ENT 396 CH.2

Characteristics often attributed to the entrepreneur include: a. Commitment, determination, and perseverance b. Ability to be indecisive c. Power hungry d. Prefers to be a loner

Commitment, determination, and perseverance

Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Giving a gift of $50,000 to a foreign minister to secure a business contract with his country (a customary practice in his country) and then writing off the gift as a tax-deductible item:

Ethical & Illegal

Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Producing and selling a drug that will reduce heart attacks but failing to complete all of the paperwork that must be filed with the government prior to selling the product:

Ethical & Illegal

Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Manufacturing a new fuel additive that will increase gas mileage by 10 percent:

Ethical & Legal

Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Producing a vaccine, already approved by the Food and Drug Administration, that will retard the growth of bone cancer:

Ethical & Legal

T/F: A loss orientation toward grief recovery in dealing with failure can sometimes lessen negative emotional reactions

False

T/F: According to the Model of Entrepreneurship Motivation, the entrepreneur's expectations are not compared with the actual or perceived outcomes of the firm

False

T/F: Commitment, determination, and perseverance are the only characteristics one needs to become a successful entrepreneur

False

T/F: Ethics represents a set of principles prescribing a behavioral code that does not include moral duty and obligations

False

T/F: The "dark side" of entrepreneurship refers to the stress that entrepreneur's experience

False

T/F: Today's entrepreneurs are faced with few ethical decisions because the legal system imposes greater penalties on wrongdoers

False

T/F: A code of conduct is a statement of ethical practices or guidelines to which an enterprise adheres

True

T/F: Entrepreneurial cognition is, in part, about understanding how entrepreneurs use simplifying mental models to make assessments, judgments, and decisions about opportunities

True

T/F: The generation of the twenty-first century may become known as generation E because it is becoming the most entrepreneurial generation since the Industrial Revolution

True

T/F: There is a certain psychic risk involved with entrepreneurship

True

Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Obtaining inside information from another brokerage that results in the entrepreneur netting more than $2 million:

Unethical & Illegal

Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Offering a member of the city council $100,000 to vote to give the entrepreneur the local cable television franchise:

Unethical & Illegal

Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Knowing that 1 percent of all tires have production defects but shipping them anyway and giving mileage allowances to anyone whose tires wear out prematurely:

Unethical & Legal

Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Publishing a newspaper story that wrongly implies but does not openly state that the governor (a political opponent of the newspaper) is deliberately withholding state funds for education in the newspaper's effort to win nomination support for its candidate from the state teachers union:

Unethical & Legal

Entrepreneurs a. are egomaniacs. b. are driven by intense commitment and perseverance. c. are never satisfied. d. loners who never fit in to typical firms.

are driven by intense commitment and perseverance

Areas of risk to the entrepreneur include a. career, family, psychic. b. financial, product, market c. family, business, social. d. psychic, social, physical.

career, family, psychic

A __________ is a statement of ethical practices or guidelines to which an enterprise adheres. a. code of conduct b. code of silence c. code of ethics d. code of honor

code of conduct

Which of the following is not a trait of successful entrepreneurs? a. strategic thinking b. frustration c. initiative d. perseverance

frustration

Entrepreneurial stress can be caused by having a type A personality which can be defined as: a. having a chronic sense of time urgency. b. taking too little responsibility. c. getting away from business. d. taking things personally.

having a chronic sense of time urgency

A decision to sell pharmaceuticals that have not been cleared with the Federal Drug Administration is an example of a(n) a. illegal and unethical decision. b. illegal and ethical decision. c. legal and unethical decision. d. legal and ethical decision.

illegal and unethical decision

When entrepreneurs believe that their accomplishments and setbacks are within their own control and influence, they are exhibiting a. persistent problem-solving. b. opportunity orientation. c. internal locus of control. d. external locus of control.

internal locus of control

Which of the following is not characteristic of the "dark side" of entrepreneurship? a. a desire for success b. an external optimism c. a sense of distrust d. knowing when to take a vacation

knowing when to take a vacation

A decision to sell toys that pass minimum safety standards but can often result in minor accidents to children is an example of a(n) a. legal and unethical decision. b. illegal and unethical decision. c. illegal and ethical decision. d. legal and ethical decision.

legal and unethical decision

Every person has the _____ and _____ to pursue a career as an entrepreneur a. obligation; duty b. stubbornness; stupidity c. potential; free choice d. rights; regulations

potential; free choice

Which of the following may be the greatest risk to the well-being of the entrepreneur? a. psychic risk b. financial risk c. social risk d. family risk

psychic risk

The entrepreneurial ego can cause the entrepreneur to a. take characteristics that usually lead to success to the extreme. b. have a sense of pessimism. c. take too few risks. d. ignore government regulations.

take characteristics that usually lead to success to the extreme

Generally, entrepreneurial stress is due to a. the discrepancy between the entrepreneur's expectations and the ability to meet demands. b. fear of failure. c. being surrounded by incompetents. d. caused by a big ego.

the discrepancy between the entrepreneur's expectations and the ability to meet demands

The decision to behave entrepreneurially is the result of the interaction of: a. the existence of a viable business idea. b. the individual's personal entrepreneurial mind-set and an opportunity. c. a new market. d. the relevant business environment.

the individual's personal entrepreneurial mind-set and an opportunity