Test 1

Which of the following statements best describes a "gazelle?" a. A business with at least 20 percent growth every year. b. A business with no sales growth. c. A business that has acquired numerous firms. d. An inventor turned business person.

a. A business with at least 20 percent growth every year.

Which of the following statements about social entrepreneurship is not true? a. Social entrepreneurship is limited to the world of not-for-profit corporations. b. Social entrepreneurship is about having a heightened sense of accountability. c. Social entrepreneurship has, in recent years, been the subject of widespread media attention. d. Social entrepreneurship adopts some of the same principles that have been effective in successful entrepreneurship.

a. Social entrepreneurship is limited to the world of not-for-profit corporations.

A "gazelle" is a business establishment with at least 20 percent sales growth every year for five years. a. True b. False

a. True

Clever bootlegging of ideas refers to secretly working on new ideas on company time as well as on personal time. a. True b. False

a. True

Entrepreneurial cognition is, in part, about understanding how entrepreneurs use simplifying mental models to make assessments, judgments, and decisions about opportunities. a. True b. False

a. True

Entrepreneurs are aggressive catalysts for change within the marketplace. a. True b. False

a. True

In the model of sustained corporate entrepreneurship discussed in the text, a transformational trigger can be internal or external to the company. a. True b. False

a. True

Individuals may avoid corporate entrepreneurial behavior due to the impact of traditional management techniques. a. True b. False

a. True

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. a. True b. False

a. True

One reason that corporate entrepreneurship has become popular is because it allows corporations to tap the innovative talents of the personnel. a. True b. False

a. True

Purpose, accountability, and transparency are characteristics associated with socially sustainable enterprises. a. True b. False

a. True

Researchers have identified specific factors that organizations can concentrate on in helping individuals develop more entrepreneurial behavior. a. True b. False

a. True

Social entrepreneurs are known to combine resources to exploit opportunities to create social value. a. True b. False

a. True

The first step in planning a strategy of corporate entrepreneurship is sharing the vision of innovation that executives wish to achieve. a. True b. False

a. True

The social entrepreneurship process begins with a perceived social opportunity translated into an enterprise concept. a. True b. False

a. True

There is a certain psychic risk involved with entrepreneurship. a. True b. False

a. True

All of the following are reasons for the growth of corporate entrepreneurship except a. a desire to dramatically increase profitability. b. a rapidly growing number of new and sophisticated competitors. c. a sense of distrust in the traditional methods of corporate management. d. an exodus of some of the best people out of corporations.

a. a desire to dramatically increase profitability.

Areas of risk to the entrepreneur include a. career, family, psychic. b. family, business, social. c. psychic, social, physical. d. financial, product, market.

a. career, family, psychic

A __________ is a statement of ethical practices or guidelines to which an enterprise adheres. a. code of conduct b. code of ethics c. code of honor d. code of silence

a. code of conduct

The macro view of entrepreneurship can be broken down into which three areas? a. environmental, financial, and displacement b. financial/capital, strategic, and opportunity c. displacement, trait, and financial d. entrepreneurial trait, opportunity, and strategic

a. environmental, financial, and displacement

Michael Gerber, the author of The E-Myth, explains that the failure of most small businesses is due to a. owners being more technical rather than entrepreneurial. b. owners being more managerial rather than technical. c. owners being more entrepreneurial rather than managerial. d. owners being more entrepreneurial rather than technical.

a. owners being more technical rather than entrepreneurial.

Which of the following terms refers the inaugural breakthroughs launched from experimentation and determined vision? a. radical innovation b. incremental innovation c. collective entrepreneurship d. strategic entrepreneurship

a. radical innovation

Commitment, determination, and perseverance are the only characteristics one needs to become a successful entrepreneur. a. True b. False

b. False

Ethics represents a set of principles prescribing a behavioral code that does not include moral duty and obligations. a. True b. False

b. False

Skunk works are project groups that work within the traditional lines of authority. a. True b. False

b. False

Successful global start-ups, or entrepreneurial businesses that are "born global," surprisingly often lack internationally experienced management. a. True b. False

b. False

The resources of the organization are irrelevant to the ability of the corporate entrepreneur to implement an idea. a. True b. False

b. False

The word entrepreneur is derived from the Spanish word entreprendre, meaning "to undertake." a. True b. False

