CHAPTER 1: PRACTICING ENTREPRENEURSHIP

For Entrepreneurship The Practice and Mindset 3th Edition by Heidi M. Neck, Christopher P. Neck, Emma L. Murray Chapter 1-16

CHAPTER 1: PRACTICING ENTREPRENEURSHIP

Multiple Choice

• The authors define entrepreneurship as ______.
• a way of thinking, acting, and being that combines the ability to find or create

new opportunities with the courage to act on them

• starting a small business by finding investors and launching a product
• developing a new market by creating a product that does not currently exist
• 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: Application of knowledge

• ______ have touched every corner of our lives, affecting every aspect of the

way we live.

• Lifestyles
• Corporations
• Entrepreneurs
• Managers

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: Application of knowledge

• What is the discipline that seeks to understand how opportunities are

discovered, created, and exploited, by whom, and with what consequences?

• imagineering
• storyboarding
• social engineering
• 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: Application of knowledge

• Which of the following is a truth about entrepreneurship?
• Entrepreneurship is not reserved for startups.
• Entrepreneurship cannot be taught.
• Entrepreneurs compete more than they collaborate.
• Entrepreneurs have a special set of personality traits.

Ans: A

Learning Objective: 1.2: List the seven lesser-known truths about entrepreneurship.

Cognitive Domain: Knowledge

Answer Location: Entrepreneurship May Be Different From What You Think

Difficulty Level: Easy

AACSB Standard: Analytical thinking

• The media often cover the meteoric rise of entrepreneurs such as Bill Gates

(Microsoft) and Travis Kalanick (Uber). According to the text, these stories

______.

• are inspirational, but do little to represent the reality of entrepreneurship
• are highly relatable
• have not captured the public imagination
• are accurate depictions of the reality of entrepreneurship

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

• A temporary organization in search of a scalable business model is known as

a(n) ______.

• startup
• corporation
• LLC
• 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: Application of knowledge

• Effectuation is the idea that ______.
• businesses should have a positive impact on people‘s lives
• the effects of ideas can be studied over time
• the future is unpredictable yet controllable
• 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

• ______ are people who start several businesses, whether at the same time or

one after the other.

• Social entrepreneurs
• Serial entrepreneurs
• High-risk entrepreneurs
• 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: Group and individual behaviors

• Which of the following is true about effectual entrepreneurs?
• They focus on creating a future rather than predicting it.
• They find markets rather than make them.
• They do not accept failure.
• They focus on a single reliable stakeholder.

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: Analytical thinking

• According to the authors, what is the precursor to entrepreneurial action?
• a business process
• the right mindset
• an understanding that failure is probable
• 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: Application of knowledge

• The entrepreneurial method requires consistent practice so that ______ can

be continuously developed and applied to future endeavors.

• a strong business plan
• education and application
• business processes
• 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: Application of knowledge

• Successful entrepreneurs tend to follow which approach to collaboration?
• They do not collaborate and work in isolation.
• They collaborate with potential customers, but not with competitors.
• They collaborate with both potential customers and competitors.
• 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: Application of knowledge

• Research revealed what percentage of Inc. 500 founders wrote formal

business plans prior to launching their companies?

• more than 90%
• more than 75%