True / False
1. Entrepreneurship is a personal journey that begins in the mind of the nascent entrepreneur.
a.
True
b.
False
True
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2. Research has enabled us to identify the characteristics of the typical entrepreneur. .
a.
True
b.
False
3. The chances of success for a new business startup are determined primarily by the size of the initial financial
investment.
a.
True
b.
False
4. In an entrepreneurial endeavor, risk is correlated with reward; that is, the greater the risk taken, the greater the reward
expected.
a.
True
b.
False
5. Research has determined that effective and efficient business planning correlates with business success.
a.
True
b.
False
6. Entrepreneurship is for those under 30, not for older persons.
a.
True
b.
False
7. The most important element for success is abundant start-up capital.
a.
True
b.
False
8. Today many enterprising people are turning to nonprofit ventures to realize their entrepreneurial dreams.
a.
True
b.
False
True
1
2.2 Paths to Entrepreneurship
9. Home-based businesses do not qualify as “entrepreneurship.”
a.
True
b.
False
False
1
2.2 Paths to Entrepreneurship
10. One of the biggest problems that scientists and engineers face when they decide to consider entrepreneurship is the
expectation that there should be formulas and straightforward “right or wrong” answers.
a.
True
b.
False
True
1
2.3 The Challenges and Opportunities of Entrepreneurship
Multiple Choice
11. All of entrepreneurship can be reduced to:
a.
wealth
b.
independence
c.
growth
d.
people
e.
partnership
d
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Preparing for the Entrepreneurial Journey, Intro
12. What’s more important than start-up capital is:
a.
size of the team
b.
size of the market
c.
amount of startup capital
d.
the amount of all resources
e.
desire for independence
13. Most of the great businesses that have been successful for at least 50 years (companies such as Walt Disney, Sony,
and Merck) did not start with a/an:
a.
lot of money
b.
need for independence
c.
great idea
d.
great team
e.
original idea
14. The goal of most entrepreneurs is to reduce the level of ____ in any venture.
a.
investment
b.
independence
c.
planning
d.
risk
e.
resources
15. In general, venture capitalists say that they will take a ____ and a large market opportunity in a fast-growing area over
a great idea any day
a.
big risk
b.
strong business plan
c.
passionate entrepreneur
d.
strong leader
e.
great team
16. The Kauffman Index of Entrepreneurial Activity from 1996-2011 found that men and women in the ____ age bracket
were responsible for more than 20% of all the entrepreneurial activity in the United States.
a.
25–45
b.
25–55
c.
18–43
d.
55–64
e.
65–98
17. Peter Drucker asserted, “The entrepreneurial mystique, it’s not magic, it’s not mysterious, and it has nothing to do with
the genes. It is ____.”
a.
having enough money
b.
a great idea
c.
a great network
d.
discipline
e.
the need for independence
18. In the United States, ____ entrepreneurship is most prevalent.
a.
opportunity-driven
b.
efficiency-driven
c.
factor-driven
d.
necessity-driven
e.
passion-driven
d
1
2.2 Paths to Entrepreneurship
19. ____ comprise over fifty percent of all small businesses in the United States.
a.
Startups
b.
Home-based businesses
c.
Nonprofit businesses
d.
Serial entrepreneurs
e.
Corporate entrepreneurs
b
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2.2 Paths to Entrepreneurship
20. An entrepreneur who owns a minority or majority stake in several ventures is called a ____ entrepreneur.
a.
portfolio
b.
traditional
c.
serial
d.
nonprofit
e.
None of these choices
a
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2.2 Paths to Entrepreneurship
21. An entrepreneur who starts one business and then moves on to start another is classified as a ____ entrepreneur.
a.
portfolio
b.
traditional
c.
serial
d.
nonprofit
e.
None of these choices
c
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2.2 Paths to Entrepreneurship
22. An entrepreneur may form a nonprofit venture for achieving goals associated with:
a.
Education
b.
Religion
c.
Charitable
d.
Any or all of these choices.
e.
None of these choices.
d
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2.2 Paths to Entrepreneurship
23. Robert Chambers used the ____ organizational structure as a vehicle to help low-income people make better
purchasing decisions when it came to cars.
a.
new venture
b.
socially responsible
c.
startup
d.
corporate
e.
nonprofit
e
1
2.2 Paths to Entrepreneurship
24. Entrepreneurial-like ventures inside large companies may be formed using:
a.
Opportunistic models
b.
Enabler models
c.
Advocate models
d.
Producer models
e.
All of these choices.
d
1
2.2 Paths to Entrepreneurship
25. As relevant in corporate entrepreneurships as in independent ones are:
a.
Recognizing opportunities
b.
Conducting feasibility analyses
c.
Developing execution plans
d.
All of these choices
e.
