Question 1

As described in the Opening Profile to Chapter 1, David Reynolds knew from the day that he graduated high school, he wanted to be an entrepreneur.

Accepted Answer

False

Question 2

As described in the Opening Profile to Chapter 1, David Reynolds chose entrepreneurship as a career because he liked the idea of being his own boss, working in any business that he wanted to, and having unlimited earning potential.

Accepted Answer

David Reynolds' motivations for choosing entrepreneurship align with common reasons individuals pursue this path, such as autonomy, flexibility, and financial opportunities.

Question 3

An interesting research finding is that individuals who study entrepreneurship are three to four times less likely to start their own business than those who study in other fields, thus indicating the value of knowing the risks involved.

Accepted Answer

There is no widely recognized research finding that conclusively states individuals who study entrepreneurship are less likely to start their own business compared to those in other fields.

Question 4

99% of businesses in Canada are in fact small or medium enterprises.

Accepted Answer

According to the Government of Canada, small and medium-sized enterprises (SMEs) make up the vast majority of businesses in the country, accounting for approximately 99% of all businesses.

Question 5

A typical entrepreneur in the Middle Ages was the cleric, who managed the great architectural works such as abbeys and cathedrals.

Accepted Answer

In the Middle Ages, clerics often played a significant role in managing and overseeing the construction of large architectural projects like abbeys and cathedrals, acting as early forms of entrepreneurs.

Question 6

Richard Cantillon, noted 17th century economist and author, viewed the entrepreneur as a risk taker because the business owner bought (or produced) goods or services at a certain price and sold at an uncertain price, thereby operating at a risk.

Accepted Answer

Richard Cantillon is credited with one of the earliest theories of entrepreneurship, where he described entrepreneurs as individuals who take on the risk of buying at certain prices and selling at uncertain prices, highlighting the inherent risk in entrepreneurial activities.

Question 7

As discussed in the text, K.C. Irving is one of the best examples of the economic definition of entrepreneurship, which is an individual who organizes and operates an enterprise for personal gain.

Accepted Answer

K.C. Irving was a Canadian entrepreneur who built a vast business empire, exemplifying the economic definition of entrepreneurship by organizing and operating enterprises for personal gain.

Question 8

Modern day definitions of entrepreneurship show no connection between innovation and the act of operating a business for profit or loss.

Accepted Answer

Modern definitions of entrepreneurship often emphasize the role of innovation in creating new products, services, or processes, which is integral to operating a business for profit or loss.

Question 9

The key element found in all definitions of entrepreneurship is risk taking.

Accepted Answer

Risk-taking is a fundamental aspect of entrepreneurship, as entrepreneurs often invest resources in uncertain ventures with the potential for profit or loss.

Question 10

As defined in the text, entrepreneurship is the process of creating something new and assuming the risks and rewards.

Accepted Answer

Entrepreneurship involves creating new ventures or products and taking on the associated risks and potential rewards.

Question 11

A central concept of entrepreneurship is the creation of value by the customer for the entrepreneur.

Accepted Answer

The central concept of entrepreneurship is the creation of value by the entrepreneur for the customer, not the other way around. Entrepreneurs identify opportunities and create products or services that provide value to customers.

Question 12

The motives of social entrepreneurship are to benefit society.

Accepted Answer

Social entrepreneurship aims to address social issues and create positive change, prioritizing societal benefits over profit.

Question 13

Statistics Canada has indicated that the number-one reason entrepreneurs start their own business is money, not independence.

Accepted Answer

The answer of Statistics Canada has indicated that the number-one...

Question 14

As discussed in the text from an article in Profit Magazine, to be successful in the entrepreneurship game in the future, Canadians need to lower their appetite for risk and become more conservative, which will increase their chance of long-term success.

Accepted Answer

Entrepreneurship typically involves taking calculated risks, and being overly conservative may hinder innovation and growth.

Question 15

The entrepreneurial decision process entails a movement from a present lifestyle to forming a new enterprise, a decision that typically requires a great deal of courage and energy.

Accepted Answer

The entrepreneurial decision process involves leaving a current lifestyle or job to start a new business, which often requires courage and energy due to the risks and challenges involved.

Question 16

Personal disruption such as a layoff, retirement, relocation, or completion of an educational degree can be a major factor in the decision to form a new business.

Accepted Answer

Personal disruptions often lead individuals to reassess their career paths and consider entrepreneurship as a viable option for their next step.

Question 17

As discussed in the text, Canadian culture does not place a high value on individual opportunity or freedom, which helps to explain the low rate of company formation in Canada over the past fifty years.

Accepted Answer

Canadian culture does value individual opportunity and freedom, and the low rate of company formation is influenced by other factors such as economic conditions, regulatory environment, and market size.

Question 18

Not surprisingly, interest in entrepreneurship has been linked to independence, that is, individuals who grow up in an environment that places a high value on independence tend to be more interested in forming their own business.

Accepted Answer

Research suggests that individuals raised in environments that emphasize independence are more likely to pursue entrepreneurship due to the value placed on self-reliance and autonomy.

Question 19

Most educational institutions are reducing their emphasis on entrepreneurship in course offerings and academic research, as these courses tend to discourage students from taking risks such as forming their own business ventures.

Accepted Answer

Most educational institutions are actually increasing their emphasis on entrepreneurship, recognizing its importance in fostering innovation and economic growth, and encouraging students to take calculated risks.

Question 20

A "cottage company"is a privately held business that employs fewer than 25 people and has revenues less than $10 million.

Accepted Answer

The answer of A "cottage company"is a privately held business...

Quiz 1: The Entrepreneurial Mind-Set