2500 Chapter 1

Identify a feature of entrepreneurship.

An entrepreneurship opportunity will always represent something new.

perceived desirability

Degree to which a potential entrepreneurial outcome is evaluated as favorable or unfavorable

moral-support network

Individuals who give psychological support to an entrepreneur

comprehension questions

Questions that address the meaning of text, ranging from literal to inferential to analytical.

When are entrepreneurial actions considered most sustainable? (Check all that apply.)

When they focus on preserving the environment When they contribute to the development of a society

casual process

a process that starts with a desired outcome and focuses on the means to generate that outcome

An accurate statement about role models is that _____.

an entrepreneur's support system or role model is possibly most crucial in the start-up phase

Individuals who help an entrepreneur in business activities are considered the entrepreneur's _____-______ ________-.

professional support network

Tasks that are designed to stimulate entrepreneurs to think about their understanding and feelings as they progress through the entrepreneurial process are called _____ tasks.

reflection

Individuals whose example an entrepreneur can aspire to and copy are known as ______ _________.

role model

The conviction that one can successfully execute the entrepreneurial process is known as ____ ____.

self efficacy

Most entrepreneurs indicate that their _____ are their biggest supporters and allow them to devote the excessive amounts of time necessary to the new venture.

spouses

entrepreneurial action

Action through the creation of new products/processes and/or the entry into new markets, which may occur through a newly created organization or within an established organization.

Match the following stages of the McMullen-Shepherd model with their descriptions.

Attention stage - Prospective entrepreneurs need to recognize if there is an opportunity. Prospective entrepreneurs need to recognize if there is an opportunity. Evaluation stage - Prospective entrepreneurs need to assess if a viable opportunity matches their knowledge and motivation levels.

How can entrepreneurs enhance personal affiliations as a part of a professional-support network? (Check all that apply.)

By participating in sporting events By sharing hobbies

How is a reflection task most likely to affect entrepreneurs?

By prompting them to create their own feedback to provide the opportunity to change

entrepreneurial self-efficacy

Conviction that one can successfully pursue entrepreneurial outcomes

Which of the following is true of the impact of age on entrepreneurs?

Entrepreneurial careers are quite popular later in life after one's children have the left the home.

bricolage

Entrepreneurs making do by applying combinations of the resources at hand to new problems and opportunities

superficial similarities

Exist when the basic (relatively easy to observe) elements of the technology resemble (match) the basic (relatively easy to observe) elements of the market

professional-support network

Individuals who help the entrepreneur in business activities

entrepreneurial thinking

Individuals' mental processes of overcoming ignorance to decide whether a signal represents an opportunity for someone and/or reducing doubt as to whether an opportunity for someone is also an opportunity for them specifically, and/or processing feedback from action steps taken

entrepreneurial mind-set

Involves the ability to rapidly sense, act, and mobilize, even under uncertain conditions.

Which of the following is true of the McMullen-Shepherd model?

It describes how knowledge and motivation impress upon the stages of entrepreneurial action.

How does previous startup experience impact entrepreneurs in their ventures? (Check all that apply.)

It provides them with expertise in running independent businesses. It gives them benchmarks for judging the relevance of information.

Which of the following is increasingly required as a venture becomes established and starts growing?

Managerial experience and skills

entrepreneurial intentions

Motivational factors that influence individuals to pursue entrepreneurial outcomes

Match the following types of similarities with their accurate descriptions.

Superficial similarities - They exist when the basic elements of a technology resemble the basic elements of a market. Structural similarities - They exist when the underlying mechanisms of a technology resemble the underlying mechanisms of a market.

reflection tasks

Tasks designed to stimulate entrepreneurs to think about their understanding and feelings as they progress through the entrepreneurial process

How do suppliers form an important component in an entrepreneur's professional-support network? (Check all that apply.)

They provide good information on the nature of trends in the industry. They ensure the adequate availability of required materials.

entrepreneurial opportunities

Those situations in which new goods, services, raw materials, and organizing methods can be introduced and sold at greater than their cost of production.

True or False: Friends play important roles in an entrepreneur's moral-support network by providing the entrepreneur with understanding, encouragement, and assistance.

