Exam Questions The Entrepreneurial Perspective Chapter 1 1e

Chapter 1: The Entrepreneurial Perspective

= Correct answer

Multiple Choice/Fill in the Blank

1. Which of the following is an example of an entrepreneur?

A. innovator

B. market leader

C. nonprofit

D. strategist

Difficulty: Moderate

1. Which of the following best describes expanders and scalers’ approach to venturing?

A. innovating or reinventing markets from a future perspective

B. making something new or seeing a new problem

C. seeking out opportunities to expand processes, products, or creating methods

D. finding new approaches and outlooks to venturing

Difficulty: Moderate

1. All of the following except ________ describe entrepreneurs.

A. activists

B. corporate rebels

C. corporate sponsors

D. non conformists

Difficulty: Easy

1. Which of the following is an example of a lifestyle venture?

A. McDonald’s

B. Sharkits

C. Wander Girls

D. Warby Parker

Difficulty: Easy

1. Which of the following is not an example of a lifestyle venture?

A. organizing trips and events for women traveling to India

B. making candles to earn money to support her family

C. starting a fashioned focused eyeglass company

D. creating a pasta company to increase jobs in Maine

Difficulty: Easy

1. Which of the following is a way that you can put your strengths to work?

A. thinking about achievements you have accomplished

B. identifying paths to entrepreneurship

C. making a decision to become an entrepreneur

D. giving greater freedom for opportunities

Difficulty: Moderate

1. Which is not a contributing factor to the desire to become an entrepreneur?

A. certainty of employment and income

B. combination of retirement and longer life expectancy

C. excitement and fun of creating something new

D. moving a concept to materialization of an idea

Difficulty: Moderate

1. What element(s) of potential success are crucial beyond simply having an entrepreneurial mindset?

A. access to a larger pool of money

B. funding and education

C. having an angel investor and a team

D. the number of businesses in your country

Difficulty: Moderate

1. What is institutional venture capital?

A. entrepreneurs who fund their own startup ventures

B. group of people pooling money to invest in ventures

C. money from family and friends

D. those who provide funding early in a venture

Difficulty: Easy

1. Which factor does not influence entrepreneurial activity?

A. bank funding

B. employment rates

D. government policies

C. trade issues

Difficulty: Easy

1. What systems discourage people from coming forward with entrepreneurial ideas? (Select all that apply.)

A. bureaucratic prevention of access to information

B. corruption within an economy

C. sustainable production within an economy

D. valuing self-reliance and ingenuity

Difficulty: Moderate

1. Which of the following is a key characteristic that encourages entrepreneurship?

A. access to funding through bank channels

B. geopolitical mindset

C. group-prescribed conformity

D. support for freedom to innovate

Difficulty: Moderate

1. What are examples of entrepreneurship education that are driving growth? (Select all that apply.)

A. More colleges are teaching entrepreneurship through classes and clinics.

B. Most universities are offering funding to young entrepreneurs.

C. Students are connecting with business ideas.

D. Students receive scholarships for studying entrepreneurship.

Difficulty: Moderate

1. Which answer least describes the entrepreneurial aspect of Starbucks?

A. Its founder wanted to establish an American coffee empire.

B. There were few coffee shops in the US with a European flair.

C. They wanted to compete with McDonalds and Dunkin Donuts which serve coffee.

D. They wanted to focus on producing high-quality coffee.

Difficulty: Moderate

1. Which of the following is not an example of a social-environmental entrepreneurial problem?

A. concern for quality of life

B. concern about pollution

C. concern for government funding

D. concern for air quality

Difficulty: Moderate

1. How is a serial entrepreneur different than a social entrepreneur?

A. A serial entrepreneur is someone who starts multiple nonprofit ventures, while a social entrepreneur is someone who starts only one nonprofit venture.

B. A serial entrepreneur is someone who someone who focuses on solving a problem, while a social entrepreneur is someone who starts multiple entrepreneurial ventures.

C. A serial entrepreneur is someone who starts multiple entrepreneurial ventures, while a social entrepreneur is someone who focuses on solving a problem.

D. A serial entrepreneur is someone who starts multiple for-profit ventures, while a social entrepreneur is someone who starts only one for-profit venture.

