Chapter 1 ENT 396
"Great chef" strategies focus on unique markets.
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Characteristics of entrepreneurs cannot be taught or learned.
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Entrepreneurs always start their business at a young age.
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Entrepreneurs are born not made.
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Entrepreneurs are doers not thinkers.
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Entrepreneurs are high risk takers.
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Entrepreneurs are not heroes in today's marketplace.
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Entrepreneurs must fit the "profile."
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Gazelles always operate in national or international markets.
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Gazelles are almost always high tech.
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Gazelles produce only one half the innovations per employee that larger firms do.
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In the environmental school of thought, legal issues surrounding the natural environment are primary.
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In the past century, entrepreneurship has become closely linked with socialism and regulated business.
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Large firms rather than the entrepreneur are the aggressive catalyst for change in the world of business.
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Most entrepreneurs are inventors.
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One of every 1000 adults participates in the founding of a new firm every year.
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The "corridor principle" states that entrepreneurs often get stuck on one idea.
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The entrepreneurial spirit is unique to America and Western Europe.
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The financial/capital entrepreneurial school of thought focuses on the potential profit of the business idea.
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The word entrepreneur is derived from the Spanish word entreprendre, meaning "to undertake."
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Women's share of self employment will still lag behind that of men by the end of 2005
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1. Entrepreneurs are aggressive catalysts for change within the marketplace.
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A "gazelle" is a business establishment with at least 20 percent sales growth every year for five years.
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According to Robert C. Ronstadt, entrepreneurship is the process of creating incremental wealth.
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An entrepreneur does not need a lot of money or luck.
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During the past ten years, new business incorporations averaged 600,000 per year.
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Entrepreneurs are often known as calculated risk takers, as opposed to "gamblers."
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Entrepreneurs are often very methodical people who plan their moves very carefully.
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Entrepreneurs are the major source of innovation and job creation in any
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Entrepreneurs are the major source of innovation and job creation in the economy.
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Entrepreneurship involves an interdisciplinary approach.
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Entrepreneurship is more than mere creation of business.
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Gazelles don't always get VC funding.
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Gazelles produced 5 million jobs in the downsizing years of the 1990's.
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New and smaller firms are responsible for 95% of all radical innovations.
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New and smaller firms obtain more patents per sale than do larger firms.
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Political, cultural, and economic displacement are all part of the displacement school of entrepreneurial thought.
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Prepared entrepreneurs who seize opportunities when they arise often appear to be lucky.
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Recognition of entrepreneurs dates back to the French economist Richard Cantillon.
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Small enterprises are the most common form of establishment, regardless of the industry.
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The displacement school of thought focuses on group phenomena.
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The entrepreneurial events approach focuses on such factors as initiative, organization, autonomy, and risk taking.
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The four major dimensions considered in the multidimensional approach are the individual, the environment, the organization, and the process.
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The macro view includes external processes that are sometimes beyond the control of the entrepreneur.
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The strategic formulation school of thought emphasizes the planning process in successful venture development.
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There is no single definition of an entrepreneur; however research is providing a sharper focus on the subject.
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Three characteristics of an entrepreneur are personal initiative, management skills, and a desire for autonomy.
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During the past ten years, there were approximately how many business incorporations per year? a. 600,000 c. 700,000 b. 500,000 d. 1 million
a. 600,000
Which is a true statement about entrepreneurs? a. Entrepreneurs are doers and thinkers. b. All you need is money to be an entrepreneur. c. Ignorance is bliss for an entrepreneur. d. Inheriting a business is the best way to become an entrepreneur.
a. Entrepreneurs are doers and thinkers.
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
a. Entrepreneurship is the ability to create and build a vision from practically nothing
The "corridor principle" is best described by which of the following statements? a. If at first you don't succeed, try, try, again. b. 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.
a. If at first you don't succeed, try, try, again.
Money is necessary but not sufficient for entrepreneurs to survive because a. Lack of preparation and planning can be a main source of failure. b. The ups and downs of the economy determine the entrepreneur's success. c. The idea is the source of success. d. Money and being in the right place at the right time spells success.
a. Lack of preparation and planning can be a main source of failure.
