Question 1

Robin Shannon is an entrepreneur. Which of the following would best describe her?

Accepted Answer

The fact that she views uncertainty as something that can be turned to her advantage indicates that Robin Shannon is likely an entrepreneur who embraces risk and seeks out opportunities despite the possibility of failure. Option A suggests the opposite, while option B is not relevant to her ability as an entrepreneur. Option C is possible, but D is a better fit given the context.

Question 2

Cultural and political factors help explain why Canada has a much higher entrepreneurship rate than Japan and many European nations.

Accepted Answer

This statement is true. Canada has a culture that supports risk-taking and encourages entrepreneurship, as well as a political environment that fosters innovation and provides support for small businesses. In contrast, Japan and many European nations have cultural and political factors that may discourage entrepreneurship, such as a focus on stability and hierarchy in Japan and a social safety net that can disincentivize taking risks in some European countries.

Question 3

Which of the following is one of the primary reasons people become entrepreneurs?

Accepted Answer

Many people become entrepreneurs because they desire the flexibility to create their own schedules and have control over their work-life balance. While other reasons may also play a role, such as a desire for financial gain or a passion for a particular product or service, having control over one's schedule is often a significant motivator for entrepreneurship.

Question 4

Mary Kate wants to start a business. She takes a personality test at school and discovers she possesses a trait that may reduce the likelihood she will succeed. Which of the following is that trait?

Accepted Answer

An external locus of control is the belief that one's success or failure is primarily determined by external factors such as luck or the actions of others, rather than one's own abilities and actions. This can reduce the likelihood of success in starting a business because it may lead to a lack of personal responsibility and initiative.

Question 5

Which of the following factors is a reason why people choose to pursue entrepreneurship?

Accepted Answer

Independence is a common reason why people choose to pursue entrepreneurship. Being your own boss and having control over your work can provide a sense of freedom and flexibility. Factors such as stability and reduced risk tend to be associated more with traditional employment, while entrepreneurship often involves taking on more risk in exchange for potential greater rewards. Less hours may also not be a motivating factor for all entrepreneurs, as they may work longer hours in order to build and grow their businesses.

Question 6

Jacob currently works as a manager at a major corporation, but has been thinking about quitting and starting his own business. Which one of the following reasons would most likely explain Jacob's interest in making this major career change?

Accepted Answer

Jacob's desire for more independence and flexibility suggests that he may be feeling constrained and restricted in his current corporate position, which may be driving his interest in starting his own business.

Question 7

When a large company like Ford Motor Company or Citigroup downsizes, some of the middle-aged and older workers who are laid off find it tough to find another job in corporate Canada. Such workers often decide to start their own businesses. What term would best describe them?

Accepted Answer

Necessity entrepreneurs are individuals who start their own businesses out of necessity, such as the inability to find employment elsewhere. In this scenario, the middle-aged and older workers who are laid off from Ford Motor Company or Citigroup and struggle to find another job in corporate Canada would fit the description of necessity entrepreneurs.

Question 8

What do entrepreneurs tend to be tolerant of?

Accepted Answer

Entrepreneurs tend to be tolerant of uncertainty as they view it as an opportunity to innovate and create something new. They are often comfortable with taking risks and dealing with the unknown, which is a key characteristic of successful entrepreneurs. While they may have patience and faith in their abilities, this does not necessarily mean they are tolerant of delays in getting their companies up and running, and they also value competence in others as it allows them to delegate tasks and focus on their strengths. While some entrepreneurs may prioritize changing the world over making money, this is not universally true and may depend on the specific goals and values of the individual entrepreneur.

Question 9

Which of the following best describes entrepreneurs with a strong internal locus of control?

Accepted Answer

Entrepreneurs with a strong internal locus of control believe that they are in control of their own destiny and that the success or failure of their companies is largely the result of their own actions and decisions. They take personal responsibility for their outcomes and are more resilient in the face of setbacks.

Question 10

Bill Gates, Paul Allen, Michael Dell, Sergey Brin, and Larry Page have appeared on the Forbes annual list of the 400 richest businesspeople in recent years. Which term best describes them?

Accepted Answer

The individuals mentioned are entrepreneurs, as they have founded or co-founded well-known companies such as Microsoft, Dell, and Google. Angel investors and venture capitalists typically provide funding for startups, while politicians are not relevant to their business success.

Question 11

Some entrepreneurs find new solutions to old problems and develop new products that people didn't even realize they needed. What are they said to have?

