ENT 101 Week 2 Quiz|Actual Questions
and Answers 2025 Update 100% Correct-
Toronto Metropolitan University
Section 1: The Entrepreneurial Mindset & Characteristics
(Questions 1–35)
1. Which of the following best describes the "entrepreneurial mindset"?
A) A fixed set of personality traits that one is born with.
B) A cognitive perspective that emphasizes opportunity recognition, adaptability, and resilience.
C) A focus solely on maximizing short-term financial profit.
D) A preference for avoiding risk in all business decisions.
Correct Answer: B
Rationale: The entrepreneurial mindset is a dynamic cognitive process, not a fixed trait. It
involves the ability to spot opportunities, learn from failure, and adapt to changing
environments (Dweck's growth mindset applied to business).
2. SATA: Which of the following are key characteristics commonly associated with successful
entrepreneurs? (Select all that apply)
A) Tolerance for ambiguity
Correct Answer: A
B) External locus of control
C) High need for achievement
Correct Answer: C
D) Risk aversion
E) Passion for the business
Correct Answer: E
Rationale: Successful entrepreneurs generally have a high tolerance for ambiguity, a high
need for achievement (McClelland's theory), and passion. They typically have an internal locus
of control (believing they control their destiny) and are risk mitigators, not purely risk-averse.
3. What is the primary difference between a "manager" and an "entrepreneur" according to
classic entrepreneurship theory?
A) Managers focus on innovation; entrepreneurs focus on efficiency.
B) Entrepreneurs focus on opportunity; managers focus on resource allocation.
,C) Managers take greater financial risks than entrepreneurs.
D) Entrepreneurs are always the founders; managers are always employees.
Correct Answer: B
Rationale: Peter Drucker and others distinguish the entrepreneur by their focus on
opportunity and innovation, whereas the manager focuses on efficiency, resource allocation,
and maintaining the status quo.
4. A student who believes their success is determined by hard work and effort rather than
luck or fate has a(n):
A) External locus of control
B) Internal locus of control
Correct Answer: B
C) High uncertainty avoidance
D) Low self-efficacy
Rationale: An internal locus of control is the belief that you control your own outcomes.
This is a critical trait for entrepreneurs who must persevere through challenges.
5. SATA: Which of the following are examples of "cognitive biases" that can hinder an
entrepreneur's decision-making? (Select all that apply)
A) Overconfidence bias
Correct Answer: A
B) Planning fallacy
Correct Answer: B
C) Effectuation
D) Confirmation bias
Correct Answer: D
E) Growth mindset
Rationale: Overconfidence, planning fallacy (underestimating time/costs), and confirmation
bias (seeking only supportive info) are cognitive biases that lead to poor decisions. Effectuation
is a logic of thinking, not a bias. Growth mindset is a positive belief.
6. The concept of "grit" in entrepreneurship refers to:
A) The ability to secure funding quickly.
B) Perseverance and passion for long-term goals.
Correct Answer: B
C) A stubborn refusal to change strategy.
D) The physical stamina required to work long hours.
, Rationale: Angela Duckworth's concept of "grit" is defined as perseverance and passion for
long-term goals, which is highly predictive of entrepreneurial success.
7. Which of the following statements about risk is most accurate for entrepreneurs?
A) Entrepreneurs are high-risk takers who gamble on uncertain outcomes.
B) Entrepreneurs are risk-averse and avoid all uncertainty.
C) Entrepreneurs take calculated risks and seek to mitigate potential losses.
Correct Answer: C
D) Entrepreneurs only take risks when guaranteed a profit.
Rationale: The stereotype of the "risk-taking entrepreneur" is inaccurate. Successful
entrepreneurs take calculated risks, often sharing risk with partners or investors to reduce
personal exposure.
8. SATA: According to the "Big Five" personality traits, which dimensions are most positively
correlated with entrepreneurial intention?
A) Conscientiousness
Correct Answer: A
B) Openness to Experience
Correct Answer: B
C) Neuroticism
D) Extraversion
Correct Answer: D
E) Agreeableness
Rationale: Conscientiousness (discipline), Openness (creativity), and Extraversion
(networking/social capital) are positively correlated. Neuroticism is negatively correlated.
