Ch. 1

The question "What is this technology all about?" is a comprehension question. T/F?

True

The thought experiment "Curry in a Hurry" is an example of the effectuation process. T/F?

True

To be an entrepreneur is to act on the possibility that one has identified an opportunity worth pursuing. T/F?

True

The moral support network is different from the professional support network in that:

a professional support network includes finding a mentor.

A characteristic of the entrepreneurial process is that _____.

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

Entrepreneurs who have a high level of cognitive adaptability are most likely to be _____.

able to explain their logic for a particular response

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

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

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 action is not often intentional. T/F?

False

The McMullen-Shepherd Model helps identify the common traits of successful entrepreneurs. T/F?

False

How does previous startup experience impact entrepreneurs in their ventures? (Check all that apply.) It gives them benchmarks for judging the relevance of information. It decreases perceived feasibility of new entry opportunities. It provides them with expertise in running independent businesses. It decreases their metacognitive awareness and cognitive adaptability.

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

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

Managerial experience and skills

Evaluation stage:

Prospective entrepreneurs need to assess if a viable opportunity matches their knowledge and motivation levels.

Bricolage is entrepreneurs making do by applying combinations of the resources at hand to new problems and opportunities. T/F?

True

Perceived desirability refers to the degree to which an individual has a favorable or unfavorable evaluation of the potential entrepreneurial outcomes. T/F?

True

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

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

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

causal

On the education background, entrepreneurs:

cite an educational need in the areas of finance, strategic planning, marketing, and management.

________ ________ 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

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

An accurate statement about the impact of education on entrepreneurship is that _____. education will determine whether an entrepreneur will create a new business to exploit an opportunity entrepreneurs need to possess postgraduate degrees in order to succeed in their ventures education has a positive impact on an entrepreneur's ability to identify a potential opportunity general education normally has no value to budding entrepreneurs

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

Strategic tasks are most likely to _____.

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

Individuals have stronger intentions to act when taking action is perceived to be ________ and desirable.

feasible

A true statement about self-efficacy is that _____. people with high self-efficacy think and behave similarly when compared with people with low self-efficacy individuals who feel that they possess the ability to perform tend to do well high self-efficacy reduces effort and thus performance self-efficacy normally has no effect on a person's choice of action

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

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

moral-support network

________ ________ refers to an individual's attitude toward entrepreneurial action—the degree to which he or she has a favorable or unfavorable evaluation of the potential entrepreneurial outcomes.

perceived desirability

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

professional-support network

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

role models

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

self-efficacy

Entrepreneurial Opportunities are defined as:

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

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

In Stage Two of the McMullen-Shepherd Model:

the entrepreneur decides whether or not there is an opportunity for him or her personally.

Density, in regards to a social network, refers to:

the extensiveness of ties between two individuals.

Individuals are most likely to have a great desire to act entrepreneurially if _____.

they have a high degree of perceived desirability

An accurate statement about connection tasks is that _____.

they motivate entrepreneurs to delve into their knowledge reserves without overgeneralizing

A feature of cognitive adaptability is that _____.

it is mirrored in an entrepreneur's metacognitive awareness

A reflection task would involve thinking about what strategies should be used to solve a problem. T/F?

False

Most entrepreneurs express that their coworkers are their biggest supporters. T/F?

False

Research indicates that male entrepreneurs tend to start their first significant venture in their middle 30s, while women entrepreneurs tend to do so in their early 30s. T/F?

False

The casual process of thinking starts with what one has and selects among possible outcomes. T/F?

False

Attention stage:

Prospective entrepreneurs need to recognize if there is an opportunity.

What are the major factors that lead to an entrepreneur understanding the nature of his or her environment? (Check all that apply.) Recognition of his or her family's feelings. Recognition that an issue is present. The experience of a previous situation. The nature of a particular situation

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

________ are designed to stimulate thought about entrepreneurs' understanding and feelings as they progress through the entrepreneurial process.

