ENTR 321 MIDTERM QUESTIONS AND VERIFIED
ANSWERS
A "gazelle" is a business establishment with at least 20 percent sales growth every year
for five years. TF - Answers - true
The macro view can be broken down into which three areas? - Answers -
environmental, financial, and displacement
Entrepreneurs always start their business at a young age. TF - Answers - false
Entrepreneurs are high risk takers. TF - Answers - false
Gazelles are almost always high tech. TF - Answers - false
The word entrepreneur is derived from the Spanish word entreprendre, meaning "to
undertake." TF - Answers - false
During the past ten years, new business incorporations averaged nearly 600,000 per
year. TF - Answers - true
The word entrepreneur is derived from the French entreprendre, which is translated as -
Answers - to undertake
The displacement school of thought can be divided into which three groups? - Answers
- economic, cultural, and political
The macro view of entrepreneurship presents factors exhibiting a strong - Answers -
external locus of control.
The "corridor principle" states that entrepreneurs often get stuck on one idea. TF -
Answers - false
Which of the following is not a common myth about entrepreneurs? - Answers -
Entrepreneurs today are considered heroes
Mountain gap strategies refer to: - Answers - unique markets
The micro view is divided into which three theories? - Answers - venture opportunity
theory, entrepreneurial, strategic
,Entrepreneurs and gazelles have been credited with making disproportionate
contributions to all but which of the following? - Answers - unemployment
The process approach to entrepreneurship seeks to - Answers - model the various
factors that characterize the entrepreneurial process
Which of the following statements best describes a "gazelle?" - Answers - a business
with at least 20 percent growth every year
Entrepreneurs are born not made. TF - Answers - false
The macro view of entrepreneurship includes external processes that are sometimes
beyond the control of the entrepreneur. TF - Answers - true
Michael Gerber, the author of The E-Myth, explains that the failure of most small
businesses is due to - Answers - owners being more technical rather than
entrepreneurial
The "corridor principle" is best described by which of the following statements? -
Answers - With every new venture launched, new and unintended opportunities arise.
Entrepreneurship is the ability to create and build a vision from practically nothing. TF -
Answers - true
Entrepreneurs are aggressive catalysts for change within the marketplace. TF -
Answers - true
Throughout the years, many myths have arisen about entrepreneurship as a result of? -
Answers - a lack of research about entrepreneurship
The statement, "with every new venture launched, new and unintended opportunities
often arise," would be associated with: - Answers - the corridor principle
Entrepreneurial cognition is, in part, about understanding how entrepreneurs use
simplifying mental models to make assessments, judgments, and decisions about
opportunities. TF - Answers - true
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 -
Answers - ethical, illegal
Which of the following is not a trait of successful entrepreneurs? - Answers - frustration
Obtaining inside information from another brokerage that results in the entrepreneur
netting more than $2 million - Answers - unethical, illegal
, Generally, entrepreneurial stress is due to - Answers - the discrepancy between the
entrepreneur's expectations and the ability to meet demands
A loss orientation toward grief recovery in dealing with failure can sometimes lessen
negative emotional reactions. TF - Answers - false
The entrepreneurial ego can cause the entrepreneur to - Answers - take characteristics
that usually lead to success to the extreme.
There is a certain psychic risk involved with entrepreneurship. TF - Answers - 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) - Answers - legal and unethical
Which of the following may be the greatest risk to the well-being of the entrepreneur? -
Answers - psychic risk
A __________ is a statement of ethical practices or guidelines to which an enterprise
adheres. - Answers - code of conduct
Today's entrepreneurs are faced with few ethical decisions because the legal system
imposes greater penalties on wrongdoers. TF - Answers - false
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 - Answers - ethical, illegal
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. TF -
Answers - true
Characteristics often attributed to the entrepreneur include: - Answers - commitment,
determination and perseverance
The decision to behave entrepreneurially is the result of the interaction of: - Answers -
the individual's personal entrepreneurial mind-set and an opportunity
Offering a member of the city council $100,000 to vote to give the entrepreneur the local
cable television franchise - Answers - unethical, 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 - Answers -
unethical, legal
Producing a vaccine, already approved by the Food and Drug Administration, that will
retard the growth of bone cancer - Answers - ethical, legal
ANSWERS
A "gazelle" is a business establishment with at least 20 percent sales growth every year
for five years. TF - Answers - true
The macro view can be broken down into which three areas? - Answers -
environmental, financial, and displacement
Entrepreneurs always start their business at a young age. TF - Answers - false
Entrepreneurs are high risk takers. TF - Answers - false
Gazelles are almost always high tech. TF - Answers - false
The word entrepreneur is derived from the Spanish word entreprendre, meaning "to
undertake." TF - Answers - false
During the past ten years, new business incorporations averaged nearly 600,000 per
year. TF - Answers - true
The word entrepreneur is derived from the French entreprendre, which is translated as -
Answers - to undertake
The displacement school of thought can be divided into which three groups? - Answers
- economic, cultural, and political
The macro view of entrepreneurship presents factors exhibiting a strong - Answers -
external locus of control.
