Deck 1: Entrepreneurship:: A Field, an Activity - and a Way of Life

Question 1

The example in the textbook of Lorraine Santoli creating a new dispenser for tissues to be used in her car is not an example of entrepreneurship because it is not something "hot" or remarkable.

Answer 1

False

Question 2

The process of entrepreneurship involves a chain of events and activities that takes place over a period of time.

Answer 2

True

Question 3

Entrepreneurship is a field of study that seeks to understand how opportunities to create new products or services arise and are discovered by specific persons,who then use various means to exploit or develop them.

Answer 3

True

Question 4

In the United States,small businesses,those with less than 500 employees,make up only about 1% of all employers.

Question 5

A business plan is a detailed description of how a company plans to develop its new venture.

Question 6

Of the following,which one is probably NOT and example of an entrepreneur.

A) After years of working as a mechanic, a middle-aged man comes up with the idea of processing old tires and transforming them into border for flower gardens.
B) An elderly woman who enjoys entertaining in her home and providing home-made appetizers decides to offer her services to parties and become a caterer.
C) A scientist involved in research on the biochemistry of life makes breakthrough discoveries that advance the frontiers of his field, but has no interest in identifying the practical uses of his findings.
D) A computer scientist develops a new software program that is better then any others currently on the market. The scientist seeks capital to start a company to develop and sell this product.
E) After retiring from the army, an officer develops the idea of purchasing retired amphibious vehicles from the government and using them to start a company that specializes in offering tours of remote wilderness areas.

Question 7

In the process of developing a theory on entrepreneurship,the theory is eventually either proven or rejected,and the results are accepted as being absolute.

Question 8

The entrepreneurial process begins when one or more persons recognize an opportunity---the potential to create something new that has emerged from a complex pattern of changing conditions.

Question 9

One reason that more people are choosing to be entrepreneurs,rather than entering the workforce through pre-existing companies,is because many people in the younger generation prefer a job allowing them independence and freedom.

Question 10

Companies like Expedia.com probably could not have been started ten or more years ago because the technological,economic,and social forces were not right to present the opportunity to start such a company.

Question 11

A person who creates something new while working inside an existing company is known as a/an

A) internal entrepreneur.
B) nonproprietary thinker.
C) technology officer.
D) intrapreneur..
E) traditional entrepreneur.

Question 12

The term "Theory" refers to efforts to go beyond merely describing various phenomena to the point at which we can explain them.

Question 13

Entrepreneurship refers to the process of bringing something that is not now being produced to the marketplace.

Question 14

The definition of entrepreneurship includes the creation of something new. It does not include the requirement that the new thing makes it to market.

Question 15

Entrepreneurs cause an increase in unemployment,taking away jobs from the working class.

Question 16

Entrepreneurship refers to developing a new product or service that is revolutionary,or earth-shaking,rather than developing a less noteworthy product or service.

Question 17

Experimentation plays a large part in an entrepreneur's success and is used all of the time in the study of entrepreneurship.

Question 18

A person is conducting research concerning a certain theory about entrepreneurship. The findings of the research contradict the theory. This proves the theory to be false.

Question 19

In order to understand entrepreneurship as a process,it is essential to consider which of the following factors?

A) The economic, technological, and social conditions from which opportunities rise.
B) The people who recognize technological, economic, and social conditions from which opportunities rise
C) The business techniques and legal structures used to develop opportunities.
D) The economic and social effects produced by the realization of opportunities.
E) All of the above.

Question 20

Recognizing opportunities for creating or developing something new can only occur within existing organizations.

Question 21

A "top-down" perspective that seeks to understand the entrepreneurial process by focusing largely on environmental factors that are mostly beyond the direct control of an individual is called the

A) macro perspective.
B) micro perspective.
C) opportunity perspective.
D) external perspective.
E) internal perspective.

Question 22

Full understanding of entrepreneurship can be gained only through careful consideration of

A) the "top-up" perspective.
B) macro and micro approaches.
C) the "bottom-down" perspective.
D) the macro approach only.
E) the micro approach only.

