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Test bank for Entrepreneurship,1st Canadian Edition by Bygrave, Zacharakis, and Wise
Chapter 1: The Power of Entrepreneurship
True/False Statements
- In general, established businesses with less than 500 employees are considered SMEs or “small
and medium-sized enterprises.”
Answer: True
Learning Objective: 1.1 Describe entrepreneurship and small business in Canada
Section Reference: Entrepreneurship and Small Business in Canada
- A majority of small business owners feel their companies have increased their overall standard of
living.
Answer: False
Learning Objective: 1.1 Describe entrepreneurship and small business in Canada
Section Reference: Entrepreneurship and Small Business in Canada
- In 2014, the two sectors dominating the S&P/TSX 60 Index Fund were the energy and financial
sectors.
Answer: True
Learning Objective: 1.1 Describe entrepreneurship and small business in Canada
Section Reference: Entrepreneurship and Small Business in Canada
- Venture Capital is a source of growth funding exclusively for technology companies with the
potential for rapid, scalable growth.
Answer: False
Learning Objective: 1.1 Describe entrepreneurship and small business in Canada
Section Reference: Entrepreneurship and Small Business in Canada
- Historically, annual returns for venture capitalists have averaged 143% over the past several
decades.
Answer: False
Learning Objective: 1.1 Describe entrepreneurship and small business in Canada
Section Reference: Entrepreneurship and Small Business in Canada
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Test bank for Entrepreneurship, Canadian Edition by Bygrave, Zacharakis, and Wise
- The boom and bust cycle of the dot-com era is similar to other periods of commercial innovation
Answer: True
Learning Objective: 1.1 Describe entrepreneurship and small business in Canada
Section Reference: Entrepreneurship and Small Business in Canada
- Yahoo! Inc.’s IPO set the all-time record, in terms of capital raised, for Silicon Valley companies.
Answer: False
Learning Objective: 1.1 Describe entrepreneurship and small business in Canada
Section Reference: Entrepreneurship and Small Business in Canada
- Entrepreneurship did not grow very much after the Great Depression, until it began increasing in
the 1970’s.
Answer: True
Learning Objective: 1.2 Outline the causes of the entrepreneurial revolution
Section Reference: Causes of the Entrepreneurial Revolution
- Baby boomers are not as concerned about job security as were their parents.
Answer: True
Learning Objective: 1.2 Outline the causes of the entrepreneurial revolution
Section Reference: Causes of the Entrepreneurial Revolution
- The Fortune 500 employed 15 percent of the workforce in 2005.
Answer: False
Learning Objective: 1.2 Outline the causes of the entrepreneurial revolution
Section Reference: Causes of the Entrepreneurial Revolution
- There was a burst of venture capital backed startups in the last half of the 1960s.
Answer: True
Learning Objective: 1.2 Outline the causes of the entrepreneurial revolution
Section Reference: Causes of the Entrepreneurial Revolution
- It is estimated that angel investors invest between $500 million and $1-billion annually in
Canada’s growth-oriented companies
Answer: True 2 / 4
Test bank for Entrepreneurship, Canadian Edition by Bygrave, Zacharakis, and Wise
Learning Objective: 1.2 Outline the causes of the entrepreneurial revolution
Section Reference: Causes of the Entrepreneurial Revolution
- The Canadian Business Youth Foundation has invested in more than 10,000 young Canadian
entrepreneurs.(False)
Answer:
Learning Objective: 1.2 Outline the causes of the entrepreneurial revolution
Section Reference: Causes of the Entrepreneurial Revolution
- Virtual companies are so called because they outsource much of their work.
Answer: True
Learning Objective: 1.2 Outline the causes of the entrepreneurial revolution
Section Reference: Causes of the Entrepreneurial Revolution
- In 2005, North American incubators assisted more than 350,000 startup companies
Answer: False
Learning Objective: 1.2 Outline the causes of the entrepreneurial revolution
Section Reference: Causes of the Entrepreneurial Revolution
- The professionalization of the entrepreneurial process, which has developed over the last 20
years, has almost eliminated the need for young entrepreneurs to write business plans themselves.
Answer: False
Learning Objective: 1.2 Outline the causes of the entrepreneurial revolution
Section Reference: Causes of the Entrepreneurial Revolution
- Five percent of American adults report they “invested” in someone else’s venture in the last
three years.
Answer: True
Learning Objective: 1.2 Outline the causes of the entrepreneurial revolution
Section Reference: Causes of the Entrepreneurial Revolution
- Churning is a main component of a healthy economy.
Answer: True
Learning Objective: 1.2 Outline the causes of the entrepreneurial revolution
Section Reference: Causes of the Entrepreneurial Revolution 3 / 4
Test bank for Entrepreneurship, Canadian Edition by Bygrave, Zacharakis, and Wise
- The Global Entrepreneurship Monitor (GEM) is an organization created to gather information
about the most successful start-ups for potential investors
Answer: False
Learning Objective: 1.3 Describe what the Global Entrepreneurship Monitor (GEM) is and outline the principal findings from GEM
Section Reference: Global Entrepreneurship Monitor (GEM)
- Baby business managers are owners-managers who are actively trying to start a new business
but who have not yet done so.
Answer: False
Learning Objective: 1.3 Describe what the Global Entrepreneurship Monitor (GEM) is and outline the principal findings from GEM
Section Reference: Global Entrepreneurship Monitor (GEM)
- The Total Entrepreneurial Activity (TEA) index tracks the percent of the adult population that is
trying to start or has started an infant business because all other options for work are either absent or unsatisfactory.
Answer: False
Learning Objective: 1.3 Describe what the Global Entrepreneurship Monitor (GEM) is and outline the principal findings from GEM
Section Reference: Global Entrepreneurship Monitor (GEM)
- Japan is among the leading countries, in terms of entrepreneurial activity.
Answer: False
Learning Objective: 1.4 Compare the Anglo-Saxon economic system and the social model Section Reference: Twenty-First-Century Economies: AngloSaxon or Social Models?
- Thirty year old people fall into the most entrepreneurially active age demographic.
Answer: True
Learning Objective: 1.4 Compare the Anglo-Saxon economic system and the social model Section Reference: Twenty-First-Century Economies: AngloSaxon or Social Models?
- In general, the number of female entrepreneurs is 2/3rds the number of male entrepreneurs.
Answer: True
Learning Objective: 1.4 Compare the Anglo-Saxon economic system and the social model Section Reference: Twenty-First-Century Economies: AngloSaxon or Social Models?
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