MGT 241 Midterm Chapter 1 – Flashcards
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Entrepreneurs are aggressive catalysts for change within the marketplace.
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True
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Entrepreneurs are not heroes in today's marketplace.
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True
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Entrepreneurs are the major source of innovation and job creation in any economy
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True
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Entrepreneurship is more than the mere creation of a business.
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True
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During the past ten years, new business incorporations averaged nearly 600,000 per year.
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True
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One of every 1,000 adults participates in the founding of a new firm every year.
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False
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The entrepreneurial spirit is unique to America and Western Europe.
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False
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A "gazelle" is a business establishment with at least 20 percent sales growth every year for five years.
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True
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Gazelles produce half the innovations per employee that larger firms typically do.
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False
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New and smaller firms obtain more patents per sale than do larger firms.
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True
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Gazelles produced 5 million jobs despite the continual downsizing in major corporations over the last decade.
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True
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New and smaller firms are responsible for 95 percent of all radical innovations.
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True
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Gazelles are almost always high tech.
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False
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Gazelles do not always get venture capital funding.
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True
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Three characteristics of an entrepreneur are personal initiative, management skills, and a desire for autonomy.
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True
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Large firms, as opposed to entrepreneurs, are the aggressive catalyst for change in the world of business.
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False
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The word entrepreneur is derived from the Spanish word entreprendre, meaning "to undertake."
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False
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There is no single definition of an entrepreneur.
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True
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Recognition of entrepreneurs dates back to the French economist Richard Cantillon.
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True
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Entrepreneurs are the major source of innovation and job creation in the economy.
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True
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According to Robert C. Ronstadt, entrepreneurship is the process of creating incremental wealth.
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True
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Most entrepreneurs are inventors.
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False
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An entrepreneur needs neither a lot of money nor luck.
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True
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Prepared entrepreneurs who seize opportunities when they arise often appear to be lucky.
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True
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Entrepreneurs are high risk takers.
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False
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Entrepreneurs always start their business at a young age.
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False
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Characteristics of entrepreneurs can neither be taught nor learned.
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False
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Entrepreneurs are born not made.
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False
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Entrepreneurs are doers not thinkers.
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False
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Entrepreneurs must fit the "profile."
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False
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Entrepreneurs are often very methodical people who plan their moves very carefully.
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True
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The "corridor principle" states that entrepreneurs often get stuck on one idea.
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False
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Entrepreneurs are often known as calculated risk takers, as opposed to "gamblers."
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True
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The macro view of entrepreneurship includes external processes that are sometimes beyond the control of the entrepreneur.
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True
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The displacement school of thought focuses on the negative side of group phenomena.
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True
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The strategic formulation school of thought emphasizes the planning process in successful venture development.
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True
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In the environmental school of thought, legal issues surrounding the natural environment are primary.
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False
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The financial/capital entrepreneurial school of thought focuses on the potential profit of the business idea.
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False
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Political, cultural, and economic displacement are all part of the displacement school of entrepreneurial thought.
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True
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"Great chef" strategies focus on unique markets.
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False
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Entrepreneurship involves an interdisciplinary approach.
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True
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The four major dimensions considered in the dynamic states approach are the individual, the environment, the organization, and the process.
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False
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Entrepreneurs are best characterized as:
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aggressive catalysts for change
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During the past ten years, there were approximately how many business incorporations per year?
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600,000
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Entrepreneurs will always be
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the major source of job creation and innovation in any economy
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In the evolutionary process of economic growth, _________ plays the crucial and indispensable role of providing the "social glue" that binds together both high-tech and "Main Street" activities.
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entrepreneurship
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Entrepreneurs and gazelles have been credited with making disproportionate contributions to all but which of the following?
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unemployment
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Which of the following statements best describes a "gazelle?"
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a business with at least 20 percent growth every year
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Gazelles have been responsible for which of the following:
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55 percent of innovations
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______________ is the economic basis for all entrepreneurial activity.
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Free enterprise
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The word entrepreneur is derived from the French entreprendre, which is translated as
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to compete
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The entrepreneur is one who
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manages.
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Which of the following characteristics is most important to an entrepreneur?
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management skills
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The study of entrepreneurship is
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interdisciplinary
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Which economist first associated the "risk bearing" activity in the economy with the entrepreneur?
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Richard Cantillon
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Which is not one of the chief characteristics of an entrepreneur?
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desire for control of people
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Entrepreneurial traits include which of the following?
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initiative
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Robert C. Ronstadt put together a summary definition of entrepreneur that included which of the following key phrases?
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the dynamic process of creating incremental wealth
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Which of the following concepts is entrepreneurship considered synonymous with?
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free enterprise
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Which is a true statement about entrepreneurs?
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Entrepreneurs are doers and thinkers.
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Throughout the years, many myths have arisen about entrepreneurship as a result of?
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a lack of research about entrepreneurship
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The "corridor principle" is best described by which of the following statements?
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With every new venture launched, new and unintended opportunities arise.
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Which of the following traits is not that of an entrepreneur?
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shyness
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Which of the following is not a common myth about entrepreneurs?
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Entrepreneurs today are considered heroes.
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Which statement is not true?
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Entrepreneurs fare poorly in today's hypercompetitive market.
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Most entrepreneurs should be categorized as
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innovators
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Which of the following statements is true?
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Entrepreneurship is the ability to create and build a vision from practically nothing.
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Which of the following economists wrote about entrepreneurship and its impact on economic development?
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Joseph Schumpeter
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Entrepreneurship has become synonymous or closely linked with:
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free enterprise and capitalism
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Michael Gerber, the author of The E-Myth, contends:
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today's business owners are not true entrepreneurs
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Michael Gerber, the author of The E-Myth, explains that the failure of most small businesses is due to:
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owners being more technical rather than entrepreneurial
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Entrepreneurs always
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generate ideas and plan for their implementation
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When referring to "luck" and an entrepreneur, which of the following statements is an appropriate adage?
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luck happens when preparation meets opportunity
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The statement, "with every new venture launched, new and unintended opportunities often arise," would be associated with:
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the corridor principle
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Entrepreneurs themselves perceive the concept of risk in which of the following ways:
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calculated risk taking
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In the study of contemporary entrepreneurship, one concept reoccurs:
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entrepreneurship is interdisciplinary
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The macro view of entrepreneurship presents factors exhibiting a strong
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external locus of control
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Entrepreneurs are accurately described in which way?
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as calculated risk takers
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3M's Post-it notes are an example of the
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corridor principle
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Which of the following schools of thought is not a micro view school of thought?
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the inherited business school of thought
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The macro view can be broken down into which three areas?
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financial/capital, strategic, and opportunity
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The displacement school of thought can be divided into which three groups?
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economic, cultural, and political
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The micro view is divided into which three theories?
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venture opportunity theory, entrepreneurial, strategic
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Which of the following is not a form of displacement in the displacement school of thought?
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racial
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Which of the following does not apply to the strategic formulation school of thought?
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unique places
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Water well strategies refer to:
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unique resources
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Mountain gap strategies refer to:
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unique markets
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The process approach to entrepreneurship seeks to
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model the various factors that characterize the entrepreneurial process
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The dynamic states model depicts ventures as
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being dependent on their environment for survival
