Unit 1 Exam (entrepreneurship)

Entrepreneurs are often known as calculated risk takers, as opposed to "gamblers."

a. True

Entrepreneurs are often very methodical people who plan their moves very carefully.

a. True

Entrepreneurs usually have an internal locus of control.

a. True

Entrepreneurship is more than the mere creation of a business.

a. True

Firms need to be public about their ethical values and expectations.

a. True

Emerging opportunities in the international arena are being fueled by

a. a decrease in trade barriers and the emergence of trading blocs

Entrepreneurial characteristics include

a. a strong drive to succeed.

Which of the following is an advantage to developing an entrepreneurial environment?

a. retention and motivation of the best employees

When an entrepreneur becomes an external optimist, what does that mean?

a. the allowance of others to believe in them during rough periods.

Gazelles are almost always high tech.

b. False

I-Teams are rarely seen in corporate entrepreneurial environments.

b. False

Social entrepreneurship is rarely a vehicle for sustainable development.

b. False

The terms The terms entrepreneur and small-business owner are never used interchangeably.

b. False

______________ is the economic basis for all entrepreneurial activity.

b. Free Enterprise

What kind of thinking can lead to unethical behavior in a business context?

b. bottom line

Collective entrepreneurship, as a concept, refers to

b. entrepreneurial thinking that is diffused throughout the company

Internal venture capital that is set aside for special entrepreneurial projects is termed:

b. intracapital

One characteristic not found in high achievers is

b. lack of desire to push ahead

Among the advantages for global entrepreneurs of diaspora networks is

b. the speed with which information flows across borders

The first of five steps for entering the international marketplace is

c. conducting research

Which of the following will help to foster an innovative climate?

c. encourage action from employees

Ecopreneurs are concerned

c. only with economically sustainable development.

In the Monroy-Folger Model of Risk Typology, profit-seeking activity is associated with:

c. strong desire to maximize profit

With persistent problem solving, entrepreneurs

c. think anything is possible.

Which Framework is not considered one of the six "Framework of Frameworks" approach?

d. collaborative

Clever bootlegging of ideas refers to secretly working on new ideas on company time as well as on personal time.

a. True

Each and every person has the potential and free choice to pursue a career as an entrepreneur.

a. True

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

a. True

Ethics provides the basic rules or parameters for conducting any activity in an "acceptable" manner.

a. True

Morals and law are not synonymous but may be viewed as two circles that are partially superimposed upon each other.

a. True

Purpose, accountability, and transparency are characteristics associated with socially sustainable enterprises.

a. True

Some people, unaccustomed to operating in a CE style will leave.

a. True

The displacement school of thought focuses on the negative side of group phenomena.

a. True

Which of the following is not one of the Corporate Innovative Training Program modules?

a. innovative thinking

The process approach to entrepreneurship seeks to

a. model the various factors that characterize the entrepreneurial process

The first step in planning a strategy of entrepreneurship for enterprise is

a. sharing the vision of innovation.

Entrepreneurs will always be

a. the major source of job creation and innovation in any economy

Ethics represents a set of principles prescribing a behavioral code that does not include moral duty and obligations.

b. False

In the environmental school of thought, legal issues surrounding the natural environment are primary.

b. False

Organizational boundaries allow people to focus on new ideas.

b. False

Resource-rich countries and market-rich countries are usually one and the same.

b. False

Successful entrepreneurs fear failure the same way all people do.

b. False

Which of the following is not a characteristic of firms that exhibit corporate entrepreneurships?

b. being stagnant

The displacement school of thought can be divided into which three groups?

b. economic, cultural, and political

Bottom-line measures of economic performance include all of the following except:

b. global competition.

Every person has the ________ and _________ to pursue a career as an entrepreneur

b. potential; free choice

In following the rules for innovation, a manager should do all of the following except

b. punish failure

Which of the following are specific factors identified by researchers, that organizations can concentrate on in structuring an entrepreneurial climate.

b. top management support, time, resources, rewards, and organizational boundaries

Which of the following is an obstacle to corporate entrepreneurship?

b. traditional management techniques

If we accept the argument that social entrepreneurship is a continuum, at one extreme would be social entrepreneurs driven exclusively by producing social benefits; at the other, would be

c. social entrepreneurs motivated by profitability with social benefits being the means.

