ENTR ch1,1

1. The authors define entrepreneurship as ______. a. a discipline that seeks to understand how opportunities are discovered, created, and exploited, by whom and with what consequences b. starting a small business by finding investors and launching a product c. developing a new market by creating a product that does not currently exist d. a mindset that compels people to start multiple ventures throughout a lifetime.

a

14. During the______, everyone had a fairly equal chance of being an entrepreneur; inventors became more commonplace, producing new products and services alongside the merchants and industrialists.a. First Industrial Revolution (1776-1865)b. Second Industrial Revolution (1865-1920)c. Interwar and Postwar America (1920-1975)d. Knowledge Economy (1975- present)

- Interwar and Postwar America (1920-1975) - First Industrial Revolution (1776-1865)

What invention came to symbolize the ingenuity of Colonial America?

- The lightning rod

A launching pad for creativity and innovation, the ______ provided people with the right to private property, access to a banking system, and protection in the form of patent laws.

- US Constitution

What is the survival rate of family businesses transitioning from the first to the second generation?

-30%

According to the 2015/16 Global Entrepreneurship Monitor report, it is estimated that there are ______ entrepreneurs worldwide.

400 million

What percentage of US businesses are family-owned or controlled by a family?

80-90%

Which Founding Father is considered one of history's greatest entrepreneurs?

Benjamin Franklin

7. Which of the following is NOT a truth about entrepreneurship?

Entrepreneurship is reserved for startups.

Entrepreneurship is a relatively new concept which began in 1880.

False

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.

False

Microloans are loans given to individuals in niche markets.

False

During which period of time was the "tech entrepreneur" born?

Knowledge Economy 1.0, 1975-Present

What generation is considered to be the most exposed to entrepreneurship education?

Millennials

During which period was entrepreneurship at its height?

Second Industrial Revolution (1865-1920)

9. ______ are people who start several businesses, sometimes at the same time or sometimes one after the other.

Serial entrepreneurs

According to Saras Sarasvathy, which of the following is true about effectual entrepreneurs?

They focus on creating a future rather than predicting it

15. Examples of the Second Industrial Revolution of meeting consumer needs to be more connected with others, live in comfort, and be more efficient include which of the following?a. telephone b. cell phonec. laptopd. automobile

a

16. By the ______, ______ had reached its height and a growing interest in information technology would set the scene for impending globalization.a. 1970s; corporate entrepreneurshipb. 1770s; the warc. 1990s; computer technologyd. year 2000; entrepreneurship

a

20. A franchise is ______.a. an easy way to own a business given that enough funds exist to cover the franchise costs and start-up costs. Royalties will be paid from the sales proceeds.b. a gift from a large corporation to another to use their name (trademark) but is not a turnkey operationc. an illegal form of doing business and is being halted by the federal governmentd. the same thing as network marketing

a

23. A B-Corp is ______. a. a benefit corporation that is certified by the nonprofit B Lab which ensures strict standards of social and environmental performance, accountability, and transparency are metb. another name for a business corporation that is in the pursuit of profitc. a benefits corporation that provides payroll and employee benefit services to other businessesd. the second level of corporations; A-Corps are the top 100 rated and ranked corporations and B-Corps are the next 500 in the ranking.

a

26. The global experiment, Unreasonable at Sea, ______. a. held intensive training programs where entrepreneurs were matched with mentors and leveraged their collective technology experience to solve some of the world's most formidable challenges b. was an experiment putting a group of entrepreneurs on a ship and had them navigate it as a team to sail back to their home portc. is focused on ocean-based training for entrepreneurs at sea (harnessing salt water, fishing as a renewable resource)

a

27. The global experiment, Unreasonable at Sea, ______. a. asked each time the ship stopped at a new country, "What is the one thing you want more than anything else in the world?" and one result was Pencils of Promiseb. tried to creatively solve the conflicts in the Middle Eastc. asked for each challenge, "What is the worst thing that could happen as a result of this decision?" d. lasted only 5 years but started the microloan movement in India

a

31. Global Entrepreneurship Monitor focuses its study on the level of total entrepreneurial activity (TEA) in different countries, ______.a. identifying the percentage of the population of each country between 18 and 64 who are either nascent entrepreneurs or owner-managers of a new businessb. quantifying the number of hours a month entrepreneurs work in their business c. measuring the opportunities available per countryd. measuring the financial impact of cultural differences between the countries

a

32. Women want to become entrepreneurs ______. a. for the same reasons as men: to support themselves and their families, to attain fulfillment of having a career, and to satisfy a desire for financial independenceb. for universal reasons worldwide, to attain fulfillment of having a career, and financial independencec. to not fear poverty

a

33. The gap of venture capital available for men as compared to women is 5% to 15% women to 85% to 95% men. The evidence from the 2014 Diana Project ______.a. suggests that it is not the women entrepreneurs who need to adapt, but the venture capital model needs to be re-evaluated and updated to keep up with the changing landscape of women's entrepreneurshipb. suggests that women-owned businesses are more risky than men-owned businessesc. indicates that the men are more interested in developing highly industrialized business while women are more interested in the social/selling business modelsd. supports the theory that a business really does not need a large amount of capital to be successful.