Difficulty: Difficult

1. Why is the United States a country that “grows” successful entrepreneurs?

A. because there are many immigrants

B. because there are few prescribed conformity traditions

C. because of affinity marketing supporting immigrants

D. because there are a lot of retirees with pensions

Difficulty: Moderate

1. Which country is most attractive for entrepreneurial ventures?

A. Australia

B. Mexico

C. Netherlands

D. Scotland

Difficulty: Moderate

1. Which of the following best describes an entrepreneurial mindset?

A. desiring to take business risk for growth

B. having an entrepreneurial education

C. having sufficient venture capital funding

D. knowing what business will be successful

Difficulty: Moderate

1. What are the commonalities between an angel investor and a venture capitalist? (Select all that apply.)

A. They both have funding and a focus on lending money.

B. They both have an interest in helping other entrepreneurs in their startups.

C. They both provide funding at all stages of an investment.

D. They both are former entrepreneurs who have launched and harvested their own ventures.

Difficulty: Difficult

True/False

1. True or false? Evernote cofounder, Phil Libin, said that changing the world is the only legitimate reason to start a company.

Difficulty: Easy

1. True or false? Part of the entrepreneurial perspective is solving problems to make lives easier.

Difficulty: Easy

1. True or false? There is only one type of entrepreneur.

Difficulty: Easy

1. True or false? Innovators make something new or see a problem that other people have not noticed.

Difficulty: Moderate

1. True or false? Because of the stress of starting a business, entrepreneurs tend to have shorter life expectancies.

Difficulty: Moderate

1. True or false? Entrepreneurs launch only for-profit ventures.

Difficulty: Easy

1. True or false? Most theorists believe there is only one definition of entrepreneurial success, which is to make money.

Difficulty: Moderate

1. True or false? The Burt’s Bees product line grew from an idea for a lifestyle entrepreneurial venture into a major company.

Difficulty: Easy

1. True or false? Social entrepreneurs only start nonprofits.

Difficulty: Difficult

1. True or false? An opportunity-identifying perspective determines how a problem can be translated into a new opportunity to create a new venture.

Difficulty: Easy

1. True or false? Outside of the United States, there are few entrepreneurial ventures.

Difficulty: Easy

1. True or false? When a venture grows, less money is typically needed as early funding will yield greater profitability returns.

Difficulty: Moderate

35. True or false? United States venture capitalists have contributed more money than European and Chinese deals combined.

Difficulty: Moderate

36. True or false? Serial entrepreneurs focus on passion projects.

Difficulty: Difficult

Short Answer

1. What is an entrepreneur and what is an entrepreneurial venture?

Difficulty: Easy

1. What is the difference between a small business owner and an entrepreneur?

Difficulty: Easy

1. Are there situations where a small business owner is not an entrepreneur or vice versa?

Difficulty: Moderate

1. What are the lessons learned about approaching investors from the startup story of Warby Parker?

Difficulty: Moderate

1. What happens in a funding round?

Difficulty: Easy

1. What about Angad Daryani’s inventions defines him as an entrepreneur, and how has he exemplified serial and social entrepreneurship?

Difficulty: Moderate

1. What is Saudi Arabia’s history of entrepreneurship, and what has it done to increase its support of venturing?

Difficulty: Moderate

1. Explain how a serial entrepreneur would define success and provide examples.

Sir Richard Branson is a well-known serial entrepreneur who began with a mail-order record business that became the Virgin Group with over 200 diversified companies. This includes an airline, music, companies, beverages and clothing. He also has expanded to the travel industry with hotels and vacation packages. Another example is the late Wayne Huizenga who became a business tycoon with diverse business interests including garbage pickup, automotive sales, and video rental. He also founded six public companies and owned several sports team. Like other serial entrepreneurs, he did not stop with his first success but kept investing time, money, and effort into diversified business development.

Difficulty: Difficult

1. How do a country’s culture and traditions influence entrepreneurship?

Some countries are not able to quickly respond within their complex bureaucracies, which discourages entrepreneurship. Some nations, especially the poor, are often excluded from parts of worldwide economic structures (banking, investments, and technology) that are necessary for entrepreneurship. If people don’t have access to information that is necessary for the successful advancement of an idea, entrepreneurship is hindered.

Difficulty: Difficult

1. What causes a passion project to become an entrepreneurial venture? Give examples from outside the text.

Difficulty: Difficult

1. Based on Johann Hari’s Ted Talk, what social ventures could be created to combat addiction?

Difficulty: Difficult

1. Explain why retirees are ripe for entrepreneurial ventures.

Difficulty: Moderate

1. Discuss the factors that inhibit the growth of entrepreneurship.

Difficulty: Difficult

1. Evaluate and explain whether you think that entrepreneurship is a viable career choice.

For some individuals, entrepreneurship provides an ideal career path. It enables them to leverage their creativity and establish work-life balance. Oftentimes people succeed due to drive and inspiration and achieve a sense of personal accomplishment.

Difficulty: Difficult

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