Deck 2: The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics

Question 1

A loss orientation toward grief recovery in dealing with failure can sometimes lessen negative emotional reactions.

Answer 1

False

Question 2

A good trait for an entrepreneur is to be a calculated risk taker.

Answer 2

True

Question 3

Collective creativity emerges strictly from the efforts of the founder who directs personnel to produce unique goods and services.

Answer 3

False

Question 4

Stress on the entrepreneur can be caused both internally and by other people.

Question 5

Ethos means morality.

Question 6

The metacognitive model of entrepreneurship fails to consider the entrepreneurial mind-set that integrates the combined effects of entrepreneurial motivation.

Question 7

The "dark side" of entrepreneurship refers to the stress that entrepreneur's experience.

Question 8

The Greek thinker, Chilon, felt that a merchant does better to take a loss than to make a dishonest profit.

Question 9

Immersion in business can be cured by limiting work to eight hours a day.

Question 10

Entrepreneurs are fiercely independent but understand the need for a strong entrepreneurial team.

Question 11

According to the research, the entrepreneur's expectations are not compared with the actual or perceived outcomes of the firm.

Question 12

Entrepreneurs are pessimists who see the cup half empty rather than half full.

Question 13

There are many risks in entrepreneurship.

Question 14

Ethics represents a set of principles prescribing a behavioral code that does not include moral duty and obligations.

Question 15

Ethics provides the basic rules or parameters for conducting any activity in an "acceptable" manner.

Question 16

Entrepreneurs like to remain alert to competition, customers, and government regulations, but this continual scanning of the environment can lead to a negative sense of distrust.

Question 17

An ethical concern has arisen because companies like Amazon and Yelp use customer reviews to deliberately manipulate consumers' perceptions of products or services.

Question 18

Some of the most common entrepreneurial goals are independence, wealth, and work satisfaction.

Question 19

Role distortion deals with morally questionable acts that are committed "for the firm."

Question 20

Entrepreneurs usually have an internal locus of control.

Question 21

Successful entrepreneurs treat failure the same way all people do.

Question 22

Nonrole acts are those acts against a firm in which the person fails to perform his or her managerial role.

Question 23

Institutionalization is a deliberate step to incorporate the ethical objectives of society with the economic objectives of the venture.

Question 24

The need to achieve can be a source of stress for entrepreneurs.

Question 25

Most successful entrepreneurs have failed at one time or another.

Question 26

In past generations, people dreamed of prestige and perks associated with executive suites of major corporations, but the millennial generation believes that career success requires them to be more nimble, independent, and entrepreneurial.

Question 27

Problems can arise when people believe that laws represent morality.

Question 28

Commitment, determination, and perseverance are just a few characteristics one needs to become a successful entrepreneur.

Question 29

Entrepreneurial cognition is, in part, about understanding how entrepreneurs use simplifying mental models to make assessments, judgments, or decisions about opportunities.

Question 30

Entrepreneurs need not be concerned with establishing strategy for ethical responsibility because they are guided by what established firms do.

Question 31

Today's entrepreneurs are faced with few ethical decisions because the legal system imposes greater penalties on wrongdoers.

Question 32

One of the most important reasons firms want to adhere to a high moral code is that doing so protects the free enterprise system and is good business.

Question 33

Each and every person has the potential and free choice to pursue a career as an entrepreneur.

Question 34

Entrepreneurs do not need foresight.

Question 35

Entrepreneurs always know that, as individuals, they must remain less important than the venture.

Question 36

Entrepreneurship presents psychological risks, but not physical risks.

Question 37

The entrepreneur's internal locus of control means that the typical strong desire for control over the venture rarely becomes a corruptive force.

Question 38

Entrepreneurs allow their goal orientation to help define priorities and provide them with measures of how well they are performing.

Question 39

Morals and law are not synonymous but may be viewed as two circles that are partially superimposed upon each other.

Question 40

A code of conduct is a statement of ethical practices or guidelines to which an enterprise adheres.

Question 41

Inexperience and incompetent management are the main reasons for failure.

Question 42

With persistent problem solving, entrepreneurs

A)must daydream all day.
B)can't multitask.
C)think anything is possible.
D)are always working.

Question 43

Entrepreneurs typically have enough confidence to believe that they can make a difference in the final outcome of their ventures.

Question 44

When outcomes meet or exceed expectations, _____ is positively reinforced.

A)entrepreneurial behavior
B)entrepreneurial motivation
C)desire for success
D)entrepreneurial ego

Question 45

Which of the following statements about entrepreneurs is false?

A)They burn with the competitive desire to excel.
B)They see the cup half full rather than half empty.
C)They do not use failure as a tool for learning.
D)They are achievers.

Question 46

Which of the following is not a common characteristic of entrepreneurs?

A)vision
B)team building
C)lack of motivational drive
D)independence

Question 47

One trait not common in entrepreneurs is being

A)a problem solver.
B)creative and innovative.
C)structured.
D)independent, yet able to build strong teams.

Question 48

Entrepreneurs with a drive to achieve want to

A)compete.
B)watch others succeed.
C)take great risks.
D)control and dominate.

Question 49

A clear pattern among successful entrepreneurs is

A)setting goals that are just out of reach.
B)the fear of failure common to all people.
C)their focus on opportunity rather than strategy.
D)not fitting in to traditional organizations.

Question 50

Which of the following is not associated with an entrepreneur seeking feedback?

