Chapter 2 ENT 396

Determining a person's "entrepreneurial perspective" is an exact science.

F

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

F

According to the Model of Entrepreneurship Motivation, the entrepreneur's expectations are not compared with the actual or perceived outcomes of the firm.

F

Entrepreneurs always know that they as individuals must remain less important than the venture.

F

A good trait for an entrepreneur is to be a calculated risk taker.

T

There is a certain psychic risk involved with entrepreneurship.

T

Characteristics often attributed to the Entrepreneur include: a. Commitment, determination, and perseverance b. Prefers to be a loner c. Power hungry d. Ability to be indecisive

a. Commitment, determination, and perseverance

One could correlate with a high energy level. a. Creativity c. luck b. Working d. reading

a. Creativity

The "dark side" of entrepreneurship refers to a. a destructive force within the energetic drive of entrepreneurs. b. the part of entrepreneurship that is most exciting. c. a misunderstanding about the results of entrepreneurship. d. another myth of entrepreneurship.

a. a destructive force within the energetic drive of entrepreneurs.

Which of the following is not a way to combat stress? a. acknowledging its existence c. probing personal unacknowledged needs b. ignoring coping mechanisms d. taking a few days off

b. ignoring coping mechanisms

According to the text, what is the most ironic type of stress? a. Loneliness c. people problems b. immersion in business d. need to achieve

b. immersion in business

If an entrepreneur believes in himself/herself and that their accomplishments and setbacks are within their own control, they possess a (n) . a. confidence level higher than most entrepreneurs b. internal locus of control c. cockiness level too high to be an entrepreneur d. high energy level

b. internal locus of control

One trait not common in entrepreneurs is: a. entrepreneurs are problem solvers b. entrepreneurs are creative and innovative c. entrepreneurs need structure d. entrepreneurs are independent, yet like to build strong teams

c. entrepreneurs need structure

Which of the following is not one of the four major traits that characterize the "dark side" of entrepreneurs? a. an external optimism c. knowing when to take a vacation b. a desire for success d. a sense of distrust

c. knowing when to take a vacation

Which of the following is not a common characteristic of entrepreneurs? a. Vision c. lack of motivational drive b. team building d. independence

c. lack of motivational drive

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

A clear pattern among successful entrepreneurs is a. setting goals that are just out of reach. b. the fear of failure common to all people. c. their focus on opportunity rather than resources. d. not fitting in to traditional organizations.

c. their focus on opportunity rather than resources.

With persistent problem solving, entrepreneurs a. must daydream all day. c. think anything is possible. b. can't multi-task. d. are always working.

c. think anything is possible.

Which of the following is a true statement about team building? a. Most successful entrepreneurs have highly qualified teams that handle everything having to do with the development of the venture. b. Compared to the owner, personnel are often more qualified to handle day-to-day implementation challenges. c. The entrepreneur has the clearest vision in the firm. d. The entrepreneur needs a competent team to implement an idea.

d. The entrepreneur needs a competent team to implement an idea.

Which is not a trait of a successful entrepreneur? a. desire to achieve c. innovation b. Initiative d. trouble fitting in

d. trouble fitting in

Which is not a source of entrepreneurship research? a. Textbooks c. conferences b. Biographies d. water cooler conversation

d. water cooler conversation

Which is not a factor in the Model of Entrepreneurial Motivation? a. the entrepreneur's outcomes meet their expectations b. personal goals are met c. implementation of the entrepreneurial plan meet the entrepreneurs outcome perceptions d. wining awards

d. wining awards

Entrepreneurs are pessimists who see the cup half empty, rather than half full.

F

Entrepreneurs do not need foresight.

F

Immersion in business can be cured by limiting work to an eight hour day.

F

Selfishness and a need for power are two characteristics common in entrepreneurs.

F

Successful entrepreneurs fear failure the same way all people do.

F

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

F

There are less than five types of printed research resources available on entrepreneur characteristics.

F

Creativity was once regarded as an exclusively inherited trait.

T

Each and every person has the potential and free choice to pursue a career as an entrepreneur.

T

Entrepreneurs are fiercely independent but understand the need for a strong entrepreneurial team.

T

Entrepreneurs are often unrealistically optimistic.

T

Entrepreneurs like to remain alert to competition, customers, and government regulations, but this continual scanning of the environment can lead to a negative sense of distrust.

T

Entrepreneurs typically have enough confidence to believe that they can make a difference in the final outcome of their ventures.

T

Entrepreneurs usually have an internal locus of control.

T

Good entrepreneurs seek feedback from others.

T

Government publications are used in researching small business.

T

Inexperience and incompetent management are the main reasons for failure.

T

Lanny Harron and Harry Sapienza stated, "Because motivation plays an important part in the creation of new organizations, theories of organization creation that fail to address this notion are incomplete."

T

Most successful entrepreneurs have failed at one time or another.

T

Publications, direct observation, speeches and presentations are all major sources of information that supply data related to the entrepreneurial perspective.

T

Stress on the entrepreneur can be caused both internally and by other people.

T

The Academy of Management Review is an example of a journal used in entrepreneurial research.

T

The entrepreneur is driven by a strong desire for control over their venture.

T

The generation of the 21st century may become known as generation E because they are becoming the most entrepreneurial generation since the Industrial Revolution.

T

The need to achieve can be a source of stress for entrepreneurs.

T

There are four causes of entrepreneurial stress.

T

There are many risks in entrepreneurship.

T

Which of the following statements is false? a. Entrepreneurs are born with the skills necessary to manage a business. b. Their belief in their ability seldom wavers. c. Independence is a driving force behind contemporary entrepreneurs. d. Entrepreneurs know where they want to go.

a. Entrepreneurs are born with the skills necessary to manage a business.

