ENT 101 WEEK 2 QUIZ STUDY GUIDE — TMU 2026 UPDATE
Building an Entrepreneurial Mindset | Complete Solutions
PART A: ENTREPRENEURIAL MINDSET & TRAITS DRILL (Questions 1–8)
Question 1 An entrepreneur who believes that their own actions, skills, and decisions—not luck
or external circumstances—determine the success or failure of their venture demonstrates:
• A) External locus of control
• B) Internal locus of control
• C) Learned helplessness
• D) Risk aversion
Answer: B
Rationale: Internal locus of control is the belief that one's own actions and decisions drive
outcomes. Entrepreneurs with a strong internal locus of control take initiative, persist through
obstacles, and attribute success/failure to their own efforts rather than fate. External locus of
control (A) attributes outcomes to outside forces. Learned helplessness (C) is the opposite—
believing one has no control. Risk aversion (D) is unrelated to locus of control.
High-Yield Pearl: Internal locus of control is one of the most validated psychological
predictors of entrepreneurial intention and action. TMU ENT 101 emphasizes this as a
foundational mindset trait.
Question 2 According to Carol Dweck's research, an entrepreneur who views challenges as
opportunities to grow and believes that abilities can be developed through effort and learning
has a:
• A) Fixed mindset
• B) Growth mindset
• C) Defensive mindset
• D) Scarcity mindset
Answer: B
,Rationale: A growth mindset (Dweck, 2006) is the belief that abilities, intelligence, and talents
can be developed through dedication, effort, and learning. Entrepreneurs with a growth
mindset embrace challenges, persist through setbacks, and see failure as a learning opportunity.
A fixed mindset (A) believes abilities are static and unchangeable. Defensive (C) and scarcity (D)
mindsets are not Dweck's concepts.
High-Yield Pearl: Growth mindset directly predicts entrepreneurial resilience. Students with
growth mindsets are more likely to take calculated risks and recover from venture failures.
Question 3 Angela Duckworth's research on "grit" defines it as:
• A) Raw intelligence and natural talent
• B) Passion and perseverance for long-term goals
• C) The ability to work quickly under pressure
• D) Social networking skills and charisma
Answer: B
Rationale: Grit is defined as passion and perseverance for long-term goals. Duckworth's
research found that grit is a stronger predictor of success than IQ or talent in challenging
domains—including entrepreneurship. It is not about working fast (C) or being charismatic (D).
Raw intelligence (A) is explicitly not grit.
High-Yield Pearl: Grit > IQ for entrepreneurial success. Duckworth's studies at West Point
and National Spelling Bee showed grit predicted outcomes better than any other measured
trait.
Question 4 An entrepreneur who continues working on their startup despite repeated
rejections from investors, believing they have the capability to eventually succeed, is
demonstrating high:
• A) Need for affiliation
• B) Self-efficacy
• C) Risk propensity
• D) External locus of control
Answer: B
, Rationale: Self-efficacy (Bandura) is the belief in one's ability to perform specific tasks and
achieve goals. High self-efficacy increases persistence, effort, and resilience in the face of
setbacks. Need for affiliation (A) is about social relationships. Risk propensity (C) is willingness to
take risks, not belief in capability. External locus of control (D) contradicts the scenario.
High-Yield Pearl: Self-efficacy is domain-specific. An entrepreneur may have high self-
efficacy in product development but low self-efficacy in sales. Building self-efficacy in all critical
domains is essential.
Question 5 The ability to make decisions and take action when information is incomplete,
outcomes are uncertain, and there is no clear "right" answer is called:
• A) Risk aversion
• B) Tolerance for ambiguity
• C) Analysis paralysis
• D) Strategic conformity
Answer: B
Rationale: Tolerance for ambiguity is the psychological capacity to function effectively in
situations characterized by novelty, complexity, and lack of information. Entrepreneurs face
constant ambiguity—new markets, untested products, uncertain funding. Risk aversion (A) is
the opposite. Analysis paralysis (C) is a dysfunction, not a trait. Strategic conformity (D)
contradicts entrepreneurship.
High-Yield Pearl: Research shows tolerance for ambiguity correlates with entrepreneurial
intention and new venture creation. It is a trainable trait, not fixed.
