54. Business angels are wealthy individuals, operating as informal or private investors, who provide venture financing for small businesses.
a.
True
b.
False
ANSWER:
True
55. Mezzanine financing is temporary financing needed to keep the venture afloat until the next offering.
a.
True
b.
False
ANSWER:
False
56. A venture, if organized as a corporation, may desire to provide venture investor liquidity by establishing a public market for its equity.
a.
True
b.
False
ANSWER:
True
57. An initial public offering provides a venture with a source of bridge financing.
a.
True
b.
False
ANSWER:
False
Multiple Choice
58. The entrepreneurial process involves:
a.
developing opportunities
b.
gathering resources
c.
managing and building operations
d.
developing opportunities, gathering resources, and managing and building operations
ANSWER:
d
59. The goal of the entrepreneurial process is to:
a.
develop opportunities
b.
gather resources
c.
manage and build operations
d.
create value
ANSWER:
d
60. Which of the following countries engage in democratic capitalism?
a.
United States
b.
United States, France, and Germany
c.
France and Germany
d.
United States and France
ANSWER:
b
61. Successful entrepreneurs do not exhibit which of the following traits?
a.
recognize and seize commercial opportunities
b.
tend to be doggedly optimistic
c.
express conditional optimism
d.
are pessimistic about the future
ANSWER:
d
62. Which of the following individuals once said, “I was seldom able to see an opportunity, until it ceased to be one.”
a.
Mark Twain
b.
Bill Gates
c.
Steve Jobs
d.
Jeff Bezos
ANSWER:
a
63. About what percent of all new employers in the United States survive for at least two years?
a.
one-fifth
b.
one-third
c.
one-half
d.
two-thirds
ANSWER:
d
64. About one-half of all new employers in the United States survive for at least how many years after being started?
a.
two years
b.
three years
c.
five years
d.
eight years
ANSWER:
c
65. Which of the following is not considered to be a megatrend in this textbook?
a.
societal, demographic, and technological changes
b.
crises and "bubbles"
c.
fads
d.
emerging economies and global changes
ANSWER:
c
66. Fads:
a.
are not predictable
b.
have short lives
c.
do not involve macro changes
d.
are not predictable, have short lives, and do not involve macro changes
ANSWER:
d
67. Which of the following are sources of entrepreneurial opportunities?
a.
societal, demographic, and technological trends
b.
crises and "bubbles"