Test Bank For Entrepreneurship: The Practice and Mindset 1st Edition by Heidi M. Neck Christopher P. Neck ,Emma L. Murray

Test Bank For Entrepreneurship: The Practice and Mindset 1st Edition by Heidi M. Neck Christopher P. Neck ,Emma L. Murray Chapter 1: Entrepreneurship: A Global Social MovementTest Bank Multiple Choice 1. The authors define entrepreneurship as . a. a discipline that seeks to understand how opportunities are discovered, created, and exploited, by whom, and with what consequences b. starting a small business by finding investors and launching a product c. developing a new market by creating a product that does not currently exist d. a mindset that compels people to start multiple ventures throughout a lifetime. Ans: A Learning Objective: 1.1. Explain the importance of action and practice in entrepreneurship. Cognitive Domain: Knowledge Answer Location: Entrepreneurship Requires Action and Practice Difficulty Level: Medium AACSB Standard: Reflective thinking 2. are small, short-term loans often associated with entrepreneurs in developing countries. a. No-interest loans b. High-interest loans c. Microloans d. Miniloans Ans: C Learning Objective: 1.1. Explain the importance of action and practice in entrepreneurship. Cognitive Domain: Knowledge Answer Location: Entrepreneurship Requires Action and Practice Difficulty Level: Medium AACSB Standard: Financial theories, analysis, reporting and markets 3. This is the discipline that seeks to understand how opportunities are discovered, created, and exploited, by whom, and with what consequences. a. imagineering b. storyboarding c. social engineering d. entrepreneurship Ans: D Learning Objective: 1.1. Explain the importance of action and practice in entrepreneurship. Cognitive Domain: Knowledge Answer Location: Entrepreneurship Requires Action and Practice Difficulty Level: Medium AACSB Standard: Reflective thinking 4. Which of the following is NOT a truth about entrepreneurship? a. Entrepreneurship is reserved for startups. b. Entrepreneurship can be taught, as it is a method that requires practice. c. Entrepreneurs collaborate more than they compete. d. Entrepreneurship is a life skill. Ans: A Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Debunking the Myths of Entrepreneurship Difficulty Level: Easy AACSB Standard: Reflective thinking 5. The media often cover the meteoric rise of entrepreneurs such as Bill Gates (Microsoft), Steve Jobs (Apple), Mark Zuckerberg (Facebook), Elon Musk (Tesla), and Travis Kalanick (Uber). According to the text, these stories . a. are inspirational but they do little to represent the reality of entrepreneurship b. are highly relatable c. have not captured the public imagination d. are accurate depictions of the entrepreneurs’ paths to success Ans: A Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Comprehension Answer Location: Media Images of Entrepreneurs Difficulty Level: Medium AACSB Standard: Contexts of organizations in a global society 6. A temporary organization in search of a scalable business model is known as a(n) . a. startup. b. corporation. c. LLC. d. entrepreneur. Ans: A Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #1: Entrepreneurship is not reserved for startups Difficulty Level: Medium AACSB Standard: Financial theories, analysis, reporting and markets 7. Effectuation is the theory that . a. businesses should have a positive impact on people’s lives b. the effects of ideas can be studied over time c. the future is unpredictable yet controllable d. emotions can influence decision-making Ans: C Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #2: Entrepreneurs do not have a special set of personality traits Difficulty Level: Medium AACSB Standard: Financial theories, analysis, reporting and markets 8. Contemporary researchers focus on how entrepreneurs . a. think and act b. develop a desire for achievement c. build a tolerance for uncertainty d. develop an affinity for taking risks Ans: A Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #2: Entrepreneurs do not have a special set of personality traits Difficulty Level: Medium AACSB Standard: Financial theories, analysis, reporting and markets 9. are people who start several businesses, sometimes at the same time or sometimes one after the other. a. Social entrepreneurs b. Serial entrepreneurs c. High-risk entrepreneurs d. Low-risk entrepreneurs Ans: B Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #2: Entrepreneurs do not have a special set of personality traits Difficulty Level: Easy AACSB Standard: Reflective thinking 10. Which of the following is true about effectual entrepreneurs? a. They focus on creating a future rather than predicting it. b. They find markets rather than make them. c. They do not accept failure. d. They rely on the initiative of stakeholders to fulfill their vision of the future. Ans: A Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #2: Entrepreneurs do not have a special set of personality traits Difficulty Level: Easy AACSB Standard: Reflective thinking 11. According to the authors, what is the precursor to action? a. a business process b. the right mindset c. a business plan d. the acquisition of resources Ans: B Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #2: Entrepreneurs do not have a special set of personality traits Difficulty Level: Easy AACSB Standard: Reflective thinking 12. The entrepreneurial method requires consistent practice so that can be continuously developed and applied to future endeavors. a. a strong business plan b. education and application c. business processes d. knowledge and expertise Ans: D Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #3: Entrepreneurship can be taught (it’s a method that requires practice) Difficulty Level: Medium AACSB Standard: Reflective thinking 13. The risk component for entrepreneurs . a. is unavoidable and entrepreneurship is ideal for extreme risk-takers b. can be reduced with a good business plan c. can be reduced with diversification d. can be managed with the cycle of act–learn–build Ans: D Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #4: Entrepreneurs are not extreme risk-takers Difficulty Level: Medium AACSB Standard: Reflective thinking 14. Successful entrepreneurs tend to follow this approach to collaboration. a. They do not collaborate and work in isolation. b. They collaborate with potential customers, but not with competitors. c. They collaborate with both potential customers and competitors. d. They collaborate with competitors, but not with potential customers. Ans: C Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #5: Entrepreneurs collaborate more than they compete Difficulty Level: Medium AACSB Standard: Reflective thinking 15. Research revealed what percentage of Inc. 500 wrote formal business plans prior to launching their companies? a. more than 90% b. more than 75% c. less than 50% d. less than 10% Ans: C Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #6: Entrepreneurs act more than they plan Difficulty Level: Medium AACSB Standard: Reflective thinking 16. According to the text, which of the following is the least important when launching a company? a. creating a business plan b. connecting with customers c. building a network d. generating buzz Ans: A Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #6: Entrepreneurs act more than they plan Difficulty Level: Easy AACSB Standard: Reflective thinking 17. What invention came to symbolize the ingenuity of colonial America? a. the spinning jenny b. the telegraph c. the lightning rod d. the light bulb Ans: C Learning Objective: 1.3. Explain the history of entrepreneurship in the United States. Cognitive Domain: Knowledge Answer Location: Emergence of the Self-Made Man (Colonial America Before 1776) Difficulty Level: Easy AACSB Standard: Reflective thinking 18. Which founding father is considered one of history’s greatest entrepreneurs? a. Thomas Jefferson b. Benjamin Franklin c. George Washington d. Alexander Hamilton Ans: B Learning Objective: 1.3. Explain the history of entrepreneurship in the United States. Cognitive Domain: Knowledge Answer Location: Emergence of the Self-Made Man (Colonial America Before 1776) Difficulty Level: Easy AACSB Standard: Reflective thinking 19. A launching pad for creativity and innovation, the provided people with the right to private property, access to a banking system, and protection in the form of patent laws. a. Twelfth Amendment b. Declaration of Independence c. Sixteenth Amendment d. U.S. Constitution Ans: D Learning Objective: 1.3. Explain the history of entrepreneurship in the United States. Cognitive Domain: Knowledge Answer Location: An Entrepreneurial Nation (First Industrial Revolution 1776–1865) Difficulty Level: Easy AACSB Standard: Group and individual behaviors 20. During the , everyone had a fairly equal chance of being an entrepreneur; inventors became more commonplace, producing new products and services alongside the merchants and industrialists. a. First Industrial Revolution (1776–1865) b. Second Industrial Revolution (1865–1920) c. Interwar and Postwar America (1920–1975) d. Knowledge Economy (1975–present) Ans: A Learning Objective: 1.3. Explain the history of entrepreneurship in the United States. Cognitive Domain: Knowledge Answer Location: An Entrepreneurial Nation (First Industrial Revolution 1776–1865) Difficulty Level: Easy AACSB Standard: Reflective thinking 21. During which period was entrepreneurship at its height? a. First Industrial Revolution (1776–1865) b. Second Industrial Revolution (1865–1920) c. Interwar and Postwar America (1920–1975) d. Knowledge Economy (1975–present) Ans: B Learning Objective: 1.3. Explain the history of entrepreneurship in the United States. Cognitive Domain: Knowledge Answer Location: The Pinnacle of Entrepreneurship (Second Industrial Revolution 1865–1920) Difficulty Level: Easy AACSB Standard: Reflective thinking 22. In the Pinnacle of Entrepreneurship (Second Industrial Revolution), the entrepreneur . a. was not well respected b. was considered “self-made” and was glorified in novels c. worked largely within large corporations d. paid higher taxes than their neighbors working in the factories Ans: B Learning Objective: 1.3. Explain the history of entrepreneurship in the United States. Cognitive Domain: Comprehension Answer Location: The Pinnacle of Entrepreneurship (Second Industrial Revolution 1865–1920) Difficulty Level: Easy AACSB Standard: Diverse and multicultural work environments 23. During the period between 1920 and 1975, which of the following did NOT contribute to the decline of the traditional entrepreneur? a. an increase in production due to the expansion of the middle class b. the transition toward a knowledge-based economy c. the merger of small firms founded by entrepreneurs with larger organizations d. the Great Depression Ans: B Learning Objective: 1.3. Explain the history of entrepreneurship in the United States. Cognitive Domain: Comprehension Answer Location: Rise of Institutional America (Interwar and Postwar America 1920– 1975) Difficulty Level: Medium AACSB Standard: Reflective thinking 24. What era signaled a shift from the traditional entrepreneur to the big corporation? a. First Industrial Revolution, 1776–1865 b. Second Industrial Revolution, 1865–1920 c. Interwar and Postwar America, 1920–1975 d. Knowledge Economy 1.0, 1975–Present Ans: C Learning Objective: 1.3. Explain the history of entrepreneurship in the United States. Cognitive Domain: Comprehension Answer Location: Rise of Institutional America (Interwar and Postwar America 1920– 1975) Difficulty Level: Medium AACSB Standard: Reflective thinking 25. Which of the following led to entrepreneurship regaining its popularity over the last decades of the 20th century? a. changes in patent laws b. the rise of information technology c. the rise in venture capital funds d. all of these Ans: D Learning Objective: 1.3. Explain the history of entrepreneurship in the United States. Cognitive Domain: Comprehension Answer Location: Confined Re-Emergence (Knowledge Economy 1.0, 1975–Present) Difficulty Level: Medium AACSB Standard: Reflective thinking 26. During which period of time was the “tech entrepreneur” born? a. First Industrial Revolution, 1776–1865 b. Second Industrial Revolution, 1865–1920 c. Interwar and Postwar America, 1920–1975 d. Knowledge Economy 1.0, 1975–Present Ans: D Learning Objective: 1.3. Explain the history of entrepreneurship in the United States. Cognitive Domain: Knowledge Answer Location: Confined Re-Emergence (Knowledge Economy 1.0, 1975–Present) Difficulty Level: Easy AACSB Standard: Reflective thinking 27. What generation is considered to be the most exposed to entrepreneurship education? a. Baby Boomers b. Generation X c. Millennials d. Generation Z Ans: C Learning Objective: 1.3. Explain the history of entrepreneurship in the United States. Cognitive Domain: Knowledge Answer Location: Confined Re-Emergence (Knowledge Economy 1.0, 1975–Present) Difficulty Level: Easy AACSB Standard: Reflective thinking 28. Marian Croak’s idea to use the text messaging system she developed for the television series American Idol in disaster situations is an example of . a. corporate entrepreneurship b. entrepreneurs inside c. social entrepreneurship d. serial entrepreneurship Ans: A Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Corporate Entrepreneurship Difficulty Level: Medium AACSB Standard: Reflective thinking 29. According to the text, why would some organizations not be enthusiastic about employees acting entrepreneurially inside a company? a. fear that workers will prioritize their entrepreneurial efforts over their essential job duties b. fear that trade secrets will be accidentally released to the public c. fear that they will leave the company and start their own business d. fear that they will not seek approval from senior managers before starting work on their entrepreneurial initiatives Ans: C Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Corporate Entrepreneurship Difficulty Level: Medium AACSB Standard: Reflective thinking 30. The launch of the “inglorious vegetable” at the French Supermarket Intermarché as a way of reducing food waste by selling imperfect vegetables at a 30% discount is an example of . a. corporate entrepreneurship b. entrepreneurs inside c. social entrepreneurship d. serial entrepreneurship Ans: B Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Entrepreneurs Inside Difficulty Level: Medium AACSB Standard: Analytical thinking 31. What is the