Agreeableness is complex (can be a weakness in negotiation).
9. "Effectuation" is a logic of thinking used by expert entrepreneurs. Which principle describes
starting with what you have (who you are, what you know, whom you know)?
A) The Affordable Loss Principle
B) The Bird-in-Hand Principle
Correct Answer: B
C) The Crazy Quilt Principle
D) The Lemonade Principle
Rationale: Sarasvathy's Bird-in-Hand principle means starting with your means (identity,
knowledge, network) rather than a pre-determined goal.
10. A person who starts a business primarily to be their own boss and have flexibility is
motivated by:
, A) The desire for financial gain
B) The desire for independence
Correct Answer: B
C) The desire for fame
D) The desire for legacy
Rationale: The "desire for independence" (autonomy) is one of the most common non-
financial motivations for entrepreneurship.
11. Which of the following is a potential disadvantage of being an entrepreneur?
A) High degree of autonomy
B) Potential for unlimited financial upside
C) Income instability and personal financial risk
Correct Answer: C
D) Opportunity to pursue passion
Rationale: Income instability, personal liability, and financial risk are significant drawbacks.
The other options are advantages.
12. SATA: Which of the following are considered "non-financial" rewards of entrepreneurship?
A) Personal satisfaction
Correct Answer: A
B) High salary
C) Flexibility in work schedule
Correct Answer: C
D) Equity ownership
E) Contribution to community
Correct Answer: E
Rationale: Personal satisfaction, flexibility, and community impact are non-financial. Salary
and equity are financial rewards.
13. The "myth of the lone hero" in entrepreneurship refers to:
A) The belief that entrepreneurs must work alone to succeed.
Correct Answer: A
B) The idea that entrepreneurs are always physically strong.
C) The necessity of having a co-founder.
D) The fact that most entrepreneurs fail.
Rationale: The lone hero myth is the inaccurate cultural belief that successful entrepreneurs
are solitary geniuses. In reality, entrepreneurship is a team sport requiring networks and
support.
and Answers 2025 Update 100% Correct-
Toronto Metropolitan University
Section 1: The Entrepreneurial Mindset & Characteristics
(Questions 1–35)
1. Which of the following best describes the "entrepreneurial mindset"?
A) A fixed set of personality traits that one is born with.
B) A cognitive perspective that emphasizes opportunity recognition, adaptability, and resilience.
C) A focus solely on maximizing short-term financial profit.
D) A preference for avoiding risk in all business decisions.
Correct Answer: B
Rationale: The entrepreneurial mindset is a dynamic cognitive process, not a fixed trait. It
involves the ability to spot opportunities, learn from failure, and adapt to changing
environments (Dweck's growth mindset applied to business).
2. SATA: Which of the following are key characteristics commonly associated with successful
entrepreneurs? (Select all that apply)
A) Tolerance for ambiguity
Correct Answer: A
B) External locus of control
C) High need for achievement
Correct Answer: C
D) Risk aversion
E) Passion for the business
Correct Answer: E
Rationale: Successful entrepreneurs generally have a high tolerance for ambiguity, a high
need for achievement (McClelland's theory), and passion. They typically have an internal locus
of control (believing they control their destiny) and are risk mitigators, not purely risk-averse.
3. What is the primary difference between a "manager" and an "entrepreneur" according to
classic entrepreneurship theory?
A) Managers focus on innovation; entrepreneurs focus on efficiency.
B) Entrepreneurs focus on opportunity; managers focus on resource allocation.
,C) Managers take greater financial risks than entrepreneurs.
D) Entrepreneurs are always the founders; managers are always employees.
Correct Answer: B
Rationale: Peter Drucker and others distinguish the entrepreneur by their focus on
opportunity and innovation, whereas the manager focuses on efficiency, resource allocation,
and maintaining the status quo.
4. A student who believes their success is determined by hard work and effort rather than
luck or fate has a(n):
A) External locus of control
B) Internal locus of control
Correct Answer: B
C) High uncertainty avoidance
D) Low self-efficacy
Rationale: An internal locus of control is the belief that you control your own outcomes.
