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Chapter 02
The Entrepreneurial Mind: Crafting a Personal Entrepreneurial Strategy
True / False Questions
1.(p.41)Since entrepreneurs are internally motivated, high-energy people with a passion for discovery and innovation, they are distinct from seasoned business managers with the skill to scale the enterprise.
FALSE
Difficulty: Easy
Type: Knowledge
2.(p.43)After years of research, it is now possible to take a number of people, give them a specialized test, and determine those in the group that do and do not possess entrepreneurial minds.
FALSE
Difficulty: Easy
Type: Knowledge
3.(p.43)Behavioral scientists, venture capitalists, investors, and entrepreneurs believe that the eventual success of a new venture is largely dependent upon the talent and behavior of the lead entrepreneur and of his or her team.
TRUE
Difficulty: Easy
Type: Knowledge
4.(p.44)A study of 118 entrepreneurs revealed that those who moved quickly and were profit-oriented were much more likely to excel in business than those who were planners.
FALSE
Difficulty: Hard
Type: Knowledge
5.(p.44)One predictable research finding was that driven, successful entrepreneurs are generally not patient individuals.
FALSE
Difficulty: Hard
Type: Knowledge
6.(p.45)While certain individuals possess such inborn characteristics as energy and raw intelligence, these characteristics do not necessarily mean that they will succeed as entrepreneurs.
TRUE
Difficulty: Easy
Type: Knowledge
7.(p.48)Almost without exception, entrepreneurs live under huge, constant pressures until their firms have survived the startup phase; after that, it typically gets easier.
FALSE
Difficulty: Moderate
Type: Knowledge
8.(p.48)Founders should compete with peers in the company as a way of fostering team cohesion and spirit.
FALSE
Difficulty: Easy
Type: Knowledge
9.(p.49)In the face of tasks that are deemed unsolvable, entrepreneurs will actually give up sooner than others do.
TRUE
Difficulty: Moderate
Type: Knowledge
10.(p.51)Successful entrepreneurs possess a well-developed capacity to exert influence without formal power.
TRUE
Difficulty: Moderate
Type: Knowledge
11.(p.51)Successful entrepreneurs often exhibit a strong need to control, influence, and maintain power as the lead entrepreneur.
FALSE
Difficulty: Moderate
Type: Knowledge
12.(p.53)Rather than willingly put themselves in situations where they are personally responsible for the success or failure of the operation, the best entrepreneurs find ways to distribute risk among the various stakeholders and constituents.
FALSE
Difficulty: Hard
Type: Knowledge
13.(p.54)The need to possess an objective way of keeping score, such as changes in profits, sales, or stock price, often makes money the primary motivator for driven entrepreneurs.
FALSE
Difficulty: Moderate
Type: Knowledge
14.(p.56)Evidence suggests that the most durable entrepreneurial careers, those found to last 25 years or more, were begun at an earlier age before the person had made any substantial commitments to a specific career path.
FALSE
Difficulty: Moderate
Type: Knowledge
15.(p.59)Entrepreneurs work longer and harder than managers in big companies.
FALSE
Difficulty: Moderate
Type: Knowledge
16.(p.59)The average age of entrepreneurs starting high-potential businesses is in the
mid-40s.
FALSE
Difficulty: Moderate
Type: Knowledge
Multiple Choice Questions
17.(p.42)When Marion Labs founder Ewing Marion Kauffman sent his financial officer back to Germany to re-negotiate a supplier contract that favored his own company, what was his primary business motivation?
A.Maintaining positive international relations
B.Satisfying demand
C.Maintaining high ethical standards
D.Supporting the value chain
Difficulty: Moderate
Type: Application
18.(p.44)Which of the following is not a persistent myth about entrepreneurs?
A.Leaders are born, not made
B.Entrepreneurs are gamblers
C.Solo entrepreneurs limit their potential for growth
D.Entrepreneurs should be young and energetic
Difficulty: Moderate
Type: Knowledge
19.(p.43, 44)Research has found that people are motivated by which of the following?
