MHR 322 (UW-Madison) Exam #1 Questions with Correct Answers
All of the following are valid reasons that students (or any people) are interested in
entrepreneurship EXCEPT: - ✔✔The person has an idea that can change the world, or at least
some small part of it, in a positive way.
The person wants to earn as much money as possible as quickly as possible. (ANSWER)
The person has a passion, is comfortable developing skills, and might want to control his/her
own destiny.
The person has come up with a technological breakthrough and wants to capitalize on it or
expedite how quickly it is deployed.
Ventures founded by individuals tend to be more successful than those founded by teams. (T/F)
- ✔✔FALSE
In "A Student's Guide to Startups," author Paul Graham warns that real entrepreneurship is not
like a class project because: - ✔✔You can't learn entrepreneurship in a classroom.
TrueSolving a rare and valuable problem usually involves figuring out the real problem in an
iterative process. (ANSWER)
One semester is simply not enough time to figure out customers' real needs.
The teamwork on a classroom project is nothing like teamwork in the real world.
In "Where Is The Best Place To Learn How To Become A Successful Entrepreneur?" author
Kimberly Whitler states that aspiring entrepreneurs can learn all of the following from
consumer packaged goods companies EXCEPT: - ✔✔How to take smart, calculated risks.
(ANSWER?)
,How to innovate beyond just new product ideas.(NOT IT)
How to manage cash and short-term financial needs.
How to develop and pitch new ideas.
In "Design Your Way to a Happier Life," authors Evans and Burnett encourage students to figure
out what your passion is and then everything else will fall into place. (T/F) - ✔✔FASLE
According to Paul Graham, the author of "A Student's Guide to Startups," most startups end up
doing something different than they planned. (T/F) - ✔✔TRUE
According to the Kauffman Foundation, new businesses account for nearly all net new job
creation in the United States.(T/F) - ✔✔TRUE
According to the "History of Entrepreneurship" reading by Johnson Hur, the following
developments facilitated entrepreneurial activity EXCEPT: - ✔✔The availability of energy
production
The availability of cheap labor as people moved from rural areas to cities
The invention of modern warfare (ANSWER)
The invention of currency (money) to replace barter
Professor Bill Green argues that an important aspect of entrepreneurship is the creation of an
enterprise that can ultimately function independently from the entrepreneur. (T/F) - ✔✔TRUE
, The US government defines a "small business" as a company with... - ✔✔Fewer than 50
employees
Only one "small" office of less than 500 sq ft
Fewer than 500 employees (ANSWER)
Less than $2M in annual revenue
The "China Syndrome" is a common mistake of entrepreneurs who: - ✔✔Think that success is
getting a small share of an extremely large market. (ANSWER)
Think that the best option is to outsource production to China.
Think that the long-term competition will come from Chinese companies.
Think that it is best to enter a market with an inexpensive, low quality product and improve it
only when customers demand it.
A common mistake for early stage ventures is to try to: - ✔✔Sell to everyone by making
products that fit the need of every possible customer. (ANSWER)
Sell to a highly-focused set of customers.
Sell only to potential customers with large amounts of disposable income.
Sell products based on a very narrow product-market fit.
All of the following are valid reasons that students (or any people) are interested in
entrepreneurship EXCEPT: - ✔✔The person has an idea that can change the world, or at least
some small part of it, in a positive way.
The person wants to earn as much money as possible as quickly as possible. (ANSWER)
The person has a passion, is comfortable developing skills, and might want to control his/her
own destiny.
The person has come up with a technological breakthrough and wants to capitalize on it or
expedite how quickly it is deployed.
Ventures founded by individuals tend to be more successful than those founded by teams. (T/F)
- ✔✔FALSE
In "A Student's Guide to Startups," author Paul Graham warns that real entrepreneurship is not
like a class project because: - ✔✔You can't learn entrepreneurship in a classroom.
TrueSolving a rare and valuable problem usually involves figuring out the real problem in an
iterative process. (ANSWER)
One semester is simply not enough time to figure out customers' real needs.
The teamwork on a classroom project is nothing like teamwork in the real world.
In "Where Is The Best Place To Learn How To Become A Successful Entrepreneur?" author
Kimberly Whitler states that aspiring entrepreneurs can learn all of the following from
consumer packaged goods companies EXCEPT: - ✔✔How to take smart, calculated risks.
(ANSWER?)
,How to innovate beyond just new product ideas.(NOT IT)
How to manage cash and short-term financial needs.
How to develop and pitch new ideas.
In "Design Your Way to a Happier Life," authors Evans and Burnett encourage students to figure
out what your passion is and then everything else will fall into place. (T/F) - ✔✔FASLE
According to Paul Graham, the author of "A Student's Guide to Startups," most startups end up
doing something different than they planned. (T/F) - ✔✔TRUE
According to the Kauffman Foundation, new businesses account for nearly all net new job
creation in the United States.(T/F) - ✔✔TRUE
According to the "History of Entrepreneurship" reading by Johnson Hur, the following
developments facilitated entrepreneurial activity EXCEPT: - ✔✔The availability of energy
production
The availability of cheap labor as people moved from rural areas to cities
The invention of modern warfare (ANSWER)
The invention of currency (money) to replace barter
Professor Bill Green argues that an important aspect of entrepreneurship is the creation of an
enterprise that can ultimately function independently from the entrepreneur. (T/F) - ✔✔TRUE
, The US government defines a "small business" as a company with... - ✔✔Fewer than 50
employees
Only one "small" office of less than 500 sq ft
Fewer than 500 employees (ANSWER)
Less than $2M in annual revenue
The "China Syndrome" is a common mistake of entrepreneurs who: - ✔✔Think that success is
getting a small share of an extremely large market. (ANSWER)
Think that the best option is to outsource production to China.
Think that the long-term competition will come from Chinese companies.
Think that it is best to enter a market with an inexpensive, low quality product and improve it
only when customers demand it.
A common mistake for early stage ventures is to try to: - ✔✔Sell to everyone by making
products that fit the need of every possible customer. (ANSWER)
Sell to a highly-focused set of customers.
Sell only to potential customers with large amounts of disposable income.
Sell products based on a very narrow product-market fit.
