Chapter 4

1. One researcher believes that the social mission, not wealth creation, is the most important criterion. Who
was this researcher? J. Gregory Dees
2. For-profit enterprises have yet to make significant contributions to the world of social entrepreneurship. F
3. North American Free Trade Agreement (NAFTA) has developed  trade barrier reductions.
4. Emerging opportunities in the international arena are being fueled by a decrease in trade barriers and the
emergence of trading blocs.
5. Social obligation, social responsibility, and social responsiveness are all ways firms view their interactions
with society. True
6. Global entrepreneurs are now considered by others as wearing different hats.
7. The Brundtland definition of sustainable development is "meeting the needs of the present without
compromising the ability of future generations to meet their needs." True
8. Purpose, accountability, and transparency are characteristics associated with socially sustainable
enterprises. True
9. Ecopreneurs are concerned only with economically sustainable development.
10. Benefit corporations concern themselves with purpose, accountability, and transparency.
11. Trademark is a type of intellectual property consisting of a recognizable sign, design, or expression
which identifies products or services of a particular source from those of others.
12. NAFTA (North American Free Trade Agreement) offers strong protection for patents but not copyrights.
13. Examples of social enterprise obligations to the environment include all of the following except  support for
minority-own businesses.
14. Which of the following designations is not synonymous with social entrepreneur? social impersonator
15. Bottom-line measures of social performance include the unemployment rate and health-adjusted life
expectancy. True
16. What type of risks incorporates fluctuating exchange rates? financial risks
17. Social Entrepreneurship is combination of private-sector focus on innovation, risk-taking, and large-
scale transformation with social problem solving True
18. Which of the following statements about social entrepreneurship is not true? Social entrepreneurship is
limited to the world of not-for-profit corporations.
19. The triple bottom line is an accounting framework that focuses on optimizing short-term financial
performance. False
20. An account framework that goes beyond the traditional measures of profit, return on investment, and
shareholder value to include environmental and social dimensions is called the triple bottom line.
21. Bottom-line measures of economic performance include all of the following except: global competition.
22. Successful global start-ups, or entrepreneurial businesses that are "born global," surprisingly often lack
internationally experienced management. False
23. Methods for going international include all of the following except  foreign reclamation.
24. TBL focuses on all the following except precedence.
25. The first of five steps for entering the international marketplace is conducting research.
26. Ecopreneurship is a combination of ecologically and economically sustainable development. True
27. Which of the following activitiesdoes notcharacterize the social entrepreneur? operating with a low sense of
accountability
28. As of 2015, the largest U.S. trading partners included  Canada, China, and Mexico.
29. Social obligation, social responsibility, and social responsiveness are all ways firms view their interactions
with society. True
30. Resource-rich countries and market-rich countries are usually one and the same. False
31. Key elements in plans to create a sustainable future are likely to include which of the following?  eliminating
the concept of waste
32. The basic challenge for social enterprise is addressing the obligations of business to society.
33. Thanks to the North American Free Trade Agreement, each year thousands of smaller enterprises are
actively engaged in the international arena. True
34. Social responsibility consists of those obligations that society has to businesses. False
35. Social entrepreneurship is rarely a vehicle for sustainable development. False
36. Membership in the World Trade Organization represents 97 percent of the world's population at present.
37. There are three main types of strategic international alliances. True
38. If we accept the argument that social entrepreneurship is a continuum, at one extreme would be social
entrepreneurs driven exclusively by producing social benefits; at the other, would be social entrepreneurs
motivated by profitability with social benefits being the means.
39. Social entrepreneurs are known to combine resources to exploit opportunities to create social value. True
40. An L3C is a new legal form for social enterprises known as  low-profit, limited liability companies.
41. Corporate social responsibility refers to actions that further some social good beyond the interests of the
firm.
42. The three dimensions of performance associated with the TBL are people, planet, and profits. False
43. A person who organizes and operates a business or businesses, taking on greater than normal
financial risks in order to do so. Entrepreneur
44. Among the advantages for global entrepreneurs of diaspora networks is the speed with which information
flows across borders.
45. Partnership agreement is a legal contract between two parties, known as the licensor and the
licensee. In a typical licensing agreement, the licensor grants the licensee the right to produce and
sell goods, apply a brand name or trademark, or use patented technology owned by the licensor.
False
46. Type of intellectual property that gives its owner the legal right to exclude others from making,
using, or selling an invention for a limited period of years, in exchange for publishing an enabling
public disclosure of the invention. Patent
47. Benefit corporations are one of the oldest forms of incorporation, having been adopted in all 50 states. False
48. Importing, in essence, is buying and shipping domestically produced goods for foreign consumption. False
49. Licensing agreements can involve patents, trademarks, and technical know-how. True
50. Social entrepreneurship avoids private-sector focus on risk taking. False

