The Journal of Business Venturing Reported on the Activities of Entrepreneurs

question 6

Multiple Choice

The Journal of Business Venturing reported on the activities of entrepreneurs during the organization creation process. As part of a designed study, a total of 71 entrepreneurs were interviewed and divided into 3 groups: those that were successful in founding a new firm (n₁ = 34) , those still actively trying to establish a firm (n₂ = 21) , and those who tried to start a new firm but eventually gave up (n₃ = 16) . The total number of activities undertaken (e.g., developed a business plan, sought funding, looked for facilities) by each group over a specified time period during organization creation was measured. The objective was to compare the mean number of activities of the 3 groups of entrepreneurs. Because of concerns over necessary assumption of the parametric analysis, it was decided to use a nonparametric analysis. Identify the nonparametric method that would be used to analyze the data.

• A) Wilcoxon rank sum test
• B) McNemar Test
• C) Kruskal-Wallis rank test
• D) One-way ANOVA F test

Describe the special-interest effect and its consequences on government policy and economic outcomes.

Recognize the role of government in correcting market failures and enhancing economic efficiency through public goods and externalities management.

Explain the phenomena of government failure and the conditions that lead to economically inefficient outcomes.

Identify rent-seeking behavior and its impact on economic efficiency and resource allocation.