Ch1

Gina wants to develop an app to match animal shelters to adopters. She has crafted the following statement: "I am developing this app so that more pets will be adopted." What component of the practice of entrepreneurship is she implementing?

Identify your desired impact on the world.

Which social entrepreneur and Nobel Prize Winner said, "All human beings are entrepreneurs. When we were in the caves, we were all self-employed...finding our food, feeding ourselves"?

Muhammad Yunus

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

Serial entrepreneurs

College courses on entrepreneurship are standard parts of the curriculum. T/F

T

The process approach to entrepreneurship emphasizes ______.

prediction

Why has traditional education inhibited our entrepreneurial nature?

It fosters a constant need for measurement and assessment.

Why is the 10-step process not enough for entrepreneurial ventures?

It relies too much on past history to predict the future.

When practicing entrepreneurship, starting with means at hand involves ______.

analyzing who you are

According to the authors, a student should take action and practice entrepreneurship ______.

at every opportunity

Chef Jiro has used ______ to master the art of making sushi.

deliberate practice

Your professor gives you a project with little direction or planning. This is an example of ______.

entrepreneurial thinking

The entrepreneurial method requires consistent practice so that ______ can be continuously developed and applied to future endeavors.

knowledge and expertise

As babies, we learned by trial and error. Through traditional education, we think more like ______.

managers

According to the text, what is the key to entrepreneurship?

practice

______ have touched every corner of our lives, affecting every aspect of the way we live.

Entrepreneurs

Which of the following is a truth about entrepreneurship?

Entrepreneurship is not reserved for startups.

Corporate entrepreneurs work within only large organizations whereas entrepreneurs inside can exist in any type of organization, big or small. T/F

T

Entrepreneurship can provide us with skills we can apply to other aspects of our lives. T/F

T

Successful entrepreneurs have a tendency to collaborate with competitors. T/F

T

What method emphasizes moving quickly from the initial plan to reality?

The Entrepreneurship Method

Successful entrepreneurs tend to follow which approach to collaboration?

They collaborate with both potential customers and competitors.

Which of the following is true about effectual entrepreneurs?

They focus on creating a future rather than predicting it.

Robert has a business that he wants to pass down to others in his family to run. Robert has ______.

a family enterprise

Tony is a manager at a company that builds solar panels. In his position, he used the feedback from his team members as the basis of a plan for the company to start installing the solar panels in order to enhance the company's competitive position and profitability. Tony is an example of a(n) ______.

corporate entrepreneur

What is the discipline that seeks to understand how opportunities are discovered, created, and exploited, by whom, and with what consequences?

entrepreneurship

To be certified as a benefit corporation (or B-Corp), an organization is rated on which of the following?

how its employees are treated

When studying medical students and the way in which they learn clinical skills, researchers found the students who used deliberate practice were ______.

learning how to learn

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

less than 30%

Research revealed what percentage of Inc. 500 founders wrote formal business plans prior to launching their companies?

less than 50%

By definition, a ______ is a systematic way of approaching a task.

method

The fatty white tissue created in your brain through focused repeated activity is ______.

myelin

Your professor has asked you to implement the entrepreneurial approach on your final project without much further instruction. What do you do first?

Look at what means you have to start the process.

Your classmate is planning a new venture. He has spent a lot of time on planning and analysis, taking a managerial approach as he attempts to predict the future. This type of path is typically taken by what type of entrepreneur?

novice entrepreneur

Bill is the paternal head of his family as well as 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 ______.

passing on an entrepreneurial mindset to his family members

What was violinist Nathan Milstein concerned about with deliberate practice?

practicing less than his competition

In the Entrepreneurship Method, ______ requires thinking about and analyzing existing information.

prediction

Approaching entrepreneurship as a ______ caters to its unpredictable and uncertain nature.

process

Social entrepreneurs ______.

seek innovative solutions to social and environmental problems

Richard Branson's expansion of his Virgin Group to include railway, music, media, and banking industries is an example of ______ entrepreneurship.

serial

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 ______ entrepreneur.