Reflection Tasks

Which among the following aspects most affects an entrepreneur's perception of feasibility?

Self-efficacy

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.

Dissatisfaction with various aspects of one's job often motivates the launching of a new venture. T/F?

True

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

comprehension

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

A(n) ________ ________-________ involves the ability to rapidly sense, act, and mobilize, even under uncertain conditions.

entrepreneurial mind-set

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 noneconomic benefits to individuals, the economy, and society is known as ________ ________.

sustainable entrepreneurship

All of the following statements are true of sustainable entrepreneurship except: Entrepreneurs with a positive attitude toward the natural environment never disengage these values to exploit an opportunity. Environmental gains include reduced air pollution, improved air quality, and enhanced living conditions. It is not just the natural environment that needs sustained; communities also need to be preserved. Social gains include improved child survival rates, longer life expectancy, and equal opportunity.

Entrepreneurs with a positive attitude toward the natural environment never disengage these values to exploit an opportunity.

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 represent the source of revenue to a new venture. They provide advice that is often more honest than that received from other sources. They ensure the adequate availability of required materials.

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

Entrepreneurs' intentions are based on their perception of feasibility rather than someone else's impression of whether it is feasible. T/F?

True

Friends play important roles in an entrepreneur's moral-support network by providing the entrepreneur with understanding, encouragement, and assistance. T/F?

True

One of the best predictors of entrepreneurial success is entrepreneurial experience. T/F?

True

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

bricolage

Questions designed to increase an entrepreneurs' understanding of the nature of the environment are known as:

comprehension questions

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 ________ ________.

entrepreneurial opportunities

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 ________ _________.

entrepreneurial opportunities

A true statement about entrepreneurial action is that _____.

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

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

Within the moral-support network, most entrepreneurs indicate that their ________ are their biggest supporters.

spouses

Explain the McMullen-Shepherd Model.

1. Model explains how knowledge and motivation influence two stages leading to entrepreneurial action. 2. Stage One is when the potential entrepreneur realizes an opportunity exists for someone. 3. Stage Two is when the potential entrepreneur decides whether or not the opportunity is right for them personally in terms of their skill, knowledge and motivation.

Define superficial similarities and structural similarities. Which of the two is considered the more challenging for entrepreneurs?

1. 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. 2. Structural similarities exist when the underlying mechanisms of the technology resemble (or match) the underlying mechanisms of the market. Structural similarities were identified as the most challenging.

Which of the following entrepreneurs is most likely to have a high level of cognitive adaptability? An entrepreneur who is able to adjust to new situations An entrepreneur who is unable to communicate his or her reasoning behind a particular response An entrepreneur who is only able to use causal thought processes An entrepreneur who is not creative

An entrepreneur who is able to adjust to new situations

How can entrepreneurs enhance personal affiliations as a part of a professional-support network? (Check all that apply.) By micromanaging every aspect of the supply chain By sharing hobbies By participating in sporting events By playing favorites

By sharing hobbies By participating in sporting events

An entrepreneur is rarely able to start a new business without some form of formal education. T/F?

False

Entrepreneurs have stronger intentions to act when taking action is perceived to be impossible and risky. T/F?

False

General education has no influence on an entrepreneur's ability to resolve problems. T/F?

False

Identify an accurate statement about effectuation: It is a process that starts with a desired outcome and focuses on the means to generate that outcome. Thought processes involving effectuation are most likely to be used in predictable situations. It allows entrepreneurs to think effectively in highly uncertain situations. Thought processes involving effectuation are always superior to thought processes that involve causation.

It allows entrepreneurs to think effectively in highly uncertain situations.

Which of the following are true of professional-support networks? (Check all that apply.) Spouses and friends are the most critical aspect of a professional-support network. Suppliers are an integral aspect of an entrepreneur's professional-support network. Entrepreneurs develop such networks by creating a network of business associates. Clients or buyers are not considered a part of an entrepreneur's professional-support network.

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

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

entrepreneurial intentions