ENTR MIDTERM

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

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

A

10. Which of the following is true about effectual entrepreneurs? a. They focus on creating a future rather than predicting it b. They find markets rather than make them, c. They do not accept failure d. They rely on the initiative of stakeholders to fulfill their vision of the future

A

16. According to the text, which of the following is the least important when launching a company? a. Creating a business plan b. Connecting with customers c. Building a network d. Generating buzz

A

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

A

21. 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)

A

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

A

25. Predictive logic should be used in situations of: a. certainty b. uncertainty c. ambiguity d. conflict

A

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

A

29. Marian Croak's idea to use the text messaging system she developed for the television series American Idol in disaster situations is an example of________. a. Corporate entrepreneurship b. Entrepreneurs inside c. Social Entrepreneurship d. Serial entrepreneurship

A

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

A

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

A

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

A

38. Deliberate practice requires: a. high levels of focus, attention, and concentration b. avoiding possible weaknesses c. working without goals d. seeking perfection

A

38. Sam is tired of seeing injustice and mistreatment of children in inner cities and has an innovative idea to help them develop self-esteem. Sam is an example of a ______. a. social entrepreneur b. potential entrepreneur c. nascent entrepreneur d. benefit entrepreneur

A

4. Which of the following is NOT a truth about entrepreneurship? a. Entrepreneurship is reserved for startups. b. Entrepreneurship can be taught, as it is a method that requires practice. c. Entrepreneurs collaborate more than they compete. d. Entrepreneurship is a life skill.

A

40. Michael is a franchise restaurant owner. Which of the following best describes his franchising costs? a. a franchise fee to start, a monthly royalty as a percentage of sales, and other operational costs b. a royalty to the franchisor calculated as a percentage of net income plus other operational costs c. his costs are the same as any other restaurant owner d. a franchise fee to start plus other operational costs

A

45. What is the survival rate of family businesses transitioning from the first to the second generation? a. less than 30% b. 40% c. 50% d. more than 75%

A

48. Maria lost her job. Unable to find work in her chosen field, she decides to start her own business. What type of entrepreneur is she? a. necessity-based entrepreneur b. nascent entrepreneur c. established business owner d. potential entrepreneur

A

5. The media often cover the meteoric rise of entrepreneurs such as Bill Gates (Microsoft), Steve Jobs (Apple), Mark Zuckerberg (Facebook), Elon Musk (Tesla), and Travis Kalanick (Uber). According to the text, these stories: a. are inspirational but they do little to represent the reality of entrepreneurship. b. are highly relatable. c. have not captured the public imagination. d. are accurate depictions of the reality of entrepreneurship.

A

5. What is the dominant logic of large, established organizations? a. prediction b. creation c. experimentation d. creativity

A

55. Total Entrepreneurial Activity (TEA) is the percentage of the population of each country between the ages of 18 and 64, who are either__________ a. a nascent entrepreneur or owner-manager of a new business b. a potential entrepreneur or established business owner c. a new business owner or established business owner d. a potential entrepreneur or a nascent entrepreneur

A

6. A temporary organization in search of a scalable business model is known as: a. a startup. b. a corporation. c. an LLC. d. an entrepreneur.

A

8. Contemporary researchers focus on how entrepreneurs________ a. think and act b. develop a desire for achievement c. build a tolerance for uncertainty d. develop an affinity for taking risks

A

11. According to the authors, what is the precursor to action? a. a business process b. the right mindset c. a business plan d. the acquisition of resources

B

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

B

18. Which Founding Father is considered one of history's greatest entrepreneurs? a. Thomas Jefferson b. Benjamin Franklin c. George Washington d. Alexander Hamilton

B

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

B

22. During which period was entrepreneurship at its height? a. First Industrial Revolution (1776-1865) b. Second Industrial Revolution (1865-1920) c. Interwar and Postwar America (1920-1975) d. Knowledge Economy (1975- present)

B

23. In the Pinnacle of Entrepreneurship (Second Industrial Revolution), the entrepreneur ______. a. was not well respected b. was considered "self-made" and was glorified in novels c. worked largely within large corporations d. paid higher taxes than their neighbors working in the factories

B

24. During the period between 1920 and 1975, which of the following did NOT contribute to the decline of the traditional entrepreneur? a. An increase in production due to the expansion of the middle class b. The transition toward a knowledge-based economy. c. The merger of small firms founded by entrepreneurs with larger organizations. d. The Great Depression

B

26. Creation logic should be used in situations of: a. certainty b. uncertainty c. clarity d. stability

B

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

B

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

B

31. The launch of the "inglorious vegetable" at the French Supermarket Intermarché as a way of reducing food waste by selling imperfect vegetables at a 30% discount is an example of_____ a. Corporate entrepreneurship b. Entrepreneurs inside c. Social Entrepreneurship d. Serial entrepreneurship

B

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

B

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

B

35. Robert has a business that he wants to pass down to others in his family to run. Robert has ______. a. an entrepreneurship b. a family enterprise c. a role as a an entrepreneur inside d. interest in a benefit corporation

B

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

B

41. Sally decided to look into buying a franchise as her entrance into entrepreneurship. Which of the following is NOT a benefit of franchising? a. A whole franchise network exists to reach out to for help and advice. b. potential competition from other franchise owners c. Real estate resources exist to help source the best location for your franchise. d. In-house personnel and field reps are available to help you and your business succeed.

B

42. ICHOR Restaurant Group was started by Brian Bailey and Tim Hug in 2006 and has since opened three successful restaurant concepts, "Old Carolina BBQ," "Smoke: The Burger Joint," and "Baja West Coast Kitchen" with a dozen corporate-owned locations. They have begun to allow external entrepreneurs to purchase a license to operate their own location(s). Entrepreneurs purchasing such a license are engaging in ______. A. corporate entrepreneurship B. franchising C. entrepreneurs inside D. social entrepreneurship

B

44. To be certified as a benefit corporation (or B-Corp), an organization is rated on all the following except: a. how its employees are treated b. its global mission c. how it benefits the community in which it operates d. its impact on the environment

B

47. Bill is the paternal head of his family and the family enterprise. He is concerned about the business and wants to ensure its survival for the long run. You, as a consultant, advise him to focus on ______. a. selling the company b. passing on an entrepreneurial mindset to his family members c. writing a detailed business plan d. establishing a trust for the business

B

54. Individuals who have had their business for less than three months are referred to as ________. A. Established business owners B. Nascent entrepreneurs C. Necessity-based entrepreneurs D. New business owners

B

59. Sarah is an accountant with desires to open her own business. She is looking for office space at a reasonable rate along with Internet service. Of the conditions that need to be put in place for the Entrepreneurial Ecosystem, she needs ______. a. cultural and social norms b. physical infrastructure c. entry regulation d. commercial and legal infrastructure

B

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

B

9. ______ are people who start several businesses, sometimes at the same time or sometimes one after the other. a. Social entrepreneurs b. Serial entrepreneurs c. High-risk entrepreneurs d. Low-risk entrepreneurs

B

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

C

14. Successful entrepreneurs tend to follow this approach to collaboration: a. They do not collaborate and work in isolation b. They collaborate with potential customers, but not with competitors c. They collaborate with both potential customers and competitors d. They collaborate with competitors, but not with potential customers

C

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

C

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

C

15. Research revealed what percentage of Inc. 500 wrote formal business plans prior to launching their companies? a. More than 90% b. More than 75% c. Less than 50% d. Less than 10%

C

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

C

17. What invention came to symbolize the ingenuity of Colonial America? a. The spinning jenny b. The telegraph c. The lightning rod d. The light bulb

C

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

C

2. ______ are small, short-term loans often associated with entrepreneurs in developing countries a. no-interest loans b. high-interest loans c. microloans d. miniloans

C

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

C

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

C

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

C

25. What era signaled a shift from the traditional entrepreneur to the big corporation? a. First Industrial Revolution 1776-1865 b. Second Industrial Revolution 1865-1920 c. Interwar and Postwar America 1920-1975 d. Knowledge Economy 1.0, 1975-Present

C

28. What generation is considered to be the most exposed to entrepreneurship education? a. Baby Boomers b. Generation X c. Millennials d. Generation Z

C

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

C

30. According to the text, why would some organizations not be enthusiastic about employees acting entrepreneurially inside a company? a. Fear that workers will prioritize their entrepreneurial efforts over their essential job duties b. Fear that trade secrets will be accidentally released to the public. c. Fear that they will leave the company and start their own business. d. Fear that they will not seek approval from senior managers before starting work on their entrepreneurial initiatives.

C

33. Tony is a manager a company that builds solar panels. In his position as a manager, Tony used the feedback from his team members to as the basis of a plan for the company to start installing the solar panels, as well, in order to enhance the company's competitive position and profitability. Tony is an example of ______. a. an entrepreneur b. a marketing professional c. a corporate entrepreneur d. a strategist

C

34. Joseph is a sales manager for ETC Corporation. ETC is a manufacturer of high-end kitchen appliances for restaurants. Nicole has been lobbying her manager to allow her to design and sell a consumer grade range of consumer-grade appliances using ETC's design and manufacturing resources. Joseph is a(n) ______. A. corporate entrepreneur B. franchisee C. entrepreneur inside D. social entrepreneur

C

36. The nonprofit "1001 Fountains for Tomorrow", whose goal is to provide safe drinking water for small rural villages in Cambodia, is an example of________ a. Corporate entrepreneurship b. Entrepreneurs inside c. Social Entrepreneurship d. Serial entrepreneurship

