Entrepreneurship

Which of the following is a characteristic of creative people? a. rigid and dogmatic b. bright but not necessarily brilliant c. unmotivated by challenging problems d. poor image of themselves

Bright but not nessarily brilliant

Collective entrepreneurship, as a concept, refers to a. the joint recognition of the CEO and CFO as champions of innovation. b. socialist enterprising. c. the collective spirit of innovation that resides in the firm's founder. d. entrepreneurial thinking that is diffused throughout the company.

D

Which of the following statements is true? a. Entrepreneurship is pure luck. b. Entrepreneurship is the ability to create and build a vision from practically nothing. c. Entrepreneurship is simply obtaining financing and starting a business. d. Entrepreneurship has nothing to do with creating incremental wealth.

Entrepreneurship is the ability to create and build a vision from practically nothing.

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

False

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

False

Entrepreneurs always start their business at a young age. a. True b. False

False

Entrepreneurs are born not made. a. True b. False

False

Entrepreneurs are high risk takers. a. True b. False

False

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

False

Firms do not need to alter management techniques to encourage corporate entrepreneurship since it tends to occur naturally. a. True b. False

False

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Fire those who make mistakes as a way of creating a good example for others. a. True b. False

False

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Make extensive use of formal meetings. a. True b. False

False

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Set implicit goals. a. True b. False

False

Skunk works are project groups that work within the traditional lines of authority. a. True b. False

False

Systematic evolution of a product or service into newer or larger markets is referred to as radical innovation. a. True b. False

False

The "corridor principle" states that entrepreneurs often get stuck on one idea. a. True b. False

False

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

False

The resources of the organization are irrelevant to the ability of the corporate entrepreneur to implement an idea. a. True b. False

False

The word entrepreneur is derived from the Spanish word entreprendre, meaning "to undertake." a. True b. False

False

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

False

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

Frustration

The phase of the creative process when the idea or solution the individual is seeking is discovered is the a. background or knowledge accumulation. b. idea experience. c. incubation process. d. evaluation and implementation.

Idea experience

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

Illegal and unethical decision

Which of the following terms refers to the systematic evolution of a product or service into newer or larger markets? a. incremental innovation b. strategic management c. radical innovation d. collective entrepreneurship

Incremental innovation

The "corridor principle" is best described by which of the following statements? a. If at first you don't succeed, try, try, again. b. With every new venture launched, new and unintended opportunities arise. c. Luck happens when preparation meets opportunity. d. Being in the right place at the right time.

With every new venture launched, new and unintended opportunities arise.

Throughout the years, many myths have arisen about entrepreneurship as a result of? a. a destructive attitude by government b. a lack of interest in the field c. a total disregard for the truth d. a lack of research about entrepreneurship

a lack of research about entrepreneurship

The process approach to entrepreneurship seeks to a. model the various factors that characterize the entrepreneurial process. b. explain intrapreneurship. c. explain the process of obtaining patents. d. explain the process of obtaining venture capital.

a. model the various factors that characterize the entrepreneurial process.

Transformational triggers in a corporate entrepreneurial environment initiates the need for a. changing company location. b. laying off workers. c. strategically adapting to change. d. achieving higher productivity standards.

Strategically adapting to change

The combination of existing concepts and factors into a new formulation would define which of the following terms? a. analysis b. extension c. synthesis d. invention

Synthesis

Which of the following is an obstacle to corporate entrepreneurship? a. orientation to the market b. a system of feedback and positive reinforcement c. traditional management techniques d. rewards based upon results

Traditional man agent techniques

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Allow bootlegging of ideas. a. True b. False

True

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Encourage a bias for action. a. True b. False

True

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Encourage brainstorming. a. True b. False

True

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Provide feedback on performance. a. True b. False

True

One reason that corporate entrepreneurship has become popular is because it allows corporations to tap the innovative talents of the personnel. a. True b. False Hide Feedb

True

Researchers have identified specific factors that organizations can concentrate on in helping individuals develop more entrepreneurial behavior. a. True b. False

True

The first step in planning a strategy of corporate entrepreneurship is sharing the vision of innovation that executives wish to achieve. a. True b. False

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

True

The macro view of entrepreneurship includes external processes that are sometimes beyond the control of the entrepreneur. a. True b. False

True

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

legal and unethical decision

The statement, "with every new venture launched, new and unintended opportunities often arise," would be associated with: a. the entrepreneurial principle b. the opportunity principle c. the Dilbert principle d. the corridor principle

the corridor principle

Which of the following statements is true? a. Right and left brain concepts are meaningless. b. The right brain helps people understand analogies and imagine things. c. The left brain helps people understand analogies and imagine things. d. The right brain helps people analyze and verbalize.