This is a critical trait for entrepreneurs who must persevere through challenges.
5. SATA: Which of the following are examples of "cognitive biases" that can hinder an
entrepreneur's decision-making? (Select all that apply)
A) Overconfidence bias
Correct Answer: A
B) Planning fallacy
Correct Answer: B
C) Effectuation
D) Confirmation bias
Correct Answer: D
E) Growth mindset
Rationale: Overconfidence, planning fallacy (underestimating time/costs), and confirmation
bias (seeking only supportive info) are cognitive biases that lead to poor decisions. Effectuation
is a logic of thinking, not a bias. Growth mindset is a positive belief.
6. The concept of "grit" in entrepreneurship refers to:
A) The ability to secure funding quickly.
B) Perseverance and passion for long-term goals.
Correct Answer: B
C) A stubborn refusal to change strategy.
D) The physical stamina required to work long hours.
, Rationale: Angela Duckworth's concept of "grit" is defined as perseverance and passion for
long-term goals, which is highly predictive of entrepreneurial success.
7. Which of the following statements about risk is most accurate for entrepreneurs?
A) Entrepreneurs are high-risk takers who gamble on uncertain outcomes.
B) Entrepreneurs are risk-averse and avoid all uncertainty.
C) Entrepreneurs take calculated risks and seek to mitigate potential losses.
Correct Answer: C
D) Entrepreneurs only take risks when guaranteed a profit.
Rationale: The stereotype of the "risk-taking entrepreneur" is inaccurate. Successful
entrepreneurs take calculated risks, often sharing risk with partners or investors to reduce
personal exposure.
8. SATA: According to the "Big Five" personality traits, which dimensions are most positively
correlated with entrepreneurial intention?
A) Conscientiousness
Correct Answer: A
B) Openness to Experience
Correct Answer: B
C) Neuroticism
D) Extraversion
Correct Answer: D
E) Agreeableness
Rationale: Conscientiousness (discipline), Openness (creativity), and Extraversion
(networking/social capital) are positively correlated. Neuroticism is negatively correlated.
Agreeableness is complex (can be a weakness in negotiation).
9. "Effectuation" is a logic of thinking used by expert entrepreneurs. Which principle describes
starting with what you have (who you are, what you know, whom you know)?
A) The Affordable Loss Principle
B) The Bird-in-Hand Principle
Correct Answer: B
C) The Crazy Quilt Principle
D) The Lemonade Principle
Rationale: Sarasvathy's Bird-in-Hand principle means starting with your means (identity,
knowledge, network) rather than a pre-determined goal.
10. A person who starts a business primarily to be their own boss and have flexibility is
motivated by:
, A) The desire for financial gain
B) The desire for independence
Correct Answer: B
C) The desire for fame
D) The desire for legacy
Rationale: The "desire for independence" (autonomy) is one of the most common non-
financial motivations for entrepreneurship.
11. Which of the following is a potential disadvantage of being an entrepreneur?
A) High degree of autonomy
B) Potential for unlimited financial upside
C) Income instability and personal financial risk
Correct Answer: C
D) Opportunity to pursue passion
Rationale: Income instability, personal liability, and financial risk are significant drawbacks.
The other options are advantages.
12. SATA: Which of the following are considered "non-financial" rewards of entrepreneurship?
A) Personal satisfaction
Correct Answer: A
B) High salary
C) Flexibility in work schedule
Correct Answer: C
D) Equity ownership
E) Contribution to community
Correct Answer: E
Rationale: Personal satisfaction, flexibility, and community impact are non-financial. Salary
and equity are financial rewards.
13. The "myth of the lone hero" in entrepreneurship refers to:
A) The belief that entrepreneurs must work alone to succeed.
Correct Answer: A
B) The idea that entrepreneurs are always physically strong.
C) The necessity of having a co-founder.
D) The fact that most entrepreneurs fail.
Rationale: The lone hero myth is the inaccurate cultural belief that successful entrepreneurs
are solitary geniuses. In reality, entrepreneurship is a team sport requiring networks and
support.
