Question 1

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

Accepted Answer

The "top-down" perspective that focuses on environmental factors beyond the control of an individual is referred to as the macro perspective, which examines how societal trends, technological advances, cultural attitudes, and other broad forces shape the opportunities available to entrepreneurs.

Question 2

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

Accepted Answer

To gain a full understanding of entrepreneurship, one needs to consider both macro and micro approaches. The macro approach focuses on the external factors that influence entrepreneurship, such as economic and political conditions, while the micro approach focuses on the individual characteristics and behaviors of entrepreneurs. The "top-down" and "bottom-up" perspectives are less relevant in this context.

Question 3

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

Accepted Answer

The five major phases of the entrepreneurship process are recognition of an opportunity, deciding to proceed and assembling the essential resources, launching a new venture, building success, and harvesting the venture. Creating an in-depth, strategic marketing plan is not listed as one of these phases.

Question 4

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

Accepted Answer

The practice of encouraging employees to experiment and innovate within a company is known as intrapreneurship. In this case, the scientists at 3M are being given the opportunity to pursue creative projects outside of their normal work duties.

Question 5

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.

Accepted Answer

Experimentation involves systematically changing one variable to observe the effects on other variables. This technique is commonly used to establish causality in many fields of research.

Question 6

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?

Accepted Answer

Accounting, while crucial for the operation and management of businesses, is not specifically highlighted in the context provided as one of the foundational disciplines directly linked to the study of entrepreneurship. Entrepreneurship is more directly connected to understanding economic principles, human behavior, societal structures, and psychological factors, which are covered by economics, behavioral science, sociology, and psychology, respectively.

Question 7

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

Accepted Answer

All the statements provided about the role of theory in entrepreneurship accurately describe the purpose and utility of theories. They are meant to explain phenomena, understand events, and provide frameworks for understanding processes, including why some individuals excel at recognizing opportunities.

Question 8

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

Accepted Answer

Variables are defined as the aspects of the world that can take different values. Therefore, option A is the correct answer. Option B is incorrect because facts are statements that are verified to be true. Option C is incorrect because predictions are statements about what may happen in the future. Option D is incorrect because external concerns are factors outside of an individual's control. Option E is incorrect because theories are explanations of the observed phenomena.

Question 9

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

Accepted Answer

Entrepreneurship encompasses a process, a commitment, and a chain of events that unfold over time, making all the options correct descriptions.

Question 10

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

Accepted Answer

This situation describes an experiment where the entrepreneur wants to test a hypothesis (whether a blue package sells better than a red package) by manipulating the independent variable (package color) and observing the dependent variable (product sales). This is an example of experimentation, which is a systematic approach to finding out how variables impact each other. Answer B is a bit vague and does not accurately capture the scientific method used in experimentation. Answer A, D, and E are completely unrelated to the situation described.

Question 11

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

Accepted Answer

Systematic observation involves carefully observing certain aspects of the world and recording data to reach understandings about a topic. Systematic reasoning refers to the use of logical processes to reach conclusions. Experimentation involves conducting structured tests to gather data. Theorizing is the process of creating and refining theories based on observations and data. Transactional exploring is not a recognized term in the field of research methodology.

Question 12

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?

Accepted Answer

Both the micro approach (focusing on individual and group factors) and macro approach (focusing on societal factors) are valuable and necessary to understanding and analyzing the entrepreneurial process. The individual and group factors influence the motivations, behaviors, and decisions of entrepreneurs, while societal factors impact the availability of resources, opportunities, and support systems. Therefore, a comprehensive approach that considers both perspectives is essential for fully understanding and supporting entrepreneurship.

Question 13

The macro level of analysis related to entrepreneurship includes

Accepted Answer

The macro level of analysis is concerned with the external factors that influence entrepreneurship, including economic conditions such as market demand, government policies, and access to resources. Choices A, B, D, and E are all related to the micro level of analysis, which focuses on the individual characteristics of the entrepreneur.

Question 14

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

Accepted Answer

Ordering a new boat and car in the first year of business is not a phase of entrepreneurship. It may be a result of a successful business, but it is not part of the process of starting and growing a business. The phases of entrepreneurship typically include generating an idea, assembling resources, building a successful business, and harvesting the rewards.

Question 15

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

Accepted Answer

The micro perspective focuses on understanding the behavior and thought of individuals or small groups of individuals in the entrepreneurial process, while the macro perspective looks at larger societal and economic factors. The opportunity perspective focuses on identifying and exploiting entrepreneurial opportunities, while the external and internal perspectives focus on the external and internal factors that affect the entrepreneurial process, respectively.

Question 16

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

Accepted Answer

The principal means of acquiring knowledge include observation, reflection, and experimentation. "Transactional" is not typically considered one of the principal means of acquiring knowledge.

Question 17

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

Accepted Answer

All of the factors listed (the times in which they live, the current state of technological knowledge, the current state of the economy, and their friends, associates, and the media) can influence the ideas people generate when considering entrepreneurship.

Question 18

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

Accepted Answer

According to the Bureau of Labor Statistics, as of 2019, there were approximately 10.6 million self-employed individuals in the United States.

Question 19

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...

Accepted Answer

Granger Causality is a statistical method used to determine causality by examining the relationship between two time series variables. It looks at whether knowing the past values of one variable helps predict future values of another variable. This method is commonly used in econometrics and other fields to establish the direction of causality between variables.

Question 20

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

Accepted Answer

A theory is a systematic explanation of phenomena that goes beyond mere description. It attempts to identify the underlying causes and mechanisms that produce the observed phenomenon.

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