Which economist associated the "risk bearing" activity in the economy with the entrepreneur? a. Richard Cantillon c. Peter F. Drucker b. Robert C. Ronstadt d. Jean Baptiste Say
a. Richard Cantillon
Which of the following statements best describes a "gazelle?" a. a business with at least 20% 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. a business with at least 20% growth every year
Throughout the years, many myths have arisen about entrepreneurship as a result of? a. a lack of research about entrepreneurship c. a total disregard for the truth b. a lack of interest in the field d. a destructive attitude by government
a. a lack of research about entrepreneurship
Entrepreneurs are best characterized as: a. aggressive catalysts for change c. hard to get along with b. good managers d. not fitting in to an ordinary workplace
a. aggressive catalysts for change
Entrepreneurs themselves perceive the concept of risk in which of the following ways: a. calculated risk taking c. distorted risk taking b. gambling risk d. social risk
a. calculated risk taking
In the evolutionary process of economic growth, _________ plays the crucial and indispensable role of providing the "social glue" that binds together both high-tech and "Main Street" activities. a. entrepreneurship c. the Internet b. supply and demand d. management
a. entrepreneurship
In the present century, which of the following is entrepreneurship considered synonymous with: a. free enterprise. c. multimillion dollar enterprises. b. socialism. d. partnership.
a. free enterprise.
Which of the following characteristics is most important to an entrepreneur? a. management skills c. friendliness b. neatness d. having a nice office.
a. management skills
Michael Gerber's book "The E-Myth" explains the failure of most small businesses is due to: a. owners being more technicians rather than entrepreneurs b. owners being more managerial rather than technical c. owners being more entrepreneurial rather than managerial d. owners being more customers rather than business people
a. owners being more technicians rather than entrepreneurs
The macro view can be broken down into which three areas? a. the environmental, financial, and displacement b. the financial/capital, strategic, and opportunity c. the displacement, trait, and financial d. the entrepreneurial trait, opportunity, and strategic
a. the environmental, financial, and displacement
Water well strategies refer to: a. unique resources c. unique markets b. unique products d. unique products
a. unique resources
Since the new century the US has had an annual new firm birth rate of a. 4-6 per 100 existing establishments c. 50-60 per 100 existing establishments b. 14-16 per 100 existing establishments d. almost none
b. 14-16 per 100 existing establishments
Gazelles have been responsible for which of the following: a. some job growth c. 30 percent of all radical innovations b. 55 percent of innovations d. most job turnover
b. 55 percent of innovations
Which statement is not true? a. Luck happens when preparation meets opportunity. b. Entrepreneurs do not hold up in today's competitive market. c. Failure due to lack of proper financing often is an indicator of other problems. d. It takes more than just money to be a successful entrepreneur.
b. Entrepreneurs do not hold up in today's competitive market.
Which of the following economists wrote about entrepreneurship and its impact on economic development? a. Richard Dailey c. Paul Samuelson b. Joseph Schumpeter d. Robert McConnell
b. Joseph Schumpeter
3M's Post-it note is an example of the_______. a. theory of declining return c. theory of increasing return b. corridor principle d. risk versus reward principle
b. corridor principle
The macro view of entrepreneurship presents factors exhibiting a strong _____. a. internal locus of control c. environmental locus of control b. external locus of control d. contemporary locus of control
b. external locus of control
Entrepreneurial traits include which of the following? a. salesmanship c. wealth b. initiative d. edginess
b. initiative
Most entrepreneurs should be categorized as a. inventors. c. lucky. b. innovators. d. wealthy.
b. innovators.
When referring to "luck" and an entrepreneur, which of the following statements in an appropriate adage? a. always wait for luck to happen b. luck happens when preparation meets opportunity c. luck happens to everyone d. luck is the key to entrepreneurship
b. luck happens when preparation meets opportunity
The entrepreneur is one who a. dreams all day. c. oversees manufacturing. b. manages. d. invents new products.
b. manages.
