Chapter 1 Understanding Entrepreneurship Entrepreneurship is a form of creative destruction TRUE FALSE ANS T ANS F ANS T 4 ANS F most respects ANS T possible failure ANS T 1 2 3 5 6 7 8 9 ANS F ANS T ANS T ANS T The entrepreneurial mindset cannot be found within large corporations or socially responsible nonprofit organizations Entrepreneurship can be found in some form in every country race age group and increasingly in women as often as in men Entrepreneurial ventures are not responsible for significant job creation Entrepreneurial ventures and small businesses are related but they are not the same in The vital issue for entrepreneurs is not avoiding failure but minimizing the cost of a The term entrepreneur has been in popular use for more than 100 years Economic turmoil has a plus side because it produces opportunities for entrepreneurs who are comfortable with environmental factors outside their control Entrepreneurial ventures are responsible for job creation that is disproportionate to the net total new jobs created in the U S over the past 25 years 10 The time prior to a firm s birth is called the fuzzy front end MULTIPLE CHOICE 1 As entrepreneurial firms achieve noticeable levels of success and a new industry grows it generally becomes more as a result of so many firms competing for position a b c d e ANS D stable unstable consolidated fragmented None of these choices entrepreneurship is characteristic of small lifestyle businesses 2 Replicative Innovative Local Fragmented None of these choices a b c d e ANS A 3 1950s 1960s 1970s 1980s 1990s a b c d e ANS D 4 one quarter one third one half the majority the highest levels a b c d e ANS B including eco iconic marketing a b c d e ANS C international technology green power educational women s 6 social marketing social mingling mass networking mass mingling a b c d The has been called the Decade of Entrepreneurship Women now comprise of all entrepreneurial activity globally 5 Entrepreneurs are taking advantage of several subtrends within the sector Twitter has been the leader in facilitating a new trend known as 7 The late 1980s brought the dot com bubble and the rush of the community to None of these choices e ANS D position itself for what appeared to be a new way of doing business a b c d e ANS A venture capital technology knowledge educational global 8 Entrepreneurship provides many benefits to society chiefly new industry formation and a b c d e ANS B new technologies new markets economic growth job creation job creation diversity economic growth new technologies globalization new markets entrepreneurial process a b c d e ANS A Morris Lewis and Sexton Ronstadt Gartner Rogers None of these choices P 9 The school of thought proposes an integrated input output model to describe the 10 Gartner s conceptual framework for the new venture creation process focuses on three major categories of variables the individual entrepreneur and what he or she brings to the process the and the a b c d e ANS C market technology input output environment organization career environment technology industry 11 Early economists recognized that is the primary force behind rising standards of living and that innovation would determine the success of many nations in the future a b c d e ANS A technology technological labor growth manufacturing distribution industry formation job economic growth invention 12 Technological change has facilitated and a new form of creative destruction by moving out of the Unites States to countries where labor costs are substantially less a b c d e ANS B innovation platform technologies globalization lower skilled jobs input models resources fluid groups higher skilled jobs None of these choices 1 Today is growing faster than any modern economy 14 New industries are born when technological change produces a an opportunity 13 the United States Pakistan India China Japan a b c d e ANS D 1 that an enterprising entrepreneur seizes a b c d e ANS B investment novel crucial successful efficient 1 15 production driven factor driven efficiency driven innovation driven entrepreneurial a b c d e ANS D 1 than employees a b c d e ANS E 250 385 600 700 500 1 Denmark Israel United Arab Emirates and the United States have economies 16 The Small Business Administration SBA defines a small business as one with fewer 17 Entrepreneurs typically have a vision of where they want their businesses to go and generally that vision is on a regional national or more often level a b c d state global country local 18 The process of new venture formation is characterized by stage s and 19 is the mechanism that drives an individual to become a nascent entrepreneur because all other opportunities for income appear to be absent or unsatisfactory a b c d e ANS D Pull Risk Success Push Money 1 20 The Small Business Administration Office of Advocacy reports that of new 21 Firms that are most likely to survive over the long term are those that display superior levels of reliability and accountability in performance and structure a b c d e ANS D resources age operations processes controls 1 More than percent of Salesforce com s employees are involved in philanthropy e ANS B None of these choices 1 transition s or decision points a b c d e ANS D one two three five two three four three five two 1 businesses survive at least five years a b c d e ANS A one half one third three quarters two thirds None of these choices 1 22 63 89 90 75 85 a b c d e ANS E 1 23 a b c d e ANS B The term entrepreneur has been popular in the United States since the 1920s 1940s 1960s 1980s 1990s 1 24 The 1970s saw the beginning of three significant trends that would forever change the face of business macroeconomic turmoil and the technological revolution a b c d e ANS C the Vietnam War agricultural disasters international competition recession None of these choices 1 The microprocessor affected the technological revolution of the 1970s 26 was not alone in asserting that the United States was rapidly and by necessity 25 Apple Microsoft Java Intel Sun a b c d e ANS D 1 becoming an entrepreneurial economy a b c d e ANS B Steve Jobs Peter Drucker Mike Boyer Marc Weinstein Sam Goody 1 27 Responding to this entrepreneurial drive big business in the 1980s found it necessary to downsize and reverse the trend of it had promulgated for so long a b c d e ANS C innovation restructurings diversification internationalizing None of these choices 1 were much earlier than expected and at a much