process of creating new products, ventures, processes, or renewal within large organizations? A. entrepreneurs inside B. tech entrepreneurship C. social entrepreneurship D. intrapreneurship Ans: D Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Knowledge Answer Location: Corporate Entrepreneurship Difficulty Level: Medium AACSB Standard: Systems and processes in organizations 32. Tony is a manager for a company that builds solar panels. In his position as a manager, Tony used the feedback from his team members as the basis of a plan for the company to start installing the solar panels, as well, in order to enhance the company’s competitive position and profitability. Tony is an example of a(n) . a. entrepreneur b. marketing professional c. corporate entrepreneur d. strategist Ans: C Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Corporate Entrepreneurship Difficulty Level: Medium AACSB Standard: Interpersonal relations and teamwork 33. Joseph is a sales manager for ETC Corporation. ETC is a manufacturer of high-end kitchen appliances for restaurants. Joseph has been lobbying his manager to allow him to design and sell a range of consumer-grade appliances using ETC’s design and manufacturing resources. Joseph is a(n) . A. corporate entrepreneur B. franchisee C. entrepreneur inside D. social entrepreneur Ans: C Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Analysis Answer Location: Entrepreneurs Inside Difficulty Level: Hard AACSB Standard: Application of knowledge 34. Robert has a business that he wants to pass down to others in his family to run. Robert has . a. an entrepreneurship b. a family enterprise c. a role as a an entrepreneur inside d. interest in a benefit corporation Ans: B Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Application Answer Location: Family Enterprising Difficulty Level: Medium AACSB Standard: Application of knowledge 35. The nonprofit 1001 Fountains for Tomorrow, whose goal is to provide safe drinking water for small rural villages in Cambodia, is an example of . a. corporate entrepreneurship b. entrepreneurs inside c. social entrepreneurship d. serial entrepreneurship Ans: C Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Social Entrepreneurship Difficulty Level: Medium AACSB Standard: Analytical thinking 36. A benefit corporation (or B-Corp) is an organization certified by the nonprofit B Lab to ensure strict standards of social and environmental performance, accountability, and transparency are met. According to the book, which of the following statements is true? a. Large non-profits are leaders in this movement. b. To host a telethon to raise money, the organization must be a B-Corp. c. “Buy one, give one” promotions can generate sales while also raising awareness of social issues. d. all of these Ans: C Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Application Answer Location: Social Entrepreneurship Difficulty Level: Medium AACSB Standard: Diverse and multicultural work environments 37. Sam is tired of seeing injustice and mistreatment of children in inner cities and has an innovative idea to help them develop self-esteem. Sam is an example of a . a. social entrepreneur b. potential entrepreneur c. nascent entrepreneur d. benefit entrepreneur Ans: A Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Application Answer Location: Social Entrepreneurship Difficulty Level: Medium AACSB Standard: Application of knowledge 38. Richard Branson’s expansion of Virgin to include railway, music, media, and banking industries is an example of . a. global entrepreneurship b. nascent entrepreneurship c. social entrepreneurship d. serial entrepreneurship Ans: D Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Serial Entrepreneurship Difficulty Level: Medium AACSB Standard: Analytical thinking 39. Michael is a franchise restaurant owner. Which of the following best describes his franchising costs? a. a franchise fee to start, a monthly royalty as a percentage of sales, and other operational costs b. a royalty to the franchisor calculated as a percentage of net income plus other operational costs c. his costs are the same as any other restaurant owner d. a franchise fee to start plus other operational costs Ans: A Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Application Answer Location: Buying a Franchise Difficulty Level: Medium AACSB Standard: Application of knowledge 40. Sally decided to look into buying a franchise as her entrance into entrepreneurship. Which of the following is NOT a benefit of franchising? a. A whole franchise network exists to reach out to for help and advice. b. potential competition from other franchise owners c. Real estate resources exist to help source the best location for your franchise. d. In-house personnel and field reps are available to help you and your business succeed. Ans: B Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Application Answer Location: Buying a Franchise Difficulty Level: Medium AACSB Standard: System and processes in organizations 41. ICHOR Restaurant Group was started by Brian Bailey and Tim Hug in 2006 and has since opened three successful restaurant concepts, Old Carolina BBQ, Smoke: The Burger Joint, and Baja West Coast Kitchen with a dozen corporate-owned locations. They have begun to allow external entrepreneurs to purchase a license to operate their own location(s). Entrepreneurs purchasing such a license are engaging in . A. corporate entrepreneurship B. franchising C. entrepreneurs inside D. social entrepreneurship Ans: B Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Analysis Answer Location: Buying a franchise Difficulty Level: Hard AACSB Standard: Application of knowledge 42. Social entrepreneurs . a. must rely on fundraising to keep their company economically stable b. can only be found in the nonprofit sector c. must choose between making either a social or an economic impact d. seek innovative solutions to social and environmental problems Ans: D Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Social Entrepreneurship Difficulty Level: Medium AACSB Standard: Analytical thinking 43. To be certified as a benefit corporation (or B-Corp), an organization is rated on all the following except . a. how its employees are treated b. its global mission c. how it benefits the community in which it operates d. its impact on the environment Ans: B Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Social Entrepreneurship Difficulty Level: Medium AACSB Standard: Analytical thinking 44. What is the survival rate of family businesses transitioning from the first to the second generation? a. less than 30% b. 40% c. 50% d. more than 75% Ans: A Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Family Enterprising Difficulty Level: Medium AACSB Standard: Analytical thinking 45. What percentage of U.S. businesses are family-owned or controlled by a family? a. less than 20% b. 20% to 30% c. 40% to 50% d. 80% to 90% Ans: D Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Family Enterprising Difficulty Level: Medium AACSB Standard: Analytical thinking 46. Bill is the paternal head of his family and the family enterprise. He is concerned about the business and wants to ensure its survival for the long run. You, as a consultant, advise him to focus on . a. selling the company b. passing on an entrepreneurial mindset to his family members c. writing a detailed business plan d. establishing a trust for the business Ans: B Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Family Enterprising Difficulty Level: Medium AACSB Standard: Interpersonal relations and teamwork 47. Susan’s company continues to downsize, compelling her to start her own business. What type of entrepreneur is she? a. necessity-based entrepreneur b. nascent entrepreneur c. established business owner d. potential entrepreneur Ans: A Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Application Answer Location: Global Entrepreneurship Difficulty Level: Medium AACSB Standard: Application of knowledge 48. According to the 2015/16 Global Entrepreneurship Monitor report, it is estimated that there are entrepreneurs worldwide. A. 4 million B. 40 million C. 400 million D. 4 billion Ans: C Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact. Cognitive Domain: Knowledge Answer Location: Global Entrepreneurship Difficulty Level: Easy AACSB Standard: Contexts of organizations in a global society 49. Individuals who believe they have the capacity and know-how to start a business without being burdened by the fear of failure are known as . a. venture capitalists b. angel investors c. potential entrepreneurs d. creative directors Ans: C Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact. Cognitive Domain: Comprehension Answer Location: Global Entrepreneurship Difficulty Level: Medium AACSB Standard: Diverse and multicultural work environments 50. Individuals who have set up a business they will own or co-own, which is less than three months old and has not yet generated wages or salaries for the owners, are known as . a. potential entrepreneurs b. prospective entrepreneurs c. new business owners d. nascent entrepreneurs Ans: D Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact. Cognitive Domain: Comprehension Answer Location: Global Entrepreneurship Difficulty Level: Medium AACSB Standard: Diverse and multicultural work environments 51. Individuals who have been actively involved in a business for over three months but less than three and a half years are known as . a. potential entrepreneurs b. nascent entrepreneurs c. new business owners d. established business owners Ans: C Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact. Cognitive Domain: Comprehension Answer Location: Global Entrepreneurship Difficulty Level: Medium AACSB Standard: Diverse and multicultural work environments 52. Individuals who are still active in business for over three and a half years are known as . a. potential entrepreneurs b. nascent entrepreneurs c. new business owners d. established business owners Ans: D Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact. Cognitive Domain: Comprehension Answer Location: Global Entrepreneurship Difficulty Level: Medium AACSB Standard: Diverse and multicultural work environments 53. Individuals who have had their business for less than three months are referred to as . A. established business owners B. nascent entrepreneurs C. necessity-based entrepreneurs D. new business owners Ans: B Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact. Cognitive Domain: Comprehension Answer Location: Global Entrepreneurship Difficulty Level: Medium AACSB Standard: Diverse and multicultural work environments 54. Total entrepreneurial activity (TEA) is the percentage of the population of each country between the ages of 18 and 64, who are either . a. a nascent entrepreneur or owner-manager of a new business b. a potential entrepreneur or established business owner c. a new business owner or established business owner d. a potential entrepreneur or a nascent entrepreneur Ans: A Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact. Cognitive Domain: Comprehension Answer Location: Global Entrepreneurship Difficulty Level: Medium AACSB Standard: Diverse and multicultural work environments 55. Which of the following is NOT an aspect of the Entrepreneurship Ecosystem described in the chapter? a. social norms b. physical infrastructure c. entry regulation d. open-access patent databases Ans: D Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact. Cognitive Domain: Comprehension Answer Location: What Makes a Country Entrepreneurial? Difficulty Level: Medium AACSB Standard: Contexts of organizations in a global society 56. Which of the following is NOT a condition for small and medium businesses to flourish in a country? a. entrepreneurship education b. support from government c. cultural and social norms d. large population size Ans: D Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact. Cognitive Domain: Comprehension Answer Location: What Makes a Country Entrepreneurial? Difficulty Level: Medium AACSB Standard: Diverse and multicultural work environments 57. Sarah is an accountant with desires to open her own business. She is looking for office space at a reasonable rate along with Internet service. Of the conditions that need to be put in place for the Entrepreneurial Ecosystem, she needs . a. cultural and social norms b. physical infrastructure c. entry regulation d. commercial and legal infrastructure Ans: B Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact. Cognitive Domain: Analysis Answer Location: What Makes a Country Entrepreneurial? Difficulty Level: Hard AACSB Standard: Contexts of organizations in a global society 58. Rahul wants to start a spice business but wants a secure framework with experts in property rights, accounting, law, investment banking, and technology. Of the conditionsthat need to be put in place for the Entrepreneurial Ecosystem, he needs . a. cultural and social norms b. physical infrastructure c. entry regulation d. commercial and legal infrastructureAns: D Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact. Cognitive Domain: Application Answer Location: What Makes a Country Entrepreneurial? Difficulty Level: Medium AACSB Standard: Contexts of organizations in a global society 59. Angela wants to start a company developing apps. She needs access to research and development (R&D) to be able to use the newest technologies. Of the conditions that need to be put in place for the Entrepreneurial Ecosystem, she needs . a. financial resources b. support from government c. entrepreneurship education d. research and development transfer Ans: D Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact. Cognitive Domain: Comprehension Answer Location: What Makes a Country Entrepreneurial? Difficulty Level: Easy AACSB Standard: Contexts of organizations in a global society 60. Maria wants to start a landscaping business, but she doesn’t know where to start. She thinks she will need tax incentives and lower interest rates on her business lines. Of the conditions that need to be put in place for the Entrepreneurial Ecosystem, she particularly needs . a. financial resources b. support from government c. entrepreneurship education d. all of these Ans: D Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact. Cognitive Domain: Comprehension Answer Location: What Makes a Country Entrepreneurial? Difficulty Level: Easy AACSB Standard: Contexts of organizations in a global society 61. Anthony wants to start a restaurant