Question 23

Which of the following is NOT one of the five major phases of the entrepreneurship process?

A) Recognition of an opportunity.
B) Deciding to proceed and assembling the essential resources.
C) Launching a new venture.
D) Creating an in-depth, strategic marketing plan.
E) Building success.

Question 24

At the 3 M Company,scientists are told to spend 15% of their working time on things that are not part of their "normally assigned tasks." That is,they are to experiment with materials in attempts to "come up with" new products;to be very creative. This is know as

A) theory building.
B) entrepreneurship.
C) engine of economic growth.
D) social change.
E) intrapreneurship.

Question 25

In order to deal with the issue of causality,researchers in many fields turn to another technique known as________. This involves systematically changing one variable in order to see if such changes affect one or more other variables.

A) experimentation.
B) systematic approach.
C) cause and effect implementation.
D) control monitoring.
E) adverse systems analysis.

Question 26

The field of entrepreneurship is closely linked to older and more established disciplines. Which of the following is NOT considered by the text to be one of those disciplines?

A) Accounting.
B) Economics.
C) Behavioral Science.
D) Sociology.
E) Psychology.

Question 27

Which of the following statements about the role of theory in entrepreneurship is NOT true?

A) The purpose of a theory is to help with the efforts to go beyond merely describing various phenomena to the point at which we can explain them.
B) Theories help to understand why and how events happen.
C) Theories are frameworks for explaining various events or processes.
D) Theories help to figure out what it is about certain people that allows them to be so good at recognizing opportunities that other people miss.
E) All of the above are true about theories.

Question 28

Aspects of the world that can take different values are known as

A) variables.
B) facts.
C) predictions.
D) external concerns.
E) theories.

Question 29

As best described in the text,entrepreneurship is said to be

A) a process.
B) a commitment.
C) a chain of events that takes place over time.
D) both A and B.
E) all of the above.

Question 30

An entrepreneur wants to explore whether a product with a blue package sells better than the very same product with a red package. The color of the package is the only thing that is changed and the product is put into test marketing to see if the blue package or red package sells more. This is known as

A) insanity.
B) micro approach.
C) experimentation.
D) reflection.
E) intrapreneurship.

Question 31

Observing certain aspects of the world systematically,keeping careful records of what is noticed,and then using the information as a basis for reaching conclusions about the topics we wish to study and understand is know as

A) systematic reasoning.
B) systematic observation.
C) experimentation.
D) theorizing.
E) transactional exploring.

Question 32

Individual,group,and societal factors influence all phases of the entrepreneurial process. Given this information,which is more important,the micro approach or the macro approach?

A) Neither approach is important to the entrepreneurial process.
B) Both the micro and macro approach are valuable and necessary to the process.
C) The macro approach is the more important approach.
D) The micro approach is the more important approach.
E) The micro approach is the more important, because their is no macro approach.

Question 33

The macro level of analysis related to entrepreneurship includes

A) the entrepreneur's skills.
B) the motives of the person for starting the business.
C) economic conditions.
D) the traits of the person starting the business.
E) the entrepreneur's knowledge about finance.

Question 34

Which of the following is usually not considered to be one of the phases of entrepreneurship?

A) Idea for new product or service.
B) Order a new boat and car in the first year of business.
C) Assemble required resources.
D) Build a successful business.
E) Harvest the rewards.

Question 35

A "bottom-up" perspective that seeks to understand the entrepreneurial process by focusing on the behavior and thought of individuals or groups of individuals is known as the

A) macro perspective.
B) micro perspective.
C) opportunity perspective.
D) external perspective.
E) internal perspective.

Question 36

Which of the following is NOT one of the principal means of acquiring knowledge?

A) observation.
B) reflection.
C) transactional.
D) experimentation.
E) all of the above are the principal means of acquiring knowledge.

Question 37

While considering entrepreneurs,the kind of ideas people generate are the result of which of the following factors?

A) the times in which they live.
B) the current state of technological knowledge.
C) the current state of the economy.
D) their friends, associates, and the media.
E) all of the above influence the ideas people generate.

