MGT 320- EXAM 1: CH.1-5 QUESTIONS & ANSWERS
Entrepreneur - Answers - one who undertakes to organize, manage, and assume the
risks of a business
True - Answers - T/F: Entrepreneurial cognition is, in part, about understanding how
entrepreneurs use simplifying mental models to make assessments, judgments, and
decisions about opportunities.
False - Answers - T/F: Commitment, determination, and perseverance are the only
characteristics one needs to become a successful entrepreneur.
True - Answers - T/F: There is a certain psychic risk involved with entrepreneurship.
False - Answers - T/F: Ethics represents a set of principles prescribing a behavioral
code that does not include moral duty and obligations.
True - Answers - T/F: A code of conduct is a statement of ethical practices or guidelines
to which an enterprise adheres.
b. potential; free choice - Answers - Every person has the ________ and ________ to
pursue a career as an entrepreneur
a. stubbornness; stupidity
b. potential; free choice
c. rights; regulations
d. obligation; duty
a. commitment, determination, and perseverance - Answers - 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
b. frustration - Answers - Which of the following is not a trait of successful
entrepreneurs?
a. initiative
b. frustration
c. perseverance
d. strategic thinking
b. internal locus of control - Answers - When entrepreneurs believe that their
accomplishments and setbacks are within their own control and influence, they are
exhibiting:
a. persistent problem-solving
, b. internal locus of control
c. external locus of control
d. opportunity orientation
c. the discrepancy between the entrepreneur's expectations and the ability to meet
demands - Answers - 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
True - Answers - T/F: Clever bootlegging of ideas refers to secretly working on new
ideas on company time as well as on personal time.
False - Answers - T/F: Skunk works are project groups that work within the traditional
lines of authority.
False - Answers - T/F: Firms do not need to alter management techniques to encourage
corporate entrepreneurship since it tends to occur naturally.
False - Answers - T/F: Systematic evolution of a product or service into newer or larger
markets is referred to as radical innovation.
False - Answers - T/F: The resources of the organization are irrelevant to the ability of
the corporate entrepreneur to implement an idea.
b. traditional management techniques - Answers - Which of the following is an obstacle
to corporate entrepreneurship?
a. orientation to the market
b. traditional management techniques
c. a system of feedback and positive reinforcement
d. rewards based upon results
c. bootlegging - Answers - Secretly working on new ideas on company time as well as
on personal time is referred to as:
a. skunk works
b. champion
c. bootlegging
d. interactive learning
a. uniform compensation - Answers - Which of the following would not be considered as
encouraging to an entrepreneurial environment?
a. uniform compensation
b. identifying potential entrepreneurs
c. top management sponsorship of entrepreneurship
Entrepreneur - Answers - one who undertakes to organize, manage, and assume the
risks of a business
True - Answers - T/F: Entrepreneurial cognition is, in part, about understanding how
entrepreneurs use simplifying mental models to make assessments, judgments, and
decisions about opportunities.
False - Answers - T/F: Commitment, determination, and perseverance are the only
characteristics one needs to become a successful entrepreneur.
True - Answers - T/F: There is a certain psychic risk involved with entrepreneurship.
False - Answers - T/F: Ethics represents a set of principles prescribing a behavioral
code that does not include moral duty and obligations.
True - Answers - T/F: A code of conduct is a statement of ethical practices or guidelines
to which an enterprise adheres.
b. potential; free choice - Answers - Every person has the ________ and ________ to
pursue a career as an entrepreneur
a. stubbornness; stupidity
b. potential; free choice
c. rights; regulations
d. obligation; duty
a. commitment, determination, and perseverance - Answers - 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
b. frustration - Answers - Which of the following is not a trait of successful
entrepreneurs?
a. initiative
b. frustration
c. perseverance
d. strategic thinking
b. internal locus of control - Answers - When entrepreneurs believe that their
accomplishments and setbacks are within their own control and influence, they are
exhibiting:
a. persistent problem-solving
, b. internal locus of control
c. external locus of control
d. opportunity orientation
c. the discrepancy between the entrepreneur's expectations and the ability to meet
demands - Answers - 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
True - Answers - T/F: Clever bootlegging of ideas refers to secretly working on new
ideas on company time as well as on personal time.
False - Answers - T/F: Skunk works are project groups that work within the traditional
lines of authority.
False - Answers - T/F: Firms do not need to alter management techniques to encourage
corporate entrepreneurship since it tends to occur naturally.
False - Answers - T/F: Systematic evolution of a product or service into newer or larger
markets is referred to as radical innovation.
False - Answers - T/F: The resources of the organization are irrelevant to the ability of
the corporate entrepreneur to implement an idea.
b. traditional management techniques - Answers - Which of the following is an obstacle
to corporate entrepreneurship?
a. orientation to the market
b. traditional management techniques
c. a system of feedback and positive reinforcement
d. rewards based upon results
c. bootlegging - Answers - Secretly working on new ideas on company time as well as
on personal time is referred to as:
a. skunk works
b. champion
c. bootlegging
d. interactive learning
a. uniform compensation - Answers - Which of the following would not be considered as
encouraging to an entrepreneurial environment?
a. uniform compensation
b. identifying potential entrepreneurs
c. top management sponsorship of entrepreneurship