Chapter 5

1. Researchers uniformly agree that the easiest step in the creative endeavor is the evaluation and
implementation phase. False
2. The combination of existing concepts and factors into a new formulation would define which of the following
terms?  Synthesis
3. Which of the following is not an example of recognizing relationships in creativity? introducing Sierra Mist to
the market to compete with Sprite
4. The principles of innovation are largely focused on profit maximization. 'False
5. Relying on abstractions can limit one's perception of reality.
6. Ray Kroc's development of McDonald's would be a good illustration of which form of innovation? Extension
7. Most successful innovations are simple and focused.
8. Which of the following are sources of innovation? unexpected occurrences and incongruities
9. Successful entrepreneurs are able to identify and implement those ideas that are workable and that they
have the skills to implement.
10. Looking for different or unorthodox relationships among elements and people is one way to develop
creativity. How might a person develop this capacity? by perceiving in a relational mode
11. Incongruities are gaps or differences between expectations and reality. True
12. The four phases, in order, in the creative process are background or knowledge accumulation, incubation,
idea experience, and evaluation and implementation.
13. Which of the following terms would not be associated with the right hemisphere of the brain? Linear
14. Which of the following terms would be associated with the left hemisphere of the brain?  Abstract
15. The four basic types of innovation are invention, extension, duplication, and synthesis. True
16. Shifts in consumer tastes and attitudes are an example of industry and market changes.
17. Which of the following statements is true? Innovation is the specific function of entrepreneurship.
18. Creativity cannot be developed or improved. False
19. The innovation process allows creative people to subconsciously mull over the information they have
gathered. True
20. Which of the following statements is true with regards to creativity? People's process will remain the same,
but their approach will change.
21. Most innovations result from a conscious and purposeful search for new opportunities.
22. It takes _____ to innovate successfully. work, not genius,
23. Innovators must always search for new ideas, opportunities, or sources of innovation. True
24. Appositional relationships often lead to visions that result in which of the following? new ideas, products,
and services
25. Which of the following are causes of industry and market changes? advancements in technology
26. The creative climate rejects the ambiguity common in work and life. False
27. The incubation process involves which of the following? letting the subconscious work
28. Innovation should follow a milestone schedule. True
29. Synthesis is the combining of two existing concepts into a new formulation. True
30. Which of the following could be considered a trend that signals a shift in the current paradigm of the
population?  Market
31. Which of the following can help speed up the idea process? taking breaks while working
32. Innovation is planned and predictable. False
33. It is really genius and not hard work that creates success for the entrepreneur. False
34. What are the four types of innovation?  invention, extension, synthesis, duplication
35. The left hemisphere of the brain is responsible for logical and analytical skills. True
36. Creativity, in the entrepreneurial context, is the generation of ideas that result in the improved efficiency or
effectiveness of a system. True
37. Innovation is the process by which entrepreneurs convert opportunities into marketable ideas. True
38. Creativity is most likely to occur when the "climate" is right.  What is a characteristic of that climate in the
workplace? trustful management that does not exert strict control over employees
39. Structured and focused chaos is necessary for creativity to occur. True
40. Many inventions and innovations are a result of inventors seeing new and different relationships among
objects, processes, materials, technologies, and people. True
41. Which of the following statements is true? The right brain helps people understand analogies and imagine
things.
42. Truly creative people are always geniuses. False
43. People practice the creative search for background knowledge in which of the following ways? joining
professional groups and organizations
44. Logical and analytical skills are developed in the left hemisphere of the brain.
45. Most successful innovations are complex and focused. False
46. Which of the following is not considered a principle of innovation? investing in securities
47. In the struggle to achieve security, many people also tend to rely on the theory of _________ thinking to
make decisions. Probability
48. Incubation in the creative process often occurs when the individual is doing something completely unrelated
to the subject. True
49. The right-hemisphere skills include using metaphors and analogies to describe things or people.
50. Which of the following statements is true? Innovators rarely work in more than one area.

