Entrepreneurship Chapter 2

Dark side of entrepreneurship

A destructive side that exists within the energetic drive of successful entrepreneurs

Ethics

A set of principles prescribing a behavioral code that explains what is good and right or bad and wrong

Code of conduct

A statement of ethical practices or guidelines to which an enterprise adheres

Failure

A venture not being able to survive as caused by inexperience or incompetent management

Entrepreneurial cognition includes which of the following attributes?

All of these answers are correct

Entrepreneurial mindset

All the characteristics and elements that compose the entrepreneurial potential in every individual

Entrepreneurial persistence

An entrepreneur's choice to continue with an entrepreneurial opportunity regardless of counterinfluences or other enticing alternatives

Entrepreneurial behavior

An entrepreneur's decision to initiate the new venture formation process

haracteristics often attributed to the entrepreneur include which of the following?

Commitment, determination, and perseverance

Stress

Discrepancies between a expectations and ability to meet demands

Entrepreneurial experience

Entrepreneurs emerge as a function of the novel and experiential nature of the venture creation process involving three parallel, interactive phenomena: emergence of the opportunity, emergence of the venture, and emergence of the entrepreneur

Family and social risk

Entrepreneurs risk having an incomplete family experience

T/F: A loss orientation toward grief recovery in dealing with failure can sometimes lessen negative emotional reactions.

False

T/F: Commitment, determination, and perseverance are the only characteristics one needs to become a successful entrepreneur.

False

T/F: Ethics represents a set of principles prescribing a behavioral code that does not include moral duty and obligations.

False

T/F: The "dark side" of entrepreneurship refers to the stress that entrepreneur's experience.

False

T/F: The generation of the twenty-first century believe that career success will require them to be less nimble, independent, and entrepreneurial than past generations and focus on tried and true educational disciplines for long-term career stability.

False

T/F: Today's entrepreneurs are faced with few ethical decisions because the legal system imposes greater penalties on wrongdoers.

False

Metacognitive model

Integrates the combined effects of entrepreneurial motivation and context, toward the development of metacognitive strategies applied to information processing within an entrepreneurial environment.

Grief recovery

Involves focusing on the particular loss to construct an account that explains why it occurred

Risk

Involves uncertain outcomes or events

Cognition

It refers to mental processes. These processes include attention, remembering, producing and understanding language, solving problems, and making decisions.

Social cognition theory

Knowledge structures and mental processes that optimize effectiveness in entrepreneurship

Entrepreneurial cognition

The knowledge structures that people use to make assessments, judgments, or decisions involving opportunity evaluation, venture creation, and growth

Financial risk

The money or resources at stake for a new venture

Psychic risk

The psychological impact on wellbeing when creating a venture

Entrepreneurial motivation

The willingness of an entrepreneur to sustain his or her entrepreneurial behavior

T/F: Codes of conduct are becoming more prevalent in industry are proving to be more meaningful, more comprehensive and easier to implement in terms of the administrative procedures used to enforce them

True

T/F: Entrepreneurial cognition is, in part, about understanding how entrepreneurs use simplifying mental models to make assessments, judgments, and decisions about opportunities.

True

T/F: New research into the foundation of the entrepreneurial mind-set identifies cognitive adaptability as a person's ability to be dynamic, flexible, and self-regulating in cognitions given dynamic and uncertain task environments.

True

T/F: There is a certain psychic risk involved with entrepreneurship.

True

Role failure

Unethical acts against the firm involving a person failing to perform his or her managerial role, including superficial performance appraisals (not being totally honest) and not confronting someone who is cheating on expense accounts

Role distortion

Unethical acts committed on the basis that they are "for the firm" even though they are not, and involving managers/entrepreneurs who commit individual acts and rationalize that they are in the firm's longrun interests

Role assertion

Unethical acts involving managers/entrepreneurs who represent the firm and rationalize that they are in a position to help the firm's longrun interests.

Rationalizations

What managers use to justify questionable conduct

Career risk

Whether an entrepreneur will be able to find a job or go back to an old job if his or her venture fails

Areas of risk to the entrepreneur include

career, family, psychic

A __________ is a statement of ethical practices or guidelines to which an enterprise adheres.

code of conduct

Entrepreneurial stress can be caused by having a type A personality which can be defined as:

having a chronic sense of time urgency

A decision to sell pharmaceuticals that have not been cleared with the Federal Drug Administration is an example of a(n):

illegal and unethical decision

When entrepreneurs believe that their accomplishments and setbacks are within their own control and influence, they are exhibiting:

internal locus of control

A decision to sell toys that pass minimum safety standards but can often result in minor accidents to children is an example of a(n):

legal and unethical decision

Every person has the _____ and _____ to pursue a career as an entrepreneur.

potential; free choice

Which of the following may be the greatest risk to the well-being of the entrepreneur?

psychic risk

Not confronting someone who is cheating on expense accounts is an example of which of the following?

role failure act

The entrepreneurial ego can cause the entrepreneur to:

take characteristics that usually lead to success to the extreme

Generally, entrepreneurial stress is due to

the discrepancy between the entrepreneur's expectations and the ability to meet demands.

The decision to behave entrepreneurially is the result of the interaction of

the individual's personal entrepreneurial mind-set and an opportunity

Which of the following negative effects of an entrepreneur's inflated ego can result in a fantasy approach to business?

unrealistic optimism