MIDTERM EXAM

The introduction in 1971 of the _____ microprocessor started a technology revolution. a. Microsoft b. Sun c. Intel d. Microtel e. Java

Intel

Mom-and-pops" are also known as _____ businesses. a. serial b. lifestyle c. technical d. growth-minded e. scalable

Lifestyle

A 2008 twin study by Nicolaou and Shane using 870 pairs of identical twins and 857 pairs of same-sex fraternal twins to study entrepreneurial activity, found that entrepreneurs are a. 100 percent born. b. about 50 percent born and 50 percent made. c. about 80 percent born and 20 percent made. d. about 40 percent born and 60 percent made. e. 100 percent made.

about 40 percent born and 60 percent made

The late 1990s brought the "_____" bubble and the rush of the venture capital community to position itself for what appeared to be a new way of doing business. a. digital market b. dot com c. social media d. blog publicity e. social network

dot com

Entrepreneurs often unintentionally erect two main types of roadblocks that prevent them from following the creating path: _____ and _____. a. situational; developmental b. primary; secondary c. internal; external d. environmental; personal e. psychological; emotional

environmental; personal

The vast majority of net new jobs created by the small business sector are created by a. lifestyle businesses. b. gazelles. c. nascent entrepreneurs. d. skunks. e. "mom-and-pops."

gazelles

Although entrepreneurs should not be _____ as their business grows, they should be well aware of the status of critical numbers in their business, and they should make their presence known among employees on a regular basis. a. overly aggressive b. workaholics c. risk-takers d. micromanagers e. dependent on others

micromanagers

Once you have generated a number of ideas for needs or problems, there is a natural tendency to a. try the "crazy" ideas. b. accept the idea that is easiest to implement. c. try them all. d. discard them all. e. rush to judgment on the best ideas.

rush to judgment on the best ideas

For entrepreneurs, the closer the solution relates to the actual problem the customer is experiencing, the more likely that there will be immediate _____ upon completion of product development. a. satisfaction b. feedback c. resolution d. sales e. action

satisfaction

It is very difficult today to start a new company as a(n) _____ entrepreneur. a. older b. undisciplined c. foreign d. female e. solo

solo

During Phase _____ of the entrepreneurial process, entrepreneurs do preliminary research to understand any issues they may face in the areas of intellectual property, regulation, or in product development in the case of a technology solution. a. 3 b. 5 c. 2 d. 1 e. 4

1

The _____ is known as the Decade of Entrepreneurship. a. 1960s b. 1980s c. 1990s d. 1970s e. 1950s

1980s

All of the following are components of an effective problem statement EXCEPT a. a component that asks why the problem exists in the first place. b. a "how" question. c. an action verb, which represents the positive course of action anticipated. d. an answer to who is responsible for dealing with the problem. e. the target or desired outcome.

A component that asks why the problem exists in the first place.

Technological change happens when an entrepreneur identifies a. All of these are correct. b. new customer needs. c. existing customer needs that have not been satisfied. d. new ways of manufacturing and distributing products and services. e. new customer segments that appear to be emerging.

All of these are correct

Because entrepreneurs operate in a world of uncertainty, the ability to _____ is vital. a. extract superfluous information b. disregard potential outcomes c. stay in their comfort zone d. analyze a situation e. reject uncertainty and ambiguity

Ananlyze a situation

Which of the following is arguably the most important platform technology today? a. Big data b. Genomics c. Digital anonymity d. Virtual reality e. Artificial intelligence

Artificial Intelligence

Which of the following is NOT one of the four stages of the creative process identified by Wallas? a. Association b. Illumination c. Preparation d. Verification e. Incubation

Association

Joel is a team manager at Green Enterprises. When solving a problem, he often uses _____, which is a form of brainstorming that makes sure that everyone on the team feels comfortable offering up ideas. a. visualization b. brainwiring c. brainwriting d. freeforming e. journey mapping

Brainwriting

_____ involves getting ideas down on Post-it® notes and then organizing the ideas and creating themes. a. Groupthink b. Visualization c. Mindmapping d. Brainwriting e. Journey mapping

Brainwriting

Which of the following countries is an example of an efficiency-driven economy? a. Iran b. Estonia c. Egypt d. Canada e. The Russian Federation

Egypt

If entrepreneurs haven't started their first business by the time they are 30, it is too late. a. True b. False

False

James would like to open a computer repair shop in his hometown. He is currently in Phase 2 of the entrepreneurial process. This means that James is a. doing preliminary research to understand the industry. b. focusing on validating the hypotheses he has made about the customer, the solution, and his proposed business model. c. creating a plan for his business's execution. d. developing hypotheses from his research. e. considering the design of his business.