Chapter 6

1. In a growing industry, _____ companies do even better. good

2. A solid analysis is a critical task in starting a new business.
3. Pricing becomes less of a concern when customers become aware of a product's unique characteristics that
are superior to the competition. True
4. Which of the following as a factor contributing to new-venture failure? product/market problems.
5. Design-centered entrepreneurship is when the entrepreneur applies design methods in six action stages of
developing an opportunity. False
6. The growth pattern of sales is critical for an entrepreneur to make correct forecasts. True
7. The ‘learn' stage of the Build-Measure-Learn feedback loop is a process in which one learns by trying out an
initial idea and then measuring it to validate the effect. False
8. What criteria must be met in the design methodology approach?  concept feasibility
9. Timing is especially critical in which area?  Marketing
10. There are five specific phases that a new venture goes through. False
11. A checklist approach allows the entrepreneur to identify _______ factors of a new venture. Critical
12. Mistakes and failures along the way are to be seen as poor planning and actually hinders the design
methodology. False
13. In a lifestyle venture, independence, autonomy, and control are the primary driving forces. True
14. Solid analysis and evaluation of the feasibility of the product/service idea are critical tasks in starting a new
business. True
15. Financial considerations play a major role in smaller profitable ventures.
16. During the prestart-up and start-up phases, ____ factors are critical. Five
17. Design is now a hot topic in the business world. True
18. Obtaining external financing is considered one of the major types of problems for a new venture during its
first year. True
19. Which of the following is not critical to a product's success? Size
20. Two important factors classified as managerial that could be a cause for failure include human resource
problems and the concept of the team approach. True
21. There are three types of design-centered entrepreneurship. False
22. When a customer sees a product that is superior to its competitors, ______ becomes less important. Price
23. The decision of an entrepreneur to ignore the market is a safe one if he or she is sure that the idea will be a
success. False
24. Many entrepreneurs of new ventures lack a unique angle for the venture.
25. Researchers have described a "fully developed new firm" with a number of characteristics, including: full-
time commitment
26. Most entrepreneurs are objective when they evaluate their new idea. False
27. The Three A's of Metrics are actionable, accessible, auditable.
28. Timing has little to do with the success or failure of a new venture. False
29. Sales growth is a critical factor in the  start-up phase.
30. Researchers believe that design methodology provides ________ learning mechanisms important for
converting ideas into form. Specific
31. Only a small percentage of new ventures succeed. True
32. The results of a profile analysis enable the entrepreneur to judge the business potential.
33. Independence, autonomy, and ______ are the major driving forces behind lifestyle ventures.  Control
34. The comprehensive feasibility analysis approach is closely related to the preparation of a thorough business
plan. True
35. Lack of finished product availability can affect marketing efforts.
36. The type of venture that is expected to attract venture capital would most likely be a high-growth venture.
37. Using the failure prediction model discussed in the chapter, the risk of failure can be reduced by: using less
debt as initial financing and generating revenue in the initial stages.
38. A common human resource problem is inflated owner ego.
39. Which of the following is a tool that enables entrepreneurs to judge a business venture's potential? profile
analysis
40. The Lean Start-Up methodology is hypothesis-driven. True
41. When premature entry into the marketplace causes the failure of a new venture, it can be termed  poor
timing.
42. Hiring and promotions on the basis of nepotism rather than qualification fall under the managerial problem
of the concept of a team approach.
43. A new venture should be  unique.
44. Market feasibility analysis relies on general economic trends and competitor data
45. A common pitfall in selecting a new venture is poor financial understanding.
46. What is a critical consideration when assessing customer availability? length of time needed to determine
who the customers are, as well as their buying habits 
47. Managerial problems include which of the following? concept of a team approach
48. One of the external problems new ventures face is  market knowledge.
49. A product does not have to be patented in order to be introduced into the marketplace. True
50. There is a great abundance of reliable data concerning the start-up, performance, and failure of new
ventures. 'False

Prelim Exam

1. Which of the following statements is true? Entrepreneurship is the ability to create and build a vision from
practically nothing.
2. There are many risks in entrepreneurship. True
3. In an innovative climate, failure is viewed as  a learning experience.
4. The "dark side" of entrepreneurship refers to the stress that entrepreneur's experience. False
5. Which is a true statement about entrepreneurs? Entrepreneurs are doers and thinkers.
6. Which is not one of the chief characteristics of an entrepreneur? desire for control of people
7. In past generations, people dreamed of prestige and perks associated with executive suites of major
corporations, but the millennial generation believes that career success requires them to be more nimble,
independent, and entrepreneurial. True
8. During the past ten years, new business incorporations averaged nearly 400,000 per year. True
9. Entrepreneurs are born not made. False
10. Socorro Ramos

