Title: The Role of Entrepreneurs
Course: Demo 1

Q: Small businesses:
- generate about 50% of the nation’s GDP
- spark innovation
- have little impact on the U.S. economy
A: generate about 50% of the nation’s GDP; spark innovation

Q: According to the Small Business Administration, a small business is one that:
- has less than 500 employees
- is independently owned and operated
- exerts a large influence in its industry
A: has less than 500 employees; is independently owned and operated

Q: Entrepreneurs who have created technology, new industries and jobs while changing the way business operates today include:
- Henry Ford
- Sergey Brin
- Maria Contreras-Sweet
A: Henry Ford; Sergey Brin

Q: Why are small businesses so innovative?
- compensation structures typically reward top performers
- environment appeals to individuals with the talent to invent new products or improve the way things are done
- research programs tend to be unfocused
A: compensation structures typically reward top performers; environment appeals to individuals with the talent to invent new products or improve the way things are done

Q: ABC Inc. company, founded by three women who met in college, has recruited talented people since its inception. It now employs approximately 350 people. Once a month a meeting is held where anyone can present new ideas to management. Coming out of these meetings, presenters have 30 days to work on a proof of concept or prototype, after which management makes a decision to pursue an idea company-wide or drop it. If an idea is selected, the individual(s) who presented the ideas receive a cash bonus. Based on this information, what kind of company is ABC Inc.?
- small business
- entrepreneurial
- traditional
A: small business; entrepreneurial

Q: A large firm is finding that it is having a hard time keeping up with demand because of its rapid growth. The firm decides that hiring a small firm to handle its accounting activities makes the most financial sense. This is called:
- insourcing
- in housing
- outsourcing
A: outsourcing