None of these choices
d
1
26. A very helpful exchange of information and resources can be gained from groups or organizations who form a:
a.
network
b.
mentor
c.
self-starter
d.
leader
e.
All of these choices
a
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2.4 Preparing to Become an Entrepreneur
27. Because entrepreneurs operate in a world of uncertainty, they need to learn to:
a.
Analyze a situation
b.
Extract the important information
c.
Ignore the superfluous information
d.
Compare potential outcomes
e.
All of these choices
e
1
2.4 Preparing to Become an Entrepreneur
28. ____ is the exchange of information and resources among individuals, groups, or organizations whose common goals
are to mutually benefit and create value for the members.
a.
Business planning
b.
Marketing
c.
Mentoring
d.
Networking
e.
None of these choices
d
1
2.4 Preparing to Become an Entrepreneur
29. The ____ in a professional network are the entrepreneur’s acquaintances and business contacts.
a.
strong ties
b.
weak ties
c.
work ties
d.
partners
e.
mentors
b
1
2.4 Preparing to Become an Entrepreneur
30. Entrepreneurs rely on their ____ for objective advice because they are not biased by a prior history with the
entrepreneur.
a.
strong ties
b.
weak ties
c.
work ties
d.
partners
e.
mentors
b
1
2.4 Preparing to Become an Entrepreneur
31. ____ serve as gateways to other networks, exerting influence between groups or networks rather than within groups.
a.
Network brokers
b.
Angel investors
c.
Gateways
d.
Opinion leaders
e.
All of these choices
a
1
2.4 Preparing to Become an Entrepreneur
32. Which of the following is not a barrier to becoming self-employed?
a.
Lack of confidence
b.
Financial needs
c.
Family issues
d.
Time constraints
e.
Lack of training
e
1
2.4 Preparing to Become an Entrepreneur
33. ____ is a critical part of the everyday life of an entrepreneur and is a skill that must be developed and exercised
carefully.
a.
Making effective decisions
b.
Paying attention to details
c.
Comparing potential outcomes
d.
Critical thinking
e.
Being a micromanager
a
1
2.4 Preparing to Become an Entrepreneur
34. ____ facilitates a new venture’s identity and legitimacy as well as creates a competitive advantage that is difficult to
replicate.
a.
Networking
b.
Decision making
c.
Storytelling
d.
Critical thinking
e.
Micromanaging
c
1
2.4 Preparing to Become an Entrepreneur
35. When all is said and done, business is about:
a.
Critical skills
b.
Research
c.
relationships
d.
Management skills
e.
All of these choices
1
2.4 Preparing to Become an Entrepreneur
36. Entrepreneurial leaders have a distinct advantage over ____ leaders because they see themselves as part of a team.
a.
heroic
b.
charismatic
c.
visionary
d.
both “heroic” and “charismatic”
e.
both “charismatic” and “visionary”
d
1
2.4 Preparing to Become an Entrepreneur
37. One of the best ways to discover an opportunity is to study a/an ____ in depth.
a.
company
b.
product
c.
industry
d.
leader
e.
None of these choices
c
1
2.4 Preparing to Become an Entrepreneur
38. Essential to creating an opportunity in a complex world, entrepreneurs must embrace:
a.
Networking
b.
Research
c.
Uncertainty
d.
Decision-making
e.
strategic alliances / acquisition
c
1
2.4 Preparing to Become an Entrepreneur
39. An entrepreneur’s ____ are the foundation for the business and are always reflected in the business and in the way
customers are treated.
a.
ideas
b.
networks
c.
core values
d.
resources
e.
relationships
c
1
2.4 Preparing to Become an Entrepreneur
40. A/An ____ is a group of companies that are engaged in similar or related activities.
a.
network
b.
industry
c.
foreign market
d.
both “network” and “industry”
e.
None of these choices
b
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2.4 Preparing to Become an Entrepreneur
Subjective Short Answer
41. Why have myths developed about entrepreneurs?
develop as people try to understand the “art” of entrepreneurship.
1
2.1 Saying Goodbye to Stereotypes
42. Discuss the home-based entrepreneur.
appropriate business expenses.
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2.1 Saying Goodbye to Stereotypes
43. What is required for an entrepreneurial mindset to succeed inside a large corporation?
defined stages and metrics, a superior team, and a spirit of entrepreneurship.
1
2.2 Paths to Entrepreneurship
44. Discuss some of the challenges in following the entrepreneur career path.
isolation; and raising capital and other resources.
1
45. What are the steps to increasing success as an entrepreneur?
46. What are some sources of business knowledge for entrepreneurs? Which is the most important?
47. How can an entrepreneur efficiently build a large, but meaningful network?
48. In what ways do entrepreneurial leaders have an advantage over heroic leaders?
49. Discuss the importance of making effective decisions.
50. Why should someone who is considering starting a business be concerned about her or his health?