Question 1

Many have shown how entrepreneurs are dependent on institutions. What do institutions signify in this context?
A) the authorities and public organizations which impact entrepreneurship
B) the rules of the game which society expresses in the form of systems of rewards, conventions, laws, traditions and values
C) supporting organizations or institutions which assist entrepreneurs in the startup phase
D) theories pertaining to entrepreneurship and business ownership

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:
A) the entrepreneur as creative destruction
B) homo economicus, economic man
C) price mechanism and competition
D) a combination of land, work and capital
E) a tendency towards balancing out supply and demand
F) laws of nature in the economy

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:
A) that creative people destroy economic circulation
B) that the new and improved replaces the old, keeping the economy going non-stop
C) that entrepreneurs are the ones who make it happen
D) that the economy's natural impulse to restore balance is fueled by entrepreneurs

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?
A) new goods, new qualities
B) new markets
C) new methods
D) new meeting places
E) new forms of organization
F) new tax laws
G) new support systems
H)new sources of raw materials

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:
A) entrepreneurship can cause stress and impact on social relationships
B) entrepreneurship is often a side job
C) entrepreneurship is often a solitary affair
D) a person can lose a lot of money
E) negative factors such as coldness, obsession and self-interest are often at play in the process
F) defines the risks of entrepreneurship

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:
A) working together to achieve something
B) acting regardless of the resources on hand
C) starting a company, and once it has been started, entrepreneurship has reached its completion
D) being on the lookout for opportunities and problems
E) how, and by whom, opportunities are discovered, created and exploited

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)
A) once an entrepreneur, always an entrepreneur
B) that all businesses are not entrepreneurial
C) that entrepreneurship always pertains to business and business ventures
D) that entrepreneurship only exists in the private sector
E) that business ventures and entrepreneurship are one and the same
F) that one can be an entrepreneur in various sectors of society
G) that one can be an entrepreneur without being a business owner
H)that one can be a business owner without being an entrepreneur

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:
A) environment, traits, profitability and process
B) environment, person(s), opportunity and process
C) environment, risks, evaluation and process
D) the individual, process, risks and the economy

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

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

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:

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

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?

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

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:

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)

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