a

36. Professor Yunus of the Grameen Bank placed borrowers into small groups and lent to a few; the others would qualify for their loans when the first group began paying their loans back. This process created ______.a. motivation, accountability, and empowermentb. competition and greedc. respect among the women in this cultural settingd. respect from the men

a

37. Entrepreneurship is for ______ if given the opportunity to practice.a. everyoneb. only menc. only the poord. only the lucky

a

38. Bob, a young person with ideas for his own business, is from a small town and he has no hope of becoming a successful entrepreneur because he does not have the media presence of Gates, Jobs, Zuckerberg, or Musk. This faulty thinking is due to ______.a. media images of entrepreneursb. lack of confidencec. not living in one of the largest cities in the United Statesd. not knowing any politicians

a

44. George, a new entrepreneur, was amazed that once he made the jump into his business, he was not alone but instead was part of a group that supported each other and collaborated for the greater good.a. George's experience is common among entrepreneurs.b. George opened up too much to the group as they were very competitive.c. The group that George belonged to was unique.d. Entrepreneurs compete more than they collaborate.

a

46. Marilou was a student who had a special energy; she adapted to new conditions easily and took control of personal goals and ambitions. She ______.a. is an example of being entrepreneurial which empowers to create opportunities and to reach goalsb. was an honor studentc. was a natural-born sales professionald. was out of the ordinary

a

4. What social media forum did Keverian use for researching her market? a. Snapchat b. Facebook c. LinkedIn d. Twitter

b

What factor(s) contributed to the golden age of entrepreneurship?

all

10. Effectual entrepreneurs focus on ______. a. being effective in their markets b. creating a future rather than predicting it c. the tech industry d. establishing profitable, conservative businesses

b

17. In the knowledge economy, ______. a. patent laws were enacted to protect the legal ownership of intangible properties b. changes in patent laws made it easier for entrepreneurs to register their inventions c. libraries were createdd. cloud services were created

b

2. ______ are small, short-term loans to the impoverished who are perceived as ineligible to receive traditional bank loans to start their own businesses. a. charitable contributions b. microloans c. short-term notes d. miniloans

b

24. A family enterprise is ______. a. a family farm that has been in the family for generations and does things the same way it always hasb. owned and managed by multiple family members. Each generation has an opportunity to bring the organization forward in new, innovative ways. c. another name for a partnership between husband and wifed. a sole proprietorship that hires the owner's spouse and children

b

25. Serial entrepreneurs are ______. a. in real estate linking real estate purchases in a series of several LLCs attached with similar names like "Neck Properties I," "Neck Properties II," " Neck Properties III," and so onb. people who start several businesses, whether at the same time or one after another c. business owners in the IT marketd. business owners developing their business vertically from source to sale

b

30. Global Entrepreneurship Monitor (GEM) looks at two groups of entrepreneurs: opportunity-based entrepreneurs and ______.a. those currently employed but looking at developing their own businessb. necessity-based entrepreneurs who are pushed into starting a business because of a circumstancec. those with the savings to start a franchise businessd. need-based individuals who need to succeed

b

34. What makes a country more entrepreneurial than another?a. It is simply a matter of economics and the level to which a country has developed.b. Conditions need to be in place to help small and medium businesses to flourish, including support from the government, education, entry regulation, physical infrastructure, and cultural and social norms.c. the import-export relationships with the United States and the European Economic Communityd. The population drives the market; the larger the population, the more supportive a country can be to the entrepreneurs.

b

35. According to Yunus, the professor of economics who started the Grameen Bank, the name Grameen meansa. to trustb. bank of the villagesc. of the people, for the peopled. small

b

42. Which of the following statements are true?a. Entrepreneurship is predictable and can be taught as a process.b. Entrepreneurship is not predictable and the entrepreneurial method requires consistent practice. The entrepreneur will want to apply the new skills and knowledge to future projects.c. Entrepreneurs have a certain set of personality qualities.d. Entrepreneurs are high risk takers.

b

43. Susan has applied the act-learn-build philosophy to her startup. To her friends and family, she looks like a risk-taker believing in taking all or nothing.a. This is a true image.b. This is not a true image; it just looks that way.c. Act-Learn-Build has nothing to do with risk.d. Entrepreneurs do believe in taking all or nothing.