but he knows he has a lot to learn about starting a business. Of the conditions that need to be put in place for the Entrepreneurial Ecosystem, he particularly needs . a. financial resources b. support from government c. entrepreneurship education d. research and development transfer Ans: C Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact. Cognitive Domain: Comprehension Answer Location: What Makes a Country Entrepreneurial? Difficulty Level: Easy AACSB Standard: Contexts of organizations in a global society True/False 1. Millennials are considered to be the most educated generation and the most exposed to entrepreneurship education. Ans: T Learning Objective: 1.1. Explain the importance of action and practice in entrepreneurship. Cognitive Domain: Knowledge Answer Location: Entrepreneurship Requires Action and Practice Difficulty Level: Easy AACSB Standard: Diverse and multicultural work environments 2. Microloans are loans given to individuals in niche markets. Ans: F Learning Objective: 1.1. Explain the importance of action and practice in entrepreneurship. Cognitive Domain: Comprehension Answer Location: Entrepreneurship Requires Action and Practice Difficulty Level: Easy AACSB Standard: Diverse and multicultural work environments 3. Entrepreneurship is reserved for startups. Ans: F Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #1: Entrepreneurship is not reserved for startups Difficulty Level: Medium AACSB Standard: Reflective thinking 4. Bill Gates was an overnight success because it took only three months to become a success. Ans: F Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #2: Entrepreneurs do not have a special set of personality traits Difficulty Level: Medium AACSB Standard: Reflective thinking 5. Scientific evidence has proven that a specific set of traits distinguishes entrepreneurs from non-entrepreneurs. Ans: F Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #2: Entrepreneurs do not have a special set of personality traits Difficulty Level: Medium AACSB Standard: Reflective thinking 6. According to the authors, entrepreneurship is best taught as a linear process that will lead to a specific destination. Ans: F Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #3: Entrepreneurship can be taught (it’s a method that requires practice) Difficulty Level: Medium AACSB Standard: Reflective thinking 7. Entrepreneurs are traditionally extreme risk-takers. Ans: F Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #4: Entrepreneurs are not extreme risk-takers Difficulty Level: Medium AACSB Standard: Reflective thinking 8. Risk cannot be averted by an entrepreneur’s activity or attitude. Ans: F Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Comprehension Answer Location: Truth #4: Entrepreneurs are not extreme risk-takers Difficulty Level: Medium AACSB Standard: Interpersonal relations and teamwork 9. The cycle of act–learn–build encourages entrepreneurs to take small actions in order to learn and build that learning into the next action. Ans: T Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #4: Entrepreneurs are not extreme risk-takers Difficulty Level: Medium AACSB Standard: Reflective thinking 10. Successful entrepreneurs have a tendency to collaborate with competitors. Ans: T Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Knowledge Answer Location: Truth #5: Entrepreneurs collaborate more than they compete Difficulty Level: Medium AACSB Standard: Reflective thinking 11. Entrepreneurship is a life skill. Ans: T Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Comprehension Answer Location: Truth #7: Entrepreneurship is a life skill. Difficulty Level: Easy AACSB Standard: Interpersonal relations and teamwork 12. Entrepreneurship is a relatively new concept which began in 1880. Ans: F Learning Objective: 1.3. Explain the history of entrepreneurship in the United States. Cognitive Domain: Knowledge Answer Location: Emergence of the Self-Made Man (Colonial America Before 1776) Difficulty Level: Easy AACSB Standard: Social responsibility 13. Corporate entrepreneurship and intrapreneurship are not the same thing. Ans: F Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Corporate Entrepreneurship Difficulty Level: Medium AACSB Standard: Analytical thinking 14. Corporate entrepreneurs work within only large organizations whereas entrepreneurs inside can exist in any type of organization, big or small. Ans: T Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Knowledge Answer Location: Entrepreneurs Inside Difficulty Level: Medium AACSB Standard: Reflective thinking 15. An entrepreneur can own his or her own business or work in a corporation with an entrepreneurial spirit. Ans: T Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Entrepreneurs Inside Difficulty Level: Medium AACSB Standard: Analytical thinking 16. A franchise is a type of license purchased by a franchisee from a franchisor to allow them to trade under the name of that business. Ans: T Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Knowledge Answer Location: Buying a Franchise Difficulty Level: Easy AACSB Standard: Analytical thinking 17. Franchising can be a beneficial way for entrepreneurs to get a head start in launching their own businesses as they don’t have to pay the franchisor royalties after buying the franchise. Ans: F Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Knowledge Answer Location: Buying a Franchise Difficulty Level: Easy AACSB Standard: Analytical thinking 18. Social entrepreneurship encompasses only not-for-profit ventures. Ans: F Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Social Entrepreneurship Difficulty Level: Medium AACSB Standard: Analytical thinking 19. Social entrepreneurship is defined as the process of innovating new social media business opportunities. Ans: F Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Social Entrepreneurship Difficulty Level: Medium AACSB Standard: Analytical thinking 20. Joan has pursued seven money-making ventures over the past ten years ranging from retail storefronts to mobile app development. Joan is a “serial entrepreneur.” Ans: T Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Serial Entrepreneurs Difficulty Level: Medium AACSB Standard: Analytical thinking 21. Family enterprises are the dominant form of business organization worldwide. Ans: T Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Knowledge Answer Location: Family Enterprising Difficulty Level: Easy AACSB Standard: Analytical thinking 22. Most family businesses do not survive the transition from the first to the second generation. Ans: T Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Knowledge Answer Location: Family Enterprising Difficulty Level: Easy AACSB Standard: Analytical thinking 23. It is estimated that more than 80% of U.S. businesses are family-owned or controlled by a family. Ans: T Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Knowledge Answer Location: Family Enterprising Difficulty Level: Easy AACSB Standard: Analytical thinking 24. Buying an existing small business is not considered entrepreneurship. Ans: F Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Buying a Small Business Difficulty Level: Medium AACSB Standard: Analytical thinking 25. B-Corp certification recognizes