B

Secretly working on new ideas on company time as well as on personal time is referred to as a. skunk works. b. interactive learning. c. champion. d. bootlegging. Hide Feedback

Bootlegging

Which of the following statements is true? a. The right brain is more important in the creative process than the left brain. b. Both sides of the brain are important to the creative process. c. The left brain is more important in the creative process than the right brain. d. Motivation, not the brain is the key to the creative process.

Both sides of the brain are important to the creative process

Looking for different or unorthodox relationships among elements and people is one way to develop creativity. How might a person develop this capacity? a. by perceiving in a restructured mode b. by perceiving in a relational mode c. by perceiving in a restraining mode d. by perceiving in a retinal mode

By perceiving in a relational mode

The four phases in the creative process in order are a. idea experience, background or knowledge accumulation, incubation, and evaluation and implementation. b. evaluation and implementation, idea experience, incubation, and background or knowledge accumulation. c. background or knowledge accumulation, incubation, idea experience, and evaluation and implementation. d. incubation, background or knowledge accumulation, idea experience, and evaluation and implementation. Hide Feedback

C

Which of the following mental habits inhibit creativity and innovation? a. functional perspective, mind-sets b. security hunting, risks c. either/or thinking, stereotyping d. stereotyping, incubation

Either/or thinking /stereotyping

Which of the following statements is true? a. Innovation is the process by which entrepreneurs consume marketable ideas. b. Innovation does not involve change. c. Innovation is the specific function of entrepreneurship. d. Innovation is the government's responsibility.

C

The major thrust of corporate entrepreneurship is to a. encourage innovation. b. increase morale. c. encourage greater risk taking. d. raise profitability.

Encourage motivation

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

Code of conduct

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

Commitment, determination, and perseverance

Which of the following is not a common myth about entrepreneurs? a. Entrepreneurs are doers, not thinkers. b. Entrepreneurs today are considered heroes. c. All you need is money to be an entrepreneur. d. Entrepreneurs are academic and social misfits.

Entrepreneurs today are considered heroes.

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

False

Gazelles are almost always high tech. a. True b. False

False

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Develop a well-defined hierarchical structure, and stick to it. a. True b. False

False

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Discourage joint projects and ventures among different departments. a. True b. False

False

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Encourage structured activity. a. True b. False

False

Which of the following are sources of innovation? a. industry changes and extension b. unexpected occurrences and incongruities c. duplication and processes d. synthesis and technology

Imexepected occuran and incongruities

All of the following are reasons for the growth of corporate entrepreneurship except a. a desire to dramatically increase profitability. b. a sense of distrust in the traditional methods of corporate management. c. an exodus of some of the best people out of corporations. d. a rapidly growing number of new and sophisticated competitors. Hide Feedback

A desire to dramatically increase profitability

What are the four types of innovation? a. invention, extension, synthesis, duplication b. analysis, synthesis, duplication, retention c. synthesis, extension, retention, analysis d. extension, retention, analysis, duplication Hide Feedback Correct

Invention, extension, synthesis, duplication

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

Knowing when to take a vacation

Logical and analytical skills are developed in the a. central hemisphere of the brain. b. left hemisphere of the brain. c. anterior hemisphere of the brain. d. right hemisphere of the brain.

Left hemisphere of the brain

The incubation process involves which of the following? a. letting the subconscious work b. changing jobs c. talking with friends d. working harder

Letting subconscious work

Which of the following is not one of the phases in the creative process? a. preliminary investigation b. background or knowledge accumulation c. the incubation process d. evaluation and implementation

Preliminary onvestigation

In restructuring corporate thinking, top management should a. make the entrepreneur follow strict corporate guidelines. b. identify potential entrepreneurs after an innovation program is in operation. c. create diversity and order in strategic activities. d. promote entrepreneurship through experimentation.