A.The need for achievement
B.The need for power
C.The need for affiliation
D.All of the above
Difficulty: Easy
Type: Knowledge
20.(p.46)Which of the following was not one of the three principle success factors cited by the first 21 inductees into Babson College's Academy of Distinguished Entrepreneurs?
A.The ability to respond positively to challenges and learn from mistakes
B.The ability to attract and motivate an effective team
C.Personal initiative
D.Perseverance and determination
Difficulty: Moderate
Type: Knowledge
21.(p.47)According to the authors, which of the seven dominant themes of entrepreneurship is the most important?
A.Leadership
B.Opportunity Obsession
C.Courage
D.Commitment and Determination
E.Tolerance of Risk, Ambiguity and Uncertainty
F.Creativity, Self-Reliance, and Adaptability
G.Motivation to Excel
Difficulty: Moderate
Type: Knowledge
22.(p.48)Which of the following are Non-entrepreneurial Attributes?
A.Invulnerability
B.Perfectionist
C.Outer control
D.All of the above
Difficulty: Easy
Type: Knowledge
23.(p.50)Building a substantial enterprise that will contribute something lasting and relevant to the world while realizing a capital gain can typically take how long?
A.1-3 years
B.3-5 years
C.5-10 years
D.10-15 years
Difficulty: Easy
Type: Knowledge
24.(p.50)An organization's needs are satisfied ______those of the other constituents the enterprise serves.
A.in parallel with
B.before
C.after
D.None of the above; depends on the situation
Difficulty: Moderate
Type: Knowledge
25.(p.51)Successful entrepreneurs initially focus on what?
A.Money
B.Resources
C.Networking
D.Opportunity
Difficulty: Easy
Type: Knowledge
26.(p.51)What was the primary business principle that entrepreneur Tom Stemberg applied as he formulated his concept for his chain of office supply stores?
A.Point-of-sale marketing
B.Franchising
C.Mass distribution
D.Volume economies
Difficulty: Easy
Type: Knowledge
27.(p.54)"Veridical awareness" refers to entrepreneurs' ability to
A.Understand their limitations
B.Believe in themselves
C.Maintain a sense of perspective
D.All of the above
Difficulty: Hard
Type: Knowledge
28.(p.55)What is one of the primary attributes that separates entrepreneurial types from Inventors, Promoters, and Managers?
A.Creativity and insight
B.Conservation of resources
C.Long range planning
D.Marshalling diverse resources
Difficulty: Moderate
Type: Knowledge
29.(p.56)In general, how long will venture capitalists work with a start-up before declaring the company a 'lemon'?
A.Up to a year
B.About two and half years
C.At least three years
D.Three to five years
Difficulty: Moderate
Type: Knowledge
30.(p.56)According to venture investors, what is a realistic time frame for growing a higher potential business to the point where a capital gain can be realized?
A.1-3 years
B.2-5 years
C.5-7 years
D.7-8 years
Difficulty: Moderate
Type: Knowledge
31.(p.57)Which of the following is not a paradox of entrepreneurship?
A.Flexibility vs. opportunity focus
B.Resource requirements vs. ownership
C.Age vs. experience
D.Drive and ambition vs. wisdom and judgment
Difficulty: Moderate
Type: Knowledge
32.(p.57)Increasingly, research studies on the career paths of entrepreneurs and the self-employed suggest that which of the following is the central factor in successful venture creation?
A.Networking
B.The ability to marshal resources
C.Experience and know-how
D.The ability to attract and motivate an effective team
Difficulty: Moderate
Type: Knowledge
33.(p.58)According to research, which of the following statements is false?
