ENTREPRENEURSHIP EXAM 1

Restoration Orientation

A ________ ________ is an alternate approach to loss orientation and is based on both distracting one-self from thinking about the failure event and being proactive toward secondary causes of stress.

b. code of ethics

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

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

Theory of entrepreneurship

A theory of ________ is a verifiable and logically coherent formulation of relationships, or underlying principles, that either explain entrepreneurship, predict entrepreneurial activity (e.g., by characterizing conditions that are likely to lead to new profit opportunities or to the formation of new enterprises), or provide normative guidance (i.e., prescribe the right action in particular circumstances).

a. a desire to dramatically increase profitability.

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

a. career, family, psychic

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

c. actions that further some social good beyond the interests of teh firm

Corporate social responsibility refers to a. the enhancement of global competition b. environmental entrepreneurship in the United States c. actions that further some social good beyond the interests of the firm d. the affect of ecopreneurship only on some industries

(1) financial risk, (2) career risk, (3) family and social risk, and (4) psychic risk.

Entrepreneurs face a number of different types of risk. These can be grouped into four basic areas: (1) _______ risk, (2) ______ risk, (3) ______ and _______ risk, and (4) _______ risk.

Myth

Myth or not Entrepreneurs are always inventors.

Myth

Myth or not All entrepreneurs need is money and luck.

Myth

Myth or not Entrepreneurs are academic and social misfits.

Myth

Myth or not Entrepreneurs are born, not made.

Myth

Myth or not Entrepreneurs are extreme risk-takers.

Myth

Myth or not Entrepreneurs must fit the profile.

Myth

Myth or not Entrepreneurship is unstructured and chaotic.

Myth

Myth or not Most entrepreneurial initiatives fail.

The micro view of entrepreneurship

The ________ view of entrepreneurship examines the factors that are specific to entrepreneur-ship and are part of the internal locus of control.

psychic risk

The _________ risk may be the greatest risk to the well-being of the entrepreneur. Money can be replaced; a new house can be built; spouses, children, and friends usually can adapt. But some entrepreneurs who have suffered financial catastrophes have been unable to bounce back, at least not immediately.

The displacement school of thought

The __________ school of thought focuses on the negative side of group phenomena, in which someone feels out of place—or is literally "displaced"—from the group; it holds that the group hinders a person from advancing or eliminates certain critical factors needed for that person to advance.

The financial/capital school of thought

The __________ school of thought is based on the capital-seeking process—the search for seed and growth capital is the entire focus of this entrepreneurial emphasis; certain literature is devoted specifically to this process, whereas other sources tend to treat it as but one segment of the entrepreneurial venture.

The environmental school of thought

The ___________ school of thought deals with the external factors that affect a potential entrepreneur's lifestyle; these can be either positive or negative forces in the molding of entrepreneurial desires.

1. Attractive, 2. Timely, 3. Durable, 4. Anchored in a product or service, or business that creates or adds value for its buyer or end-user

The four essential qualities of an opportunity are: 1._____, 2._____, 3. ______, 4._______

c. encourage innovation.

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

b. venture opportunity theory, entrepreneurial, strategic

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

c. social responsiveness

The most pro-active position for a corporation to take in regard to social responsibility would be termed a. social obligation. b. social intensity. c. social responsiveness. d. social decisiveness.

b. model the various factors that characterize the entrepreneurial process

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

1. political displacement, 2. cultural displacement, and 3. economic displacement

The three major types of displacement are _______, ________, and ________

1. The Entrepreneurial Trait School of Thought, 2. The Venture Opportunity School of Thought, 3. The Strategic Formulation School of Thought

The three schools of thought for the micro view of entrepreneurship are ______, _______, and _______

(1) the environmental school of thought, (2) the financial/capital school of thought, and (3) the displacement school of thought.

Three schools of entrepreneurial thought represent a breakdown of the macro view: (1) the _______ school of thought, (2) the _______ school of thought, and (3) the _______ school of thought.

True

True or False It is a myth to believe entrepreneurs are doers, not thinkers.

True

True or False The entrepreneur is one who undertakes to organize, manage, and assume the risks of a business.

b. 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. internal locus of control. c. external locus of control. d. opportunity orientation.

c. An increase in corporations losing some of their best people.

Which of the following helps account for the rise of interest in corporate entrepreneurship? a. A decrease in the number of sophisticated competitors. b. An increase government regulation of small entrepreneurs. c. An increase in corporations losing some of their best people. d. A general increase in the number of competitors.

c. Entrepreneurs today are considered heroes.

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

c. traditional management techniques

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

a. Social entrepreneurship is limited to the world of not-for-profit corporations.

Which of the following statements about social entrepreneurship is NOT true? a. Social entrepreneurship is limited to the world of not-for-profit corporations. b. Social entrepreneurship is about having a heightened sense of accountability. c. Social entrepreneurship has, in recent years, been the subject of widespread media attention. d. Social entrepreneurship adopts some of the same principles that have been effective in successful entrepreneurship.

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

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

Entrepreneurial Mind-set

_______ _______ represents the cognition and commitment to view the world with an innovative perspective.

entrepreneurial cognition

________ _______- the knowledge structures that people use to make assessments, judgments, or decisions involving opportunity evaluation, venture creation, and growth.

Corporate Entrepreneurship

________ ________ -is the conceptualization of entrepreneurship at the firm level.

Social Cognition Theory

________ ________ theory introduces the idea of knowledge structures—mental models (cognitions) that are ordered in such a way as to optimize personal effectiveness within given situations—to the study of entrepreneurship.

Small businesses

________ businesses are independently owned and operated, are not dominant in their fields, and usually do not engage in many new or innovative practices.

Cognition

_________ refers to mental processes. These processes include attention, remembering, producing and understanding language, solving problems, and making decisions.

Entrepreneurs

__________are individuals who recognize opportunities where others see chaos, contradiction, and confusion; the global economy has been revitalized because of their efforts, and the world now embraces free enterprise as the most significant force for economic development.