Question 1

The number one characteristic shared by successful entrepreneurs is:

Accepted Answer

While financial rewards, the desire to employ others, fulfilling a lifetime dream, and bringing a revolutionary product or service to market are all possible motivators for entrepreneurs, the one characteristic shared by all successful entrepreneurs is a true passion for their business. Passion drives dedication, persistence, and creativity, all of which are necessary for building a successful venture.

Question 2

Stacey Wills, who is at heart a craftsperson, recently started a firm to manufacturer 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?

Accepted Answer

Stacey's goal to sell her blender to as many people as possible and her belief in the merits of her product demonstrate a product/customer focus.

Question 3

Which of the following was not a contributing factor to GiftZip's early success?

Accepted Answer

GiftZip's early success was not attributed to angel investor funding, as the other factors listed were more directly related to the market conditions and consumer behavior that supported its growth.

Question 4

Which of the following statements regarding business success (or failure) rates is correct?

Accepted Answer

Research and statistics from sources like the Small Business Administration indicate that approximately 50% of new businesses survive past the four-year mark.

Question 5

GiftZip, the company profiled in the opening feature for Chapter 1, makes money via:

Accepted Answer

The article states that GiftZip earns an affiliate fee for gift card purchases that originate from its site.

Question 6

The three primary reasons that people become entrepreneurs and start their own firms are to:

Accepted Answer

The three primary reasons that people become entrepreneurs and start their own firms are to be their own boss, pursue their own ideas, and realize financial rewards. This is supported by research and surveys conducted on entrepreneurs. While some may also seek prestige and a desire for risk-taking, these are not typically the primary motivators. Option A is incorrect because while financial rewards are a key motivator, eliminating risk is not realistic for entrepreneurship. Option B is incorrect because while being your own boss and pursuing your passion are motivators, not everyone feels they were "born" to be an entrepreneur. Option C is incorrect because not all entrepreneurs seek big risks and again, being your own boss is the primary motivator. Option E is incorrect because government subsidies are not typically cited as a primary motivator for starting a business.

Question 7

Which of the following was not identified in the textbook as one of the common traits and characteristics of entrepreneurs?

Accepted Answer

Intolerance of ambiguity was not identified in the textbook as one of the common traits and characteristics of entrepreneurs. The other options (A, C, D, E) were identified as common traits of entrepreneurs in the textbook.

Question 8

According to the textbook, the four characteristics of successful entrepreneurs are:

Accepted Answer

The textbook states that successful entrepreneurs possess the following four characteristics: passion for the business, tenacity despite failure, product/customer focus, and execution intelligence. These traits allow entrepreneurs to overcome obstacles, adapt to changing circumstances, and stay committed to their goals. Choices A, B, D, and E include some of these characteristics, but not all four as stated in the textbook.

Question 9

Apple Inc. is a firm that is proactive, innovative and risk-taking. From this description, we can most accurately conclude that Apple has a high level of:

Accepted Answer

The mention of Apple being "entrepreneurial," "proactive," and "risk-taking" suggests that Apple has a high level of entrepreneurial intensity, which refers to the extent to which a company exhibits behavior that is consistent with being entrepreneurial, such as being innovative and taking risks.

Question 10

Sarah Thorton is the founder of a company named Extreme Sports Apparel. The company makes apparel products for extreme sports enthusiasts such as rock climbers, triathletes, parasailors, and BMX bikers. Sarah wants her company to pursue a high level of corporate entrepreneurship. To achieve that goal, Sarah's firm should be:

Accepted Answer

To pursue a high level of corporate entrepreneurship, a company needs to be proactive, innovative, and risk-taking in order to identify and pursue new opportunities in the market. Being risk-averse and taking a "wait and see" posture would prevent the company from taking advantage of potential opportunities and hinder its growth. Therefore, the best option for Sarah's firm is to be proactive, innovative, and risk-taking.

Question 11

According to the Global Entrepreneurship Monitor (GEM) 2007 study, the majority of people in high-income countries are drawn to entrepreneurship:

Accepted Answer

According to the GEM 2007 study, the majority of people in high-income countries are drawn to entrepreneurship because they see an attractive opportunity to start a business.

Question 12

Netflix is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions. According to the textbook, Netflix practices:

Accepted Answer

Netflix practices corporate entrepreneurship, which refers to the development of new businesses or ventures within an existing company. Netflix encourages its employees to take risks and pursue innovative ideas, resulting in the creation of new products and services such as its streaming platform and original content. This approach allows Netflix to remain competitive and continually evolve in a rapidly changing industry.

Question 13

James Quinn is starting a firm in the financial services industry primarily to pursue financial rewards. According to the textbook, starting a business to make a lot of money:

Accepted Answer

While financial rewards are certainly a common motivation for starting a business, studies have shown that businesses started primarily for money are more likely to fail than those started for other reasons such as passion or a desire for independence. Therefore, option A is the correct answer.

Question 14

According to the Global Entrepreneurship Monitor (GEM) 2010 survey, about ________ of adults in the United States are either starting a business or are running a business that has been in existence for less than 3 1/2 years.

Accepted Answer

The answer of According to the Global Entrepreneurship Monitor (GEM)...

Question 15

Which of the following is not one of the five common myths about entrepreneurs?

Accepted Answer

The answer of Which of the following is not one...

Question 16

According to the textbook, the number one reason that people become entrepreneurs is to:

Accepted Answer

According to the textbook, the number one reason that people become entrepreneurs is to be their own boss. While the other options, such as financial rewards and pursuing their own ideas, may be motivators as well, being in control and making their own decisions is the primary reason for many entrepreneurs.

Question 17

The Savvy Entrepreneurial Firm feature in Chapter 1 focuses on Revio Mobile (maker of Angry Birds) and Zeo, two companies that have produced successful products. The feature's main purpose is to illustrate the importance of ________ as a key characteristic of the founders of entrepreneurial firms.

Accepted Answer

The feature highlights the importance of tenacity despite failure as a key characteristic of successful entrepreneurial founders, demonstrating how persistence can lead to success even after setbacks.

Question 18

Which of the following was not identified in the textbook as one of the five primary reasons passion is important for the launch of a successful entrepreneurial organization?

Accepted Answer

The ability to stick to a plan even when faced with evidence that changes are needed is not typically considered a positive trait for entrepreneurs, as flexibility and adaptability are crucial for success.

Question 19

Chad and Allison Druxman launched a firm several years ago and have been particularly successful in introducing new products to the marketplace. One thing that Chad and Allison 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?

Accepted Answer

The ability to translate ideas into tangible products and bring them to the marketplace is a characteristic of the execution intelligence of successful entrepreneurs. This involves having the skills, knowledge, and ability to turn ideas into action and consistently execute on plans.

Question 20

The What Went Wrong? feature in Chapter 1 focuses on YouCaster, a company that was launched in 2006 but eventually went out of business. According to the feature, YouCaster failed for two primary reasons:

Accepted Answer

The answer of The What Went Wrong? feature in Chapter...

Quiz 1: Introduction to Entrepreneurship