Focusing on validating the hypotheses he has made about the customer, the solution, and his proposed business model

An effective problem statement has _____ components. a. three b. four c. unlimited d. two e. seven

Four

Which of the following is NOT one of the seven stages that individuals or teams go through as they move from the beginnings of an idea to the fulfillment of final outcome? a. Journey mapping b. Resolution c. Turning point d. Hearing the call e. Fear and resistance

Journey mapping

_____ is a critical part of the everyday life of an entrepreneur and is a skill that must be developed and exercised carefully. a. Embracing stability and predictability b. Disregarding potential outcomes c. Delegating details d. Making effective decisions e. Extracting superfluous information

Making effective decisions

Identifying the right _____ is the most challenging aspect of the problem-solving process. a. solution b. team c. problem d. strategy e. time

Problem

All of the following are identified as opportunities that come with choosing entrepreneurship as a career path EXCEPT a. making a difference. b. becoming dependent. c. doing well while doing good. d. supporting the community. e. creating wealth.

becoming dependent

Management guru Peter Drucker asserted, "The entrepreneurial mystique, it's not magic, it's not mysterious, and it has nothing to do with the genes. It is a _____." a. desire b. great idea c. great network d. need for independence e. discipline

discipline

Historically, _____ innovations have often been patented because achieving mass adoption in the market is a costly process taking many years to accomplish and the inventor wants to protect the time and effort he or she has put into the innovation. a. breakthrough b. disruptive c. inventive d. radical e. incremental

disruptive

At the heart of design thinking is a. empathy with what customers want. b. decision making that does not involve any risk. c. empathy with what employees want. d. alertness that cues an entrepreneur when to seize an opportunity. e. creativity that allows an entrepreneur to "think outside the box."

empathy with what customers want

In _____ economies, businesses are normally created out of necessity and so these countries tend to have very high entrepreneurial activity rates relative to other types of economies. a. innovation-driven b. inertia-driven c. efficiency-driven d. factor-driven e. quality-driven

factor-driven

All of the following have been identified as key technology trends that will be the foundation for the next generation of entrepreneurial businesses EXCEPT a. foreign manufacturing. b. virtual reality. c. artificial intelligence. d. augmented reality. e. synthetic biology.

foreign manufacturing

Of the 29.6 million small businesses in the United States, 80 percent a. are started by males. b. have no employees. c. are started by females. d. are lifestyle businesses. e. are started by people in the 35- to 44-year-old age group.

have no employees

A(n) _____ is a group of companies that are engaged in a similar or related field. a. organization b. foreign market c. partnership d. community e. industry

industry

One of the best ways to discover an opportunity is to study a(n) _____ in depth. a. industry b. product c. market d. company e. business plan

industry

The 1970s saw the beginnings of three significant trends that would forever change the face of business: macroeconomic turmoil, the technological revolution, and a. the green revolution. b. diversification. c. mechanization. d. international competition. e. agricultural disasters.

international competition

The creation of something novel and original whether or not it is commercialized is known as a. innovation. b. invention. c. discovery. d. value creation. e. visualization.

invention

In terms of business trends, the 1960s were characterized by a. international competition. b. job security. c. deregulation. d. fewer benefits. e. anti-diversification.

job security

All of the following are important steps that an entrepreneur can take to increase his or her chances of success in entrepreneurship EXCEPT a. study an industry. b. understand his or her preferences. c. learn to micromanage. d. build a network. e. acquire new skills.

learn to micromanage

The principle of affirmative judgment a. looks for the strengths or positive aspects of a problem first. b. avoids restating a problem even if the problem has just one positive aspect. c. rushes to judgment on the best ideas to solve a problem. d. makes a judgment of a problem based on the negative aspects of the problem definition. e. focuses on the negative aspects of a problem first.

looks for the strengths or positive aspects of a problem first

In the context of new industry formation, Apple's iPhone, introduced on January 9, 2007, spurred the development of the _____ industry. a. mobile app b. Android c. touch screen d. smartphone improvement e. prepaid phone

mobile app

The creative process is difficult to study because it generally deals with a a. series of external processes. b. person's internal thought processes. c. way of doing things that no one understands. d. person's ability to use his or her skills. e. number of complex theories.

persons internal thought process

Nonprofit, socially responsible businesses typically focus on _____ goals. a. political b. religious c. long-term financial d. technological e. noncharitable

religious

An entrepreneur who starts one business and then moves on to start another is called a(n) _____ entrepreneur. a. heterogeneous b. serial c. traditional d. portfolio e. assorted

serial

The _____ is the part of the brain responsible for discovery. a. left hemisphere b. hypothalamus c. subconscious d. frontal lobe e. right hemisphere

subconscious

Force fitting involves a. taking a random object and creating a relationship to the problem statement. b. setting a deadline to formulate a solution. c. using a predefined method to solve a problem. d. assigning team workers to partners. e. requiring a brainstorming session each day.

taking a random object and creating a relationship to the problem statement.

Early economists recognized that _____ is the primary force behind rising standards of living and that innovations in this would determine the success of nations in the future. a. labor b. technology c. industry formation d. economic growth e. manufacturing

technology

All of the following are characteristics of design thinkers EXCEPT a. experimentation. b. optimism. c. traditional thinking. d. empathy. e. collaboration.

traditional thinking

The _____ ties in a professional network are an entrepreneur's acquaintances and business contacts. a. kinship b. strong c. personal d. familial e. weak

weak