ent 396 Chapter 2

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

a. are driven by intense commitment and perseverance

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

a. internal locus of control

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

a. true

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

b. code of conduct

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

b. false

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

b. false

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

b. false

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

b. false

Entrepreneurial stress can be caused by having a type A personality which can be defined as: a. taking things personally. b. having a chronic sense of time urgency. c. getting away from business. d. taking too little responsibility.

b. having a chronic sense of time urgency

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

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

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

c. frusturation

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

c. knowing when to take a vacation

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

c. psychic risk

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

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

Generally, entrepreneurial stress is due to a. fear of failure. b. being surrounded by incompetents. 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

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

d. career, family, psychic

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

d. commitment, determination, perseverance

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

d. illegal and unethical decision

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. illegal and ethical decision. b. legal and ethical decision. c. illegal and unethical decision. d. legal and unethical decision.

d. legal and unethical decision

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

d. potential, free choice

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

ethical and illegal

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

ethical and illegal

Manufacturing a new fuel additive that will increase gas mileage by 10 percent

ethical and legal

Producing a vaccine, already approved by the Food and Drug Administration, that will retard the growth of bone cancer

ethical and legal

Obtaining inside information from another brokerage that results in the entrepreneur netting more than $2 million

unethical and illegal

Offering a member of the city council $100,000 to vote to give the entrepreneur the local cable television franchise

unethical and illegal

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

unethical and legal

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

unethical and legal