for
what appeared to be a new way of doing business.
, a. venture capital
b. technology
c. knowledge
d. educational
e. global
ANS: A PTS: 1 REF: p. 18
8. Entrepreneurship provides many benefits to society, chiefly ____, new industry formation, and ____.
a. new technologies / new markets
b. economic growth / job creation
c. job creation / diversity
d. economic growth / new technologies
e. globalization / new markets
ANS: B PTS: 1 REF: p. 7
9. The ____ school of thought proposes an integrated input/output model to describe the entrepreneurial
process.
a. Morris, Lewis, and Sexton
b. Ronstadt
c. Gartner
d. Rogers
e. None of these choices
ANS: A PTS: 1 REF: p. 5
10. Gartner's conceptual framework for the new venture creation process focuses on three major categories
of variables: the individual entrepreneur and what he or she brings to the process; the ____; and the
____.
a. market / technology
b. input / output
c. environment / organization
d. career / environment
e. technology / industry
ANS: C PTS: 1 REF: p. 5
11. Early economists recognized that ____ is the primary force behind rising standards of living and that
____ innovation would determine the success of many nations in the future.
a. technology / technological
b. labor / growth
c. manufacturing / distribution
d. industry formation / job
e. economic growth / invention
ANS: A PTS: 1 REF: p. 7
12. Technological change has facilitated ____ and a new form of creative destruction by moving ____ out
of the Unites States to countries where labor costs are substantially less.
a. innovation / platform technologies
b. globalization / lower-skilled jobs
c. input models / resources
d. fluid groups / higher-skilled jobs
e. None of these choices
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