b

47. One of the traits of the self-made man in Colonial America before 1776 was ______.a. that the self-made man was a farmerb. reveling in the freedom of reinventing himself without the burden of class persecution. As a result, new ventures, new markets, and new opportunities developed c. focused on forging new iron tools to work withd. negotiating with the Native Americans to learn new ways

b

8. "Entrepreneurs are not extreme risk-takers" ______. a. is not a true statement because the nature of starting something new, a business, is risky b. is true because risk can be offset by planning and research c. is a true statement because new businesses have a high rate of failure d. because entrepreneurship has nothing to do with risk

b

19. "Entrepreneurs inside" ______. a. are employees working for an entrepreneurb. are employees who think and act entrepreneurially within organizations; they do not need to gain inside support from senior managers for their initiativesc. need to develop a team of willing individuals to support their project to get buy-in for their ideas and proving there is a market for themd. do not exist, as entrepreneurs only exist outside of large corporations

c

21. ______ is defined as the entrepreneur buying out the existing owner and taking over operations and is sometimes seen as less risky.a. Going into a partnership with the ownerb. Buying a franchise from a franchise company c. Buying a small businessd. Purchasing stock from a broker

c

22. Social entrepreneurship ______. a. blends social media (LinkedIn, Facebook, Twitter, etc.) and traditional media (television, radio, newspaper, mail) b. is defined as a business that is supported by and supports social mediac. is a global movement focusing on social problems while also providing an economic impact for the participantsd. does business in the social sector (restaurants, bars, amusement parks)

c

3. The advice given to Keverian was to build a(n) ______ before going out on your own. Learn from the best, then go execute. a. business plan b. market analysis c. overall business toolkit d. start-up budget

c

39. The famous entrepreneur who had a 10-year rocky history of startups, threats of lawsuits, and filing for bankruptcy before he became successful is ______.a. Bill Gatesb. Donald Trumpc. Travis Kalanickd. Steven Jobs

c

41. Sam likes to think outside of the box. He has several ideas that he is developing into his new startup. Part of his philosophy is to create the world he wants to live in and this involves creating his markets and his opportunities. Sam is ______. a. delusionalb. socialisticc. an effectual entrepreneurd. an effective entrepreneur

c

45. Collaboration with which of the following groups can increase efficiency and generate new ideas?a. your employees and family membersb. your customersc. your customers, suppliers, and competitorsd. your college friends and classmates

c

50. After World War II, the middle class rose. This meant meeting the growing needs of a growing nation, resulting in ______.a. a decline in novel product development and an increase in big businessb. fast-food restaurantsc. an increase in entrepreneurial product developmentd. the birth of network marketing

c

11. The entrepreneurial method requires consistent practice so that ______ can be continuously developed and applied to future endeavors. a. a strong business plan b. education and application c. business processes d. knowledge and expertise

d

12. The risk component for entrepreneurs is ______. a. unavoidable and entrepreneurship is ideal for extreme risk-takers b. can be reduced with a good business plan c. can be reduced with diversification d. can be managed with the cycle of act-learn-build

d

13. Entrepreneur is defined as "One who undertakes a project; a manufacturer; a master builder" and a. dates back to 1780 in colonial America b. is credited to Steven Jobs c. is credited to the .com era d. is credited to common French usage (1600)

d

18. Corporate entrepreneurs ______. a. are simply employees with an entrepreneurial spiritb. cannot exist as corporations are too huge to manage entrepreneursc. are the backbone for corporations wanting to become publicd. tend to explore new possibilities and seek ways in which an organization's current structure and process can enable innovation

d

28. Global Entrepreneurship Monitor (GEM) conducted a study and gathered its data according to ______. a. the different regions of the world to compare and contrast the impact of culture on entrepreneurshipb. the age and sex of the participants to get their results to determine their impact on entrepreneurismc. industry and the standard d. different phases of entrepreneurship: potential entrepreneurs, nascent entrepreneurs, new business owners, and established business owners

d

29. 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 called ______.a. potential entrepreneursb. failed business ownersc. new business ownersd. nascent entrepreneurs

d

40. Sally has an idea for her own business. Which statement is true about Sally's business venture?a. If her business is successful, the startup does not remain a startup.b. Her business can develop into a larger organization.c. Her business can be merged with or acquired by another business.d. all of these

d

48. A launching pad for creativity and innovation, the ______ provided the right to private property, access to a banking system, and protection in the form of patent laws.a. Twelfth Amendment b. Declaration of Independencec. Sixteenth Amendmentd. US Constitution

d

5. Keverian's advice for fellow entrepreneurs is "You have to be ready to dedicate your ______ to getting that business off the ground. Always know you have the ______ of what your future holds." a. finances; vision b. full-time job; drive c. finances; control d. entire life; control

d

6. Entrepreneurs are ______. a. overnight global sensations b. lucky c. successful only in the tech industries d. experts in their fields

d

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 in place for the Entrepreneurial Ecosystem, he particularly needs ______.

entrepreneurship education

According to the authors, what is the precursor to action?

mindset

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.

true

Entrepreneurship is a life skill.

true

Family enterprises are the dominant form of business organization worldwide.

true

It is estimated that more than 80% of U.S. businesses are family-owned or controlled by a family.

true

Most family businesses do not survive the transition from the first to the second generation.

true

49. In the Pinnacle of Entrepreneurship (Second Industrial Revolution), the entrepreneur ______.

was considered "self-made" and was glorified in novels