Chapter 01 Entrepreneurship and the Entrepreneurial Mind-Set Answer
Key
True / False Questions
1. Ewing Kauffman took a risk when he started his company Marion Labs in 1950.
TRUE
Difficulty: Medium
p. 4
2. How Ewing Kauffman ran his business illustrates corporate entrepreneurship.
TRUE
Difficulty: Medium
p.5
3. Entrepreneurial opportunities are those situations in which new goods, services, raw
materials and organizing methods can be sold at greater than their production cost.
TRUE
Difficulty: Medium
p.6
4. Entrepreneurial action can be defined as those situations in which new goods, services,
raw materials and organizing methods can be sold at greater than their production cost.
FALSE
Difficulty: Medium
p.6
5. The McMullen-Shepherd Model helps identify the common traits of successful
entreprenuers.
FALSE
Difficulty: Easy
,p.6
,6. The McMullen-Shepherd Model explains how knowledge and motivation influence two
stages of entrepreneurial action.
TRUE
Difficulty: Medium
p.6
7. Superficial similarities exist when the underlying mechanisms of the technology
resemble, or match, the underlying mechanisms of the market.
FALSE
Difficulty: Medium
p.7
8. Structural similarities exist when the underlying mechanisms of the technology resemble,
or match, the underlying mechanisms of the market.
TRUE
Difficulty: Medium
p.7
9. Bricolage is entreprenuers making do by applying combinations of the resources at hand
to new problems and opportunities.
TRUE
Difficulty: Medium
p.8
10. The effectuation process starts with what one has and selects among possible outcomes.
TRUE
Difficulty: Medium
p.9
11. The casual process of thinking starts with what one has and selects among possible
outcomes.
FALSE
Difficulty: Medium
p.9
12. Demographics, ethnic origin, and marital status are examples of segmentation
variables.
TRUE
Difficulty: Easy
p.10
, 13. Principles of effectuation help entrepreneurs develop their cognitive adaptability.
FALSE
Difficulty: Easy
p.11
14. The question "What is this technology all about?" is a comprehension question.
TRUE
Difficulty: Easy
p.16
15. Comprehension questions are designed to stimulate entrepreneurs to think about their
own understanding.
FALSE
Difficulty: Med
p.16
16. Asking "How is this problem similar to problems I've already solved" is an example of a
connection task.
TRUE
Difficulty: Med
p.16
17. A reflection task would involve thinking about what strategies should be used to solve a
problem.
FALSE
Difficulty: Med
p.16
18. Entrepreneurs have stronger intentions to act when taking action is perceived to be
impossible and risky.
FALSE
Difficulty: Easy
Key
True / False Questions
1. Ewing Kauffman took a risk when he started his company Marion Labs in 1950.
TRUE
Difficulty: Medium
p. 4
2. How Ewing Kauffman ran his business illustrates corporate entrepreneurship.
TRUE
Difficulty: Medium
p.5
3. Entrepreneurial opportunities are those situations in which new goods, services, raw
materials and organizing methods can be sold at greater than their production cost.
TRUE
Difficulty: Medium
p.6
4. Entrepreneurial action can be defined as those situations in which new goods, services,
raw materials and organizing methods can be sold at greater than their production cost.
FALSE
Difficulty: Medium
p.6
5. The McMullen-Shepherd Model helps identify the common traits of successful
entreprenuers.
FALSE
Difficulty: Easy
,p.6
,6. The McMullen-Shepherd Model explains how knowledge and motivation influence two
stages of entrepreneurial action.
TRUE
Difficulty: Medium
p.6
7. Superficial similarities exist when the underlying mechanisms of the technology
resemble, or match, the underlying mechanisms of the market.
FALSE
Difficulty: Medium
p.7
8. Structural similarities exist when the underlying mechanisms of the technology resemble,
or match, the underlying mechanisms of the market.
TRUE
Difficulty: Medium
p.7
9. Bricolage is entreprenuers making do by applying combinations of the resources at hand
to new problems and opportunities.
TRUE
Difficulty: Medium
p.8
10. The effectuation process starts with what one has and selects among possible outcomes.
TRUE
Difficulty: Medium
p.9
11. The casual process of thinking starts with what one has and selects among possible
outcomes.
FALSE
Difficulty: Medium
p.9
12. Demographics, ethnic origin, and marital status are examples of segmentation
variables.
TRUE
Difficulty: Easy
p.10
, 13. Principles of effectuation help entrepreneurs develop their cognitive adaptability.
FALSE
Difficulty: Easy
p.11
14. The question "What is this technology all about?" is a comprehension question.
TRUE
Difficulty: Easy
p.16
15. Comprehension questions are designed to stimulate entrepreneurs to think about their
own understanding.
FALSE
Difficulty: Med
p.16
16. Asking "How is this problem similar to problems I've already solved" is an example of a
connection task.
TRUE
Difficulty: Med
p.16
17. A reflection task would involve thinking about what strategies should be used to solve a
problem.
FALSE
Difficulty: Med
p.16
18. Entrepreneurs have stronger intentions to act when taking action is perceived to be
impossible and risky.
FALSE
Difficulty: Easy
