Question 1

Schumpeter was on an unceasing quest to find out "how the economic system generates the force which incessantly transforms it" (growth and development force). His answer was that the key is:

Accepted Answer

A)  the entrepreneur as creative destruction 
B)  homo economicus, economic man 
C)  price mechanism and competition 
D)  a combination of land, work and capital 
E)  a tendency towards balancing out supply and demand
F) laws of nature in the economy

Question 2

The proposition "All business owners are not entrepreneurs and all entrepreneurs are not business owners" is discussed in the book. In all likelihood, this implies: (four are correct)

Accepted Answer

A)  once an entrepreneur, always an entrepreneur 
B)  that all businesses are not entrepreneurial 
C)  that entrepreneurship always pertains to business and business ventures 
D)  that entrepreneurship only exists in the private sector 
E)  that business ventures and entrepreneurship are one and the same
F) that one can be an entrepreneur in various sectors of society
G) that one can be an entrepreneur without being a business owner
H)that one can be a business owner without being an entrepreneur

Question 3

Shane and Venkataraman have worked towards summarizing the essence and unique aspects of entrepreneurship, and have come up with a widely accepted definition of entrepreneurship as:

Accepted Answer

A)  working together to achieve something 
B)  acting regardless of the resources on hand 
C)  starting a company, and once it has been started, entrepreneurship has reached its completion 
D)  being on the lookout for opportunities and problems 
E)  how, and by whom, opportunities are discovered, created and exploited

Question 4

Certain fundamental features of the Austrian School are how it considers the market economy as:

Accepted Answer

A)  an entrepreneur-driven, dynamic process of search and learn 
B)  a giant experimental laboratory 
C)  a dynamic system, the most central aspect of which is the endless stream of knowledge that individuals generate and distribute through their choices and actions 
D)  a system in which each individual possesses crucial information in order to make a rational decision 
E)  a system in which price mechanisms control supply and demand
F) a system which is always seeking, striving for and attaining equilibrium

Question 5

According to Richard Cantillon, entrepreneurs were not tasked with producing - that was the task of landowners and farmers. Rather, entrepreneurial work consisted of:

Accepted Answer

A)  combining resources in a new manner 
B)  being creative and innovative 
C)  restoring the balance between supply and demand 
D)  assessing demand and assuming the risk associated with buying products at a given price and then selling them at a to-be-confirmed price 
E)  convincing farmers to sell their goods at a cut price to entrepreneurs

Question 6

Certain fundamental features of the Austrian School are that it considers entrepreneurs as:

Accepted Answer

A)  acting based on judgmental decision-making 
B)  acting without having perfect information about the future 
C)  obtaining information before making a decision 
D)  avoiding experiments and uncertainty 
E)  clever and rational, with the ability to make predictions

Question 7

The first chapter mentions "the dark side of entrepreneurship." This pertains to the concept that:

Accepted Answer

A)  entrepreneurship can cause stress and impact on social relationships 
B)  entrepreneurship is often a side job 
C)  entrepreneurship is often a solitary affair 
D)  a person can lose a lot of money 
E)  negative factors such as coldness, obsession and self-interest are often at play in the process
F) defines the risks of entrepreneurship

Question 8

Static, in this context, means that something is unchangeable and fixed.

Accepted Answer

A) True 
 B)False

Exam 1: The Rise, Fall and Return of the Entrepreneur

Schumpeter was on an unceasing quest to find out "how the economic system generates the force which incessantly transforms it" (growth and development force) . His answer was that the key is: