,OpenStax Entrepreneurship
Entrepreneurship
Chapter 1: The Entrepreneurial Perspective
Review Questions
1. What factors contribute to a growing interest in entrepreneurship?
A. unemployment levels
B. low job turnover rates
C. increasing levels of creativity
D. decreasing rates of discrimination
Answer
A. unemployment levels
2. Angel investors contribute to the entrepreneurial world by ________.
A. outpacing venture capitalists in access to startup funds
B. directly investing in entrepreneurial startups
C. holding seminars to teach people how to become an entrepreneur
D. forming groups of other investors to supply greater quantities of investment funds to
entrepreneurs.
Answer
B. directly investing in entrepreneurial startups
3. An entrepreneur is someone who ________.
A. creates a small business based on other existing businesses
B. creates a home-based business that sells products available through other retailers
C. creates a business around the idea of solving a problem
D. is highly creative
Answer
C. creates a business around the idea of solving a problem
4. Roxanne Quimby of Burt’s Bees is an example of an entrepreneur primarily for which of the
following reasons?
A. She saw available resources and recognized the resources could be used to create a
business.
B. She acted on her passions.
C. She solved a significant societal problem.
D. She had the time and energy to dedicate to starting business.
Answer
B. She acted on her passions.
5. In the early stages of developing an entrepreneurial venture, the entrepreneur might seek
funding from which group?
A. venture capitalists
B. the local bank
C. friends and family
D. shark tank
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,OpenStax Entrepreneurship
Answer
C. friends and family
6. The acronym SMART for goal setting stands for ________.
A. short-term, measurable, accurate, relevant, and timely
B. specific, measurable, accurate, relevant, and timely
C. specific, measurable, achievable, realistic, and time oriented
D. specific, measurable, achievable, results, and time oriented
Answer
D. specific, measurable, achievable, results, and time oriented
7. A vision statement does not include ________.
A. a picture of the future described in words
B. concepts and ideas that inspire and focus people’s actions toward a united outcome
C. both creative and exploratory process in creating the vision
D. the scope of the venture
Answer
D. the scope of the venture
8. Which one of the following is not a quantifiable result?
A. 5 percent annual growth in sales
B. increase market share by 2 percent
C. decrease collection of accounts receivable by $5,000.00
D. increase creativity throughout the venture
Answer
D. increase creativity throughout the venture
9. Which of the following is not a creativity building technique or tool?
A. conducting a case study
B. brainstorming activities
C. mind map creation
D. brain writing
Answer
A. conducting a case study
10. Disruptive technologies include all but which of the following?
A. new methods or approaches that make established methods obsolete
B. self-booking of air travel
C. restaurant food delivery services
D. a change from ownership of resources to the ability to have access to resources
Answer
C. restaurant food delivery services
11. The entrepreneurial mindset includes ________.
A. a willingness to develop ideas that are not always initially popular
B. a willingness to wait for an idea to become popular before moving forward with that idea
C. an ability to focus on past successes
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, OpenStax Entrepreneurship
D. a belief in following tradition and established patterns
Answer
A. a willingness to develop ideas that are not always initially popular
Case Questions
1. What suggestions could you make to Angad Daryani on other products that would fit his focus
on improving the lives of people?
Answer
Other products could include low-cost filtration for hospitals, schools, and commercial buildings;
a low-cost version of his filter for high-polluting trucks and buses; a different version to filter
polluted water; a portable version for individuals, especially elderly and young people at high
risk for respiratory disease.
2. On Angad Daryani’s website, he says he believes “that the path humanity follows, need to be
pivoted for the better.” What other needs or problems do humans have? Create a list of twenty
needs that would fit Angad Daryani’s belief statement.
Answer
Answers will vary. Some needs would include hunger, healthcare, shelter, clean water,
education, employment, independence, prosperity, capital, clothing, community, family,
transportation, clean air, confidence, happiness, security, respect, loyalty, and love.
3. Research Miracle Messages. Identify Miracle Messages’s vision statement, mission statement,
and value statements. Do not copy their statements, but rather create your own statements
based on what you would create if you were the lead entrepreneur for this organization.
Answer
Vision statement: End homelessness. Mission statement: Provide solutions for individuals who
are alone or homeless in order to improve their lives as part of a community. Possible value
statement topics: Personal dignity; individual service; community for all; pathways to
independence; teamwork; integrity; respect.
4. Identify five other organizations that have services or products that you would want to
partner with if you were the lead entrepreneur of Miracle Messages. What value does each of
these five organizations provide to Miracle Messages’ vision, mission, and value? What
services or products are not supported either through Miracle Messages or the five
organizations you addressed? What new for-profit or nonprofit could be created as a spinoff
idea from your research on Miracle Messages?
Answer
1. Salvation Army: Helping all in need with food, shelter, clothing. 2. Habitat for Humanity:
Volunteers building low-cost homes for those in need. 3. Gary Sinise Foundation: Providing
emotional and physical support and resources for veterans. 4. Women In Need: New York-based
group to help women and children who have been abused with housing and other support. 5.