organizations that achieve five or more years of consistent profitable growth. Ans: F Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Social Entrepreneurship Difficulty Level: Medium AACSB Standard: Analytical thinking 26. Unlike necessity-based entrepreneurs, opportunity-based entrepreneurs freely make their own choice to get involved in a business. Ans: T Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact. Cognitive Domain: Comprehension Answer Location: Global Entrepreneurship Difficulty Level: Medium AACSB Standard: Diverse and multicultural work environments 27. According to the 2015/16 GEM report, the percentage of entrepreneurs in the United States has declined to 3%—the lowest on record. Ans: F Learning Objective: 1.5. Illustrate the global diversity of entrepreneurship and its impact. Cognitive Domain: Comprehension Answer Location: Global Entrepreneurship Difficulty Level: Medium AACSB Standard: Diverse and multicultural work environments 28. Corporate entrepreneurship and intrapreneurship are not the same thing. Ans: F Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Comprehension Answer Location: Corporate Entrepreneurship Difficulty Level: Medium AACSB Standard: Analytical thinking Essay 1. Analyze the importance of action and practice in entrepreneurship. Ans: With the right mindset, or mental attitude, you are able to start practicing. We, your authors, define entrepreneurship as actions taken by an individual or a group to create something new—a new idea, a new item or product, a new institution, a new market, a new set of possibilities. Learning Objective: 1.1. Explain the importance of action and practice in entrepreneurship. Cognitive Domain: Analyze Answer Location: Entrepreneurship Requires Action and Practice Difficulty Level: Hard AACSB Standard: Interpersonal relations and teamwork 2. Compare and contrast three truths about entrepreneurship and your own experience with entrepreneurs. Ans: This answer will be different for each student depending on his or her experience with entrepreneurs. Truth #1: Entrepreneurship is not reserved for startups. Truth #2: Entrepreneurs do not have a special set of personality traits. Truth #3: Entrepreneurship can be taught (it’s a method that requires practice). Truth #4: Entrepreneurs are not extreme risk-takers. Truth #5: Entrepreneurs collaborate more than they compete. Truth #6: Entrepreneurs act more than they plan. Truth #7: Entrepreneurship is a life skill. Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Analysis Answer Location: Entrepreneurship May Be Different From What You Think Difficulty Level: Hard AACSB Standard: Analytical thinking 3. Compare “entrepreneurship” with “startup.” Ans: The term startup came into vogue during the 1990s dot-com bubble when a plethora of web-based companies were born. While the term has various meanings, we subscribe to Steve Blank’s definition of startup: a temporary organization in search of a scalable business model. In the traditional view of startups, anyone who starts a business is called an entrepreneur. The entrepreneur creates a business based on research to assess the validity of an idea or business model. The business may be funded by seed money from family members or investors, but usually it is funded by the entrepreneurs themselves. If the business is successful, the startup does not remain a startup. It can develop into an organization in its own right, be merged with another organization, or be bought or acquired by another company. In our parody example, lone-wolf Bob created a technology startup in his parents’ garage and sold it to a hugely successful organization. This traditional view of the startup, however, is not the only path for entrepreneurs. The truth is that entrepreneurs are everywhere, from corporations to franchises, to for-profit and nonprofit organizations, to family enterprises. Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Analysis Answer Location: Entrepreneurship Is Not Reserved for Startups Difficulty Level: Hard AACSB Standard: Application of knowledge 4. Discuss the statement “Entrepreneurship can be taught (it’s a method that requires practice.” Do you agree? Why or why not? Ans: Many entrepreneurship courses are taught as a process, which involves identifying an opportunity, understanding resource requirements, acquiring resources, planning, implementing, and harvesting (exiting a business). But the word process assumes known inputs and known outputs, as in a manufacturing process. A process implies you will get to a specific destination. For example, building a car on an assembly line is a manufacturing process. You know all the parts, you know how they fit together, and you know the type of car you will have at the end. A process is quite predictable. Entrepreneurship is not predictable and, therefore, cannot adequately be taught as a process. Instead, a method or practice approach represents a body of skills or practices that together constitute a toolkit for entrepreneurial action. The entrepreneurial method requires consistent practice so that knowledge and expertise can be continuously developed and applied to future endeavors. Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Analysis Answer Location: Entrepreneurship Can Be Taught Difficulty Level: Hard AACSB Standard: Analytical thinking 5. Discuss the Act–Learn–Build model as it relates to risk-takers. Ans: Risk is very personal and relative. Things always seem more risky from the outside looking in because we really don’t know what calculations were made to take the next step. In fact, most entrepreneurs are very calculated risk-takers and gauge what they are willing to lose with every step taken. They practice a cycle of act–learn–build that encourages taking small actions in order to learn and build that learning into the next action (see Figure 1.1). Entrepreneurship should never be a zero-sum game—never an all-or-nothing decision. It’s not about ascending the summit without ropes or oxygen. It just looks that way from the outside. Learning Objective: 1.2. List the seven lesser-known truths about entrepreneurship. Cognitive Domain: Analysis Answer Location: Truth #4: Entrepreneurs are not extreme risk-takers Difficulty Level: Medium AACSB Standard: Analytical thinking 6. Discuss the confined re-emergence entrepreneur and his or her opportunities. Ans: The confined re-emergence entrepreneur identifies, creates, and acts on new opportunities, coming back into fashion with the rise of information technology, advanced software development, biotech medical research, and more. There is also the development of the service- and knowledge-based economy dominated by technologyrelated enterprises, a critical role in the changing economy. Learning Objective: 1.3. Explain the history of entrepreneurship in the United States. Cognitive Domain: Application, Comprehension Answer Location: Confined Re-Emergence (Knowledge Economy 1.0, 1975–Present) Difficulty Level: Hard AACSB Standard: Diverse and multicultural work environments 7. Compare and contrast the pros and cons of owning a franchise. Ans: Pros Cons Ready-made business systems to help the franchise to become operational right away. Franchise fee to be paid up front. Formal training program (online modules, formal training class) after franchise agreement signed. Royalties (percentage of sales) to be paid to franchisor every month. Technology designed to help manage customers, and administrative tasks. Strict franchisors’ rules with no wiggle room. Marketing/Advertising already in place to help launch your franchise. Requirement to pay a percentage of gross sales into the franchisor’s marketing fund. Excellent support systems (in-house personnel, field reps, etc.) Most products and supplies need to be purchased from the franchisor. Real-estate resources to help source best location for franchise. Sale of franchise requires approval from the franchisor. A whole franchisee network to reach out Potential competition from other to for help and advice. franchisees in the network. Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Application Answer Location: Buying a Franchise Difficulty Level: Hard AACSB Standard: Analytical thinking 8. Discuss “social entrepreneurship” and describe the differences between entrepreneurial ventures and nonprofit organizations. Ans: There has been some debate as to how to define social entrepreneurship. Some argue that all types of entrepreneurship are social, while others define it as purely an activity of the nonprofit sector. These blurred lines imply that entrepreneurs are forced to choose between making a social or an economic impact. We contend that social entrepreneurs can do both. It is possible to address a social issue and make a profit— keeping a company economically stable ensures its capability consistently meets the needs of its customers without relying on fundraising or other methods to keep it afloat. We therefore define social entrepreneurship as the process of sourcing innovative solutions for particular problems. Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Analysis Answer Location: Social Entrepreneurship Difficulty Level: Medium AACSB Standard: Social responsibility 9. Analyze the benefit corporation (B Corp.) and describe its purpose and role for entrepreneurs. Ans: A sub-category of social entrepreneurship is the Benefit Corporation, or B-Corp. This is a form of organization certified by the nonprofit B Lab which ensures that strict standards of social and environmental performance, accountability, and transparency are met. The voluntary certification is designed for for-profit companies aiming to achieve social goals alongside business ones. To be certified as a B-Corp, the organization is rated on how its employees are treated, its impact on the environment, and how it benefits the community in which it operates. B-Corp certification ensures that the for-profit company fulfils its social mission as well as protecting it from lawsuits from stakeholders that may claim that the company is spending more time or resources on social issues rather than maximizing profit. Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Analysis Answer Location: Social Entrepreneurship Difficulty Level: Hard AACSB Standard: Social responsibility 10. Describe family enterprise and apply the concept to your business concept. Ans: This essay will have different answers depending on the student’s business concept. Here is the information on family enterprise: A family enterprise is a business which is owned and managed by multiple family members. What makes family enterprising part of the portfolio of entrepreneurship types is that each generation has an opportunity to bring the organization forward in new, innovative ways. An entrepreneurial agenda to move the family business forward is essential to business survival, as demonstrated by the fact that the survival rate of family businesses transitioning from the first to the second generation is less than 30%. However, another 50% of family businesses don’t survive when they move from the second to third generation. This may be because the family owners become stuck in the old ways of doing things and are unwilling to change their business structure as a result. Many leading organizations which are family businesses are generally considered to be more stable, not only because of their past history and experience, but because of their ability to take a long-term view, which inspires commitment and loyalty from their employees. Yet, a long-term view that becomes stagnant is detrimental and can lead the company into a downward spiral. Family enterprises are the dominant form of business organization worldwide. It is estimated that 80% to 90% of US businesses are family-owned or controlled by a family and 65% of the US workforce is employed by a family business (see Figure 1.3). Widely known businesses such as Wal-Mart in the US, supermarket chain Carrefour in France, and auto company Fiat in Italy are all long-standing family businesses that continue to go from strength to strength. To continue their cycle of growth and continuity, family members must pass on their entrepreneurial mindsets as well as their business ethos. It is this mindset that ensures the survival of the family business for many years to come. Learning Objective: 1.4. Compare and contrast the different forms of entrepreneurship in practice today. Cognitive Domain: Analysis Answer Location: Family Enterprise Difficulty Level: Hard AACSB Standard: Interpersonal relations and teamwork Chapter 2: Practicing Entrepreneurship Test Bank Multiple Choice 1. The older view to approaching entrepreneurship as a linear process (i.e., the steps are followed and the outcomes can be expected) is known as . a. predictive logic b. the expected approach c. creation logic d. the organic approach Ans: A Learning Objective: 2.1. Compare and contrast the prediction and creation approaches to entrepreneurship. Cognitive Domain: Comprehension Answer Location: Two Main Perspectives on Entrepreneurship Difficulty Level: Medium AACSB Standard: Analytical thinking 2. Entrepreneurs who determine their goals based on the resources they have are using . a. predictive logic b. the expected approach c. creation logic d. the organic approach Ans: C Learning Objective: 2.1. Compare and contrast the prediction and creation approaches to entrepreneurship. Cognitive Domain: Application Answer Location: Two Main Perspectives on Entrepreneurship Difficulty Level: Medium AACSB Standard: Analytical thinking 3. Planning for the catering at an event by sending out invitations and asking for RSVPs by a certain date is an example of . a. predictive logic b. the expected approach c. creation logic d. the organic approach Ans: A Learning Objective: 2.1. Compare and contrast the prediction and creation approaches to entrepreneurship. Cognitive Domain: Application Answer Location: Two Main Perspectives on Entrepreneurship Difficulty Level: Medium AACSB Standard: Analytical thinking 4. Friends show up unexpectedly to your house and are hungry. You go through your kitchen cupboards to see what ingredients you can throw together to prepare a satisfactory meal. This is an example of . a. predictive logic b. the expected approach c. creation logic d. the organic approach Ans: C Learning Objective: 2.1. Compare and contrast the prediction and creation approaches to entrepreneurship. Cognitive Domain: Analysis Answer Location: Two Main Perspectives on Entrepreneurship