Latest 2025 Update 100% Correct - Toronto
Metropolitan University
1. What is the most accepted definition of entrepreneurship?
A) Starting any new business
B) The process of creating or seizing an opportunity and pursuing it regardless of the resources
currently controlled.
C) Inventing a new product or technology
D) Managing a small business
Answer: B
2. An entrepreneur primarily assumes the risk of a business venture for the potential of
what?
A) Fame and recognition
B) Profit and growth
C) A stable, predictable income
D) Flexible working hours
Answer: B
3. Which of the following is NOT a common characteristic of successful entrepreneurs?
A) High tolerance for ambiguity
B) Aversion to risk
C) Passion and perseverance
D) Resourcefulness
Answer: B
4. True or False: The term "entrepreneur" applies only to founders of high-growth,
technology-based startups.
A) True
B) False
Answer: B
5. What is the primary difference between an inventor and an entrepreneur?
A) An inventor has more technical skills.
B) An entrepreneur focuses on the commercial viability and creation of value from an idea.
C) An entrepreneur is always the inventor.
D) There is no significant difference.
, Answer: B
6. The "Entrepreneurial Mindset" includes which of the following attitudes?
A) Seeing failure as a learning experience
B) Preferring structured, top-down management
C) Avoiding uncertain situations
D) Resisting change in the market
Answer: A
7. What is "Effectuation," a key concept in entrepreneurship?
A) A detailed, long-term business plan that is strictly followed
B) A process of starting with a given set of means and allowing goals to emerge contingently
C) A method for predicting future market trends with certainty
D) The legal process of incorporating a business
Answer: B
8. Which of these is a primary source of entrepreneurial opportunity?
A) Problems and frustrations encountered in daily life
B) A guaranteed government grant
C) A perfectly stable and predictable economy
D) Avoiding all forms of competition
Answer: A
9. True or False: Most entrepreneurial ventures fail within the first year.
A) True
B) False
Answer: B (Common myth; data shows failure rates are often exaggerated and build over a
longer period, like 5-10 years).
10. What does the acronym "PESTEL" analysis stand for?
A) Product, Economy, Society, Technology, Environment, Legal
B) Political, Economic, Social, Technological, Environmental, Legal
C) Planning, Execution, Strategy, Tactics, Evaluation, Logistics
D) People, Earnings, Systems, Tools, Ecology, Laws
Answer: B
11. An individual who starts a franchise location is best described as:
A) A social entrepreneur
B) A small business owner