social

The nonprofit "1001 Fountains for Tomorrow," whose goal is to provide safe drinking water for small rural villages in Cambodia, is an example of ______.

social entrepreneurship

A temporary organization in search of a scalable business model is known as a(n) ______.

startup

Effectuation is the idea that ______.

the future is unpredictable yet controllable

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

the right mindset

High performers use ______ to carry out carefully focused efforts to improve performance.

deliberate practice

The authors define entrepreneurship as ______.

a way of thinking, acting, and being that combines the ability to find or create

According to the text, why would some organizations not be enthusiastic about employees acting entrepreneurially inside a company?

fear that they will leave the company and start their own business

Family-owned businesses account for ______ of new jobs in the U.S. economy.

78%

According to the authors, entrepreneurship is best taught as a linear process that will lead to a specific destination. T/F

F

B-Corp certification recognizes organizations that achieve five or more years of consistent profitable growth. T/F

F

Bill Gates and Mark Zuckerberg are shining examples of overnight success. T/F

F

Corporate entrepreneurship and intrapreneurship are different processes. T/F

F

Entrepreneurs are traditionally extreme risk-takers. T/F

F

Entrepreneurship is reserved for startups. T/F

F

Franchising can be a beneficial way for entrepreneurs to get a head start in launching their own businesses since they do not have to pay the franchisor royalties after buying the franchise. T/F

F

Paulina bought a small print shop and is very successful, but because she purchased an existing business, she is not considered an entrepreneur. T/F

F

Research has proven that successful entrepreneurs are planners and most insist on having a formal business plan in place before launching a new venture. T/F

F

Scientific evidence has proven that a specific set of traits distinguishes entrepreneurs from non-entrepreneurs. T/F

F

Social entrepreneurship is a term used only to describe not-for-profit ventures. T/F

F

Social entrepreneurship is defined as the process of innovating new social media business opportunities. T/F

F

Successful entrepreneurs are essentially gamblers at heart. T/F

F

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. T/F

T

An entrepreneur can own his or her own business or work in a corporation with an entrepreneurial spirit. T/F

T

Approximately 70% of family businesses fail or are sold before the second generation reaches a position to take over. T/F

T

As an entrepreneur, if you have to choose between planning an action and taking an action, you should opt for taking the action. T/F

T

Family-owned businesses account for 65% of total wages in the U.S. economy. T/F

T

Joan has pursued seven money-making ventures over the past 10 years, ranging from retail storefronts to mobile app development. Joan is a "serial entrepreneur." T/F

T

Managerial thinking works best in times of certainty. T/F

T

The cycle of act-learn-build encourages entrepreneurs to take small actions in order to learn and build that learning into the next action. T/F

T

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?

The certification protects a company from lawsuits from stakeholders.

Michael is a franchise restaurant owner. Which of the following best describes his franchising costs?

a franchise fee to start, a monthly royalty as a percentage of sales, and other operational costs

Entrepreneurs who have engaged in years of deliberate practice tend to have ______.

a higher sense of intuition

According to the textbook, entrepreneurship has traditionally been viewed as ______.

a process of sequential steps

The media often cover the meteoric rise of entrepreneurs such as Bill Gates (Microsoft) and Travis Kalanick (Uber). According to the text, these stories ______.

are inspirational, but do little to represent the reality of entrepreneurship

According to the authors, anything you do that requires deliberate practice helps develop ______, which is/are transferable to entrepreneurship.

cognitive skills

Rafael is struggling with next steps for his startup. He asks his friends for feedback on his idea. What part of the entrepreneurship method is he using?

collaboration

Joseph is a sales manager for ETC Corporation, a manufacturer of high-end kitchen appliances for restaurants. Nicole has been lobbying him to allow her to design and sell a range of consumer-grade appliances using ETC's design and manufacturing resources. Nicole is a(n) ______.

entrepreneur inside

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 ______.

franchising

What is the process of creating new products, ventures, processes, or renewal within large organizations?

intrapreneurship

After months of sharing his fitness venture with his high school football team and receiving feedback, Jarod decided to start promoting it on Facebook. This illustrates what concept?

the practice of entrepreneurship