Question 6 The "Cassandra fallacy" (or Cassandra's curse) in entrepreneurship refers to:
• A) Overly optimistic predictions of success that ignore warning signs
• B) The tendency to rely on a single successful example while ignoring base rates
• C) The experience of being able to foresee a problem but being unable to convince
others to act
• D) A preference for group decision-making over individual decisions
Answer: C
Building an Entrepreneurial Mindset | Complete Solutions
PART A: ENTREPRENEURIAL MINDSET & TRAITS DRILL (Questions 1–8)
Question 1 An entrepreneur who believes that their own actions, skills, and decisions—not luck
or external circumstances—determine the success or failure of their venture demonstrates:
• A) External locus of control
• B) Internal locus of control
• C) Learned helplessness
• D) Risk aversion
Answer: B
Rationale: Internal locus of control is the belief that one's own actions and decisions drive
outcomes. Entrepreneurs with a strong internal locus of control take initiative, persist through
obstacles, and attribute success/failure to their own efforts rather than fate. External locus of
control (A) attributes outcomes to outside forces. Learned helplessness (C) is the opposite—
believing one has no control. Risk aversion (D) is unrelated to locus of control.
High-Yield Pearl: Internal locus of control is one of the most validated psychological
predictors of entrepreneurial intention and action. TMU ENT 101 emphasizes this as a
foundational mindset trait.
Question 2 According to Carol Dweck's research, an entrepreneur who views challenges as
opportunities to grow and believes that abilities can be developed through effort and learning
has a:
• A) Fixed mindset
• B) Growth mindset
• C) Defensive mindset
• D) Scarcity mindset
Answer: B
,Rationale: A growth mindset (Dweck, 2006) is the belief that abilities, intelligence, and talents
can be developed through dedication, effort, and learning. Entrepreneurs with a growth
mindset embrace challenges, persist through setbacks, and see failure as a learning opportunity.
A fixed mindset (A) believes abilities are static and unchangeable. Defensive (C) and scarcity (D)
mindsets are not Dweck's concepts.
High-Yield Pearl: Growth mindset directly predicts entrepreneurial resilience. Students with
growth mindsets are more likely to take calculated risks and recover from venture failures.
Question 3 Angela Duckworth's research on "grit" defines it as:
• A) Raw intelligence and natural talent
• B) Passion and perseverance for long-term goals
• C) The ability to work quickly under pressure
• D) Social networking skills and charisma
Answer: B
Rationale: Grit is defined as passion and perseverance for long-term goals. Duckworth's
research found that grit is a stronger predictor of success than IQ or talent in challenging
domains—including entrepreneurship. It is not about working fast (C) or being charismatic (D).
Raw intelligence (A) is explicitly not grit.
High-Yield Pearl: Grit > IQ for entrepreneurial success. Duckworth's studies at West Point
and National Spelling Bee showed grit predicted outcomes better than any other measured
trait.
Question 4 An entrepreneur who continues working on their startup despite repeated
rejections from investors, believing they have the capability to eventually succeed, is
demonstrating high:
• A) Need for affiliation
• B) Self-efficacy
• C) Risk propensity
• D) External locus of control
Answer: B
, Rationale: Self-efficacy (Bandura) is the belief in one's ability to perform specific tasks and
achieve goals. High self-efficacy increases persistence, effort, and resilience in the face of
setbacks. Need for affiliation (A) is about social relationships. Risk propensity (C) is willingness to
take risks, not belief in capability. External locus of control (D) contradicts the scenario.
High-Yield Pearl: Self-efficacy is domain-specific. An entrepreneur may have high self-
efficacy in product development but low self-efficacy in sales. Building self-efficacy in all critical
domains is essential.
Question 5 The ability to make decisions and take action when information is incomplete,
outcomes are uncertain, and there is no clear "right" answer is called:
• A) Risk aversion
• B) Tolerance for ambiguity
• C) Analysis paralysis
• D) Strategic conformity
Answer: B
Rationale: Tolerance for ambiguity is the psychological capacity to function effectively in
situations characterized by novelty, complexity, and lack of information. Entrepreneurs face
constant ambiguity—new markets, untested products, uncertain funding. Risk aversion (A) is
the opposite. Analysis paralysis (C) is a dysfunction, not a trait. Strategic conformity (D)
contradicts entrepreneurship.
High-Yield Pearl: Research shows tolerance for ambiguity correlates with entrepreneurial
intention and new venture creation. It is a trainable trait, not fixed.
Question 6 The "Cassandra fallacy" (or Cassandra's curse) in entrepreneurship refers to:
• A) Overly optimistic predictions of success that ignore warning signs
• B) The tendency to rely on a single successful example while ignoring base rates
• C) The experience of being able to foresee a problem but being unable to convince
others to act
• D) A preference for group decision-making over individual decisions
Answer: C
