True / False
1. It is estimated that more than one million new businesses are started in the United States each year.
a.
True
b.
False
ANSWER:
True
2. Reasonable estimates place nonemployer (e.g., single person or small family) businesses started each year at less than 100,000.
a.
True
b.
False
ANSWER:
False
3. The entrepreneurial process involves: developing opportunities, gathering resources, and managing and building operations, all with the goal of creating value.
a.
True
b.
False
ANSWER:
True
4. A market-oriented economic system provides an environment that fosters the formation, development, and transformation of ideas into useful products and services.
a.
True
b.
False
ANSWER:
True
5. Capitalism is a market-oriented system that prohibits private ownership of physical and financial assets.
a.
True
b.
False
ANSWER:
False
6. Democratic capitalism exists where a country or state organized as a democracy adopts a capitalistic economic system.
a.
True
b.
False
ANSWER:
True
7. Entrepreneurs provide the financing to individuals who think, reason, and act to convert ideas into commercial opportunities and create opportunities.
a.
True
b.
False
ANSWER:
False
8. Entrepreneurship is the process of changing ideas into commercial opportunities and creating value.
a.
True
b.
False
ANSWER:
True
9. An entrepreneur is an individual who thinks, reasons, and acts to convert ideas into commercial opportunities and to create value.
a.
True
b.
False
ANSWER:
True
10. Mark Twain once said, “I was always able to see an opportunity before it became one.”
a.
True
b.
False
ANSWER:
False
11. Around two-thirds of new employers survive at least two years, and only about one-half survive for at least five years.
a.
True
b.
False
ANSWER:
True
12. A study of the U.S. Census Bureau's Characteristics of Business Owners database suggests that about two-thirds of closed businesses were successful at closure.
a.
True
b.
False
ANSWER:
False
13. Nearly half of business failures are due to economic factors such as inadequate sales, insufficient profits, and industry weakness.
a.
True
b.
False
ANSWER:
True
14. Financial causes, such as excessive debt and insufficient financial capital, are not major contributors to business failures.
a.
True
b.
False
ANSWER:
False
15. Although the risks associated with starting a new entrepreneurial venture are large, there is always room for one more success.
a.
True
b.
False
ANSWER:
True
16. Fads are large societal, demographic, or technological trends or changes that are slow in forming but, once in place, continue for many years.
a.
True
b.
False
ANSWER:
False
17. Fads are not predictable, have short lives, and do not involve macro changes.
a.
True
b.
False
1. It is estimated that more than one million new businesses are started in the United States each year.
a.
True
b.
False
ANSWER:
True
2. Reasonable estimates place nonemployer (e.g., single person or small family) businesses started each year at less than 100,000.
a.
True
b.
False
ANSWER:
False
3. The entrepreneurial process involves: developing opportunities, gathering resources, and managing and building operations, all with the goal of creating value.
a.
True
b.
False
ANSWER:
True
4. A market-oriented economic system provides an environment that fosters the formation, development, and transformation of ideas into useful products and services.
a.
True
b.
False
ANSWER:
True
5. Capitalism is a market-oriented system that prohibits private ownership of physical and financial assets.
a.
True
b.
False
ANSWER:
False
6. Democratic capitalism exists where a country or state organized as a democracy adopts a capitalistic economic system.
a.
True
b.
False
ANSWER:
True
7. Entrepreneurs provide the financing to individuals who think, reason, and act to convert ideas into commercial opportunities and create opportunities.
a.
True
b.
False
ANSWER:
False
8. Entrepreneurship is the process of changing ideas into commercial opportunities and creating value.
a.
True
b.
False
ANSWER:
True
9. An entrepreneur is an individual who thinks, reasons, and acts to convert ideas into commercial opportunities and to create value.
a.
True
b.
False
ANSWER:
True
10. Mark Twain once said, “I was always able to see an opportunity before it became one.”
a.
True
b.
False
ANSWER:
False
11. Around two-thirds of new employers survive at least two years, and only about one-half survive for at least five years.
a.
True
b.
False
ANSWER:
True
12. A study of the U.S. Census Bureau's Characteristics of Business Owners database suggests that about two-thirds of closed businesses were successful at closure.
a.
True
b.
False
ANSWER:
False
13. Nearly half of business failures are due to economic factors such as inadequate sales, insufficient profits, and industry weakness.
a.
True
b.
False
ANSWER:
True
14. Financial causes, such as excessive debt and insufficient financial capital, are not major contributors to business failures.
a.
True
b.
False
ANSWER:
False
15. Although the risks associated with starting a new entrepreneurial venture are large, there is always room for one more success.
a.
True
b.
False
ANSWER:
True
16. Fads are large societal, demographic, or technological trends or changes that are slow in forming but, once in place, continue for many years.
a.
True
b.
False
ANSWER:
False
17. Fads are not predictable, have short lives, and do not involve macro changes.
a.
True
b.
False