Multiple Choice Quiz


1	According to some economists entrepreneurship is the fourth primary economic factor of production. Why is this?
		A)	Entrepreneurship combines the other three factors in order to satisfy human needs
		B)	Like the other three, entrepreneurship is an important economic resource
		C)	Entrepreneurship brings about change.


2	Whickham (1998) has suggested a hierarchy of entrepreneurial activities, where does the conventional concept of entrepreneurship lie on this hierarchy?
		A)	Top
		B)	Bottom
		C)	Middle


3	Which is not one of the 5 main functions of entrepreneurship from a business studies perspective?
		A)	Innovation and change
		B)	New Venture Creation
		C)	Business Growth
		D)	Job Generation
		E)	Regional Development
		F)	Enrichment of Life


4	In an era of very rapid change, what are likely to be the main thought processes driving societal development?
		A)	Reasoning and Logic
		B)	Emotion, Intuition and Instinct


5	According to Handy (1990), contemporary change is "more of the same only better". Is this
		A)	True?
		B)	False?


6	Gazelles – new ventures that grow rapidly and are based on significant innovation – are essential to the growth of the modern economy. Approximately how many of the new ventures created in the U.S.A. between 1984 and 1987 were "gazelles"?
		A)	80 per cent
		B)	20 per cent
		C)	10 per cent
		D)	5 per cent


7	Which of the following statements is not correct? In the 1980s and 1990s, small entrepreneurial firms in the U.S.A were responsible for
		A)	half of all innovation post-World War II
		B)	95 per cent of all radical innovation
		C)	four times as many innovations per R & D dollar spent than the larger firms
		D)	24 times as many innovations per R & D dollar than "megafirms" with more than 10,000 employees.


8	"Sunrise" industries are those found in
		A)	the East of a country
		B)	the high technology sectors of an economy
		C)	science parks and universities


9	According to Westhead and Storey (1994) the key factor affecting the success of technological new ventures is
		A)	The Educational attainment of the founder?
		B)	The supportiveness of the environment?
		C)	The availability of funding?


10	What are the probable root causes of the failure of new ventures
		A)	Lack of financial control?
		B)	Inappropriate location?
		C)	Managerial incompetence and lack of experience?
		D)	Lack of inventory control?
		E)	Inability to make the entrepreneurial transition?


11	Where are the lowest rates of new firm formation?
		A)	in the oldest, most specialised industrial regions
		B)	around the largest and most diversified city regions
		C)	in rural areas.


12	It is generally held that the relationship between new firm formation and the level of unemployment is
		A)	positive ( unemployment decreases with the creation on new firms?
		B)	negative (unemployment increases with the creation of new firms)?

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