The Entrepreneurial Mindset in Individuals.docx

THE ENTREPRENEURIAL MINDSET IN INDIVIDUALS TRUE/FALSE 1. Each and every person has the potential and free choice to pursue a career as an entrepreneur. ANS: T 2. The generation of the 21st century may become known as generation E because they are becoming the most entrepreneurial generation since the Industrial Revolution. ANS: T 3. Determining a person’s “entrepreneurial perspective” is an exact science. ANS: F 4. Entrepreneurs are pessimists who see the cup half empty, rather than half full. ANS: F 5. The Academy of Management Review is an example of a journal used in entrepreneurial research. ANS: T 6. Government publications are used in researching small business. ANS: T 7. Inexperience and incompetent management are the main reasons for failure. ANS: T 8. Good entrepreneurs seek feedback from others. ANS: T 9. A good trait for an entrepreneur is to be a calculated risk taker. ANS: T 10. Most successful entrepreneurs have failed at one time or another. ANS: T 11. Entrepreneurs do not need foresight. ANS: F 12. Entrepreneurs typically have enough confidence to believe that they can make a difference in the final outcome of their ventures. ANS: T 13. Publications, direct observation, speeches and presentations are all major sources of information that supply data related to the entrepreneurial perspective. ANS: T 14. There are less than five types of printed research resources available on entrepreneur characteristics. ANS: F 15. Commitment, determination, and perseverance are the only characteristics one needs to become a successful entrepreneur. ANS: F 16. Creativity was once regarded as an exclusively inherited trait. ANS: T 17. Selfishness and a need for power are two characteristics common in entrepreneurs. ANS: F 18. Successful entrepreneurs fear failure the same way all people do. ANS: F 19. Entrepreneurs are fiercely independent but understand the need for a strong entrepreneurial team. ANS: T 20. Entrepreneurs usually have an internal locus of control. ANS: T 21. There are many risks in entrepreneurship. ANS: T 22. There is a certain psychic risk involved with entrepreneurship. ANS: T 23. There are four causes of entrepreneurial stress. ANS: T 24. Immersion in business can be cured by limiting work to an eight hour day. ANS: F 25. The need to achieve can be a source of stress for entrepreneurs. ANS: T 26. Stress on the entrepreneur can be caused both internally and by other people. ANS: T KEY: pg 41 27. The entrepreneur is driven by a strong desire for control over their venture. ANS: T 28. The “dark side” of entrepreneurship refers to the stress that entrepreneur’s experience. ANS: F 29. Entrepreneurs always know that they as individuals must remain less important than the venture. ANS: F 30. Entrepreneurs like to remain alert to competition, customers, and government regulations, but this continual scanning of the environment can lead to a negative sense of distrust. ANS: T 31. Entrepreneurs are often unrealistically optimistic. ANS: T 32. Lanny Harron and Harry Sapienza stated, “Because motivation plays an important part in the creation of new organizations, theories of organization creation that fail to address this notion are incomplete.” ANS: T 33. According to the Model of Entrepreneurship Motivation, the entrepreneur’s expectations are not compared with the actual or perceived outcomes of the firm. ANS: F MULTIPLE CHOICE 1. Every person has the and to pursue a career as an entrepreneur a. stubbornness; stupidity c. rights; regulations b. potential; free choice d. obligation; duty ANS: B 2. Sources of information available to entrepreneurs include a. journals. c. casual conversation. b. moonlighting in another job. d. attending civic events. ANS: A 3. Entrepreneurs a. are driven by intense commitment and perseverance. b. are egomaniacs. c. loners who never fit in to typical firms. d. are never satisfied. ANS: A 4. Which source of information about entrepreneurial characteristics is direct observation? a. Biographies and entrepreneurs c. Books about entrepreneurs b. Empirical research d. Television biographies ANS: B 5. Which is not a source of entrepreneurship research? a. textbooks c. conferences b. biographies d. water cooler conversation ANS: D 6. Biographies, journals, and periodicals are examples of what research source? a. direct observations c. presentations b. publications d. primary research ANS: B 7. Characteristics often attributed to the Entrepreneur include: