Deck 1: Entrepreneurship: Evolutionary Development-Revolutionary Impact

Question 1

The entrepreneurial spirit is unique to America and Western Europe.

Answer 1

False

Question 2

Entrepreneurship is more than the mere creation of a business.

Answer 2

True

Question 3

Three characteristics of an entrepreneur are personal initiative, management skills, and a desire for autonomy.

Answer 3

True

Question 4

New and smaller firms are responsible for 95 percent of all radical innovations.

Question 5

Gazelles produced 5 million jobs despite the continual downsizing in major corporations over the last decade.

Question 6

Recognition of entrepreneurs dates back to the French economist Richard Cantillon.

Question 7

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

Question 8

Large firms, as opposed to entrepreneurs, are the aggressive catalyst for change in the world of business.

Question 9

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

Question 10

Entrepreneurs are the major source of innovation and job creation in any economy.

Question 11

There is no single definition of an entrepreneur.

Question 12

Entrepreneurs are not heroes in today's marketplace.

Question 13

Gazelles are almost always high tech.

Question 14

New and smaller firms obtain more patents per sale than do larger firms.

Question 15

One of every 1,000 adults participates in the founding of a new firm every year.

Question 16

Entrepreneurs are the major source of innovation and job creation in the economy.

Question 17

The word entrepreneur is derived from the Spanish word entreprendre, meaning "to undertake."

Question 18

Gazelles do not always get venture capital funding.

Question 19

Entrepreneurs are aggressive catalysts for change within the marketplace.

Question 20

Gazelles produce half the innovations per employee that larger firms typically do.

Question 21

According to Robert C. Ronstadt, entrepreneurship is the process of creating incremental wealth.

Question 22

The strategic formulation school of thought emphasizes the planning process in successful venture development.

Question 23

Entrepreneurs are doers not thinkers.

Question 24

Entrepreneurs are often very methodical people who plan their moves very carefully.

Question 25

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

Question 26

In the environmental school of thought, legal issues surrounding the natural environment are primary.

Question 27

The "corridor principle" states that entrepreneurs often get stuck on one idea.

Question 28

The displacement school of thought focuses on the negative side of group phenomena.

Question 29

Characteristics of entrepreneurs can neither be taught nor learned.

Question 30

Political, cultural, and economic displacement are all part of the displacement school of entrepreneurial thought.

Question 31

Entrepreneurs always start their business at a young age.

Question 32

Prepared entrepreneurs who seize opportunities when they arise often appear to be lucky.

Question 33

Most entrepreneurs are inventors.

Question 34

An entrepreneur needs neither a lot of money nor luck.

Question 35

Entrepreneurs are born not made.

Question 36

"Great chef" strategies focus on unique markets.

Question 37

Entrepreneurs are high risk takers.

Question 38

The financial/capital entrepreneurial school of thought focuses on the potential profit of the business idea.

Question 39

Entrepreneurs must fit the "profile."

Question 40

Entrepreneurs are often known as calculated risk takers, as opposed to "gamblers."

Question 41

Which of the following concepts is entrepreneurship considered synonymous with?

A) free enterprise
B) socialism
C) multimillion dollar enterprises
D) partnership

Question 42

Gazelles have been responsible for which of the following:

A) some job growth
B) 55 percent of innovations
C) 30 percent of all radical innovations
D) most job turnover

Question 43

Which is a True statement about entrepreneurs?

A) Entrepreneurs are doers and thinkers.
B) All you need is money to be an entrepreneur.
C) Ignorance is bliss for an entrepreneur.
D) Inheriting a business is the best way to become an entrepreneur.

Question 44

Entrepreneurship involves an interdisciplinary approach.

Question 45

Entrepreneurial traits include which of the following?

A) salesmanship
B) initiative
C) wealth
D) edginess

Question 46

The four major dimensions considered in the dynamic states approach are the individual, the environment, the organization, and the process.

Question 47

______________ is the economic basis for all entrepreneurial activity.

A) Individuality
B) Capitalism
C) Voodoo economics
D) Free enterprise

Question 48

Which of the following statements best describes a "gazelle?"

A) a business with at least 20 percent growth every year
B) a business with no sales growth
C) a business that has acquired numerous firms
D) an inventor who turned business person

Question 49

Which is not one of the chief characteristics of an entrepreneur?

A) personal initiative
B) ability to consolidate resources
C) risk taking
D) desire for control of people

Question 50

The entrepreneur is one who

A) dreams all day.
B) manages.
C) oversees manufacturing.
D) invents new products.

Question 51

In the evolutionary process of economic growth, _________ plays the crucial and indispensable role of providing the "social glue" that binds together both high-tech and "Main Street" activities.

A) entrepreneurship
B) supply and demand
C) the Internet
D) management

Question 52

Entrepreneurs will always be

A) a key factor in the stability of the small business sector
B) hindered by lack of funding
C) the major source of job creation and innovation in any economy
D) a little quirky

Question 53

Entrepreneurs are best characterized as:

A) aggressive catalysts for change
B) good managers
C) hard to get along with
D) not fitting in to an ordinary workplace

Question 54

Which of the following characteristics is most important to an entrepreneur?