What characteristic(s) that propel entrepreneurs into success can be exhibited to the "extreme"? a. Overbearing need for control b. Optimism c. High energy d. Desire for success e. Perseverance

a. Overbearing need for control

Entrepreneurs a. are driven by intense commitment and perseverance. b. are egomaniacs. c. loners who never fit in to typical firms. d. are never satisfied.

a. are driven by intense commitment and perseverance.

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

a. career, family, psychic.

Entrepreneurs with a drive to achieve want to a. compete. c. take great risks. b. watch others succeed. d. control and dominate.

a. compete.

When outcomes meet or exceed expectations, _____________________ is positively reinforced. a. entrepreneurial behavior c. desire for success b. entrepreneurial motivation d. entrepreneurial ego

a. entrepreneurial behavior

Which of the following is not associated with an entrepreneur seeking feedback? a. entrepreneurs want to belittle their competition b. entrepreneurs seek to learn from their competitors c. entrepreneurs want to improve d. entrepreneurs have a strong desire to know how well they are doing

a. entrepreneurs want to belittle their 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 c. getting away from business b. taking too little responsibility d. taking things personally

a. having a chronic sense of time urgency

Team building a. involves including qualified people in the venture. b. does not threaten the entrepreneur's autonomy. c. does nothing. d. is overrated.

a. involves including qualified people in the venture.

Sources of information available to entrepreneurs include a. journals. c. casual conversation. b. moonlighting in another job. d. attending civic events.

a. journals.

The four major causes of entrepreneurial stress are a. loneliness, immersion in business, people, need to achieve. b. people, size of business, need to achieve, fear. c. fear, failure, pressure, competition. d. drive for success, loneliness, fear, competition.

a. loneliness, immersion in business, people, need to achieve.

Entrepreneurs with a sense of distrust a. scan the environment. c. ignore everything. b. examine the business. d. become fearful.

a. scan the environment.

In the Monroy-Folger Model of Risk Typology, profit-seeking activity is associated with: a. strong desire to maximize profit c. strong desire to minimize profit b. weaker desire to maximize profit d. strong desire to maximize sales revenue

a. strong desire to maximize profit

Which of the following is not a source of stress? a. success in business c. people problems b. immersion in business d. family requirements

a. success in business

Which of the following publications deal with research methodology and are tightly structured? a. technical and professional journals c. news periodicals b. textbooks on entrepreneurs d. trade journals

a. technical and professional journals

The decision to behave entrepreneurially is the result of the interaction of: a. the individual's personal entrepreneurial mindset 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 mindset and an opportunity

13. For entrepreneurs, vision describes a. where the entrepreneur wants to go. c. people. b. eyesight. d. the future.

a. where the entrepreneur wants to go.

4. Which source of information about entrepreneurial characteristics is direct observation? a. Biographies and entrepreneurs c. Books about entrepreneurs b. Empirical research d. Television biographies

b. Empirical research

Small business owners face many day-to-day risks. Which statement is most related to risk? a. Not getting a bank loan. b. Entrepreneurs run the risk of having an incomplete family experience. c. Not securing a particular contract. d. Risk is never a good thing.

b. Entrepreneurs run the risk of having an incomplete family experience.

Which of the following is not a trait of successful entrepreneurs? a. Initiative c. perseverance b. Frustration d. strategic thinking

b. Frustration

Which of the following statements is false? a. Entrepreneurs want the authority to make important decisions. b. Management skills are not important characteristics for entrepreneurs to possess. c. Successful entrepreneurs strive to build a successful team around them. d. An entrepreneur can develop the vision of the company over time.

b. Management skills are not important characteristics for entrepreneurs to possess.

Biographies, journals, and periodicals are examples of what research source? a. direct observations c. presentations b. Publications d. primary research

b. Publications

According to the Model of Entrepreneurial Motivation, when outcomes meet or exceed expectations, the _____ is positively reinforced, and the individual is motivated to continue to behave entrepreneurially. a. stressful behavior c. the dark side b. entrepreneurial behavior d. unrealistic optimism

b. entrepreneurial behavior

One factor not found in high achievers is a. responsibility. c. moderate risk taking. b. failure to listen to feedback. d. high risk taking.

b. failure to listen to feedback.

With psychic risk you fear a. losing your sanity c. money b. failure. d. adapting.

b. failure.

The best antidote for relieving the stress involved with total immersion in business is a. networking. c. finding satisfaction outside the company. b. getting away from it all. d. delegating.

b. getting away from it all.

In starting or buying a new business, the higher the rewards, the a. risk is then minimized. c. greater the size of a business. b. greater the risk. d. smaller the enjoyment.

b. greater the risk.

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

b. internal locus of control.

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

b. potential; free choice

The entrepreneurial ego can cause the entrepreneur to a. 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.

________________ was credited with stating, "Individuals are, after all, the energizers of the entrepreneurial process." a. Lanny Herron c. Bradley Johnson b. Max DePree d. Steven Covey

c. Bradley Johnson

Which of the following is a false statement about entrepreneurs? a. They burn with the competitive desire to excel. b. They see the cup half full rather than half empty. c. They do not use failure as a tool for learning. d. They are achievers.

c. They do not use failure as a tool for learning.

Which of the following is an aspect of the "dark side" of entrepreneurship? a. a need for control c. both a and b b. a sense of distrust d. bouts of euphoria

c. both a and b

Stress can be dealt with by: a. networking. c. both a and b. b. delegating. d. working harder.

c. both a and b.

Which of the statements below is not a risk faced by entrepreneurs? a. financial risk c. business risk b. career risk d. product risk

c. business risk

Which is not a source of information in an entrepreneurial profile? a. Publications b. direct observation of practicing entrepreneurs c. word of mouth d. speeches and presentations

c. word of mouth