Chapter 1: evolutionary development- revolutionary impact

One researcher established a framework that classified social actions of corporations into distinct categories that included a. social obligation. b. social responsiveness. c. social action. d. a and b only.

a and b only

Throughout the years, many myths have arisen about entrepreneurship as a result of? a. a lack of research about entrepreneurship b. a lack of interest in the field c. a total disregard for the truth d. a destructive attitude by government

a lack of research about entrepreneurship

Which of the following helps account for the rise of interest in corporate entrepreneurship? a. A decrease in the number of sophisticated competitors. b. An increase government regulation of small entrepreneurs. c. An increase in corporations losing some of their best people. d. A general increase in the number of competitors.

an increase in corporations losing some of their best people

Social responsibility consists of those obligations that society has to businesses.

false

t/f: The "corridor principle" states that entrepreneurs often get stuck on one idea

false

t/f: The word entrepreneur is derived from the Spanish word entreprendre, meaning "to undertake."

false

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

internal locus of control

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

potential; free choice

In restructuring corporate thinking, top management should a. identify potential entrepreneurs after an innovation program is in operation. b. make the entrepreneur follow strict corporate guidelines. c. promote entrepreneurship through experimentation. d. create diversity and order in strategic activities.

promote entrepreneurship through experimentation

The first step in planning a strategy of entrepreneurship for enterprise is a. identifying specific objectives. b. sharing the vision of innovation. c. applying the exact tools of the entrepreneur. d. developing radical innovation.

sharing the vision of innovation

Groups that function outside traditional lines of authority permitting rapid turnaround of new ideas as well as instilling a high level of group loyalty are called: a. skunk works. b. multiple approaches. c. champions. d. strategic innovators.

skunk workers

Which of the following designations is not synonymous with social entrepreneur? a. social innovator b. public entrepreneur c. civic entrepreneur d. social impersonator

social impersonator

T/F: During the past ten years, new business incorporations averaged nearly 600,000 per year.

true

T/F: Entrepreneurs are aggressive catalysts for change within the marketplace.

true

The first step in planning a strategy of corporate entrepreneurship is sharing the vision of innovation that executives wish to achieve.

true

Which of the following would not be considered as encouraging to an entrepreneurial environment? a. uniform compensation b. identifying potential entrepreneurs c. top management sponsorship of entrepreneurship d. promotion of entrepreneurship through experimentation

uniform compensation

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

commitment, determination, and perseverance

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

false

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

false

Commitment, determination, and perseverance are the only characteristics one needs to become a successful entrepreneur.

false

Firms do not need to alter management techniques to encourage corporate entrepreneurship since it tends to occur naturally.

false

The statement, "with every new venture launched, new and unintended opportunities often arise," would be associated with: a. the entrepreneurial principle b. the opportunity principle c. the corridor principle d. the Dilbert principle

the corridor principle

In the model of sustained corporate entrepreneurship discussed in the text, a transformational trigger can be internal or external to the company.

true

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

true

Social entrepreneurs are known to combine resources to exploit opportunities to create social value

true

The three Ps of the triple bottom line are people, planet, and profits

true

There is a certain psychic risk involved with entrepreneurship.

true

Which of the following statements best describes a "gazelle?" a. a business with at least 20 percent growth every year b. a business with no sales growth c. a business that has acquired numerous firms d. an inventor who turned business person

a business with at least 20 percent growth every year

All of the following are reasons for the growth of corporate entrepreneurship except a. a desire to dramatically increase profitability. b. a rapidly growing number of new and sophisticated competitors. c. a sense of distrust in the traditional methods of corporate management. d. an exodus of some of the best people out of corporations.

a desire to dramatically increase profitability

The second step in planning a strategy of entrepreneurship for the enterprise is a. identifying specific objectives. b. sharing the vision of innovation. c. applying the exact tools of the entrepreneur. d. developing and encouraging innovation.

developing and encouraging innovation

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

false

t/f: Entrepreneurs always start their business at a young age.