A)Entrepreneurs want to belittle their competition.
B)Entrepreneurs seek to learn from their competitors.
C)Entrepreneurs want to improve.
D)Entrepreneurs have a strong desire to know how well they are doing.

Question 51

The decision to behave entrepreneurially is the result of the interaction of

A)the individual's personal entrepreneurial mind-set and an opportunity.
B)the existence of a viable business idea.
C)the relevant business environment.
D)a new market.

Question 52

In the Monroy-Folger model of risk typology, profit-seeking activity is associated with a _____ desire to _____.

A)strong; maximize profit
B)weaker; maximize profit
C)strong; minimize profit
D)strong; maximize sales revenue

Question 53

The "dark side" of entrepreneurship refers to

A)a destructive force within the energetic drive of entrepreneurs.
B)the part of entrepreneurship that is most exciting.
C)a misunderstanding about the results of entrepreneurship.
D)another myth of entrepreneurship.

Question 54

For entrepreneurs, vision describes

A)how the market works.
B)a concept.
C)eyesight.
D)the future.

Question 55

In smaller ventures, the ethical influence of the owner is more powerful than in larger corporations because his or her leadership is not diffused through layers of management.

Question 56

Entrepreneurs often display unrealistic optimism.

Question 57

A decision to sell pharmaceuticals that have not been cleared with the Federal Drug Administration is an example of a(n) _____ and _____ decision.

A)illegal; ethical
B)legal; unethical
C)illegal; unethical
D)legal; ethical

Question 58

Which of the following statements is false?

A)Entrepreneurs are born with the skills necessary to manage a business.
B)Their belief in their ability seldom wavers.
C)Independence is a driving force behind contemporary entrepreneurs.
D)Entrepreneurs know where they want to go.

Question 59

A decision to sell toys that pass minimum safety standards but can often result in minor accidents to children is an example of a(n) _____ and _____ decision.

A)illegal; ethical
B)legal; unethical
C)illegal; unethical
D)legal; ethical

Question 60

Areas of risk to the entrepreneur include

A)career, family, and psychological.
B)family, business, and social.
C)psychic, social, and physical.
D)financial, product, and market.

Question 61

Which of the following is not a way to combat stress?

A)acknowledging its existence
B)ignoring coping mechanisms
C)probing personal unacknowledged needs
D)taking a few days off

Question 62

Which of the following statements is false?

A)Entrepreneurs want the authority to make important decisions.
B)Management skills are not important characteristics for entrepreneurs to possess.
C)Successful entrepreneurs strive to build a successful team around them.
D)An entrepreneur can develop the vision of the company over time.

Question 63

Team building

A)involves including qualified people in the venture.
B)does not threaten the entrepreneur's autonomy.
C)does nothing.
D)is overrated.

Question 64

In starting or buying a new business, the higher the rewards, the

A)more minimal the risk.
B)greater the risk.
C)greater the size of a business.
D)smaller the enjoyment.

Question 65

Generally, entrepreneurial stress is due to

A)being surrounded by incompetents.
B)fear of failure.
C)the discrepancy between the entrepreneur's expectations and personality.
D)a big ego.

Question 66

Which of the following characteristic(s) that propel entrepreneurs into success can be exhibited to the "extreme"?

A)overbearing need for control
B)optimism
C)high energy
D)desire for success

Question 67

Entrepreneurial stress can be caused by having a Type A personality, which can be defined as

A)having a chronic sense of time urgency.
B)taking too little responsibility.
C)getting away from business.
D)taking things personally.

Question 68

Stress can be dealt with by

A)networking.
B)neglecting it.
C)ignoring it.
D)working harder.

Question 69

Which of the following kinds of thinking can lead to unethical behavior in a business context?

A)top line
B)bottom line
C)abstract
D)critical

Question 70

Characteristics often attributed to the entrepreneur include

A)commitment, determination, and perseverance.
B)a preference to be a loner.
C)being power hungry.
D)a tendency to be indecisive.

Question 71

The Greek word ethos means

A)mode of conduct.
B)morale.
C)elan.
D)esprit de corps.

Question 72

If an entrepreneur believes in himself/herself and that their accomplishments and setbacks are within their own control, they possess a(n)

A)confidence level higher than most entrepreneurs.
B)internal locus of control.
C)cockiness level too high to be an entrepreneur.
D)high energy level.

Question 73

One could correlate _____ with a high energy level.

A)creativity
B)working
C)luck
D)reading

Question 74

Which of the following is not a source of stress according to researchers Boyd and Gumpert?

A)loneliness
B)people problems
C)immersion in business
D)family requirements

Question 75

With psychological risk, you fear

A)losing your sanity.
B)failure.
C)money.
D)adapting.

Question 76

Which of the following is not a trait of successful entrepreneurs?

A)initiative
B)frustration
C)perseverance
D)strategic thinking

Question 77

The entrepreneurial ego can cause the entrepreneur to

A)have a sense of pessimism.
B)take characteristics that usually lead to success to the extreme.
C)ignore government regulations.
D)take too few risks.

Question 78

In science, _____ refers to mental processes.

A)cognition
B)ergonomics
C)evaluation
D)phenomena

Question 79

Every person has the _____ and _____ to pursue a career as an entrepreneur.

A)stubbornness; stupidity
B)potential; free choice
C)rights; regulations
D)obligation; duty

Question 80

A code of _____ is a statement of ethical practices or guidelines to which an enterprise adheres.

A)conduct
B)ethics
C)honor
D)silence