C

37. A benefit corporation (or B-Corp) is an organization certified by the nonprofit B Lab to ensure strict standards of social and environmental performance, accountability, and transparency are met. According to the book, which of the following statements is true? a. Large non-profits are leaders in this movement. b. To host a telethon to raise money, the organization must be a B-Corp. c. "Buy One, Give One" promotions can generating sales while also raising awareness of social issues. d. all of these

C

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

C

49. According to the 2015/16 Global Entrepreneurship Monitor report, it is estimated that there are ______ entrepreneurs worldwide. A. 4 million B. 40 million C. 400 million D. 4 billion

C

50. Individuals who believe they have the capacity and know-how to start a business without being burdened by the fear of failure are known as_______ a. venture capitalists b. angel investors c. potential entrepreneurs d. creative directors

C

52. Individuals who have been actively involved in a business for over three months but less than three and a half years are known as______ a. Potential entrepreneurs b. Nascent entrepreneurs c. New business owners d. Established business owners

C

63. 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 put in place for the Entrepreneurial Ecosystem, he particularly needs ______. a. financial resources b. support from government c. entrepreneurship education d. research and development transfer

C

7. Effectuation is the theory that: a. businesses should have a positive impact on people's lives. b. the effects of ideas can be studied over time. c. the future is unpredictable yet controllable. d. emotions can influence decision-making.

C

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

D

12. 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

13. Alternative reality games and learning simulations are related to which skill? a. skill of creativity b. skill of reflection c. skill of experimentation d. skill of play

D

13. The risk component for entrepreneurs______. a. is 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

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

D

19. What factor(s) contributed to the golden age of entrepreneurship? a. improved transportation b. growth in the economy c. increase in population d. all of these

D

20. 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. a. Twelfth Amendment b. Declaration of Independence c. Sixteenth Amendment d. US Constitution

D

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

D

26. Which of the following led to entrepreneurship regaining its popularity over the last decades of the 20th century? a. Changes in patent laws b. The rise of information technology c. The rise in venture capital funds d. All of these

D

27. During which period of time was the "tech entrepreneur" born? a. First Industrial Revolution 1776-1865 b. Second Industrial Revolution 1865-1920 c. Interwar and Postwar America 1920-1975 d. Knowledge Economy 1.0, 1975-Present

D

3. This is the discipline that seeks to understand how opportunities are discovered, created, and exploited, by whom, and with what consequences. a. imagineering b. storyboarding c. social engineering d. entrepreneurship

D

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 c. absorbed the loss d. designed a new bag that would work with the larger zipper

D

32. What is the process of creating new products, ventures, processes, or renewal within large organizations? A. Entrepreneurs inside B. Tech entrepreneurship C. Social entrepreneurship D. Intrapreneurship

D

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

D

39. Richard Branson's expansion of Virgin to include railway, music, media, and banking industries is an example of_______ a. Global entrepreneurship b. Nascent entrepreneurship c. Social Entrepreneurship d. Serial entrepreneurship

D

43. Social entrepreneurs_______ a. must rely on fundraising to keep their company economically stable b. can only be found in the nonprofit sector c. must choose between making either a social or an economic impact d. seek innovative solutions to social and environmental problems

D

46. What percentage of US businesses are family-owned or controlled by a family? a. Less than 20% b. 20% to 30% c. 40% to 50% d. 80% to 90%

D

51. 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 known as ______. a. potential entrepreneurs b. Prospective entrepreneurs c. new business owners d. nascent entrepreneurs

D

53. Individuals who are still active in business for over three and a half years are known as_____ a. Potential entrepreneurs b. Nascent entrepreneurs c. New business owners d. Established business owners

D

56. Which of the following is NOT an aspect of the Entrepreneurship Ecosystem described in the chapter? a. social norms b. physical infrastructure c. entry regulation d. open-access patent databases

D

57. Which of the following is NOT a condition for small and medium businesses to flourish in a country? a. Entrepreneurship education b. Support from government c. Cultural and social norms d. Large population size

D

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

D

60. Rahul wants to start a spice business but wants a secure framework with experts in property rights, accounting, law, investment banking, and technology. Of the conditions that need to be put in place for the Entrepreneurial Ecosystem, he needs ______. a. cultural and social norms b. physical infrastructure c. entry regulation d. commercial and legal infrastructure

D

61. Angela wants to start a company developing apps. She needs access to research and development (R&D) to be able to use the newest technologies. Of the conditions that need to be put in place for the Entrepreneurial Ecosystem, she needs ______. a. financial resources b. support from government c. entrepreneurship education d. research and development transfer

D

62. Maria wants to start a landscaping business, but she doesn't know where to start. She thinks she will need tax incentives and lower interest rates on her business lines. Of the conditions that need to be put in place for the Entrepreneurial Ecosystem, she particularly needs ______. a. financial resources b. support from government c. entrepreneurship education d. all of these

D

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

D