false

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

frustration

. Michael Gerber, the author of The E-Myth, explains that the failure of most small businesses is due to: a. owners being more technical rather than entrepreneurial b. owners being more managerial rather than technical c. owners being more entrepreneurial rather than managerial d. owners being more entrepreneurial rather than technical

owners being more technical rather than entrepreneurial

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 a. social entrepreneurs motivated by the environment with social benefits being the means b. social entrepreneurs motivated by profitability with social benefits being the means c. social entrepreneurs motivated by income from their beneficiaries d. social entrepreneurs motivated by income with entrepreneurial means

social entrepreneurs motivated by profitability with social benefits being the means

The most pro-active position for a corporation to take in regard to social responsibility would be termed a. social obligation. b. social intensity. c. social responsiveness. d. social decisiveness.

social responsiveness

The word entrepreneur is derived from the French entreprendre, which is translated as a. to apprehend b. to undertake c. to compete d. to enter and dare

to undertake

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

are driven by intense commitment and perseverance

The major thrust of corporate entrepreneurship is to a. encourage greater risk taking. b. raise profitability. c. encourage innovation. d. increase morale.

encourage innovation

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

false

t/f: Entrepreneurs are born not made.

false

Which of the following is not a common myth about entrepreneurs? a. Entrepreneurs are academic and social misfits. b. Entrepreneurs are doers, not thinkers. c. Entrepreneurs today are considered heroes. d. All you need is money to be an entrepreneur.

Entrepreneurs today are considered heroes

Which of the following statements is true? a. Entrepreneurship is the ability to create and build a vision from practically nothing. b. Entrepreneurship is pure luck. c. Entrepreneurship is simply obtaining financing and starting a business. d. Entrepreneurship has nothing to do with creating incremental wealth.

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

Which of the following statements about social entrepreneurship is not true? a. Social entrepreneurship is limited to the world of not-for-profit corporations. b. Social entrepreneurship is about having a heightened sense of accountability c. Social entrepreneurship has, in recent years, been the subject of widespread media attention. d. Social entrepreneurship adopts some of the same principles that have been effective in successful entrepreneurship.

Social entrepreneurship is limited to the world of not-for-profit corporations.

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

True

Secretly working on new ideas on company time as well as on personal time is referred to as a. skunk works. b. champion. c. bootlegging. d. interactive learning.

bootlegging

The macro view of entrepreneurship presents factors exhibiting a strong a. internal locus of control b. external locus of control c. environmental locus of control d. contemporary locus of control

external locus control

International alliances rarely require the exchange of proprietary knowledge.

false

Skunk works are project groups that work within the traditional lines of authority.

false

Successful global start-ups, or entrepreneurial businesses that are "born global," surprisingly often lack internationally experienced management.

false

The "dark side" of entrepreneurship refers to the stress that entrepreneur's experience.

false

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

false

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

false

t/f: Entrepreneurs are high risk takers.

false

t/f: Gazelles are almost always high tech

false

Which of the following is an obstacle to corporate entrepreneurship? a. orientation to the market b. a system of feedback and positive reinforcement c. traditional management techniques d. rewards based upon results

traditional management techinques

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

true

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

true

Ecopreneurship is a combination of ecologically and economically sustainable development

true

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

true

One reason that corporate entrepreneurship has become popular is because it allows corporations to tap the innovative talents of the personnel.

true

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

true

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

Entrepreneurs and gazelles have been credited with making disproportionate contributions to all but which of the following? a. innovation b. job creation c. economic renewal d. unemployment

unemployment

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

false

Licensing agreements can involve patents, trademarks, and technical know-how.

true

t/f: A "gazelle" is a business establishment with at least 20 percent sales growth every year for five years.

true

t/f: The macro view of entrepreneurship includes external processes that are sometimes beyond the control of the entrepreneur.

true

Individuals may avoid corporate entrepreneurial behavior due to the impact of traditional management techniques.

true

The "corridor principle" is best described by which of the following statements? a. If at first you don't succeed, try, try, again. b. Being in the right place at the right time. c. With every new venture launched, new and unintended opportunities arise. d. Luck happens when preparation meets opportunity.

with every new venture launched, new and unintended opportunities arise