Question

According to the textbook, studies show that more than one individual starts ________ percent of all new firms.

a) 5 to 15
b) 30 to 40
c) 75 to 90
d) 50 to 70
e) 20 to 25

Answer 1

Studies suggest that 75 to 90 percent of all new firms are started by more than one individual, emphasizing the importance of collaborative entrepreneurship within smaller scale enterprises in the U.S. economy.

Step-by-step explanation:

According to the textbook, studies show that more than one individual starts 75 to 90 percent of all new firms. When considering the private enterprise system in the U.S., it's important to note that small businesses, including those classified as “non-employer” firms, are a substantial part of the economy. These are firms where a single owner or a few partners are not officially paid wages or a salary but earn income based on the business's profits. The given data does not directly specify the percentage connected to new firm formation; however, the significant role of smaller firms in the U.S. economy suggests a trend towards collaborative entrepreneurship within this context.