ENT 101 WEEK 1 QUIZ STUDY GUIDE — TMU 2026
Building an Entrepreneurial Mindset | Complete Solutions
PART A: FOUNDATIONAL CONCEPTS & DEFINITIONS DRILL (10
Questions)
Question 1 According to Joseph Schumpeter, entrepreneurs drive economic progress
primarily through:
• A) Reducing production costs through efficiency gains
• B) Introducing innovations that make old products and processes obsolete
• C) Maximizing shareholder value through financial engineering
• D) Expanding government regulation of markets
Answer: B
Rationale: Schumpeter coined the term "creative destruction" to describe how
entrepreneurs introduce new combinations of resources—innovations that disrupt
existing markets and render old technologies obsolete. This is the engine of capitalist
development in his view. Option A describes operational management, not
entrepreneurship. Option C describes corporate finance. Option D contradicts
Schumpeter's free-market orientation.
Question 2 Peter Drucker's view of entrepreneurship differs from Schumpeter's in that
Drucker emphasized:
• A) Entrepreneurship as an innate personality trait that cannot be taught
• B) Entrepreneurship as a systematic discipline that can be learned and practiced
, • C) The role of government in subsidizing entrepreneurial ventures
• D) The primacy of technological innovation over market needs
Answer: B
Rationale: Drucker argued in Innovation and Entrepreneurship (1985) that
entrepreneurship is not a mystical gift but a systematic, purposeful discipline that can
be taught, learned, and practiced within organizations. This directly contrasts with the
"born entrepreneur" myth. Option A is the opposite of Drucker's view. Options C and D
are not central to his framework.
Question 3 A software engineer at a large tech company develops a new internal tool
during company time, and the firm decides to commercialize it. This is an example of:
• A) Social entrepreneurship
• B) Intrapreneurship
• C) Bootstrapping
• D) Corporate raiding
Answer: B
Rationale: Intrapreneurship refers to entrepreneurial behavior within an existing
organization—employees acting as entrepreneurs while leveraging corporate resources.
Classic examples include 3M's Post-it Notes and Google's "20% time" projects. Social
entrepreneurship (A) focuses on social impact. Bootstrapping (C) refers to self-funding.
Corporate raiding (D) is a hostile takeover strategy.
Question 4 A social enterprise that sells fair-trade coffee to fund clean water projects in
developing countries is practicing:
• A) Pure philanthropy
• B) Social entrepreneurship
• C) Corporate social responsibility (CSR)
, • D) Bootstrapping
Answer: B
Rationale: Social entrepreneurship uses business models (revenue from sales) to
achieve social, cultural, or environmental missions. It differs from pure philanthropy (A)
because it generates earned income, and from CSR (C) because it is the primary mission
of the organization, not an ancillary activity of a for-profit firm. Bootstrapping (D) refers
to funding methods, not mission type.
Question 5 An immigrant who opens a food truck because they cannot find
employment in their field is an example of:
• A) Opportunity entrepreneurship
• B) Serial entrepreneurship
• C) Necessity entrepreneurship
• D) Intrapreneurship
Answer: C
Rationale: Necessity entrepreneurship occurs when individuals start businesses due to
lack of employment options (push factors). Opportunity entrepreneurship (A) is driven
by attractive market opportunities (pull factors). This distinction is critical in
entrepreneurship research, particularly in studies using GEM data. Serial
entrepreneurship (B) refers to starting multiple ventures sequentially. Intrapreneurship
(D) occurs within existing firms.
Question 6 A founder who launches a startup using only personal savings, early
customer revenue, and creative cost-cutting strategies is practicing:
• A) Venture capital financing
• B) Bootstrapping
• C) Angel investing
Building an Entrepreneurial Mindset | Complete Solutions
PART A: FOUNDATIONAL CONCEPTS & DEFINITIONS DRILL (10
Questions)
Question 1 According to Joseph Schumpeter, entrepreneurs drive economic progress
primarily through:
• A) Reducing production costs through efficiency gains
• B) Introducing innovations that make old products and processes obsolete
• C) Maximizing shareholder value through financial engineering
• D) Expanding government regulation of markets
Answer: B
Rationale: Schumpeter coined the term "creative destruction" to describe how
entrepreneurs introduce new combinations of resources—innovations that disrupt
existing markets and render old technologies obsolete. This is the engine of capitalist
development in his view. Option A describes operational management, not
entrepreneurship. Option C describes corporate finance. Option D contradicts
Schumpeter's free-market orientation.
Question 2 Peter Drucker's view of entrepreneurship differs from Schumpeter's in that
Drucker emphasized:
• A) Entrepreneurship as an innate personality trait that cannot be taught
• B) Entrepreneurship as a systematic discipline that can be learned and practiced
, • C) The role of government in subsidizing entrepreneurial ventures
• D) The primacy of technological innovation over market needs
Answer: B
Rationale: Drucker argued in Innovation and Entrepreneurship (1985) that
entrepreneurship is not a mystical gift but a systematic, purposeful discipline that can
be taught, learned, and practiced within organizations. This directly contrasts with the
"born entrepreneur" myth. Option A is the opposite of Drucker's view. Options C and D
are not central to his framework.
Question 3 A software engineer at a large tech company develops a new internal tool
during company time, and the firm decides to commercialize it. This is an example of:
• A) Social entrepreneurship
• B) Intrapreneurship
• C) Bootstrapping
• D) Corporate raiding
Answer: B
Rationale: Intrapreneurship refers to entrepreneurial behavior within an existing
organization—employees acting as entrepreneurs while leveraging corporate resources.
Classic examples include 3M's Post-it Notes and Google's "20% time" projects. Social
entrepreneurship (A) focuses on social impact. Bootstrapping (C) refers to self-funding.
Corporate raiding (D) is a hostile takeover strategy.
Question 4 A social enterprise that sells fair-trade coffee to fund clean water projects in
developing countries is practicing:
• A) Pure philanthropy
• B) Social entrepreneurship
• C) Corporate social responsibility (CSR)
, • D) Bootstrapping
Answer: B
Rationale: Social entrepreneurship uses business models (revenue from sales) to
achieve social, cultural, or environmental missions. It differs from pure philanthropy (A)
because it generates earned income, and from CSR (C) because it is the primary mission
of the organization, not an ancillary activity of a for-profit firm. Bootstrapping (D) refers
to funding methods, not mission type.
Question 5 An immigrant who opens a food truck because they cannot find
employment in their field is an example of:
• A) Opportunity entrepreneurship
• B) Serial entrepreneurship
• C) Necessity entrepreneurship
• D) Intrapreneurship
Answer: C
Rationale: Necessity entrepreneurship occurs when individuals start businesses due to
lack of employment options (push factors). Opportunity entrepreneurship (A) is driven
by attractive market opportunities (pull factors). This distinction is critical in
entrepreneurship research, particularly in studies using GEM data. Serial
entrepreneurship (B) refers to starting multiple ventures sequentially. Intrapreneurship
(D) occurs within existing firms.
Question 6 A founder who launches a startup using only personal savings, early
customer revenue, and creative cost-cutting strategies is practicing:
• A) Venture capital financing
• B) Bootstrapping
• C) Angel investing
