Question 1

Jan Berry recently received a $500,000 inheritance from her maternal grandmother. Jan decided to use the money to start a business. According to the textbook, the inheritance that Jan received was the ________ that prompted her to start a business.
A) prompting event
B) entrepreneurial prompt
C) initiating event
D) triggering event
E) kick-off event

Accepted Answer

The term "triggering event" refers to the specific event that prompts an individual to start a business, and in this case, Jan's inheritance was the triggering event that prompted her to start a business. Therefore, the best choice is D.

Question 2

A firm's ________ is a plan for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the value it creates.
A) business plan
B) business model
C) tactical model
D) strategic plan
E) operations model

Accepted Answer

A firm's business model outlines its overall approach to creating value and sustaining that value over time. It encompasses a range of factors, including how the firm competes, leverages resources, structures relationships, interfaces with customers, and generates revenue. Business plans and strategic plans can be components of a business model, but they alone do not encompass the full range of factors that make up a company's approach to creating value. Tactical models and operations models are specific frameworks for managing specific aspects of a company's operations and are not synonymous with a business model.

Question 3

A(n) ________ is a written document that describes all the aspects of a business venture in a concise manner.
A) business plan
B) business model
C) operations plan
D) corporate plan
E) contingency plan

Accepted Answer

A business plan is specifically designed to outline the key components of a business venture, including financial projections, marketing strategies, organizational structure, and other important details. This document serves as a roadmap for entrepreneurs as they launch and grow their businesses, and it is often used to attract investors or secure funding.

Question 4

Identify and discuss the three primary reasons that entrepreneurial behavior has a strong impact on the United States economy.

Accepted Answer

The answer of Identify and discuss the three primary reasons...

Question 5

In regard to patent activity (issuance), which of the following statements is correct?
A) Small businesses outperform their larger counterparts.
B) Small businesses underperform their larger counterparts.
C) Small businesses and large businesses are relatively equal.
D) Small businesses are not active in patent activity.
E) Large businesses are not active in patent activity.

Accepted Answer

The answer of In regard to patent activity (issuance), which...

Question 6

In the book The Theory of Economic Development, ________ argued that entrepreneurs develop new products and technologies that, over time, make current products and technologies obsolete. This process is called creative destruction.
A) Malcolm Gladwell
B) Seth Godin
C) Joseph Schumpeter
D) Thomas Friedman
E) Jim Collins

Accepted Answer

The book The Theory of Economic Development is written by Joseph Schumpeter who argues that entrepreneurs develop new products and technologies that make current products and technologies obsolete, known as creative destruction.

Question 7

An event that prompts an individual to become an entrepreneur, such as losing a job, inheriting money, or accommodating a certain lifestyle, is referred to as a(n) ________.
A) prompting event
B) entrepreneurial prompt
C) initiating event
D) triggering event
E) kick-off event

Accepted Answer

A triggering event is an event that prompts an individual to become an entrepreneur, such as a job loss, inheritance, or change in lifestyle. This event triggers the desire in an individual to start a business and become an entrepreneur.

Question 8

Joseph Schumpeter argued that entrepreneurs develop new products and technologies that over time make current products and technologies obsolete, and this process, which he called creative destruction, is good because it stimulates economic activity.

Accepted Answer

This is the central idea of Schumpeter's theory of creative destruction.

Question 9

According to the textbook, entrepreneurship has historically had ________.
A) a major impact on the economy and minor impact on society
B) a minor impact on both the economy and society
C) a major impact on society and minor impact on the economy
D) a major impact on both the economy and society
E) no impact on either the economy or society

Accepted Answer

The textbook states that entrepreneurship has historically had a major impact on both the economy and society. This is because entrepreneurs create new businesses, products, and services that generate economic growth, create jobs, and drive innovation. Additionally, entrepreneurs often have a strong social or environmental mission, which can have positive impacts on society as a whole.

Question 10

________ is the process of creating something new, which is central to the entrepreneurial process.
A) Creative destruction
B) Modernism
C) Execution
D) Creativity
E) Innovation

Accepted Answer

Innovation is the process of creating something new or improving existing products, services, or processes. This is central to the entrepreneurial process, as entrepreneurs seek to identify and capitalize on new opportunities in the marketplace through innovative solutions.

