Question 1

Identify the three types of start-up firms, and discuss how they differ. Provide examples of each type of firm.

Accepted Answer

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Question 2

Over the past 10 years, the demographic makeup of entrepreneurial firms has remained fairly stable in the United States and around the world.

Accepted Answer

According to a report by Global Entrepreneurship Monitor (GEM), there has been an increase in the diversity of entrepreneurship by age, gender, and education level in many countries over the past decade. Additionally, there has been a rise in entrepreneurship among minority groups, such as immigrants and people of color, in the US. Therefore, the demographic makeup of entrepreneurial firms has not remained stable over the past 10 years.

Question 3

In the past two decades, economic activity has moved increasingly in the direction of large firms, rather than smaller entrepreneurial firms.

Accepted Answer

While large firms have grown, there has also been a significant rise in entrepreneurial activity and small businesses, driven by technology and innovation.

Question 4

A business model is a written document that describes all the aspects of a business venture in a concise manner.

Accepted Answer

A business model outlines how a company creates, delivers, and captures value, but it is not necessarily a written document. A business plan, on the other hand, is a detailed written document that describes all aspects of a business venture.

Question 5

Unfortunately, statistics show that there is very little interest in entrepreneurship among high school students in the United States.

Accepted Answer

Recent studies and surveys indicate a growing interest in entrepreneurship among high school students in the United States, with many schools offering programs and resources to support this interest.

Question 6

In terms of the "types" of startup firms, entrepreneurial firms are firms that provide their owner or owners the opportunity to pursue a particular lifestyle, and make a living at it.

Accepted Answer

Entrepreneurial firms are typically focused on innovation, growth, and scaling, whereas lifestyle firms are designed to support the owner's personal lifestyle and are not primarily focused on growth.

Question 7

Identify and discuss the three primary reasons that entrepreneurial behavior has a strong impact on the United States economy.

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Question 8

Describe the four main characteristics of successful entrepreneurs.

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Question 9

The entrepreneurial process consists of four steps: deciding to become an entrepreneur, developing successful business ideas, moving from an idea to an entrepreneurial firm, and managing and growing the entrepreneurial firm.

Accepted Answer

This statement accurately describes the four steps of the entrepreneurial process.

Question 10

There is strong evidence to suggest that the number of older people choosing entrepreneurial careers is increasing rapidly.

Accepted Answer

Studies have shown that the number of entrepreneurs over the age of 50 has been steadily increasing in recent years. Many older people see entrepreneurship as a way to continue working and remain active in their later years, and are often motivated by a desire to pursue a passion or solve a societal problem.

Question 11

Joseph Schumpeter argued that entrepreneurs develop new products and technologies that over time make current products and technologies obsolete, and this process, which he called creative destruction, is good because it stimulates economic activity.

Accepted Answer

Schumpeter believed that the process of creative destruction, whereby new innovations replace old ones, is beneficial for economic growth as it encourages entrepreneurs to continuously innovate and develop new products and technologies. This leads to increased competition, productivity, and economic activity.

Question 12

The most active age range for business ownership is 35 to 45 years old.

Accepted Answer

According to research studies and statistical analyses, 35 to 45 years old is the most active age range among entrepreneurs and business owners. This age group typically has enough experience, skills, and network connections to start and grow a business successfully. They are also less likely to have family and financial obligations that could hinder their commitment to their venture. However, this does not mean that people outside this age bracket cannot become successful entrepreneurs as age is just a number, and success in business depends on various factors.

Question 13

Innovation is the process of creating something new, which is central to the entrepreneurial process.

Accepted Answer

Innovation is indeed the process of creating something new and it is a key component of entrepreneurship.

Question 14

What is entrepreneurship? What is the essence of entrepreneurial behavior?

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Question 15

Describe the three primary reasons that people become entrepreneurs and start their own firms.

Accepted Answer

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Quiz 1: Introduction to Entrepreneurship