Chapter 2

d. code of conduct

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

a, True

A code of conduct is a statement of ethical practices or guidelines to which an enterprise adheres. a. True b. False

a. illegal and unethical decision.

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

b. False

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

b. False

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

d. career, family, psychic.

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

d. Commitment, determination, and perseverance

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

c. legal and unethical decision.

Check My Work 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. legal and ethical decision. b. illegal and ethical decision. c. legal and unethical decision. d. illegal and unethical decision.

b. False

Commitment, determination, and perseverance are the only characteristics one needs to become a successful entrepreneur. 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. having a chronic sense of time urgency.

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. getting away from business. c. taking things personally. d. taking too little responsibility.

a. are driven by intense commitment and perseverance.

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

b. False

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

a. potential; free choice

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

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

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.

Ethical and Illegal

Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Giving a gift of $50,000 to a foreign minister to secure a business contract with his country (a customary practice in his country) and then writing off the gift as a tax-deductible item

Unethical and Legal

Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Knowing that 1 percent of all tires have production defects but shipping them anyway and giving mileage allowances to anyone whose tires wear out prematurely

Ethical and Legal

Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Manufacturing a new fuel additive that will increase gas mileage by 10 percent

Unethical and Illegal

Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Obtaining inside information from another brokerage that results in the entrepreneur netting more than $2 million

Unethical and Illegal

Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Offering a member of the city council $100,000 to vote to give the entrepreneur the local cable television franchise

Ethical and Legal

Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Producing a vaccine, already approved by the Food and Drug Administration, that will retard the growth of bone cancer

Ethical and Illegal

Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Producing and selling a drug that will reduce heart attacks but failing to complete all of the paperwork that must be filed with the government prior to selling the product

Unethical and Legal

Most entrepreneurial actions are ethical and legal. Sometimes, however, they are unethical and/or illegal. Choose which category the following action falls into: Publishing a newspaper story that wrongly implies but does not openly state that the governor (a political opponent of the newspaper) is deliberately withholding state funds for education in the newspaper's effort to win nomination support for its candidate from the state teachers union

b. False

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

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

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

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

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

A. True

The generation of the twenty-first century may become known as generation E because it is becoming the most entrepreneurial generation since the Industrial Revolution. a. True b. False

a. True

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

b. False

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

d. internal locus of control.

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

d. frustration

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

a. knowing when to take a vacation

Which of the following is not characteristic of the "dark side" of entrepreneurship? a. knowing when to take a vacation b. a desire for success c. a sense of distrust d. an external optimism

b. psychic risk

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