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BAEP 450 Quiz 1 Questions and Correct
Answers
entrepreneur characteristics Ans: transform an idea into an
enduring form
Entrepreneur Ans: one who pursues an opportunity without
regard to resources currently controlled
Effectual Thinking Ans: does not begin with a specific goal, begins
with a given set of means and allows goals to emerge over time
from interactions, imagination, and experience. demands
imagination, risk taking, spontaneity and salesmanship
Bird in Hand Ans: who I am - traits, what I know - skills and
experiences, who I know - network that may have what youre
lacking, perspective
affordable loss Ans: risk what you can afford to lose. you're not
targeting a specific return and then working to minimize it.
evaluate opportunities based on whether the downside is
acceptable
crazy quilt Ans: form strategic partnerships. build partnerships
with self-selecting stakeholders. obtain commitment from these
© 2025 All rights reserved
, 2 | Page
key partners early on in the venture. share the upside, spread the
risk.
Lemonade Ans: leveraging contingencies principles. turn the
unexpected into the profitable.
logic of effectual reasoning Ans: to the extent that we can control
the future, we do not need to predict it
logic of casual reasoning Ans: to the extent that we can predict
the future, we can control it
reminder to Ans: think critically, communicate clearly, collaborate
effectively
managerial thinking casual Ans: accumulate means necessary to
achieve a pre-determined goal
strategic thinking creative casual Ans: generate new means to
achieve a predetermined goal
Entrepreneurial thinking effectual Ans: imagine many possible
new ends using a given set of means. see what they are given and
taking those resources by flipping them into any value - no
specific goal
© 2025 All rights reserved
BAEP 450 Quiz 1 Questions and Correct
Answers
entrepreneur characteristics Ans: transform an idea into an
enduring form
Entrepreneur Ans: one who pursues an opportunity without
regard to resources currently controlled
Effectual Thinking Ans: does not begin with a specific goal, begins
with a given set of means and allows goals to emerge over time
from interactions, imagination, and experience. demands
imagination, risk taking, spontaneity and salesmanship
Bird in Hand Ans: who I am - traits, what I know - skills and
experiences, who I know - network that may have what youre
lacking, perspective
affordable loss Ans: risk what you can afford to lose. you're not
targeting a specific return and then working to minimize it.
evaluate opportunities based on whether the downside is
acceptable
crazy quilt Ans: form strategic partnerships. build partnerships
with self-selecting stakeholders. obtain commitment from these
© 2025 All rights reserved
, 2 | Page
key partners early on in the venture. share the upside, spread the
risk.
Lemonade Ans: leveraging contingencies principles. turn the
unexpected into the profitable.
logic of effectual reasoning Ans: to the extent that we can control
the future, we do not need to predict it
logic of casual reasoning Ans: to the extent that we can predict
the future, we can control it
reminder to Ans: think critically, communicate clearly, collaborate
effectively
managerial thinking casual Ans: accumulate means necessary to
achieve a pre-determined goal
strategic thinking creative casual Ans: generate new means to
achieve a predetermined goal
Entrepreneurial thinking effectual Ans: imagine many possible
new ends using a given set of means. see what they are given and
taking those resources by flipping them into any value - no
specific goal
© 2025 All rights reserved