Question 11

Which of the following is the correct sequence for the four steps in the entrepreneurial process?
A) Deciding to become an entrepreneur, developing successful business ideas, moving from an idea to an entrepreneurial firm, managing the growing entrepreneurial firm
B) Developing successful business ideas, deciding to become an entrepreneur, moving from an idea to an entrepreneurial firm, managing and growing the entrepreneurial firm
C) Developing successful business ideas, moving from an idea to an entrepreneurial firm, deciding to become an entrepreneur, managing and growing the entrepreneurial firm
D) Deciding to become an entrepreneur, moving from an idea to an entrepreneurial firm, developing successful business ideas, managing and growing the entrepreneurial firm
E) Managing and growing the entrepreneurial firm, developing successful business ideas, deciding to become an entrepreneur, moving from an idea to an entrepreneurial firm

Accepted Answer

The correct sequence starts with the decision to become an entrepreneur, followed by developing successful business ideas, then moving from an idea to an entrepreneurial firm, and finally managing the growing entrepreneurial firm.

Question 12

The entrepreneurial process consists of four steps: deciding to become an entrepreneur, developing successful business ideas, moving from an idea to an entrepreneurial firm, and divesting or selling the entrepreneurial firm.

Accepted Answer

The answer of The entrepreneurial process consists of four steps:...

Question 13

Innovation is the process of creating something new, which is central to the entrepreneurial process.

Accepted Answer

Innovation is one of the fundamental components of entrepreneurship, and it involves creating new products, services, or business models that meet customer needs or solve problems in a novel way. Without innovation, entrepreneurs would not be able to differentiate themselves from competitors or generate sustainable growth over time.

Question 14

Which of the following is not one of the four steps of the entrepreneurial process?
A) Deciding to become an entrepreneur
B) Determining how to seize the spotlight
C) Developing successful business ideas
D) Moving from an idea to an entrepreneurial firm
E) Managing and growing the entrepreneurial firm

Accepted Answer

The four steps of the entrepreneurial process are deciding to become an entrepreneur, developing successful business ideas, moving from an idea to an entrepreneurial firm, and managing and growing the entrepreneurial firm. "Determining how to seize the spotlight" is not a step in this process.

Question 15

Small businesses outperform their larger counterparts in terms of patent activity (issuance).

Accepted Answer

Several studies have shown that small businesses are more likely to generate patents compared to larger companies, and that they are often more innovative and adaptive to changing market conditions.

Quiz 1: Introduction to Entrepreneurship

Jan Berry recently received a $500,000 inheritance from her maternal grandmother. Jan decided to use the money to start a business. According to the textbook, the inheritance that Jan received was the ________ that prompted her to start a business.

A firm's ________ is a plan for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the value it creates.

A(n) ________ is a written document that describes all the aspects of a business venture in a concise manner.

Identify and discuss the three primary reasons that entrepreneurial behavior has a strong impact on the United States economy.

In regard to patent activity (issuance) , which of the following statements is correct?

In the book The Theory of Economic Development, ________ argued that entrepreneurs develop new products and technologies that, over time, make current products and technologies obsolete. This process is called creative destruction.

An event that prompts an individual to become an entrepreneur, such as losing a job, inheriting money, or accommodating a certain lifestyle, is referred to as a(n) ________.

Joseph Schumpeter argued that entrepreneurs develop new products and technologies that over time make current products and technologies obsolete, and this process, which he called creative destruction, is good because it stimulates economic activity.

According to the textbook, entrepreneurship has historically had ________.

________ is the process of creating something new, which is central to the entrepreneurial process.

Which of the following is the correct sequence for the four steps in the entrepreneurial process?

The entrepreneurial process consists of four steps: deciding to become an entrepreneur, developing successful business ideas, moving from an idea to an entrepreneurial firm, and divesting or selling the entrepreneurial firm.

Innovation is the process of creating something new, which is central to the entrepreneurial process.

Which of the following is not one of the four steps of the entrepreneurial process?

Small businesses outperform their larger counterparts in terms of patent activity (issuance).