CHAPTER 1: INTRODUCTION TO ENTREPRENEURSHIP (L2)

1) According to the textbook, the four characteristics of successful entrepreneurs are ________.

• A) passion for the business, on the cutting edge of technological change, very charismatic, and tenacity despite failure

• B) young and energetic, passion for the business, product/customer focus, and seeks recognition

• C) passion for the business, tenacity despite failure, product/customer focus, and execution intelligence

• D) on the cutting edge of technological change, forward thinking, tenacity despite failure, and product/customer focus

• E) passion for the business, seeks recognition, young and energetic, and execution intelligence

2) According to the textbook, the passion that motivates people to launch entrepreneurial firms typically stems from the entrepreneur's belief that the business will ________.

• A) positively influence people's lives

• B) make a lot of money

• C) increase his or her prestige

• D) lead to a high-level job in the corporate sector

• E) provide for a secure retirement

3) Stacey Wills, who is at heart a craftsperson, recently started a firm to manufacture a new innovative food blender. Stacey's desire is to sell her food blender to as many people as possible because she firmly believes in the merits of her product. Stacey's story best illustrates which of the following characteristics, or attributes, of a successful entrepreneur?

• A) Product/customer focus

• B) Execution intelligence

• C) Tenacity despite failure

• D) A desire to please consumers

• E) A desire to gain financial rewards

4) Alex and Patty Webb launched a firm several years ago and have been particularly successful in introducing new products to the marketplace. One thing that Alex and Patty are particularly good at is translating their thoughts, creativity, and imaginations into products that reach the marketplace. The ability to make this happen is most closely related to which of the following characteristics of successful entrepreneurs?

• A) A passion for the business

• B) Execution intelligence

• C) Tenacity despite failure

• D) Product/market focus

• E) A desire for recognition

5) Which of the following is NOT one of the five common myths about entrepreneurs?

• A) Entrepreneurs are tenacious.

• B) Entrepreneurs are moderate risk takers.

• C) Entrepreneurs should be young and energetic.

• D) Entrepreneurs love the spotlight.

• E) Entrepreneurs are born not made.

6) According to the textbook, entrepreneurs are ________.

• A) gamblers

• B) moderate risk takers

• C) aggressive risk takers

• D) forceful risk takers

• E) minimal risk takers

7) According to the textbook, there are three types of startup firms: ________.

• A) lifestyle firms, general firms, and entrepreneurial firms

• B) standard-of-living firms, statutory firms, and general firms

• C) entrepreneurial firms, standard-of-living firms, and statutory firms

• D) lifestyle firms, salary-substitute firms, and entrepreneurial firms

• E) innovative firms, entrepreneurial firms, and standard firms

8) Colorado Sandwich, Soup and Salad is a casual dining restaurant that has been owned by Stephanie Peterson for the past 14 years. The restaurant offers a menu that is typical for casual dining restaurants and affords Stephanie a level of income that is similar to what she would earn in a conventional job. According to the textbook, Colorado Sandwich, Soup and Salad is an example of a(n) ________ firm.

• A) salary-substitute

• B) entrepreneurial

• C) quality-of-life

• D) lifestyle

• E) industry-standard

9) Entrepreneurial firms ________.

• A) are small firms that yield a level of income for their owner(s) that is similar to what they would earn when working for an employer

• B) bring to market new products and services that are not particularly innovative

• C) offer to customers common products that are not particularly innovative, and provide their owner(s) the opportunity to pursue a particular lifestyle and earn a living while doing so

• D) provide their owner(s) the opportunity to pursue a particular lifestyle and earn a living while doing so

• E) bring new products and services to market by creating and seizing opportunities

10) According to the textbook, Dropbox, Facebook, and Uber are examples of ________ firms.

• A) lifestyle

• B) salary-substitute

• C) industry-standard

• D) entrepreneurial

• E) standard-of-living