True

effectuation process

a process that starts with what one has (who they are, what they know, and whom they know) and selects among possible outcomes

A characteristic of the entrepreneurial process is that _____.

a suitable predictor of entrepreneurial success is prior start-up experience

Jimmy seeks to start a company that manufactures mobile phone accessories. He does not have a lot of capital, so he uses the materials that he has available at home to start designing phone covers. He sticks simple pictures, drawings, and illustrations onto phone covers and acquires sufficient capital by selling them. He uses this method to launch his business operations. In this example, Jimmy has compensated for his lack of resources by using the method of _____.

bricolage

The term _____ refers to entrepreneurs making do by applying combinations of the resources at hand to new problems and opportunities.

bricolage

cognitive adaptability

describes the extent to which entrepreneurs are dynamic, flexible, self-regulating, and engaged in the process of generating multiple decision frameworks focused on sensing and processing changes in their environments and then acting on them

An accurate statement about the impact of education on entrepreneurship is that _____.

education has a positive impact on an entrepreneur's ability to identify a potential opportunity

A process that starts with what one has (who they are, what they know, and whom they know) and selects among possible outcomes is known as a(n) _______ _________.

effectuation process

Strategic tasks are most likely to _____.

enable entrepreneurs to think of the details of a particular method required to resolve a situation

Action through the creation of new products/processes and/or the entry into new markets, which may occur through a newly created organization or within an established organization, is _______ _________.

entrepreneurial action

The motivational factors that influence individuals to pursue entrepreneurial outcomes are known as ______ _____.

entrepreneurial intentions

role model

individuals whose example an entrepreneur can aspire to and copy

A feature of cognitive adaptability is that _____.

it is mirrored in an entrepreneur's metacognitive awareness

Individuals who give psychological support to an entrepreneur are considered to be the entrepreneur's _______-_______ ______.

moral support network

An entrepreneurial challenge often lies in making creative mental leaps based on _____ similarities.

structural

Entrepreneurship that is focused on preserving nature, life support, and community in the pursuit of perceived opportunities to bring future products, processes, and services into existence for gain where gain is broadly construed to include economic and non-economic benefits to individuals, the economy, and society is known as ________ _________.

sustainable entrepreneurship

work history

the past work experience of an individual

An accurate statement about connection tasks is that _____.

they motivate entrepreneurs to delve into their knowledge reserves without overgeneralizing

structural similarities

Exist when the underlying mechanisms of the technology resemble (or match) the underlying mechanisms of the market

True or false: One of the best predictors of entrepreneurial success is entrepreneurial experience.

True

A process that starts with a desired outcome and focuses on the means to generate that outcome is known as a(n) _____ process.

causal

A true statement about self-efficacy is that _____.

individuals who feel that they possess the ability to perform tend to do well

____ ______ describes the extent to which entrepreneurs are dynamic, flexible, self-regulating, and engaged in the process of generating multiple decision frameworks focused on sensing and processing changes in their environments and then acting on them.

Cognitive adaptability

sustainable entrepreneurship

Entrepreneurship focused on preserving nature, life support, and community (sustainability) in the pursuit of perceived opportunities to bring future products, processes, and services into existence for gain (entrepreneurial action) where gain is broadly construed to include economic and noneconomic benefits to individuals, the economy, and society (development)

Identify a true statement about the impact of work history on entrepreneurship.

Experience in the areas of finance and product development is important while starting a new venture.

True or false: Entrepreneurial action is not often intentional.

False

True or false: General education has no influence on an entrepreneur's ability to resolve problems.

False

True or false: Most entrepreneurs express that their coworkers are their biggest supporters.

False

Which of the following are true of professional-support networks? (Check all that apply.)

Suppliers are an integral aspect of an entrepreneur's professional-support network. Entrepreneurs develop such networks by creating a network of business associates.

connection tasks

Tasks designed to stimulate entrepreneurs to think about the current situation in terms of similarities to and differences from situations previously faced and solved

strategic tasks

Tasks designed to stimulate entrepreneurs to think about which strategies are appropriate for solving the problem (and why) or pursuing the opportunity (and how)

What are the major factors that lead to an entrepreneur understanding the nature of his or her environment? (Check all that apply.)

The nature of a particular situation Recognition that an issue is present

Questions that are designed to increase entrepreneurs' understanding of the nature of the environment are known as _____ questions.

comprehension

Tasks that are designed to stimulate entrepreneurs to think about a current situation in terms of similarities to and differences from situations previously faced and solved are known as _____ tasks.

connection

Situations in which new goods, services, raw materials, and organizing methods can be introduced and sold at greater than their cost of production are known as ________ __________ . (Enter one word in each blank.)

entrepreneurial opportunities

A true statement about entrepreneurial action is that _____.

entrepreneurs need to evaluate the amount of uncertainty of a potential opportunity

Tasks that are designed to stimulate entrepreneurs to think about which methods are appropriate for solving a problem (and why) or pursuing an opportunity are known as _____ tasks.

strategic