ENTR chapter 1

During which period was entrepreneurship at its height?

Second Industrial Revolution (1865-1920)

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

Serial entrepreneurs

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?

"Buy one, give one" promotions can generate sales while also raising awareness of social issues.

Rahul wants to start a spice business but wants a secure framework with experts in property rights, accounting, law, investment banking, and technology. Of the conditions that need to be put in place for the Entrepreneurial Ecosystem, he needs ______.

commercial and legal infrastructure

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

corporate entrepreneur

Marian Croak's idea to use the text messaging system she developed for the television series American Idol in disaster situations is an example of ______.

corporate entrepreneurship

According to the text, which of the following is the least important when launching a company?

creating a business plan

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

entrepreneur inside

The launch of the "inglorious vegetable" at the French Supermarket Intermarché as a way of reducing food waste by selling imperfect vegetables at a 30% discount is an example of _____.

entrepreneurs inside

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

entrepreneurship

Anthony wants to start a restaurant but he knows he has a lot to learn about starting a business. Of the conditions that need to be put in place for the Entrepreneurial Ecosystem, he particularly needs ______.

entrepreneurship education

Individuals who are still active in business for over three and a half years are known as _____.

established business owners

According to the 2015/16 GEM report, the percentage of entrepreneurs in the United States has declined to 3%—the lowest on record.

false

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

false

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

false

Bill Gates was an overnight success because it took only three months to become a success.

false

Buying an existing small business is not considered entrepreneurship.

false

Corporate entrepreneurship and intrapreneurship are not the same thing.

false

Entrepreneurs are traditionally extreme risk-takers.

false

Entrepreneurship is a relatively new concept which began in 1880.

false

Entrepreneurship is reserved for startups.

false

Franchising can be a beneficial way for entrepreneurs to get a head start in launching their own businesses as they don't have to pay the franchisor royalties after buying the franchise.

false

Microloans are loans given to individuals in niche markets.

false

Risk cannot be averted by an entrepreneur's activity or attitude.

false

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

false

Social entrepreneurship encompasses only not-for-profit ventures.

false

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

false

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

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.

true

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

true

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

true

Entrepreneurship is a life skill.

true

Family enterprises are the dominant form of business organization worldwide.

true

It is estimated that more than 80% of U.S. businesses are family-owned or controlled by a family.

true

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

true

Millennials are considered to be the most educated generation and the most exposed to entrepreneurship education.

true

Most family businesses do not survive the transition from the first to the second generation.

true

Successful entrepreneurs have a tendency to collaborate with competitors.

true

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

true

Unlike necessity-based entrepreneurs, opportunity-based entrepreneurs freely make their own choice to get involved in a business.

true

In the Pinnacle of Entrepreneurship (Second Industrial Revolution), the entrepreneur ______.

was considered "self-made" and was glorified in novels

______ are small, short-term loans often associated with entrepreneurs in developing countries.

Microloans

What generation is considered to be the most exposed to entrepreneurship education?

Millennials

According to the 2015/16 Global Entrepreneurship Monitor report, it is estimated that there are ______ entrepreneurs worldwide.

400 million

What percentage of U.S. businesses are family-owned or controlled by a family?

80% to 90%

Which founding father is considered one of history's greatest entrepreneurs?

Benjamin Franklin

Which of the following is NOT a truth about entrepreneurship?

Entrepreneurship is reserved for startups.

During the ______, everyone had a fairly equal chance of being an entrepreneur; inventors became more commonplace, producing new products and services alongside the merchants and industrialists.

First Industrial Revolution (1776-1865)

What era signaled a shift from the traditional entrepreneur to the big corporation?

Interwar and Postwar America, 1920-1975

During which period of time was the "tech entrepreneur" born?

Knowledge Economy 1.0, 1975-Present

Successful entrepreneurs tend to follow this 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.

A launching pad for creativity and innovation, the ______ provided people with the right to private property, access to a banking system, and protection in the form of patent laws.

U.S. Constitution

The authors define entrepreneurship as ______.

a discipline that seeks to understand how opportunities are discovered, created, and exploited, by whom, and with what consequences

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

a family enterprise

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

Total entrepreneurial activity (TEA) is the percentage of the population of each country between the ages of 18 and 64, who are either ______.

a nascent entrepreneur or owner-manager of a new business

Maria wants to start a landscaping business, but she doesn't know where to start. She thinks she will need tax incentives and lower interest rates on her business lines. Of the conditions that need to be put in place for the Entrepreneurial Ecosystem, she particularly needs ______.

all of these

Which of the following led to entrepreneurship regaining its popularity over the last decades of the 20th century?

all of these

The media often cover the meteoric rise of entrepreneurs such as Bill Gates (Microsoft), Steve Jobs (Apple), Mark Zuckerberg (Facebook), Elon Musk (Tesla), and Travis Kalanick (Uber). According to the text, these stories ______.

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

The risk component for entrepreneurs ______.

can be managed with the cycle of act-learn-build

. 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

To be certified as a benefit corporation (or B-Corp), an organization is rated on all the following except ______.

its global mission

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

knowledge and expertise

Which of the following is NOT a condition for small and medium businesses to flourish in a country?

large population size

. 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 wrote formal business plans prior to launching their companies?

less than 50%

Individuals who have had their business for less than three months are referred to as ______.

nascent entrepreneurs

Individuals who have set up a business they will own or co-own, which is less than three months old and has not yet generated wages or salaries for the owners, are known as ______.

nascent entrepreneurs

Susan's company continues to downsize, compelling her to start her own business. What type of entrepreneur is she?

necessity-based entrepreneur

Individuals who have been actively involved in a business for over three months but less than three and a half years are known as ______.

new business owners

Which of the following is NOT an aspect of the Entrepreneurship Ecosystem described in the chapter?

open-access patent databases

Bill is the paternal head of his family and 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

Sarah is an accountant with desires to open her own business. She is looking for office space at a reasonable rate along with Internet service. Of the conditions that need to be put in place for the Entrepreneurial Ecosystem, she needs ______.

physical infrastructure

Sally decided to look into buying a franchise as her entrance into entrepreneurship. Which of the following is NOT a benefit of franchising?

potential competition from other franchise owners

Individuals who believe they have the capacity and know-how to start a business without being burdened by the fear of failure are known as ______.

potential entrepreneurs

Angela wants to start a company developing apps. She needs access to research and development (R&D) to be able to use the newest technologies. Of the conditions that need to be put in place for the Entrepreneurial Ecosystem, she needs ______.

research and development transfer

Social entrepreneurs ______.

seek innovative solutions to social and environmental problems

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

serial entrepreneurship

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 ______.

social entrepreneur

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 theory that ______.

the future is unpredictable yet controllable

What invention came to symbolize the ingenuity of colonial America?

the lightning rod

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

the right mindset

During the period between 1920 and 1975, which of the following did NOT contribute to the decline of the traditional entrepreneur?

the transition toward a knowledge-based economy

Contemporary researchers focus on how entrepreneurs ______.

think and act