A.Many successful entrepreneurs do not have prior industry experience
B.Most successful entrepreneurs start companies by their late 20s
C.Most successful entrepreneurs follow a pattern of apprenticeship
D.Family firms spawn entrepreneurs
Difficulty: Hard
Type: Knowledge
34.(p.64, 65)Crafting a Personal Entrepreneurial Strategy can
A.Create tension and pressure
B.Heighten the fear of failure
C.Spark action towards achievable goals
D.All of the above
Difficulty: Easy
Type: Knowledge
Short Answer Questions
35.(p.42)Two of the three core principles that are the cornerstone of the values, philosophy, and culture of the Kauffman Foundation are Treat others as you would want to be treated, and Share the wealth that is created with all those who have contributed to it at all levels. What is the third core principle?
Give back to the community.
Difficulty: Moderate
Type: Knowledge
36.(p.65)Name the conceptual scheme for thinking about the self-assessment process where there are two sources of information about the self: the individual, and others.
the Johari Window.
Difficulty: Hard
Type: Vocabulary
37.(p.65)What plays a significant role in influencing an entrepreneur's values, motivations, attitudes, and behaviors?
personal history
Difficulty: Easy
Type: Knowledge
Fill in the Blank Questions
38.(p.43)The ______is the need to excel and for measurable personal accomplishment.
need for achievement
Difficulty: Easy
Type: Knowledge
39.(p.44)The ______is the need to build a warm relationship with someone else and/or to enjoy mutual friendship.
need for affiliation
Difficulty: Easy
Type: Knowledge
40.(p.45)Successful entrepreneurs are not gamblers; they take ______.
calculated risks
Difficulty: Easy
Type: Knowledge
41.(p.51)Entrepreneurs realize good ideas are a dime a dozen, but good ______are few and far between.
opportunities
Difficulty: Easy
Type: Knowledge
42.(p.53)For a successful entrepreneur, seeking and using ______is central to the habit of learning from mistakes and setbacks, and of responding to the unexpected.
feedback
Difficulty: Moderate
Type: Knowledge
43.(p.56)Since entrepreneurs frequently evolve from an entrepreneurial heritage or are shaped and nurtured by their closeness to entrepreneurs and others, the concept of ______can be a useful one.
an apprenticeship
Difficulty: Easy
Type: Knowledge
44.(p.58)Numerous studies show a strong connection between the presence of ______in their lives and the emergence of successful entrepreneurs.
role models
Difficulty: Easy
Type: Knowledge
45.(p.62)Most successful entrepreneurs have had a ______to help them achieve their dreams and goals, both implicitly and explicitly.
personal strategy
Difficulty: Easy
Type: Knowledge
46.(p.64)Crafting a personal entrepreneurial strategy can be viewed as the personal equivalent of developing a ______.
business plan
Difficulty: Easy
Type: Knowledge
Essay Questions
47.(p.51)Discuss the concept of 'hero maker' with regard to entrepreneurial leadership.
Entrepreneurs who create and build substantial enterprises are not lone wolves and super-independent. They do not need to collect all the credit for the effort. They not only recognize the reality that it is rarely possible to build a substantial business working all alone, but also actively build a team. They have an uncanny ability to make heroes out of the people they attract to the venture by giving responsibility and sharing credit for accomplishments. Hero makers try to make the pie bigger and better, rather than jealously clutching and hoarding a tiny pie that is all theirs. They have a capacity for objective interpersonal relationships as well, which enables them to smooth out individual differences of opinion by keeping attention focused on the common goal to be achieved.
Difficulty: Hard
Type: Knowledge
48.(p.49)In what ways is having Courage an important part of being an entrepreneur?
Courage has at least three important aspects in entrepreneurship. First, moral strength and principles: the character and the personal integrity to know right from wrong, and the will and commitment to act accordingly (to do the right thing). The second is being a fearless experimenter: a restlessness with convention and a rejection of the status quo. This relentless experimentation is enhanced by a third aspect of courage: a lack of fear of failing at the experiment—and most undertakings for that matter—and a lack of fear of conflicts that may arise. In other words, there is a mental toughness that is quite impervious to fears but is not ignorant or oblivious to possible consequences.
Difficulty: Hard
Type: Knowledge
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