Difficulty Level: Medium AACSB Standard: Analytical thinking 5. What is the dominant logic of large, established organizations? a. prediction b. creation c. experimentation d. creativity Ans: A Learning Objective: 2.1. Compare and contrast the prediction and creation approaches to entrepreneurship. Cognitive Domain: Analysis Answer Location: Two Main Perspectives on Entrepreneurship Difficulty Level: Medium AACSB Standard: Analytical thinking 6. The idea that the future is unpredictable yet controllable and entrepreneurs can “effect” the future is called the theory of . a. predictability b. controllability c. causation d. effectuation Ans: D Learning Objective: 2.1. Compare and contrast the prediction and creation approaches to entrepreneurship. Cognitive Domain: Analysis Answer Location: Prediction and Creation in Action Difficulty Level: Medium AACSB Standard: Analytical thinking 7. According to the text, what is/are the main obstacle(s) that prevent(s) many novice entrepreneurs from employing the prediction approach to large endeavors, such as opening a new restaurant? a. unreliability of findings b. expense and time-commitment c. lack of initiative d. fear of failing Ans: B Learning Objective: 2.1. Compare and contrast the prediction and creation approaches to entrepreneurship. Cognitive Domain: Analysis Answer Location: Prediction and Creation in Action Difficulty Level: Medium AACSB Standard: Analytical thinking 8. What skill frees the imagination, opens up the mind to a wealth of opportunities and possibilities, and helps foster innovation? a. skill of creativity b. skill of reflection c. skill of experimentation d. skill of play Ans: D Learning Objective: 2.2. Create a portfolio of five skills essential to building a mindset for The Practice of Entrepreneurship. Cognitive Domain: Application Answer Location: The Skill of Play Difficulty Level: Medium AACSB Standard: Analytical thinking 9. What skill is best described as acting in order to learn—trying something, learning from the attempt, and building that learning into the next iteration? a. skill of creativity b. skill of reflection c. skill of experimentation d. skill of play Ans: C Learning Objective: 2.2. Create a portfolio of five skills essential to building a mindset for The Practice of Entrepreneurship. Cognitive Domain: Application Answer Location: The Skill of Experimentation Difficulty Level: Medium AACSB Standard: Analytical thinking 10. What skill best describes developing the ability to understand the emotion, circumstances, intentions, thoughts, and needs of others? a. skill of play b. skill of reflection c. skill of creativity d. skill of empathy Ans: D Learning Objective: 2.2. Create a portfolio of five skills essential to building a mindset for The Practice of Entrepreneurship. Cognitive Domain: Application Answer Location: The Skill of Empathy Difficulty Level: Medium AACSB Standard: Analytical thinking 11. What skill requires a general openness to the world and relates to unleashing our creative ability to create and find opportunities and solve problems? a. skill of play b. skill of reflection c. skill of creativity d. skill of empathy Ans: C Learning Objective: 2.2. Create a portfolio of five skills essential to building a mindset for The Practice of Entrepreneurship. Cognitive Domain: Application Answer Location: The Skill of Creativity Difficulty Level: Medium AACSB Standard: Analytical thinking 12. What skill helps make sense of all of the other actions required of play, empathy, creativity, and experimentation? a. skill of consideration b. skill of reflection c. skill of expression d. skill of deliberation Ans: B Learning Objective: 2.2. Create a portfolio of five skills essential to building a mindset for The Practice of Entrepreneurship. Cognitive Domain: Application Answer Location: The Skill of Reflection Difficulty Level: Medium AACSB Standard: Analytical thinking 13. Alternative reality games and learning simulations are related to which skill? a. skill of creativity b. skill of reflection c. skill of experimentation d. skill of play Ans: D Learning Objective: 2.2. Create a portfolio of five skills essential to building a mindset for The Practice of Entrepreneurship. Cognitive Domain: Application Answer Location: The Skill of Play Difficulty Level: Medium AACSB Standard: Analytical thinking 14. The act of taking a prototype directly to potential customers in order to acquire feedback is a hallmark of which skill? a. skill of creativity b. skill of reflection c. skill of experimentation d. skill of play Ans: C Learning Objective: 2.2. Create a portfolio of five skills essential to building a mindset for The Practice of Entrepreneurship. Cognitive Domain: Application Answer Location: The Skill of Experimentation Difficulty Level: Medium AACSB Standard: Analytical thinking 15. After conducting market research, Olivia is still uncertain how to price her honey jars. She decides to bring samples to local farmer’s markets and sell them at different price points. What skill is Jess practicing in this scenario? a. skill of creativity b. skill of reflection c. skill of experimentation d. skill of play Ans: C Learning Objective: 2.2. Create a portfolio of five skills essential to building a mindset for The Practice of Entrepreneurship. Cognitive Domain: Application Answer Location: The Skill of Experimentation Difficulty Level: Medium AACSB Standard: Analytical thinking 16. After making a presentation, you reflect by describing what happened by considering what took place, what was said, and who was involved. What type of reflection does this describe? a. perceptive reflection b. analytical reflection c. evaluative reflection d. narrative reflection Ans: D Learning Objective: 2.2. Create a portfolio of five skills essential to building a mindset for The Practice of Entrepreneurship. Cognitive Domain: Application Answer Location: The Skill of Reflection Difficulty Level: Medium AACSB Standard: Analytical thinking 17. After making a presentation, you reflect by focusing on how you felt during the presentation and how you managed those feelings. What type of reflection does this describe? a. perceptive reflection b. analytical reflection c. emotional reflection d. critical reflection Ans: C Learning Objective: 2.2. Create a portfolio of five skills essential to building a mindset for The Practice of Entrepreneurship. Cognitive Domain: Application Answer Location: The Skill of Reflection Difficulty Level: Medium AACSB Standard: Analytical thinking 18. After making a presentation, you reflect by focusing on your own perceptions and reactions as well as the perceptions and reactions of others. What type of reflection does this describe? a. perceptive reflection b. analytical reflection c. evaluative reflection d. narrative reflection Ans: A Learning Objective: 2.2. Create a portfolio of five skills essential to building a mindset for The Practice of Entrepreneurship. Cognitive Domain: Application Answer Location: The Skill of Reflection Difficulty Level: Medium AACSB Standard: Analytical thinking 19. After making a presentation, you reflect by thinking about the skills and knowledge you gained from the experience and if anything you have learned relates to anything you have heard about before. What