Robert C. Ronstadt put together a summary definition of entrepreneur that included which of the following key phrases?

c. the dynamic process of creating incremental wealth

The micro view is divided into which three theories?

c. venture opportunity theory, entrepreneurial, strategic

____ people thoroughly understand the concept of corporate entrepreneurship.

d. Few

Who identified six factors found in large corporations that have exhibited successful innovations?

d. James Brian Quinn

Which economist first associated the "risk bearing" activity in the economy with the entrepreneur?

d. Richard Cantillon

Which of the following is not considered in the Framework of Frameworks Approach?

d. collaborative

Intrapreneurship is also referred to as:

d. corporate entrepreneurship

Team building

d. involves including qualified people in the venture.

The basic challenge for social enterprise is addressing the obligations of business to

d. society

Transformational triggers in a corporate entrepreneurial environment initiate the need for

d. strategically adapting to change.

The adverse impact of __________ can be so destructive that individuals within the enterprise will tend to avoid entrepreneurial behavior.

d. traditional management techniques

Entrepreneurial traits include which of the following?

d. initiative

Most entrepreneurs should be categorized as

d. innovators

The word entrepreneur is derived from the French entreprendre, which is translated as

d. to undertake

North American Free Trade Agreement (NAFTA) has developed

d. trade barrier reductions

The strategic formulation school of thought emphasizes the planning process in successful venture development.

a. True

Secretly working on new ideas on company time as well as on personal time is referred to as

a. bootlegging.

If an entrepreneur believes in himself/herself and that their accomplishments and setbacks are within their own control, they possess a(n) .

a. internal locus of control

Entrepreneurs often display unrealistic optimism.

a. true

Importing, in essence, is buying and shipping domestically produced goods for foreign consumption.

b. False

New and smaller firms are responsible for 95 percent of all radical innovations.

a. True

Researchers have identified specific factors that organizations can concentrate on in helping individuals develop more entrepreneurial behavior.

a. True

The need to achieve can be a source of stress for entrepreneurs.

a. True

A loss orientation toward grief recovery in dealing with failure can sometimes lessen negative emotional reactions.

b. False

Entrepreneurs need not be concerned with establishing strategy for ethical responsibility because they are guided by what established firms do.

b. False

Expecting clever bootlegging of ideas should come as a surprise.

b. False

The triple bottom line is an accounting framework that focuses on optimizing short-term financial performance.

b. False

Today's entrepreneurs are faced with few ethical decisions because the legal system imposes greater penalties on wrongdoers.

b. False

____________ observed that "corporate entrepreneurship may be formal or informal activities aimed at creating new businesses in established companies through product and process innovations and market developments."

b. Shaker A. Zahra

The "corridor principle" is best described by which of the following statements?

b. With every new venture launched, new and unintended opportunities arise

The "dark side" of entrepreneurship refers to

b. a destructive force within thee energetic drive of entrepreneurs

A decision to sell pharmaceuticals that have not been cleared with the Federal Drug Administration is an example of a(n)

b. illegal and unethical decision

Which of the following activities does not characterize the social entrepreneur?

b. operating with a low sense of accountability

In the study of contemporary entrepreneurship, what one concept reoccurs?

a. Entrepreneurship is interdisciplinary.

Which of the following is a false statement about entrepreneurs?

a. They do not use failure as a tool for learning

Commitment, determination, and perseverance are just a few characteristics one needs to become a successful entrepreneur.

a. True

In smaller ventures, the ethical influence of the owner is more powerful than in larger corporations because his or her leadership is not diffused through layers of management.

a. True

One of the most important reasons firms want to adhere to a high moral code is that doing so protects free markets and is good business.

a. True

Social obligation, social responsibility, and social responsiveness are all ways firms view their interactions with society.

a. True

Some of the most common entrepreneurial goals are independence, wealth, and work satisfaction.

a. True

The entrepreneur is driven by a strong desire for control over their venture.

a. True

Key elements in plans to create a sustainable future are likely to include which of the following?

a. eliminating the concept of waste

The macro view can be broken down into which three areas?

a. environmental, financial/capital, and displacement

Which of the following is not a way to combat stress?

a. ignoring all coping mechanisms

Sustaining corporate entrepreneurship requires

a. keeping the corporate vision strong

Which of the following is not a common characteristic of entrepreneurs?

a. lack of motivational drive

In restructuring corporate thinking, top management should

a. promote entrepreneurship through experimentation

Which of the following traits is not that of an entrepreneur?