a. Commitment, determination, and perseverance b. Prefers to be a loner c. Power hungry d. Ability to be indecisive ANS: A 8. Which is not a trait of a successful entrepreneur? a. desire to achieve c. innovation b. initiative d. trouble fitting in ANS: D 9. Entrepreneurs with a drive to achieve want to a. compete. c. take great risks. b. watch others succeed. d. control and dominate. ANS: A 10. Which of the following is not a trait of successful entrepreneurs? a. initiative c. perseverance b. frustration d. strategic thinking ANS: B 11. With persistent problem solving, entrepreneurs a. must daydream all day. c. think anything is possible. b. can’t multi-task. d. are always working. ANS: C 12. One could correlate with a high energy level. a. creativity c. luck b. working d. reading ANS: A 13. For entrepreneurs, vision describes a. where the entrepreneur wants to go. c. people. b. eyesight. d. the future. ANS: A 14. Team building a. involves including qualified people in the venture. b. does not threaten the entrepreneur’s autonomy. c. does nothing. d. is overrated. ANS: A 15. A clear pattern among successful entrepreneurs is a. setting goals that are just out of reach. b. the fear of failure common to all people. c. their focus on opportunity rather than resources. d. not fitting in to traditional organizations. ANS: C 16. Which of the following is a false statement about entrepreneurs? a. They burn with the competitive desire to excel. b. They see the cup half full rather than half empty. c. They do not use failure as a tool for learning. d. They are achievers. ANS: C 17. Which of the following publications deal with research methodology and are tightly structured? a. technical and professional journals c. news periodicals b. textbooks on entrepreneurs d. trade journals ANS: A 18. Which is not a source of information in an entrepreneurial profile? a. publications b. direct observation of practicing entrepreneurs c. word of mouth d. speeches and presentations ANS: C 19. One factor not found in high achievers is a. responsibility. c. moderate risk taking. b. failure to listen to feedback. d. high risk taking. ANS: B 20. Which of the following is not a common characteristic of entrepreneurs? a. vision c. lack of motivational drive b. team building d. independence ANS: C 21. Which of the following statements is false? a. Entrepreneurs are born with the skills necessary to manage a business. b. Their belief in their ability seldom wavers. c. Independence is a driving force behind contemporary entrepreneurs. d. Entrepreneurs know where they want to go. ANS: A 22. Which of the following is a true statement about team building? a. Most successful entrepreneurs have highly qualified teams that handle everything having to do with the development of the venture. b. Compared to the owner, personnel are often more qualified to handle day-to-day implementation challenges. c. The entrepreneur has the clearest vision in the firm. d. The entrepreneur needs a competent team to implement an idea. ANS: D 23. Which of the following statements is false? a. Entrepreneurs want the authority to make important decisions. b. Management skills are not important characteristics for entrepreneurs to possess. c. Successful entrepreneurs strive to build a successful team around them. d. An entrepreneur can develop the vision of the company over time. ANS: B 24. When entrepreneurs believe that their accomplishments and setbacks are within their own control and influence, they are exhibiting a. persistent problem-solving. c. external locus of control. b. internal locus of control. d. opportunity orientation. ANS: B 25. If an entrepreneur believes in himself/herself and that their accomplishments and setbacks are within their own control, they possess a (n) . a. confidence level higher than most entrepreneurs b. internal locus of control c. cockiness level too high to be an entrepreneur d. high energy level ANS: B 26. Which of the following is not associated with an entrepreneur seeking feedback? a. entrepreneurs want to belittle their competition b. entrepreneurs seek to learn from their competitors c. entrepreneurs want to improve d. entrepreneurs have a strong desire to know how well they are doing ANS: A 27. One trait not common in entrepreneurs is: a. entrepreneurs are problem solvers b. entrepreneurs are creative and innovative c. entrepreneurs need structure d. entrepreneurs are independent, yet like to build strong teams ANS: C 28. What characteristic(s) that propel entrepreneurs