Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Chapter 2: Practicing Entrepreneurship
Test Bank
Multiple Choice
1. The older view to approaching entrepreneurship as a linear process (i.e. the steps
are followed and the outcomes can be expected) is known as:
a. predictive logic
b. the expected approach
c. creation logic
d. the organic approach
2. Entrepreneurs who determine their goals based on the resources they have are using
______.
a. predictive logic
b. the expected approach
c. creation logic
d. the organic approach
3. Planning for the catering at an event by sending out invitations and asking for RSVPs
by a certain date is an example of ______.
a. predictive logic
b. the expected approach
c. creation logic
d. the organic approach
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
4. Friends show up unexpectedly to your house and are hungry. You go through your
kitchen cupboards to see what ingredients you can throw together to prepare a
satisfactory meal. This is an example of:
a. predictive logic
b. the expected approach
c. creation logic
d. the organic approach
5. What is the dominant logic of large, established organizations?
a. prediction
b. creation
c. experimentation
d. creativity
6. The idea that the future is unpredictable yet controllable and entrepreneurs can
“effect” the future is called:
a. the theory of predictability
b. the theory of controllability
c. the theory of causation
d. the theory of effectuation
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
7. According to the text, what is/are the main obstacle(s) that prevents many novice
entrepreneurs from employing the prediction approach to large endeavors, such as
opening a new restaurant?
a. unreliability of findings
b. expense and time-commitment
c. lack of initiative
d. fear of failing
8. What skill frees the imagination, opens up the mind to a wealth of opportunities and
possibilities, and helps foster innovation?
a. skill of creativity
b. skill of reflection
c. skill of experimentation
d. skill of play
9. What skill is best described as acting in order to learn—trying something, learning
from the attempt and building that learning into the next iteration?
a. skill of creativity
b. skill of reflection
c. skill of experimentation
d. skill of play
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
10. What skill best describes developing the ability to understand the emotion,
circumstances, intentions, thoughts, and needs of others?
a. skill of play
b. skill of reflection
c. skill of creativity
d. skill of empathy
11. What skill requires a general openness to the world and relates to unleashing our
creative ability to create and find opportunities and solve problems?
a. skill of play
b. skill of reflection
c. skill of creativity
d. skill of empathy
.
12. What skill helps make sense of all of the other actions required of play, empathy,
creativity and experimentation?
a. skill of consideration
b. skill of reflection
c. skill of expression
d. skill of deliberation
13. Alternative reality games and learning simulations are related to which skill?
a. skill of creativity
b. skill of reflection
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
c. skill of experimentation
d. skill of play
14. The act of taking a prototype directly to potential customers in order to acquire
feedback is a hallmark of which skill?
a. skill of creativity
b. skill of reflection
c. skill of experimentation
d. skill of play
15. After conducting market research, Olivia is still uncertain how to price her honey
jars. She decides to bring samples to local farmer’s markets and sell them at different
price points. What skill is Jess practicing in this scenario?
a. skill of creativity
b. skill of reflection
c. skill of experimentation
d. skill of play
16. After making a presentation, you reflect by describing what happened by considering
what took place, what was said, and who was involved. What type of reflection does
this describe?
a. perceptive reflection
b. analytical reflection
c. evaluative reflection
d. narrative reflection
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
17. After making a presentation, you reflect by focusing on how you felt during the
presentation and how you managed those feelings. What type of reflection does this
describe?
a. perceptive reflection
b. analytical reflection
c. emotional reflection
d. critical reflection
18. After making a presentation, you reflect by focusing on your own perceptions and
reactions as well as the perceptions and reactions of others. What type of reflection
does this describe?
a. perceptive reflection
b. analytical reflection
c. evaluative reflection
d. narrative reflection
19. After making a presentation, you reflect by thinking about the skills and knowledge
you gained from the experience and if anything you have learned relates to anything
you have heard about before. What type of reflection does this describe?
a. perceptive reflection
b. analytical reflection
c. evaluative reflection
d. narrative reflection
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
20. After making a presentation, you reflect by focusing on what went well and what
didn’t go as well, and if the experience was useful or helpful. What type of reflection
does this describe?
a. emotional reflection
b. analytical reflection
c. evaluative reflection
d. critical reflection
21. After making a presentation, you reflect by considering the part you played in the
presentation, your approach, what else you might have done, what you have learned
about the experience, what questions you have, and what you need to consider as a
result. What type of reflection does this describe?
a. emotional reflection
b. analytical reflection
c. evaluative reflection
d. critical reflection
22. According to research, what proportion of entrepreneurs who start businesses in
the United States fail within the first 18 months?
a. 2 out of 10
b. 5 out of 10
c. 8 out of 10
d. 9 out of 10
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
23. According to the authors, what is the primary thing high performers engage in to
achieve high levels of performance?