b. False

Key elements in plans to create a sustainable future are likely to include which of the following? a. eliminating the concept of conservation b. eliminating the concept of waste c. eliminating the concept of "price" d. eliminating the concept of accountability

b. eliminating the concept of waste

Every person has the _____ and _____ to pursue a career as an entrepreneur. a. stubbornness; stupidity b. potential; free choice c. rights; regulations d. obligation; duty

b. potential; free choice

Not confronting someone who is cheating on expense accounts is an example of which of the following? a. non-role act b. role failure act c. role distortion act d. role assertion act

b. role failure act

The word entrepreneur is derived from the French entreprendre, which is translated as a. to apprehend. b. to undertake. c. to compete. d. to enter and dare.

b. to undertake.

Corporate social responsibility refers to a. the enhancement of global competition. b. environmental entrepreneurship in the United States. c. actions that further some social good beyond the interests of the firm. d. the effect of ecopreneurship only on some industries.

c. actions that further some social good beyond the interests of the firm.

The major thrust of corporate entrepreneurship is to a. encourage greater risk taking. b. raise profitability. c. encourage innovation. d. increase morale.

c. encourage innovation

An account framework that goes beyond the traditional measures of profit, return on investment, and shareholder value to include environmental and social dimensions is called a. the shared bottom line. b. the value proposition. c. the triple bottom line. d. the twin bottom line.

c. the triple bottom line.

Identified by researchers, which of the following are specific factors identified by the Corporate Entrepreneurship Assessment Instrument (CEAI) that managers in organizations can concentrate on in structuring an entrepreneurial climate? a. radical innovation, incremental innovation, and vision b. skunk works, multiple approaches, and vision c. top management support, time, autonomy, rewards, and organizational boundaries d. rewards, resources, innovation, and vision

c. top management support, time, autonomy, rewards, and organizational boundaries

Which of the following accurately describes an entrepreneur? a. They manage their businesses by expecting stable sales, profits, and growth. b. They do not engage in many new or innovative practices. c. They are not dominant in their fields. d. Their principal objectives are innovation, profitability, and growth.

d. Their principal objectives are innovation, profitability, and growth.

Methods for going international include all of the following except a. importing. b. exporting. c. licensing. d. foreign reclamation.

d. foreign reclamation.

Which of the following four factors is not included in the Social Corporate Entrepreneurship Scale (SCES) developed by researchers? a. firm transparency b. social proactiveness c. rewards d. social intention

d. social intention

Which of the following negative effects of an entrepreneur's inflated ego can result in a fantasy approach to business? a. overbearing need for control and power b. overriding desire for success c. sense of distrust d. unrealistic optimism

d. unrealistic optimism

Characteristics often attributed to the entrepreneur include which of the following? a. Commitment, determination, and perseverance b. Preference to be a loner c. Power hungry d. Ability to be indecisive

a. Commitment, determination, and perseverance

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.

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. a. True b. False

a. True

Ecopreneurship is a combination of ecologically and economically sustainable development. a. True b. False

a. True

Licensing agreements can involve patents, trademarks, and technical know-how. a. True b. False

a. True

Social entrepreneurs and their ventures are driven by social goals and aim to increase social value in order to contribute to the welfare or well-being in a given community. a. True b. False

a. True

The three Ps of the triple bottom line are people, planet, and profits. a. True b. False

a. True

The triple bottom line is an accounting framework that focuses on optimizing short-term financial performance. a. True b. False

a. True

Throughout the years, many myths have arisen about entrepreneurship as a result of a. a lack of research about entrepreneurship. b. a lack of interest in the field. c. a total disregard for the truth. d. a destructive attitude by government.

a. a lack of research about entrepreneurship.

Groups that function outside traditional lines of authority permitting rapid turnaround of new ideas as well as instilling a high level of group loyalty are called: a. skunk works. b. multiple approaches. c. champions. d. strategic innovators.

a. skunk works.

Social entrepreneurs can also be referred to as all of the following except a. social obligators. b. public entrepreneurs. c. civic entrepreneurs. d. social innovators.

a. social obligators

Firms do not need to alter management techniques to encourage corporate entrepreneurship since it tends to occur naturally. a. True b. False

b. False

Systematic evolution of a product or service into newer or larger markets is referred to as radical innovation. a. True b. False

b. False

When entrepreneurs believe that their accomplishments and setbacks are within their own control and influence, they are exhibiting a. persistent problem-solving. b. internal locus of control. c. external locus of control. d. opportunity orientation.

b. internal locus of control.