Question 38

About how many individuals are self-employed in the United States currently?

A) more then 20 million.
B) less then 5 million.
C) more then 10 million.
D) approximately 45,000.
E) 1,000.

Question 39

Researchers employ a wide range of statistical techniques to help determine causality on the basis of other methods,such as systematic observation. One way to do this is to determine if one variable or change occurs before another. Something that occurs later in time cannot reasonably be the cause of something that occurred earlier. This concept,which can be used to establish the direction of causality in systematic observation,is called...

A) "Granger Causality."
B) "Causality Consultant."
C) "Granger-Hall Approach."
D) "Peterson's test of Causality."
E) None of the above.

Question 40

Which of the following refers to the effort to go beyond merely describing various phenomena and,instead,to explain them

A) extensive research.
B) theory.
C) abstract approach.
D) micro investigation.
E) case method.

Question 41

A research method which refers to collecting a large amount of data about one organization that is used to draw conclusions about cause and effect relationships is known as

A) case method.
B) business plan.
C) hypothesis.
D) intrapreneur.
E) technology transfer.

Question 42

A hypothesis is

A) a theory that has been supported by research evidence.
B) a prediction that has not yet been tested.
C) a prediction that has been tested and found to be true.
D) the same as an economic fact.
E) a theory that has not been found to not predict what actually happens.

Question 43

Explain why entrepreneurship is an increasingly popular career choice and why the activities of entrepreneurs are so important to the economies of their countries.

Question 44

Technological,economic,and social forces all play an important role in starting a new business or service. This is especially true with a company such as Expedia.Com. Expedia.Com is an on-line travel service that allows users to book airline flights and make travel arrangements via the Internet. Explain how the three above mentioned forces generated the opportunity for a company like Expedia.com to become popular.

Question 45

Which of the following is part of the micro level of analysis when studying entrepreneurship?

A) Technological conditions in the immediate market area in which the entrepreneur wants to operate.
B) Overall market conditions.
C) The nature of the stock market; what is happening on the New York Stock Exchange, etc.
D) The entrepreneur's skills in selling a new product.
E) The laws that apply to the product developed by the entrepreneur.

Question 46

The authors of the textbook mention that Alexander Graham Bell as an entrepreneur. However,they say that Mr.Bell "did not invent the telephone out of sheer creative genius," meaning that he did not invent the parts of the telephone from "scratch." If he did not invent the parts of the telephone,explain how he could have been an entrepreneur.

Question 47

Do entrepreneurs think differently than other people?

Question 48

There is some evidence that entrepreneurial people think and reason differently than other people. The different way of thinking and reasoning is part of what is known as

A) micro analysis.
B) technology transfer.
C) observation.
D) entrepreneurial cognition.
E) experimentation.

Question 49

List and discuss each of the five major phases of the entrepreneurship process.

Question 50

Intrapreneur refers to

A) someone who starts a business and runs it from his or her house.
B) a person who invents a product to be used indoors.
C) a person who develops an innovative product or idea while working inside of an existing larger business.
D) a person who is employed by a larger business.
E) a person who has an idea for a new product but does not take steps to bring it to market.

Question 51

An incubator is

A) the first product that is produced by a new company.
B) a place where an entrepreneur might get assistance and some protection while establishing a new business.
C) the same as a license to produce a product.
D) a law that restricts the growth of new businesses.
E) entrepreneurial cognition.

Question 52

Discuss Entrepreneurship as a field of business. What does it seek to understand?

Question 53

In attempting to understand the entrepreneurial process,the perspective that focuses on understanding the behavior and thoughts of people and groups in the business is known as

A) economic forces.
B) technological forces.
C) environmental factors approach.
D) macro approach.
E) micro approach.

Question 54

Over a certain period of time,an entrepreneur changes the price of a specific product and tries to carefully measure what effect that change alone has on the number of that product that is sold. This process is known as

A) reflection.
B) theorizing.
C) top down analysis.
D) systematic observation.
E) qualifying common sense.

Question 55

Explain why a higher degree of persistence in working to overcome challenges might help a person to be a better entrepreneur.