a. observation
b. deliberate planning
c. deliberate practice
d. disciplined research
24. The means of identifying an opportunity, understanding resource requirements,
acquiring resources, planning, implementing, and harvesting is called:
a. a process
b. a method
c. a system
d. an approach
25. Predictive logic should be used in situations of:
a. certainty
b. uncertainty
c. ambiguity
d. conflict
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
26. Creation logic should be used in situations of:
a. certainty
b. uncertainty
c. clarity
d. stability
27. Bill wants to start a restaurant that fuses Mexican and Thai cuisine. He does not
really know if this concept will be viable so he develops a limited menu and has friends
and family fill out a questionnaire to gather information. Bill is using ______.
a. creation in action
b. prediction in action
c. business planning in action
d. strategy development in action
28. ______ is based on the idea that because the future is unpredictable yet
controllable and that entrepreneurs can affect the future.
a. Control
b. Experimentation
c. Effectuation
d. Entrepreneurship
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
29. A study by Darden School of Business professor Saras D. Sarasvathy showed that
89% of experienced, serial entrepreneurs used ______ thinking.
a. predictive and casual thinking
b. creative and effectual thinking
c. predictive and effectual thinking
d. creative and causal thinking
30. According to the authors, a body of skills that together comprise a toolkit for
entrepreneurial action is called:
a. a process
b. a method
c. a system
d. an approach
31. Entrepreneurs who determine their goals and then look for the resources to enable
them to reach their goals are using:
a. predictive logic
b. the expected approach
c. creation logic
d. the organic approach
32. What did Baekgaard and Miller do when they ordered the wrong size zippers for
their hand bags?
a. resold the zippers for a profit
b. returned the zippers for the correct size
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
c. absorbed the loss
d. designed a new bag that would work with the larger zipper
33. What was Baekgaard and Miller’s desired impact on the world?
a. to offer a line of expensive, high-end bags for women
b. create stylish, affordable bags for women
c. to make environmentally responsible bags for women
d. to become the most successful jewelry and clothing brand in the industry
34. Which of the following is a component of The Practice of Entrepreneurship?
a. create financial projections
b. take small action
c. write a business plan
d. get financing
35. When you ask yourself “What am I willing to lose? What am I truly willing to give up
in terms of money, reputation, time, and opportunity cost?” you are practicing which
component of The Practice of Entrepreneurship?
a. Identifying your desired impact on the world
b. Starting with the means at hand
c. Describing the idea today
d. Calculating affordable loss
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
36. When you ask yourself “What do I know? Whom do I know?” you are practicing
which component of The Practice of Entrepreneurship?
a. Identifying your desired impact on the world
b. Starting with the means at hand
c. Describing the idea today
d. Calculating affordable loss
37. When you ask yourself “Should I quit or keep going? What’s my next step” you are
practicing which component of The Practice of Entrepreneurship?
a. Reflecting and being honest with yourself
b. Starting with the means at hand
c. Describing the idea today
d. Calculating affordable loss
38. Deliberate practice requires:
a. high levels of focus, attention, and concentration
b. avoiding possible weaknesses
c. working without goals
d. seeking perfection
39. Someone using creative logic might say:
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
a. we can predict the future and create the future
b. we can’t predict the future but we can create the future
c. we can predict the future but not create the feature
d. we can neither predict nor create the future
40. An entrepreneur using predictive logic is likely to:
a. avoid failure at all costs.
b. iterate
c. take small actions
d. embrace and leverage failure
41. Your impact statement:
a. identifies your immediate means at hand
b. identifies your desired financial impact
c. identifies your desired impact on the competition
d. identifies your desired impact on the world
42. Some of the benefits of deliberate practice are:
a. enhanced ability to store and retrieve information
b. the ability to discern the differences between relevant and irrelevant info
c. a deeper understanding of complex patterns
d. all of these
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
43. When Barbara Baekgaard and Pat Miller began bringing their bags to market by
selling their prototype bags at trunk shows, walking into gift shops to obtain orders, and
requesting feedback from friends and family they were practicing:
a. the skill of play
b. calculating their affordable loss
c. taking small actions
d. reflecting and being honest with themselves
44. When Barbara Baekgaard and Pat Miller sent Barbara’s daughter to school with
different bags in order to test their designs on the student market, they were practicing:
a. the skill of play
b. networking and enrolling others in their journey
c. calculating their affordable loss
d. reflecting and being honest with themselves
45. When Jim Poss bought used kitchen trash compactors to tinker with and then tried
some reverse engineering to test the feasibility of his solar-powered compactor, he was
practicing the skill of:
a. experimentation
b. empathy
c. reflection
d. prediction