into success can be exhibited to the “extreme”? a. Overbearing need for control b. Optimism c. High energy d. Desire for success e. Perseverance ANS: A 29. Areas of risk to the entrepreneur include a. career, family, psychic. c. psychic, social, physical. b. family, business, social. d. financial, product, market ANS: A 30. With psychic risk you fear a. losing your sanity c. money b. failure. d. adapting. ANS: B 31. Which of the statements below is not a risk faced by entrepreneurs? a. financial risk c. business risk b. career risk d. product risk ANS: C 32. Small business owners face many day-to-day risks. Which statement is most related to risk? a. Not getting a bank loan. b. Entrepreneurs run the risk of having an incomplete family experience. c. Not securing a particular contract. d. Risk is never a good thing. ANS: B 33. In starting or buying a new business, the higher the rewards, the a. risk is then minimized. c. greater the size of a business. b. greater the risk. d. smaller the enjoyment. ANS: B 34. Which of the following may be the greatest risk to the well-being of the entrepreneur? a. social risk c. psychic risk b. financial risk d. family risk ANS: C 35. In the Monroy-Folger Model of Risk Typology, profit-seeking activity is associated with: a. strong desire to maximize profit c. strong desire to minimize profit b. weaker desire to maximize profit d. strong desire to maximize sales revenue ANS: A 36. Generally, entrepreneurial stress is due to a. being surrounded by incompetents. b. fear of failure. c. the discrepancy between the entrepreneur’s expectations and the ability to meet demands. d. caused by a big ego. ANS: C 37. Stress can be dealt with by: a. networking. c. both a and b. b. delegating. d. working harder. ANS: C 38. Which of the following is not a source of stress? a. success in business c. people problems b. immersion in business d. family requirements ANS: A 39. Which of the following is not a way to combat stress? a. acknowledging its existence c. probing personal unacknowledged needs b. ignoring coping mechanisms d. taking a few days off ANS: B 40. The four major causes of entrepreneurial stress are a. loneliness, immersion in business, people, need to achieve. b. people, size of business, need to achieve, fear. c. fear, failure, pressure, competition. d. drive for success, loneliness, fear, competition. ANS: A 41. The best antidote for relieving the stress involved with total immersion in business is a. networking. c. finding satisfaction outside the company. b. getting away from it all. d. delegating. ANS: B 42. Entrepreneurial stress can be caused by having a type A personality which can be defined as a. having a chronic sense of time urgency c. getting away from business b. taking too little responsibility d. taking things personally ANS: A 43. According to the text, what is the most ironic type of stress? a. loneliness c. people problems b. immersion in business d. need to achieve ANS: B 44. The entrepreneurial ego can cause the entrepreneur to a. have a sense of pessimism. b. take characteristics that usually lead to success to the extreme. c. ignore government regulations. d. take too few risks. ANS: B 45. Entrepreneurs with a sense of distrust a. scan the environment. c. ignore everything. b. examine the business. d. become fearful. ANS: A KEY: pg 42 46. Which of the following is an aspect of the “dark side” of entrepreneurship? a. a need for control c. both a and b b. a sense of distrust d. bouts of euphoria ANS: C 47. Which of the following is not one of the four major traits that characterize the “dark side” of entrepreneurs? a. an external optimism c. knowing when to take a vacation b. a desire for success d. a sense of distrust ANS: C 48. The “dark side” of entrepreneurship refers to a. a destructive force within the energetic drive of entrepreneurs. b. the part of entrepreneurship that is most exciting. c. a misunderstanding about the results of entrepreneurship. d. another myth of entrepreneurship. ANS: A 49. ________________ was credited with stating, “Individuals are, after all, the energizers of the entrepreneurial process.” a. Lanny Herron c. Bradley Johnson b. Max DePree d. Steven Covey ANS: C 50. The decision to behave entrepreneurially is the result of the interaction of: a. the individual’s personal entrepreneurial mindset and an opportunity b. the existence of a viable business idea c. the relevant business environment d. a new market ANS: A 51. When outcomes meet or exceed