The first step in planning a strategy of entrepreneurship for enterprise is a. identifying specific objectives. b. sharing the vision of innovation. c. applying the exact tools of the entrepreneur. d. developing radical innovation.

b. sharing the vision of innovation.

Transformational triggers in a corporate entrepreneurial environment initiates the need for a. laying off workers. b. strategically adapting to change. c. changing company location. d. achieving higher productivity standards.

b. strategically adapting to change.

Secretly working on new ideas on company time as well as on personal time is referred to as a. skunk works. b. champion. c. bootlegging. d. interactive learning.

c. bootlegging

The first of five steps for entering the international marketplace is a. securing adequate financing. b. filing the proper documents. c. conducting research. d. preparing a feasibility study.

c. conducting research.

Collective entrepreneurship, as a concept, refers to a. the collective spirit of innovation that resides in the firm's founder. b. the joint recognition of the CEO and CFO as champions of innovation. c. entrepreneurial thinking that is diffused throughout the company. d. socialist enterprising.

c. entrepreneurial thinking that is diffused throughout the company.

A decision to sell pharmaceuticals that have not been cleared with the Federal Drug Administration is an example of a(n): a. illegal and ethical decision. b. legal and unethical decision. c. illegal and unethical decision. d. legal and ethical decision.

c. illegal and unethical decision.

Which of the following may be the greatest risk to the well-being of the entrepreneur? a. social risk b. financial risk c. psychic risk d. family risk

c. psychic risk

Generally, entrepreneurial stress is due to a. being surrounded by incompetents. b. fear of failure. c. the discrepancy between the entrepreneur's expectations and the ability to meet demands. d. caused by a big ego.

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

Which of the following is an obstacle to corporate entrepreneurship? a. orientation to the market b. a system of feedback and positive reinforcement c. traditional management techniques d. rewards based upon results

c. traditional management techniques

The second step in planning a strategy of entrepreneurship for the enterprise is a. identifying specific objectives. b. sharing the vision of innovation. c. applying the exact tools of the entrepreneur. d. developing and encouraging innovation.

d. developing and encouraging innovation.

A loss orientation toward grief recovery in dealing with failure can sometimes lessen negative emotional reactions. a. True b. False

a. False

Today's entrepreneurs are faced with few ethical decisions because the legal system imposes greater penalties on wrongdoers. a. True b. False

a. False

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): a. illegal and ethical decision. b. legal and unethical decision. c. illegal and unethical decision. d. legal and ethical decision.

b. legal and unethical decision

The entrepreneurial ego can cause the entrepreneur to a. to have a sense of pessimism. b. take characteristics that usually lead to success to the extreme. c. ignore government regulations. d. take too few risks.

b. take characteristics that usually lead to success to the extreme.

Which of the following practices is important for establishing innovation-driven organizations? a. punish failures to encourage learning b. emphasize team responsibility c. create a system of feedback and positive reinforcement d. allow innovation goals to remain broad and flexible

c. create a system of feedback and positive reinforcement

When restructuring corporate thinking, top management should a. identify potential entrepreneurs after an innovation program is in operation. b. make the entrepreneur follow strict corporate guidelines. c. promote entrepreneurship through experimentation. d. create diversity and order in strategic activities.

c. promote entrepreneurship through experimentation.

Green entrepreneurship is concerned a. with ecologically sustainable development. b. with economically sustainable development. c. turning ecologically sustainable development into economically sustainable development. d. neither ecologically nor economically sustainable development.

c. turning ecologically sustainable development into economically sustainable development.

Entrepreneurial cognition includes which of the following attributes? a. The understanding of how to simplifying mental models and piece together previously unconnected information. b. The knowledge structures to make assessments, judgments, or decisions involving opportunity evaluation, venture creation, and growth. c. The ability to identify and invent new products or services. d. All of these answers are correct.

d. All of these answers are correct

Examples of social enterprise obligations to the environment include all of the following except a. pollution control. b. restoration of the environment. c. recycling efforts. d. support for minority-own businesses.

d. support for minority-own businesses.