Accepted Answer

Entrepreneurs who find new solutions to old problems and develop new products that people didn't even realize they needed are said to have "vision". They are able to see possibilities and opportunities that others may overlook.

Question 12

Gregor has developed an automobile engine that runs efficiently for up to three hours on a single russet potato. His friends have pointed out how difficult it will be to get car manufacturers to adopt his new technology and that it could take years to get enough service stations to stock potatoes to make it practical for people to rely on the new energy source for long trips. But Gregor is convinced he can make the Canadian economy energy independent, thus changing the world. He plans to create a new business called Spuds-to-Go to promote his new engine. What does Gregor have?

Accepted Answer

Gregor has a vision to make the Canadian economy energy independent, which shows that he has a clear and compelling idea of what he wants to achieve. He is determined to promote his new engine through his new business, Spuds-to-Go, which indicates that he has a strong sense of purpose and direction. Overall, Gregor's actions suggest that he possesses vision.

Question 13

When entrepreneurs fail, what do they tend to do?

Accepted Answer

Successful entrepreneurs see failure as an opportunity to learn from their mistakes and improve their approach for the future. They analyze where they went wrong and use those insights to make better decisions in the future.

Question 14

Which of the following is a trait common to entrepreneurs?

Accepted Answer

Self-reliance is a common trait among entrepreneurs as they need to be able to make decisions and take action independently. They cannot rely on others to make important business decisions for them. Aversion to risk, laziness, and external locus of control are not common traits among successful entrepreneurs.

Question 15

What has been the result of technological developments over the past two decades, such as the rise of the Internet and e-mail?

Accepted Answer

The rise of the internet and e-mail has given small business owners more flexible options for managing their schedules, such as working remotely, communicating with clients or suppliers from any location, and accessing business data online.

Answer: B
 While the internet and e-mail have given small businesses a greater ability to compete with larger corporations, they have also reduced the flexibility they have in managing their businesses because they must now rely heavily on technology and online platforms to remain competitive.

Answer: C
 There is no evidence to suggest that the rise of the internet and e-mail has reduced the role of entrepreneurship in the Canadian economy. In fact, it may have encouraged more people to start their own businesses or work for themselves.

Answer: D
 While the rise of the internet and e-mail has certainly made it more challenging for small businesses to compete successfully against large corporations, it has also provided them with new opportunities to reach potential customers and market their products and services more effectively.

Question 16

Which of the following traits are entrepreneurs most likely to have?

Accepted Answer

Entrepreneurs are typically associated with having a vision for their business or idea, as they are the ones who conceptualize and bring their ideas to fruition. Aversion to risk and dependence on others may hinder their ability to take the necessary risks and make independent decisions required for entrepreneurship. Laziness is also unlikely, as the drive and motivation to succeed are often critical elements in entrepreneurial success.

Question 17

Some people have a strong sense of personal responsibility for what happens in their lives. What do these people have?

Accepted Answer

People with a sense of personal responsibility for what happens in their lives have an internal locus of control. This means that they believe their actions and decisions contribute to the outcomes they experience, rather than attributing everything to external factors like luck or fate (external locus of control). Intrapreneurial focus and situational view of ethics are not related to this concept.

Question 18

What do we call people who are willing to take the risk of starting, owning, and operating a business?

Accepted Answer

Entrepreneurs are individuals who are willing to take the risk of starting, owning, and operating a business. Shareholders are individuals who own shares in a company, but they may not necessarily be involved in the daily operations of the business. Intrapreneurs are individuals who work within a company and show entrepreneurial characteristics. Stakeholders are individuals or groups who have an interest in the success or failure of a business, including employees, customers, suppliers, and the community.

Question 19

Michel Petorski is a middle-aged professional who lost his job five months ago when his former employer downsized. He's been actively looking for work at all of the nearby companies, but he hasn't been able to find a job that truly uses his talents or abilities-or that offers an income anywhere close to what he earned in his previous position. He is beginning to feel that the only way to survive in his current situation is to start his own business. What might Michel well become?

Accepted Answer

Michel's situation fits that of a necessity entrepreneur, someone who starts their own business out of a need for income or to overcome a challenging situation, rather than as a result of a personal passion or opportunity.

Question 20

What is the primary reason why many people become entrepreneurs?

Accepted Answer

The primary reason why many people become entrepreneurs is to make more money. Starting a business can potentially provide a greater financial reward than traditional employment.

Quiz 6: Small Business and Entrepreneurship: Economic Rocket Fuel