A) management skills
B) neatness
C) friendliness
D) having a nice office.

Question 55

Which economist first associated the "risk bearing" activity in the economy with the entrepreneur?

A) Richard Cantillon
B) Robert C. Ronstadt
C) Peter F. Drucker
D) Jean Baptiste Say

Question 56

Robert C. Ronstadt put together a summary definition of entrepreneur that included which of the following key phrases?

A) the acceptance of risk of failure
B) the dynamic process of creating incremental wealth
C) the advantage of economic endowments
D) the phenomenon of leadership

Question 57

The word entrepreneur is derived from the French entreprendre, which is translated as

A) to apprehend
B) to undertake
C) to compete
D) to enter and dare

Question 58

The study of entrepreneurship is

A) based on the field of management
B) based on the field of accounting
C) based on the field of sociology
D) interdisciplinary

Question 59

Entrepreneurs and gazelles have been credited with making disproportionate contributions to all but which of the following?

A) innovation
B) job creation
C) economic renewal
D) unemployment

Question 60

During the past ten years, there were approximately how many business incorporations per year?

A) 600,000
B) 500,000
C) 700,000
D) 1 million

Question 61

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.

Question 62

Which of the following economists wrote about entrepreneurship and its impact on economic development?

A) Richard Dailey
B) Joseph Schumpeter
C) Paul Samuelson
D) Robert McConnell

Question 63

Entrepreneurs always

A) start their business at a young age
B) quit school and devote themselves to being an entrepreneur
C) use credit cards to start their own businesses
D) generate ideas and plan for their implementation

Question 64

The macro view of entrepreneurship presents factors exhibiting a strong

A) internal locus of control
B) external locus of control
C) environmental locus of control
D) contemporary locus of control

Question 65

Throughout the years, many myths have arisen about entrepreneurship as a result of?

A) a lack of research about entrepreneurship
B) a lack of interest in the field
C) a total disregard for the truth
D) a destructive attitude by government

Question 66

In the study of contemporary entrepreneurship, one concept reoccurs:

A) no one understands the field
B) folklore dominates the studies
C) there is no theoretical base
D) entrepreneurship is interdisciplinary

Question 67

Michael Gerber, the author of The E-Myth, explains that the failure of most small businesses is due to:

A) owners being more technical rather than entrepreneurial
B) owners being more managerial rather than technical
C) owners being more entrepreneurial rather than managerial
D) owners being more entrepreneurial rather than technical

Question 68

Entrepreneurship has become synonymous or closely linked with:

A) failure
B) socialism and monopolies
C) multimillion dollar enterprises
D) free enterprise and capitalism

Question 69

Michael Gerber, the author of The E-Myth, contends:

A) the entire field of study in entrepreneurship is a myth
B) there is no such thing as entrepreneurship
C) today's business owners are not True entrepreneurs
D) everybody in business is an entrepreneur

Question 70

Most entrepreneurs should be categorized as

A) inventors
B) innovators
C) lucky
D) wealthy

Question 71

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 corridor principle
D) the Dilbert principle

Question 72

The macro view can be broken down into which three areas?

A) environmental, financial, and displacement
B) financial/capital, strategic, and opportunity
C) displacement, trait, and financial
D) entrepreneurial trait, opportunity, and strategic

Question 73

Which of the following traits is not that of an entrepreneur?

A) drive
B) shyness
C) willingness to take risks
D) human relations skills

Question 74

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.

Question 75

When referring to "luck" and an entrepreneur, which of the following statements is an appropriate adage?

A) always wait for luck to happen
B) luck happens when preparation meets opportunity
C) luck happens to everyone
D) luck is the key to entrepreneurship

Question 76

Entrepreneurs are accurately described in which way?

A) as gamblers
B) as risk takers
C) as calculated risk takers
D) as risk averse

Question 77

Which statement is not True?

A) Luck happens when preparation meets opportunity.
B) Entrepreneurs fare poorly in today's hypercompetitive market.
C) Failure due to lack of proper financing often is an indicator of other problems.
D) It takes more than just money to be a successful entrepreneur.

Question 78

The "corridor principle" is best described by which of the following statements?

A) If at first you don't succeed, try, try, again.
B) Being in the right place at the right time.
C) With every new venture launched, new and unintended opportunities arise.
D) Luck happens when preparation meets opportunity.

Question 79

Entrepreneurs themselves perceive the concept of risk in which of the following ways:

A) calculated risk taking
B) gambling risk
C) distorted risk taking
D) social risk

Question 80

Which of the following schools of thought is not a micro view school of thought?

A) the entrepreneurial trait school of thought
B) the venture opportunity school of thought
C) the displacement school of thought
D) the inherited business school of thought