True False Questions

2-1 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Chapter 02

The Entrepreneurial Mind: Crafting a Personal Entrepreneurial Strategy

True / False Questions

• The psychological motivation of entrepreneurial behavior states that the need for achievement is

the need to build a relationship with others.

True False

• In the context of psychological motivation of entrepreneurial behavior, the need for power is the

need to influence others to achieve a goal.

True False

• In the context of entrepreneurial behavior, the need for affiliation is the need to excel.

True False

• Entrepreneurs motivated purely by monetary reward typically build companies of substantial

value.

True False

• All successful business people share characteristics of raw energy and intelligence.

True False

• The third volume of the Praeger Perspectives examines people and refers to a wide and diverse

range of contextual factors that influence the entrepreneur and the entrepreneurial process.

True False

• Successful entrepreneurs possess a well-developed capacity to exert influence without formal

power.

True False

• Entrepreneurs are self-starters who are internally driven by a strong desire to compete and attain

challenging goals.

True False

• Research has shown that an entrepreneur is more driven by the conservation of resources,

whereas a manager is more opportunity-driven.

True False

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2-2 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

• Studies show a strong connection between the presence of role models and the emergence of

entrepreneurs.

True False

• Entrepreneurs are their own bosses and completely independent.

True False

• Successful entrepreneurs seek power and control over others.

True False

Multiple Choice Questions

• Which of the following is defined as the need for measurable personal accomplishment?

• The need for achievement

• The need for power

• The need for affiliation

• The need for attachment

• Which of the following is the least characteristic motivational need of successful entrepreneurs?

• Achievement

• Control

• Power

• Affiliation

• Which of the following volumes of the Praeger Perspectives proceeds through the life cycle of a

new venture startup by tackling several key steps in the course of action?

• People

• Process

• Place

• Plan

• Which of the following is not an entrepreneurial attribute?

• Being a calculated risk taker

• Being a perfectionist

• Being obsessed with value creation

• Being intensely curious in the face of risk

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2-3 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

• In the context of creativity, self-reliance, and adaptability, which of the following attitudes of an

entrepreneur is desirable?

• Skepticism about conflicts and failure

• Ability to be a lone wolf

• Restlessness with the status quo

• High need for status and power

• In the troika of the foundation of a successful new venture, which of the following is an external

environmental influence?

• Value creation

• Ethical behavior

• Focus

• Adaptability

19. Successful entrepreneurs consistently focus on:

• seizing a market-based opportunity.

• obtaining resources.

• networking.

• making money.

20. When compared to an entrepreneur, a manager is more:

• resource-driven.

• opportunity-driven.

• creative.

• innovative.

• According to research, which of the following statements about entrepreneurs is false?

• Many successful entrepreneurs are well educated.

• Most successful entrepreneurs start companies in their early 20s.

• Most successful entrepreneurs follow a pattern of apprenticeship.

• Family firms spawn entrepreneurs.

• According to research studies on the career paths of entrepreneurs and the self-employed, which

of the following is the central factor for a successful venture creation?

• Networking

• The ability to marshal resources

• Experience and know-how

• The ability to attract and motivate an effective team

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2-4 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

• According to an old maxim, how long will venture capitalists work with a startup before declaring

the company a "lemon"?

• Up to a year

• About two and a half years

• At least three years

• Three to five years

• Which of the following is the most important component of opportunity recognition?

• Experimenting with new ideas

• Exhibiting low tolerance toward change

• Being risk aversive

• Being a perfectionist

• Which of the following statements demystifies the myth that entrepreneurs are gamblers?

• Entrepreneurs consider an idea and an opportunity as the same.

• Successful entrepreneurs try to influence the odds, often by getting others to share the risk.

• Successful entrepreneurs are completely independent and their own bosses.

• Entrepreneurs are driven by instant gratification through high salaries and perks.

• Which of the following is a reality and not a persistent myth about entrepreneurs?

• Entrepreneurs are born, not made.

• Entrepreneurs are gamblers.

• Solo entrepreneurs limit their own potential for growth.

• Entrepreneurs should be young, energetic, and in their 20s.

• Which of the following is a myth about successful entrepreneurs?

• They are driven by the need for achievement.

• They are driven by the need to control others.

• They have the ability to exert influence.

• They have the ability to be patient even in adverse situations.

• According to venture investors, what is the realistic time frame for growing a high potential

business to the point where a capital gain can be realized?

• 1-3 years

• 2-5 years

• 5-7 years

• 7-8 years

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