Question 1

Many have shown how entrepreneurs are dependent on institutions. What do institutions signify in this context?

Accepted Answer

Institutions in this context refer to the rules of the game that society expresses in the form of systems of rewards, conventions, laws, traditions, and values. These rules can either enable or constrain entrepreneurship, making institutions a vital factor in the success of entrepreneurs. A and C are partly correct but do not encompass the full meaning of institutions in this context. D is incorrect as it pertains to theories, which are not institutions.

Question 2

Schumpeter was on an unceasing quest to find out "how the economic system generates the force which incessantly transforms it" (growth and development force). His answer was that the key is:

Accepted Answer

Schumpeter believed that the entrepreneur, through their actions of innovation and destruction of old methods and products, is the driving force behind economic growth and development. This concept is known as "creative destruction." Schumpeter saw entrepreneurs as the agents of change, pushing the economy forward and breaking away from the status quo.

Question 3

Creative destruction is a key concept of Schumpeter's, which sets out to clarify innovation and economic growth. In other words, it means:

Accepted Answer

The answer of Creative destruction is a key concept of...

Question 4

Schumpeter stated that "the carrying out of new combinations" is the trademark of innovation. He detailed this by placing new developments - innovation - in five categories. Which three DO NOT belong here?

Accepted Answer

Schumpeter's five categories of innovation include new goods, new markets, new methods, new forms of organization, and new sources of raw materials. New meeting places, new tax laws, and new support systems do not belong to his original categories.

Question 5

The first chapter mentions "the dark side of entrepreneurship." This pertains to the concept that:

Accepted Answer

A) entrepreneurship can cause stress and impact on social relationshipsE) negative factors such as coldness, obsession and self-interest are often at play in the process

Question 6

Shane and Venkataraman have worked towards summarizing the essence and unique aspects of entrepreneurship, and have come up with a widely accepted definition of entrepreneurship as:

Accepted Answer

The definition provided by Shane and Venkataraman emphasizes the process of discovering, creating, and exploiting opportunities, rather than just starting a company or working together. Therefore, the best choice is E.

Question 7

The proposition "All business owners are not entrepreneurs and all entrepreneurs are not business owners" is discussed in the book. In all likelihood, this implies: (four are correct)

Accepted Answer

The proposition distinguishes between entrepreneurs and business owners, suggesting that entrepreneurship can exist beyond traditional business ownership (F, G, H) and that not all businesses embody entrepreneurial ventures (B).

Question 8

The book is based upon four factors/components which can be considered the building blocks of entrepreneurship. These are:

Accepted Answer

The four components that are considered as the building blocks of entrepreneurship are environment, person(s), opportunity, and process. This means that the environment in which an entrepreneur operates, the person or people involved in the entrepreneurial activity, the opportunity that is being pursued, and the process of developing and executing the venture are all crucial factors that contribute to the success of the venture. Traits, profitability, risks, evaluation, and the economy are all important factors in entrepreneurship, but they are not considered the primary building blocks.

Quiz 1: The Rise, Fall and Return of the Entrepreneur