Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
51. Individuals who have set up a business they will own or co-own, which is less than
three months old, and has not yet generated wages or salaries for the owners are
known as ______.
a. potential entrepreneurs
b. Prospective entrepreneurs
c. new business owners
d. nascent entrepreneurs
52. Individuals who have been actively involved in a business for over three months but
less than three and a half years are known as______
a. Potential entrepreneurs
b. Nascent entrepreneurs
c. New business owners
d. Established business owners
53. Individuals who are still active in business for over three and a half years are known
as_____
a. Potential entrepreneurs
b. Nascent entrepreneurs
c. New business owners
d. Established business owners
54. Individuals who have had their business for less than three months are referred to
as ________.
A. Established business owners
B. Nascent entrepreneurs
C. Necessity-based entrepreneurs
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
D. New business owners
55. Total Entrepreneurial Activity (TEA) is the percentage of the population of each
country between the ages of 18 and 64, who are either__________
a. a nascent entrepreneur or owner-manager of a new business
b. a potential entrepreneur or established business owner
c. a new business owner or established business owner
d. a potential entrepreneur or a nascent entrepreneur
56. Which of the following is NOT an aspect of the Entrepreneurship Ecosystem
described in the chapter?
a. social norms
b. physical infrastructure
c. entry regulation
d. open-access patent databases
57. Which of the following is NOT a condition for small and medium businesses to
flourish in a country?
a. Entrepreneurship education
b. Support from government
c. Cultural and social norms
d. Large population size
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
58. Which of the following is NOT an aspect of the Entrepreneurship Ecosystem
described in the chapter?
a. social norms
b. physical infrastructure
c. entry regulation
d. open-access patent databases
59. Sarah is an accountant with desires to open her own business. She is looking for
office space at a reasonable rate along with Internet service. Of the conditions that need
to be put in place for the Entrepreneurial Ecosystem, she needs ______.
a. cultural and social norms
b. physical infrastructure
c. entry regulation
d. commercial and legal infrastructure
60. Rahul wants to start a spice business but wants a secure framework with experts in
property rights, accounting, law, investment banking, and technology. Of the conditions
that need to be put in place for the Entrepreneurial Ecosystem, he needs ______.
a. cultural and social norms
b. physical infrastructure
c. entry regulation
d. commercial and legal infrastructure
61. Angela wants to start a company developing apps. She needs access to research
and development (R&D) to be able to use the newest technologies. Of the conditions
that need to be put in place for the Entrepreneurial Ecosystem, she needs ______.
a. financial resources
b. support from government
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
c. entrepreneurship education
d. research and development transfer
62. Maria wants to start a landscaping business, but she doesn’t know where to start.
She thinks she will need tax incentives and lower interest rates on her business lines.
Of the conditions that need to be put in place for the Entrepreneurial Ecosystem, she
particularly needs ______.
a. financial resources
b. support from government
c. entrepreneurship education
d. all of these
63. Anthony wants to start a restaurant but he knows he has a lot to learn about starting
a business. Of the conditions that need to be put in place for the Entrepreneurial
Ecosystem, he particularly needs ______.
a. financial resources
b. support from government
c. entrepreneurship education
d. research and development transfer
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
True/False
1. Millennials are considered to be the most educated generation, and the most
exposed to entrepreneurship education.
2. Microloans are loans given to individuals in niche markets.
3. Entrepreneurship is reserved for startups.
4. Bill Gates was an overnight success because it took only three months to become a
success.
5. Scientific evidence has proven that a specific set of traits distinguishes entrepreneurs
from non-entrepreneurs.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
6. According to the authors, entrepreneurship is best taught as a linear process that will
lead to a specific destination.
7. Entrepreneurs are traditionally extreme risk-takers.
8. Risk cannot be averted by an entrepreneur’s activity or attitude.
9. The cycle of act–learn–build encourages entrepreneurs to take small actions in order
to learn and build that learning into the next action.
10. Successful entrepreneurs have a tendency to collaborate with competitors
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
11. Entrepreneurship is a life skill.
12. Entrepreneurship is a relatively new concept which began in 1880.
13. Corporate entrepreneurship and intrapreneurship are not the same thing.
14. Corporate entrepreneurs work within only large organizations whereas
entrepreneurs inside can exist in any type of organization, big or small.
15. An entrepreneur can own his or her own business or work in a corporation with an
entrepreneurial spirit.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
16. A franchise is a type of license purchased by a franchisee from a franchisor to allow
them to trade under the name of that business.
17. Franchising can be a beneficial way for entrepreneurs to get a head start in
launching their own businesses as they don’t not have to pay the franchisor royalties
after buying the franchise.
18. Social entrepreneurship encompasses only not-for-profit ventures.
19. Social entrepreneurship is defined as the process of innovating new social media
business opportunities.
20. Joan has pursued seven money-making ventures over the past ten years ranging
from retail storefronts to mobile app development. Joan is a “serial entrepreneur.”
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
21. Family enterprises are the dominant form of business organization worldwide.
22. Most family businesses do not survive the transition from the first to the second
generation.
23. It is estimated that more than 80% of U.S. businesses are family-owned or
controlled by a family.
24. Buying an existing small business is not considered entrepreneurship.
25. B-Corp certification recognizes organizations that achieve five or more years of
consistent profitable growth.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
26. Unlike necessity-based entrepreneurs, opportunity-based entrepreneurs freely make
their own choice to get involved in a business.
27. According to the 2015/16 GEM report, the percentage of entrepreneurs in the United
States has declined to 3%—the lowest on record.
28. Corporate entrepreneurship and intrapreneurship are not the same thing.
29. Effectuation is the theory that the future is unpredictable yet controllable.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Essay
1. Analyze the importance of action and practice in entrepreneurship.
2. Compare and contrast three truths about entrepreneurship and your own experience
with entrepreneurs.
3. Compare “entrepreneurship” with “startup.”
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
4. Discuss the statement “Entrepreneurship can be taught (it’s a method that requires
practice.” Do you agree? Why or why not?
5. Discuss the Act–Learn–Build model as it relates to risk-takers.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
6. Discuss the confined re-emergence entrepreneur and his or her opportunities.
7. Compare and contrast the pros and cons of owning a franchise.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
8. Discuss “social entrepreneurship” and describe the differences between
entrepreneurial ventures and nonprofit organizations.
9. Analyze the benefit corporation (B Corp.) and describe its purpose and role for
entrepreneurs.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
10. Describe family enterprise and apply the concept to your business concept.