The "corridor principle" states that entrepreneurs often get stuck on one idea. TF -
Answers - false
Which of the following is not a common myth about entrepreneurs? - Answers -
Entrepreneurs today are considered heroes
Mountain gap strategies refer to: - Answers - unique markets
The micro view is divided into which three theories? - Answers - venture opportunity
theory, entrepreneurial, strategic
,Entrepreneurs and gazelles have been credited with making disproportionate
contributions to all but which of the following? - Answers - unemployment
The process approach to entrepreneurship seeks to - Answers - model the various
factors that characterize the entrepreneurial process
Which of the following statements best describes a "gazelle?" - Answers - a business
with at least 20 percent growth every year
Entrepreneurs are born not made. TF - Answers - false
The macro view of entrepreneurship includes external processes that are sometimes
beyond the control of the entrepreneur. TF - Answers - true
Michael Gerber, the author of The E-Myth, explains that the failure of most small
businesses is due to - Answers - owners being more technical rather than
entrepreneurial
The "corridor principle" is best described by which of the following statements? -
Answers - With every new venture launched, new and unintended opportunities arise.
Entrepreneurship is the ability to create and build a vision from practically nothing. TF -
Answers - true
Entrepreneurs are aggressive catalysts for change within the marketplace. TF -
Answers - true
Throughout the years, many myths have arisen about entrepreneurship as a result of? -
Answers - a lack of research about entrepreneurship
The statement, "with every new venture launched, new and unintended opportunities
often arise," would be associated with: - Answers - the corridor principle
Entrepreneurial cognition is, in part, about understanding how entrepreneurs use
simplifying mental models to make assessments, judgments, and decisions about
opportunities. TF - Answers - true
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 -
Answers - ethical, illegal
Which of the following is not a trait of successful entrepreneurs? - Answers - frustration
Obtaining inside information from another brokerage that results in the entrepreneur
netting more than $2 million - Answers - unethical, illegal
, Generally, entrepreneurial stress is due to - Answers - the discrepancy between the
entrepreneur's expectations and the ability to meet demands
A loss orientation toward grief recovery in dealing with failure can sometimes lessen
negative emotional reactions. TF - Answers - false
The entrepreneurial ego can cause the entrepreneur to - Answers - take characteristics
that usually lead to success to the extreme.
There is a certain psychic risk involved with entrepreneurship. TF - Answers - 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) - Answers - legal and unethical
Which of the following may be the greatest risk to the well-being of the entrepreneur? -
Answers - psychic risk
A __________ is a statement of ethical practices or guidelines to which an enterprise
adheres. - Answers - code of conduct
Today's entrepreneurs are faced with few ethical decisions because the legal system
imposes greater penalties on wrongdoers. TF - Answers - false
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 - Answers - ethical, illegal
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. TF -
Answers - true
Characteristics often attributed to the entrepreneur include: - Answers - commitment,
determination and perseverance
The decision to behave entrepreneurially is the result of the interaction of: - Answers -
the individual's personal entrepreneurial mind-set and an opportunity
Offering a member of the city council $100,000 to vote to give the entrepreneur the local
cable television franchise - Answers - unethical, 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 - Answers -
unethical, legal
Producing a vaccine, already approved by the Food and Drug Administration, that will
retard the growth of bone cancer - Answers - ethical, legal