11. Bureaucrats in an organization must learn to give way to intrapreneurs.

12. Role distortion deals with morally questionable acts that are committed "for the firm." True
13. Which of the following is not a trait of successful entrepreneurs? Frustration
14. Intrapreneurship is also referred to as: corporate entrepreneurship
15. Entrepreneurs must fit the "profile." False
16. Gazelles are almost always high tech. False
17. ____ people thoroughly understand the concept of corporate entrepreneurship. Few
18. The Greek word ethos means mode of conduct.
19. Entrepreneurial cognition is, in part, about understanding how entrepreneurs use simplifying mental models
to make assessments, judgments, and decisions about opportunities. True
20. Who identified six factors found in large corporations that have exhibited successful innovations? James
Brian Quinn
21. Which of the following isnotconsidered in the Framework of Frameworks Approach? Collaborative
22. Entrepreneurs are aggressive catalysts for change within the marketplace. True
23. Ramon Ang

24. Which of the following is not a characteristic of firms that exhibit corporate entrepreneurships?  being
stagnant 
25. A "gazelle" is a business establishment with at least five percent sales growth every year for 25 years. False
26. Entrepreneurs typically have enough confidence to believe that they can make a difference in the final
outcome of their ventures. True
27. Jaime Augusto Zobel de Ayala

28. Entrepreneurs with a drive to achieve want to compete.

29. Ben Chan

30. John Gokongwei

31. A clear pattern among successful entrepreneurs is their focus on opportunity rather than resources.
32. In smaller ventures, the ethical influence of the owner is more powerful than in larger corporations because
his or her leadership is not diffused through layers of management. True
33. The need for corporate entrepreneurship has risen in response to one problem: rapid growth. False
34. In science, ____________ refers to mental processes. Cognition
35. "Great chef" strategies focus on unique people. True
36. Which economist first associated the "risk bearing" activity in the economy with the entrepreneur? Richard
Cantillon
37. The macro view of entrepreneurship includes external processes that are sometimes beyond the control of
the entrepreneur. True
38. Organizational boundaries allow people to focus on new ideas. False
39. One could correlate            with a high energy level. Creativity
40. Robert C. Ronstadt put together a summary definition of entrepreneur that included which of the following
key phrases? the dynamic process of creating incremental wealth
41. Bill Gates

42. Characteristics often attributed to the entrepreneur include: Commitment, determination, and perseverance
43. ____________ observed that "corporate entrepreneurship may be formal or informal activities aimed at
creating new businesses in established companies through product and process innovations and market
developments." Shaker A. Zahra
44. Trust from the company is one key element to successful corporate entrepreneurship. True
45. Which of the following is not a question in the corporate entrepreneurial planning process? Has the firm met
government regulations for innovation?
46. Which of the following economists wrote about entrepreneurship and its impact on economic development?
Joseph Schumpeter  Joseph Schumpeter
47. The first step in planning a strategy of entrepreneurship for enterprise is sharing the vision of innovation.
48. Being an entrepreneur who is presented with "being in the right place at the right time" is associated with
which myth? All Entrepreneurs Need Is Luck
49. Political, cultural, and economic displacement are all part of the displacement school of entrepreneurial
thought. True
50. Which statement is not true? Entrepreneurs fare poorly in today's hypercompetitive market.
51. Entrepreneurship is more than the mere creation of a business. True
52. In the _____ sense, ethics provides the basic rules or parameters for conducting any activity in an
"acceptable manner."  Broadest
53. The macro view of entrepreneurship presents factors exhibiting a strong external locus of control.
54. The "corridor principle" is best described by which of the following statements? With every new venture
launched, new and unintended opportunities arise.
55. Warren Buffett

56. The displacement school of thought focuses on the negative side of group phenomena. True
57. Jack Ma
58. Key features in the success of any innovative program include all of the following except high profitability.
59. Typically, when faced with setbacks or failure, entrepreneurs remain optimistic and view it as a learning
experience.
60. In order to develop an entrepreneurial environment, factors that organizations need to be aware of include
all of the following except imposed time constraints.
61. Lucio Tan

