Quiz 1- Entrepreneurship

Question 1

High Growth Firm

Answer 1

A firm whose business generates significant positive cash flows or earnings which increases faster than the overall economy.

Question 2

Gazelle

Answer 2

Company with an annual growth rate of 20% or more (sales revenue)

Question 3

Entrepreneurship revolution

Answer 3

Chevron, Goodyear, Sears and Union Carbide were replaced by Intel, Microsoft, Home Depot and SBC on the Dow Jones Industrial Average. Intel and Microsoft first 2 companies from this list to be traded on NASDAQ.

Question 4

GEM Model of economic growth

Answer 4

National economic growth is function of two sets of interrelated activities: those associated with established firms and those related to the entrepreneurial process.

Question 5

Entrepreneurial framework conditions

Answer 5

availability of finance, government policies, programs designed to support startups, R&D transfer, physical and human infrastructure, education, cultural & social norms and internal market openness.

Question 6

Main objectives of GEM

Answer 6

To gather data that measure the entrepreneurial activity of nations; to examine what national characteristics are related to levels of entrepreneurial activity; and to explain how differences in entrepreneurial activity are related to different levels of economic growth among nations.

Question 7

Nascent entrepreneurs

Answer 7

Individuals who are actively trying to start a new business but who have not yet done so

Question 8

Baby business managers

Answer 8

Owner-managers of a new business that is no more than 42 months old

Question 9

TEA (total entrepreneurial activity)

Answer 9

The percentage of the adult population that is either nascent entrepreneurs or baby business managers or both. Measures overall entrepreneurial activity of a nation. The relationship between TEA and GDP is typically negative.

Question 10

TEA (opportunity)

Answer 10

The percentage of the adult population that is trying to start or has started a baby business to exploit perceived opportunity.

Question 11

TEA (necessity)

Answer 11

The percentage of the adult population that is trying to start or has started a baby business because all other options for work are absent/unsatsifactory.

Question 12

Entrepreneur

Answer 12

Person who perceives an opportunity and creates an organization to pursue it. Creative Destruction.