Promote entrepreneurship through experimentation

Which of the following terms refers the inaugural breakthroughs launched from experimentation and determined vision? a. radical innovation b. collective entrepreneurship c. incremental innovation d. strategic management

Radical innovation

The first step in planning a strategy of entrepreneurship for enterprise is a. applying the exact tools of the entrepreneur. b. developing radical innovation. c. identifying specific objectives. d. sharing the vision of innovation.

Sharing the vision of innovation

Groups that function outside traditional lines of authority permitting rapid turnaround of new ideas as well as instilling a high level of group loyalty are called: a. skunk works. b. champions. c. strategic innovators. d. multiple approaches. Hide Feedback

Skunk works

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

The individuals personal entrepreneurial mind set and an opportunity

The word entrepreneur is derived from the French entreprendre, which is translated as a. to compete b. to undertake c. to apprehend d. to enter and dare

To undertake

Which of the following are specific factors identified by researchers, that organizations can concentrate on in structuring an entrepreneurial climate. a. radical innovation, incremental innovation, and vision b. rewards, resources, innovation, and vision c. top management support, time, resources, rewards, and organizational boundaries d. skunk works, multiple approaches, and vision

Top management support, time, resources, rewards and organizational boundaries

A "gazelle" is a business establishment with at least 20 percent sales growth every year for five years. a. True b. False

True

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

True

Clever bootlegging of ideas refers to secretly working on new ideas on company time as well as on personal time. a. True b. False

True

During the past ten years, new business incorporations averaged nearly 600,000 per year. a. True b. False

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

True

In the model of sustained corporate entrepreneurship discussed in the text, a transformational trigger can be internal or external to the company. a. True b. False

True

Individuals may avoid corporate entrepreneurial behavior due to the impact of traditional management techniques. a. True b. False

True

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

True

Entrepreneurs and gazelles have been credited with making disproportionate contributions to all but which of the following? a.economic renewal b. innovation c. unemployment d. job creation

Unemployement

Which of the following would not be considered as encouraging to an entrepreneurial environment? a. promotion of entrepreneurship through experimentation b. top management sponsorship of entrepreneurship c. identifying potential entrepreneurs d. uniform compensation

Uniform compensation

Entrepreneurs are aggressive catalysts for change within the marketplace. a. True b. False

a. True

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

are driven by intense commitment and perseverance.

Which of the following statements best describes a "gazelle?" a. a business that has acquired numerous firms b. an inventor who turned business person c. a business with at least 20 percent growth every year d. a business with no sales growth

business with at least 20 percent growth every year

The micro view is divided into which three theories? a. environmental, financial, and displacement b. strategic, environmental, and opportunity c. venture opportunity theory, entrepreneurial, strategic d. entrepreneurial, financial, displacement

c. venture opportunity theory, entrepreneurial, strategic

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

career, family, psychic.

The second step in planning a strategy of entrepreneurship for the enterprise is a. sharing the vision of innovation. b. applying the exact tools of the entrepreneur. c. developing and encouraging innovation. d. identifying specific objectives.

developing and encouraging innovation.

The displacement school of thought can be divided into which three groups? a. environmental, financial, and economic b. economic, cultural, and political c. political, cultural, environmental d. cultural, environmental, and financial

economic, cultural, and political

The macro view can be broken down into which three areas? a. displacement, trait, and financial b. entrepreneurial trait, opportunity, and strategic c. financial/capital, strategic, and opportunity d. environmental, financial, and displacement

environmental, financial, and displacement

The macro view of entrepreneurship presents factors exhibiting a strong a. contemporary locus of control. b. environmental locus of control. c. external locus of control. d. internal locus of control.

external locus of control.

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

having a chronic sense of time urgency.

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

internal locus of control.

Michael Gerber, the author of The E-Myth, explains that the failure of most small businesses is due to a. owners being more entrepreneurial rather than managerial b. owners being more entrepreneurial rather than technical c. owners being more managerial rather than technical d. owners being more technical rather than entrepreneurial

owners being more technical rather than entrepreneurial

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

potential; free choice

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

psychic risk

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

take characteristics that usually lead to success to the extreme.

Generally, entrepreneurial stress is due to a. the discrepancy between the entrepreneur's expectations and the ability to meet demands. b. caused by a big ego. c. being surrounded by incompetents. d. fear of failure.

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

Mountain gap strategies refer to: a. unique resources b. unique locations c. unique markets d. unique products

unique markets