The process approach to entrepreneurship seeks to a. explain the process of obtaining patents b. model the various factors that characterize the entrepreneurial process c. explain intrapreneurship. d. explain the process of obtaining venture capital
b. model the various factors that characterize the entrepreneurial process
Which of the following is not a form of displacement in the displacement school of thought? a. political c. economical b. racial d. cultural
b. racial
Which of the following traits is not that of an entrepreneur? a. drive c. willingness to take risks b. shyness d. human relations skills
b. shyness
Robert C. Ronstadt put together a summary definition of entrepreneur that included which of the following key phrases? a. the acceptance of risk of failure b. the dynamic process of creating incremental wealth c. take advantage of economic endowments d. a phenomenon that comes under the wider aspect of leadership
b. the dynamic process of creating incremental wealth
44. The micro view is divided into which three theories? a. the entrepreneurial, financial, displacement b. the venture opportunity theory, entrepreneurial, strategic c. the strategic, environmental, and opportunity d. the environmental, financial, and displacement
b. the venture opportunity theory, entrepreneurial, strategic
Which of the following does not apply to the strategic formulation school of thought? a. unique people c. unique markets b. unique places d. unique products
b. unique places
25. 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.
c. Entrepreneurs today are considered heroes.
The Entrepreneurial Assessment Approach stressed that assessments must be made ______ in regard to the entrepreneur, the venture, and the environment. a. qualitatively and quantitatively c. a and b b. strategically and ethically d. financially
c. a and b
Entrepreneurs are more accurately depicted by which of the following: a. entrepreneurs are gamblers b. entrepreneurs are extreme risk takers c. entrepreneurs are calculated risk takers d. entrepreneurs often don't want to know how much risk is involved
c. entrepreneurs are calculated risk takers
Which is a key factor in successful entrepreneurship? a. identifying the strengths of a venture b. setting up clear timetables c. minimizing problems through careful strategy formulation d. the product itself
c. minimizing problems through careful strategy formulation
The statement, "with every new venture launched, new and unintended opportunities often arise," would be associated with: a. the entrepreneurial principle c. the corridor principle b. the opportunity principle d. the dilbert principle
c. the corridor principle
Which of the following schools of thought is not a micro view school of thought? a. the entrepreneurial trait school of thought c. the displacement school of thought b. the venture opportunity school of thought d. the inherited business school of thought
c. the displacement school of thought
Entrepreneurs will always be a. a key factor in the stability of the small business sector b. hindered by lack of funding c. the major source of job creation and innovation in any economy d. a little quirky
c. the major source of job creation and innovation in any economy
The word entrepreneur is derived from the French entreprendre, which is translated as a. to apprehend. c. to compete. b. to undertake. d. to enter and dare.
c. to compete.
Michael Gerber has written a book titled, "The E-Myth," where he contends: a. the entire field of study in entrepreneurship is a myth b. there is no such thing as entrepreneurship c. today's business owners are not true entrepreneurs d. everybody in business is an entrepreneur
c. today's business owners are not true entrepreneurs
______________ is the economic basis for all entrepreneurial activity. a. Individuality c. Voodoo economics b. Capitalism d. Free enterprise
d. Free enterprise
Which is not one of the chief characteristics of an entrepreneur? a. personal initiative c. risk taking b. ability to consolidate resources d. desire for control of people
d. desire for control of people
The displacement school of thought can be divided into which three groups? a. political, cultural, environmental c. environmental, financial, and economic b. cultural, environmental, and financial d. economic, cultural, and political
d. economic, cultural, and political
In the study of contemporary entrepreneurship, one concept reoccurs: a. no one understands the field c. there is no theoretical base b. folklore dominates the studies d. entrepreneurship is interdisciplinary
d. entrepreneurship is interdisciplinary
In our present century, entrepreneurship has become synonymous or closely linked with: a. failure c. multimillion dollar enterprises b. socialism and monopolies d. free enterprise and capitalism
d. free enterprise and capitalism
Entrepreneurs always a. start their business at a young age b. quit school and devote themselves to being an entrepreneur c. use credit cards to start their own businesses d. generate ideas and plan for their implementation
d. generate ideas and plan for their implementation
The study of entrepreneurship is a. based on the field of management c. based on the field of sociology b. based on the field of accounting d. interdisciplinary
d. interdisciplinary
Entrepreneurs and gazelles have been credited with making disproportionate contributions to all but which of the following. a. innovation c. economic renewal b. job creation d. unemployment
d. unemployment
Mountain gap strategies refer to: a. unique resources c. unique resources b. unique locations d. unique markets
d. unique markets