62. Steve Benitez

63. Mark Zuckerberg

64. If an entrepreneur believes in himself/herself and that their accomplishments and setbacks are within their
own control, they possess a(n)            . internal locus of control
65. The dynamic states model depicts ventures as  being dependent on their environment for survival.
66. The decision to behave entrepreneurially is the result of the interaction of the individual's personal
entrepreneurial mind-set and an opportunity.
67. For entrepreneurs, vision describes where the entrepreneur wants to go.
68. The terms entrepreneur and small-business owner are never used interchangeably. False
69. Steve Jobs

70. In many ways, an I-Team is a small business operating within a large business
71. Corporations that promote personal growth will attract the best people. True
72. The word entrepreneur is derived from the French entreprendre, which is translated as to undertake.
73. Sustaining corporate entrepreneurship requires keeping the corporate vision strong.
74. Augusto Go

75. Henry Sy
76. Expecting clever bootlegging of ideas should come as a surprise. False
77. Internal venture capital that is set aside for special entrepreneurial projects is termed: intracapital.
78. When an entrepreneurial environment is created, a company does not usually set aside the traditions of the
company. False
79. The micro view is divided into which three theories? venture opportunity theory, entrepreneurial, strategic
80. Colonel Sanders

81. Water well strategies refer to unique resources.

82. Michael Gerber, the author of The E-Myth, explains that the failure of most small businesses is due to
owners being more technical than entrepreneurial.
83. A decision to sell pharmaceuticals that have not been cleared with the Federal Drug Administration is an
example of a(n) illegal and unethical decision.
84. A __________ is a statement of ethical practices or guidelines to which an enterprise adheres. code of
conduct
85. Commitment, determination, and perseverance are just a few characteristics one needs to become a
successful entrepreneur. True
86. Entrepreneurs are often known as calculated risk takers, as opposed to "gamblers." True
87. The entrepreneurial ego can cause the entrepreneur to take characteristics that usually lead to success to
the extreme.
88. Firms need to be public about their ethical values and expectations. True
89. The adverse impact of            can be so destructive that individuals within the enterprise will tend to avoid
entrepreneurial behavior.  traditional management techniques
90. Entrepreneurs are often very methodical people who plan their moves very carefully. True
91. Julia Gandionco

92. The Greek thinker, Chilon, felt that a merchant does better to take a loss than to make a dishonest profit.
True
93. Entrepreneurship involves an interdisciplinary approach. True
94. The word entrepreneur is derived from the Spanish word entreprendre, meaning "to undertake." False
95. Entrepreneurs usually have an internal locus of control. True
96. Which of the following is not a common myth about entrepreneurs? Entrepreneurs today are considered
heroes.
97. Generally, entrepreneurial stress is due to  the discrepancy between the entrepreneur's expectations and
the ability to meet demands.
98. Gaisano
99. The person who has the opportunity to lead and "run" with an idea would be coined which of the following?
Champion
100. In the environmental school of thought, legal issues surrounding the natural environment are
primary. False
101. Tony Tan Caktiong
102. The metacognitive model of entrepreneurship fails to consider the entrepreneurial mind-set that
integrates the combined effects of entrepreneurial motivation. False
103. In starting or buying a new business, the higher the rewards, the greater the risk.
104. The major thrust of corporate entrepreneurship is to encourage innovation.
105. Ray Kroc

106. Another common name for an I-Team is an intrapreneurial team. False

107. Which of the following schools of thought is not a micro view school of thought? the inherited
business school of thought
108. Ben Chan (Bench)

109. 3M's philosophy is based on the theory that the more ideas, the better the chances for a successful
innovation. True
110. Employee perception of                    is critical for the success of corporate entrepreneurship. an
innovative environment
111. Which of the following is a true statement about team building? The entrepreneur needs a
competent team to implement an idea.
112. Jeff Bezos (Amazon)

113. The macro view can be broken down into which three areas? environmental, financial/capital, and
displacement
114. Which of the following terms refers to the systematic evolution of a product or service into newer or
larger markets? incremental innovation
115. Corporate entrepreneurs should be restricted to the resources of their own divisions of the
corporation. False
116. Entrepreneurs always generate ideas and plan for their implementation.
117. Which of the following helps account for the rise of interest in corporate entrepreneurship? n
increase in corporations losing some of their best people.
118. Which of the following is not an aspect of the "dark side" of entrepreneurship? bouts of euphoria
119. With which of the following concepts is entrepreneurship considered synonymous? free enterprise
120. A decision to sell toys that pass minimum safety standards but can often result in minor accidents to
children is an example of a(n) legal and unethical decision.
121. Gazelles have been responsible for which of the following: 55 percent of innovations
122. Larry Page & Sergey Brin