Catholic Charities: National group with local chapters, fourth largest in the US, focused on
financial and other support to needy families without requiring a parish affiliation. Other services
not provided are education or direct support to start a business. One spinoff could be a
Page 3 of 79
Entrepreneurship
Chapter 1: The Entrepreneurial Perspective
Review Questions
1. What factors contribute to a growing interest in entrepreneurship?
A. unemployment levels
B. low job turnover rates
C. increasing levels of creativity
D. decreasing rates of discrimination
Answer
A. unemployment levels
2. Angel investors contribute to the entrepreneurial world by ________.
A. outpacing venture capitalists in access to startup funds
B. directly investing in entrepreneurial startups
C. holding seminars to teach people how to become an entrepreneur
D. forming groups of other investors to supply greater quantities of investment funds to
entrepreneurs.
Answer
B. directly investing in entrepreneurial startups
3. An entrepreneur is someone who ________.
A. creates a small business based on other existing businesses
B. creates a home-based business that sells products available through other retailers
C. creates a business around the idea of solving a problem
D. is highly creative
Answer
C. creates a business around the idea of solving a problem
4. Roxanne Quimby of Burt’s Bees is an example of an entrepreneur primarily for which of the
following reasons?
A. She saw available resources and recognized the resources could be used to create a
business.
B. She acted on her passions.
C. She solved a significant societal problem.
D. She had the time and energy to dedicate to starting business.
Answer
B. She acted on her passions.
5. In the early stages of developing an entrepreneurial venture, the entrepreneur might seek
funding from which group?
A. venture capitalists
B. the local bank
C. friends and family
D. shark tank
Page 1 of 79
,OpenStax Entrepreneurship
Answer
C. friends and family
6. The acronym SMART for goal setting stands for ________.
A. short-term, measurable, accurate, relevant, and timely
B. specific, measurable, accurate, relevant, and timely
C. specific, measurable, achievable, realistic, and time oriented
D. specific, measurable, achievable, results, and time oriented
Answer
D. specific, measurable, achievable, results, and time oriented
7. A vision statement does not include ________.
A. a picture of the future described in words
B. concepts and ideas that inspire and focus people’s actions toward a united outcome
C. both creative and exploratory process in creating the vision
D. the scope of the venture
Answer
D. the scope of the venture
8. Which one of the following is not a quantifiable result?
A. 5 percent annual growth in sales
B. increase market share by 2 percent
C. decrease collection of accounts receivable by $5,000.00
D. increase creativity throughout the venture
Answer
D. increase creativity throughout the venture
9. Which of the following is not a creativity building technique or tool?
A. conducting a case study
B. brainstorming activities
C. mind map creation
D. brain writing
Answer
A. conducting a case study
10. Disruptive technologies include all but which of the following?
A. new methods or approaches that make established methods obsolete
B. self-booking of air travel
C. restaurant food delivery services
D. a change from ownership of resources to the ability to have access to resources
Answer
C. restaurant food delivery services
11. The entrepreneurial mindset includes ________.
A. a willingness to develop ideas that are not always initially popular
B. a willingness to wait for an idea to become popular before moving forward with that idea
C. an ability to focus on past successes
Page 2 of 79
, OpenStax Entrepreneurship
D. a belief in following tradition and established patterns
Answer
A. a willingness to develop ideas that are not always initially popular
Case Questions
1. What suggestions could you make to Angad Daryani on other products that would fit his focus
on improving the lives of people?
Answer
Other products could include low-cost filtration for hospitals, schools, and commercial buildings;
a low-cost version of his filter for high-polluting trucks and buses; a different version to filter
polluted water; a portable version for individuals, especially elderly and young people at high
risk for respiratory disease.
2. On Angad Daryani’s website, he says he believes “that the path humanity follows, need to be
pivoted for the better.” What other needs or problems do humans have? Create a list of twenty
needs that would fit Angad Daryani’s belief statement.
Answer
Answers will vary. Some needs would include hunger, healthcare, shelter, clean water,
education, employment, independence, prosperity, capital, clothing, community, family,
transportation, clean air, confidence, happiness, security, respect, loyalty, and love.
3. Research Miracle Messages. Identify Miracle Messages’s vision statement, mission statement,
and value statements. Do not copy their statements, but rather create your own statements
based on what you would create if you were the lead entrepreneur for this organization.
Answer
Vision statement: End homelessness. Mission statement: Provide solutions for individuals who
are alone or homeless in order to improve their lives as part of a community. Possible value
statement topics: Personal dignity; individual service; community for all; pathways to
independence; teamwork; integrity; respect.
4. Identify five other organizations that have services or products that you would want to
partner with if you were the lead entrepreneur of Miracle Messages. What value does each of
these five organizations provide to Miracle Messages’ vision, mission, and value? What
services or products are not supported either through Miracle Messages or the five
organizations you addressed? What new for-profit or nonprofit could be created as a spinoff
idea from your research on Miracle Messages?
Answer
1. Salvation Army: Helping all in need with food, shelter, clothing. 2. Habitat for Humanity:
Volunteers building low-cost homes for those in need. 3. Gary Sinise Foundation: Providing
emotional and physical support and resources for veterans. 4. Women In Need: New York-based
group to help women and children who have been abused with housing and other support. 5.
Catholic Charities: National group with local chapters, fourth largest in the US, focused on
financial and other support to needy families without requiring a parish affiliation. Other services
not provided are education or direct support to start a business. One spinoff could be a
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