a. shyness

Corporate entrepreneurs should be restricted to the resources of their own divisions of the corporation.

b. False

Employees shouldn't expect feedback on their entrepreneurial ideas.

b. False

Entrepreneurs always start their business at a young age.

b. False

Which of the following may be the greatest risk to the well-being of the entrepreneur?

b. psychic risk

The entrepreneurial ego can cause the entrepreneur to

b. take characteristics that usually lead to success to the extreme

The dynamic states model depicts ventures as

c. being dependent on their environment for survival

Which of the following is not a form of displacement in the displacement school of thought?

c. radical

In attempting to create an entrepreneurial climate, the organization should consider that

c. the corporations that promote personal growth will attract the best people

Innovative factors identified by James Brian Quinn that exist in large organizations experienced in successful innovation include all of the following except

c. uniform compensation.

Water well strategies refer to

c. unique resources

One could correlate _______ with a high energy level.

d. creativity

The macro view of entrepreneurship presents factors exhibiting a strong

d. external locus of control

Which of the following designations is not synonymous with social entrepreneur?

d. social impersonator

Which of the following schools of thought is not a micro view school of thought?

d. the inherited business school of thought

Which of the following would not be considered as encouraging to an entrepreneurial environment?

d. uniform compensation

Which of the following is not included in the set of innovative rules that 3M follows, which encourages employees to foster ideas?

a. try to eliminate failure

Systematic evolution of a product or service into newer or larger markets is referred to as radical innovation.

b. False

Stress can be dealt with by:

c. networking.

Key features in the success of any innovative program include all of the following except

d. high profitability

All of the following are important characteristics for establishing an intrapreneurial climate except

d. punishment of mistakes

The decision to behave entrepreneurially is the result of the interaction of

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

The study of entrepreneurship is

d. interdisciplinary

Gazelles do not always get venture capital funding.

a. True

Which of the following is not an aspect of the "dark side" of entrepreneurship?

a. bouts of euphoria

In the second decade of the new millennium, the number of businesses in the United States soared to more than 28 million. At what rate is this number still growing annually?

b. 15%

Which statement is not true?

b. Entrepreneurs fare poorly in today's hypercompetitive market

Which of the following statements is true?

b. Entrepreneurship is the ability to create and build a vision from practically nothing.

A "gazelle" is a business establishment with at least five percent sales growth every year for 25 years.

b. False

The metacognitive model of entrepreneurship fails to consider the entrepreneurial mind-set that integrates the combined effects of entrepreneurial motivation.

b. False

The need for corporate entrepreneurship has risen in response to one problem: rapid growth.

b. False

The resources of the organization are irrelevant to the ability of the corporate entrepreneur to implement an idea.

b. False

Generally, entrepreneurial stress is due to

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

Being an entrepreneur who is presented with "being in the right place at the right time" is associated with which myth?

c. All Entrepreneurs Need Is Luck

Entrepreneurs are best characterized as:

c. aggressive catalysts for change

Which of the following is not a source of stress according to researchers Boyd and Gumpert?

c. family requirements

Methods for going international include all of the following except

c. foreign reclamation.

Entrepreneurship has become synonymous or closely linked with:

c. free enterprise and capitalism

In starting or buying a new business, the higher the rewards, the

c. greater the risk

Which of the following terms refers to the systematic evolution of a product or service into newer or larger markets?

c. incremental innovation

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)

c. legal and unethical

The Greek word ethos means

d. mode of conduct.

Global entrepreneurs are now considered by others as

d. wearing different hats.

Which is not a trait of a successful entrepreneur?

b. trouble fitting in

Which of the following economists wrote about entrepreneurship and its impact on economic development?

c. Joseph Schumpter

Which of the following statements is false?

c. Management skills are not important characteristics for entrepreneurs to possess

Which of the following statements best describes a "gazelle?"

c. a business with at least 20 percent growth every year

Employee perception of _________ is critical for the success of corporate entrepreneurship.

c. an innovative environment

Today's managers must foster excitement for innovation and remove obstacles for employees to engage in corporate entrepreneurship.

a. True

Which is not a precipitating event that Zahra identifies as motivating the decision to act entrepreneurially?

a. a big increase in earnings

Entrepreneurs with a drive to achieve want to

a. compete.

Developing corporate entrepreneurial managers involves teaching them to

a. Break out of the box.

There are three main types of strategic international alliances.

a. True