Heinrich Muller and Heinrich Schreyer founded the company Schreyer & Co in 1912, however, in 1921 it registered, the now internationally famous trademark of Schuco, an abbreviation of the company's name. Schuco produced a wide variety of mechanical and novelty bears, which were popular adult toys throughout the 1920's and 1930's.

The Yes/No Bear was just one of a range of novelty bears that Schuco introduced in the 1920's. The most profitable of the early Schuco lines was the miniature range. Originally the miniatures were intended to be given away free as a marketing ploy, but quickly became one of the company's leading lines.