Entrepreneurs and gazelles have been credited with making disproportionate contributions to all but which of the following? a. innovation b. job creation c. economic renewal d. unemployment

d: unemployment

Bottom-line measures of economic performance include all of the following except: a. global competition. b. personal income. c. cost of underemployment. d. job growth.

a. global competition.

Entrepreneurial stress can be caused by having a type A personality which can be defined as: a. having a chronic sense of time urgency. b. taking too little responsibility. c. getting away from business. d. taking things personally.

a. having a chronic sense of time urgency

The decision to behave entrepreneurially is the result of the interaction of a. the individual's personal entrepreneurial mind-set and an opportunity. b. the existence of a viable business idea. c. the relevant business environment. d. a new market.

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

Which of the following schools of thought in the micro view of entrepreneurship includes such terms as mountain gap, great chef, better widget and water well? a. entrepreneurial trait school of thought b. strategic formulation school of thought c. venture opportunity school of thought d. environmental school of thought

b. strategic formulation school of thought

The "dark side" of entrepreneurship refers to the stress that entrepreneur's experience. a. True b. False

b. False

A decacorn, such as Facebook or Uber, is a venture with a $1 million market valuation. a. True b. False

b. False (10 billion)

During the past ten years, new business start-ups in the United States averaged nearly 600,000 per year. a. True b. False

b. False (400,000)

Which of the following terms refers to the systematic evolution of a product or service into newer or larger markets? a. radical innovation b. incremental innovation c. collective entrepreneurship d. strategic entrepreneurship

b. incremental innovation

Which of the following is true of corporate venturing? a. It is the adding of new businesses or portions of new businesses via equity investments to the corporation. b. Exhibition of large-scale or otherwise highly consequential innovations that are adopted in the firm's pursuit of competitive advantage. c. May or may not result in new businesses for the corporation. d. Innovation can be in the firm's strategy, product offerings, served markets, internal organization, or business model.

a. It is the adding of new businesses or portions of new businesses via equity investments to the corporation.

Which of the following best describes a "unicorn" in venture terminology? a. a venture with a $1 billion market value b. a venture achieving $10 billion valuation c. a venture with a $1 million market value d. a venture achieving $100,000 market valuation

a. a venture with a $1 billion market value

Among the advantages for global entrepreneurs of diaspora networks are a. the speed with which information flows across borders. b. the distrust among traditional trading partners. c. the creation of places where anything can happen. d. the decline in political risks across ethnic communities.

a. the speed with which information flows across borders.

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. a. True b. False

b. False

Which of the following process approach to entrepreneurship incorporates an array of individual, organizational, and environmental elements in determining a venture's ability to survive? a. framework of frameworks Approach b. dynamic states model c. integrative approach d. growth approach

b. dynamic states model

The macro view of entrepreneurship presents factors exhibiting a strong a. internal locus of control. b. external locus of control. c. environmental locus of control. d. contemporary locus of control.

b. external locus of control.

An L3C is a new legal form for social enterprises known as a. limited liability corporations. b. low-profit, limited liability companies. c. long-term, low-profit, low-liability companies. d. limited liability laborers.

b. low-profit, limited liability companies.

If we accept the argument that social entrepreneurship is a continuum, at one extreme would be social entrepreneurs driven exclusively by producing social benefits; at the other, would be a. social entrepreneurs motivated by the environment with social benefits being the means. b. social entrepreneurs motivated by profitability with social benefits being the means. c. social entrepreneurs motivated by income from their beneficiaries. d. social entrepreneurs motivated by income with entrepreneurial means.

b. social entrepreneurs motivated by profitability with social benefits being the means.

The "corridor principle" is best described by which of the following statements? a. If at first you don't succeed, try, try, again. b. Being in 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.

c. With every new venture launched, new and unintended opportunities arise.

International alliances rarely require the exchange of proprietary knowledge. a. True b. False

b. False

The social entrepreneur aims to increase which of the following? a. social action b. social value c. social facilitation d. social utility

b. social value

The displacement school of thought can be divided into which three groups? a. political, cultural, environmental b. cultural, environmental, and financial c. environmental, financial, and economic d. economic, cultural, and political

d. economic, cultural, and political