expectations, _____________________ is positively reinforced. a. entrepreneurial behavior c. desire for success b. entrepreneurial motivation d. entrepreneurial ego ANS: A 52. Which is not a factor in the Model of Entrepreneurial Motivation? a. the entrepreneur’s outcomes meet their expectations b. personal goals are met c. implementation of the entrepreneurial plan meet the entrepreneurs outcome perceptions d. wining awards ANS: D 53. According to the Model of Entrepreneurial Motivation, when outcomes meet or exceed expectations, the _____ is positively reinforced, and the individual is motivated to continue to behave entrepreneurially. a. stressful behavior c. the dark side b. entrepreneurial behavior d. unrealistic optimism ANS: B SHORT ANSWER 1. Name the three sources of research on entrepreneurs and explain five entrepreneurial characteristics that you feel are important. ANS: The three sources of research are publications, direct observations, and speeches or presentations. Publications include both research-based and popular sources. Direct observation is done through interviews, surveys, and case studies. Speeches and presentations are given by practicing entrepreneurs. Characteristics that are important to one individual may not be the same characteristics that are important to another. One characteristic is the drive to achieve. 2. Explain and discuss the “dark side” of entrepreneurship. ANS: The entrepreneurial profile has its destructive side. First, the need for control can become an obsession. The need for control can cause problems in networking and in an entrepreneurial team. A sense of distrust can cause the entrepreneur to lose sight of reality or focus on trivial things. An entrepreneur’s desire for success can also be destructive if the individual becomes more important than the venture itself. The last “dark side” trait is external optimism. When the entrepreneur takes optimism to the extreme, he or she may begin using a fantasy approach to the business. Trends, facts, and reports are ignored because the entrepreneur thinks everything will turn out fine. 3. Discuss the specific areas of entrepreneurial risk. ANS: The four areas of risk are financial risk, career risk, family and social risk, and psychic risk. First, financial risk deals with the amount of savings or resources that the entrepreneur puts into venture. If the venture is not successful, the money or resources will most likely be lost. The entrepreneur will probably sign obligations that exceed his or her personal wealth. The second risk is career. The would-be entrepreneur frequently asks if he or she will be able to find a job or go back to a previous job. The new venture has no guarantees about career security. Family and social risk are also to be considered. 4. Name the sources of entrepreneurial stress and discuss the ways of dealing with stress. ANS: Entrepreneurs experience four types of stress. The first is loneliness. Although there are many people around the entrepreneur, there are few in whom he can confide. Another stress is immersion in business. A successful entrepreneur may make enough money for vacations, but never have the time to go because the business would not allow it. People problems are another type of stress. The entrepreneur may get frustrated, disappointed, and aggravated by employees or other individuals upon whom the venture’s work depends. Usually this happens when the entrepreneur’s expectations of a high performance are not met. The last source of stress is the need to achieve. The entrepreneur usually attempts to accomplish too much and sometimes cannot manage to control the need for achievement. The three steps an entrepreneur can take to reduce stress are acknowledging its existence, developing coping mechanisms, and probing for personal unacknowledged needs. There are five ways in which an entrepreneur can cope with stress. First is networking. Networking involves sharing experiences with other business owners. Another coping mechanism is to get away from it all. These interludes help combat immersion in business. Communicating with subordinates may help to cope with stress. The entrepreneur can be aware of the concerns employees have about their jobs. Finding satisfaction outside of the company is also important. The entrepreneur needs to get away and enjoy life. The last way an entrepreneur can deal with stress is by delegating. Appropriate delegates need to be found and trained so the entrepreneur can gain time away from the business.