Entrepreneurship Theory & Practice Exam Questions and Correct Answers Latest Update 2024-2025
(100% Pass)
What are the 6 myths of entrepreneurship? - Answers 1. Entrepreneurs are born, not made.
2. Entrepreneurs are gamblers.
3. Entrepreneurs are motivated primarily by money.
4. Entrepreneurs should be young and energetic.
5. Entrepreneurs love the spotlight.
6. You have to be male to be a successful entrepreneur.
Define entrepreneurship. - Answers Entrepreneurship is an activity that involves the discovery,
evaluation, and exploitation of opportunities to introduce new goods and services, ways of organizing,
markets, processes, and raw materials through organizing efforts that previously did not exist.
Entrepreneurship is creating and building something of value from practically nothing.
The process of creating and seizing an opportunity and pursuing it regardless of resources presently
controlled.
Name the three different types of start-up firms. - Answers 1. Salary-Substitute Firms
2. Lifestyle Firms
3. Entrepreneurial Firms
What are salary-substitute firms? - Answers Firms that basically provide their owner of owners a similar
level of income to what they would be able to earn in a conventional job.
What is a lifestyle firm? - Answers A firm that provides their owner or owners with the opportunity to
pursue a particular lifestyle, and make a living at it.
What is an entrepreneurial firm? - Answers Firms that bring new products and services to the market by
creating and seizing opportunities regardless of the resources that they control.
Why do people become entrepreneurs? - Answers 1. Be their own boss - autonomy, freedom
2. Pursue own ideas
3. Pursue financial rewards
,4. Have an impact & make a difference
5. They have a cause or passion
6. To leave a legacy
7. To contribute to society
8. Because of necessity
What are the four main characteristics of successful entrepreneurs? - Answers 1. Passion for the
business
2. Product/Customer Focus
3. Tenacity despite failure
4. Execution Intelligence
What is an opportunity? - Answers A favorable set of circumstances that creates a need for a new
product, service, or business.
Name the four essential qualities of an opportunity. - Answers 1. It is timely
2. Attractive
3. Durable
4. Anchored in a product, service, or business that creates or adds value for its buyer
What is the opportunity window? - Answers The time period in which a firm can realistically enter a new
market.
What are the three steps of identifying opportunities? - Answers 1. Observing Trends
2. Solving Problems
3. Find gaps in the marketplace
What are the four areas of change in which opportunities open up? - Answers 1. Economic Forces
2. Social Forces
3. Technological Advances
4. Political/Regulatory Changes
Which characteristics help in identifying opportunities? - Answers 1. Prior Experience
2. Cognitive Factors
, 3. Social Networking
Name the stages of the creativity process. - Answers 1. Preparation
2. Incubation
3. Insight
4. Evaluation
5. Elaboration
6. Exploitation
What is the incubation stage in the creative process? - Answers The stage during which a person
considers or thinks about a problem.
What are the four rules of brainstorming? - Answers 1. No criticism
2. Freewheeling - the crazier the better
3. Move fast - Capture the essence rather than document it
4. Leapfrog - Use one idea to jump to the next idea
Name different ideation techniques for generating ideas. - Answers 1. Come up with a name to a yet to
be defined product/service.
2. Challenge assumptions
3. Link unrelated concepts
Name ways of idea generation. - Answers Brainstorming, focus groups, internet/library research,
customer advisory boards, day-in-the-life research
What is day-in-the-life research? - Answers Testers are sent to homes to check how users use products
and gain insights and new ideas.
How can you encourage new ideas? - Answers 1. Establish a focal point for ideas: Idea bank/Intranet
2. Encourage creativitiy at firm level.
What are facilitators of creativity on org. level? - Answers Supporting creativity's importance, hiring
people with different skills and views.
What are facilitators of creativity on supervisor level? - Answers Listening attentively, supporting ideas
early in their development, protecting people who make honest mistakes and commit to learning from
them.
(100% Pass)
What are the 6 myths of entrepreneurship? - Answers 1. Entrepreneurs are born, not made.
2. Entrepreneurs are gamblers.
3. Entrepreneurs are motivated primarily by money.
4. Entrepreneurs should be young and energetic.
5. Entrepreneurs love the spotlight.
6. You have to be male to be a successful entrepreneur.
Define entrepreneurship. - Answers Entrepreneurship is an activity that involves the discovery,
evaluation, and exploitation of opportunities to introduce new goods and services, ways of organizing,
markets, processes, and raw materials through organizing efforts that previously did not exist.
Entrepreneurship is creating and building something of value from practically nothing.
The process of creating and seizing an opportunity and pursuing it regardless of resources presently
controlled.
Name the three different types of start-up firms. - Answers 1. Salary-Substitute Firms
2. Lifestyle Firms
3. Entrepreneurial Firms
What are salary-substitute firms? - Answers Firms that basically provide their owner of owners a similar
level of income to what they would be able to earn in a conventional job.
What is a lifestyle firm? - Answers A firm that provides their owner or owners with the opportunity to
pursue a particular lifestyle, and make a living at it.
What is an entrepreneurial firm? - Answers Firms that bring new products and services to the market by
creating and seizing opportunities regardless of the resources that they control.
Why do people become entrepreneurs? - Answers 1. Be their own boss - autonomy, freedom
2. Pursue own ideas
3. Pursue financial rewards
,4. Have an impact & make a difference
5. They have a cause or passion
6. To leave a legacy
7. To contribute to society
8. Because of necessity
What are the four main characteristics of successful entrepreneurs? - Answers 1. Passion for the
business
2. Product/Customer Focus
3. Tenacity despite failure
4. Execution Intelligence
What is an opportunity? - Answers A favorable set of circumstances that creates a need for a new
product, service, or business.
Name the four essential qualities of an opportunity. - Answers 1. It is timely
2. Attractive
3. Durable
4. Anchored in a product, service, or business that creates or adds value for its buyer
What is the opportunity window? - Answers The time period in which a firm can realistically enter a new
market.
What are the three steps of identifying opportunities? - Answers 1. Observing Trends
2. Solving Problems
3. Find gaps in the marketplace
What are the four areas of change in which opportunities open up? - Answers 1. Economic Forces
2. Social Forces
3. Technological Advances
4. Political/Regulatory Changes
Which characteristics help in identifying opportunities? - Answers 1. Prior Experience
2. Cognitive Factors
, 3. Social Networking
Name the stages of the creativity process. - Answers 1. Preparation
2. Incubation
3. Insight
4. Evaluation
5. Elaboration
6. Exploitation
What is the incubation stage in the creative process? - Answers The stage during which a person
considers or thinks about a problem.
What are the four rules of brainstorming? - Answers 1. No criticism
2. Freewheeling - the crazier the better
3. Move fast - Capture the essence rather than document it
4. Leapfrog - Use one idea to jump to the next idea
Name different ideation techniques for generating ideas. - Answers 1. Come up with a name to a yet to
be defined product/service.
2. Challenge assumptions
3. Link unrelated concepts
Name ways of idea generation. - Answers Brainstorming, focus groups, internet/library research,
customer advisory boards, day-in-the-life research
What is day-in-the-life research? - Answers Testers are sent to homes to check how users use products
and gain insights and new ideas.
How can you encourage new ideas? - Answers 1. Establish a focal point for ideas: Idea bank/Intranet
2. Encourage creativitiy at firm level.
What are facilitators of creativity on org. level? - Answers Supporting creativity's importance, hiring
people with different skills and views.
What are facilitators of creativity on supervisor level? - Answers Listening attentively, supporting ideas
early in their development, protecting people who make honest mistakes and commit to learning from
them.
