Test Bank For
Entrepreneurship The Practice and Mindset 3th Edition by Heidi M. Neck,
Christopher P. Neck, Emma L. Murray
Chapter 1-16
CHAPTER 1: PRACTICING ENTREPRENEURSHIP
Multiple Choice
1. The authors define entrepreneurship as ______.
a. a way of thinking, acting, and being that combines the ability to find or create
new opportunities with the courage to act on them
b. starting a small business by finding investors and launching a product
c. developing a new market by creating a product that does not currently exist
d. a mindset that compels people to start multiple ventures throughout a lifetime
Ans: A
Learning Objective: 1.1: Explain the importance of action and practice in
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Entrepreneurship Requires Action and Practice
Difficulty Level: Medium
AACSB Standard: Application of knowledge
2. ______ have touched every corner of our lives, affecting every aspect of the
way we live.
a. Lifestyles
b. Corporations
c. Entrepreneurs
d. Managers
Ans: C
Learning Objective: 1.1: Explain the importance of action and practice in
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Entrepreneurship Requires Action and Practice
Difficulty Level: Medium
AACSB Standard: Application of knowledge
3. What is the discipline that seeks to understand how opportunities are
discovered, created, and exploited, by whom, and with what consequences?
a. imagineering
b. storyboarding
c. social engineering
d. entrepreneurship
Ans. D
,Learning Objective: 1.1: Explain the importance of action and practice in
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Entrepreneurship Requires Action and Practice
Difficulty Level: Medium
AACSB Standard: Application of knowledge
4. Which of the following is a truth about entrepreneurship?
a. Entrepreneurship is not reserved for startups.
b. Entrepreneurship cannot be taught.
c. Entrepreneurs compete more than they collaborate.
d. Entrepreneurs have a special set of personality traits.
Ans: A
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Entrepreneurship May Be Different From What You Think
Difficulty Level: Easy
AACSB Standard: Analytical thinking
5. The media often cover the meteoric rise of entrepreneurs such as Bill Gates
(Microsoft) and Travis Kalanick (Uber). According to the text, these stories
______.
a. are inspirational, but do little to represent the reality of entrepreneurship
b. are highly relatable
c. have not captured the public imagination
d. are accurate depictions of the reality of entrepreneurship
Ans: A
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Comprehension
Answer Location: Media Images of Entrepreneurs
Difficulty Level: Medium
AACSB Standard: Contexts of organizations in a global society
6. A temporary organization in search of a scalable business model is known as
a(n) ______.
a. startup
b. corporation
c. LLC
d. entrepreneur
Ans: A
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Truth #1: Entrepreneurship Is Not Reserved for Startups
,Difficulty Level: Medium
AACSB Standard: Application of knowledge
7. Effectuation is the idea that ______.
a. businesses should have a positive impact on people‘s lives
b. the effects of ideas can be studied over time
c. the future is unpredictable yet controllable
d. emotions can influence decision making
Ans. C
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Truth #2: Entrepreneurs Do Not Have a Special Set of
Personality Traits
Difficulty Level: Medium
AACSB Standard: Financial theories, analysis, reporting, and markets
8. ______ are people who start several businesses, whether at the same time or
one after the other.
a. Social entrepreneurs
b. Serial entrepreneurs
c. High-risk entrepreneurs
d. Low-risk entrepreneurs
Ans: B
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Truth #2: Entrepreneurs Do Not Have a Special Set of
Personality Traits
Difficulty Level: Easy
AACSB Standard: Group and individual behaviors
9. Which of the following is true about effectual entrepreneurs?
a. They focus on creating a future rather than predicting it.
b. They find markets rather than make them.
c. They do not accept failure.
d. They focus on a single reliable stakeholder.
Ans: A
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Truth #2: Entrepreneurs Do Not Have a Special Set of
Personality Traits
Difficulty Level: Easy
AACSB Standard: Analytical thinking
, 10. According to the authors, what is the precursor to entrepreneurial action?
a. a business process
b. the right mindset
c. an understanding that failure is probable
d. the acquisition of resources
Ans: B
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Truth #2: Entrepreneurs Do Not Have a Special Set of
Personality Traits
Difficulty Level: Easy
AACSB Standard: Application of knowledge
11. The entrepreneurial method requires consistent practice so that ______ can
be continuously developed and applied to future endeavors.
a. a strong business plan
b. education and application
c. business processes
d. knowledge and expertise
Ans: D
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Truth #3: Entrepreneurship Can Be Taught (It‘s a Method That
Requires Practice)
Difficulty Level: Medium
AACSB Standard: Application of knowledge
12. Successful entrepreneurs tend to follow which approach to collaboration?
a. They do not collaborate and work in isolation.
b. They collaborate with potential customers, but not with competitors.
c. They collaborate with both potential customers and competitors.
d. They collaborate with competitors, but not with potential customers.
Ans: C
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Truth #5: Entrepreneurs Collaborate More Than They Compete
Difficulty Level: Medium
AACSB Standard: Application of knowledge
13. Research revealed what percentage of Inc. 500 founders wrote formal
business plans prior to launching their companies?
a. more than 90%
b. more than 75%
Entrepreneurship The Practice and Mindset 3th Edition by Heidi M. Neck,
Christopher P. Neck, Emma L. Murray
Chapter 1-16
CHAPTER 1: PRACTICING ENTREPRENEURSHIP
Multiple Choice
1. The authors define entrepreneurship as ______.
a. a way of thinking, acting, and being that combines the ability to find or create
new opportunities with the courage to act on them
b. starting a small business by finding investors and launching a product
c. developing a new market by creating a product that does not currently exist
d. a mindset that compels people to start multiple ventures throughout a lifetime
Ans: A
Learning Objective: 1.1: Explain the importance of action and practice in
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Entrepreneurship Requires Action and Practice
Difficulty Level: Medium
AACSB Standard: Application of knowledge
2. ______ have touched every corner of our lives, affecting every aspect of the
way we live.
a. Lifestyles
b. Corporations
c. Entrepreneurs
d. Managers
Ans: C
Learning Objective: 1.1: Explain the importance of action and practice in
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Entrepreneurship Requires Action and Practice
Difficulty Level: Medium
AACSB Standard: Application of knowledge
3. What is the discipline that seeks to understand how opportunities are
discovered, created, and exploited, by whom, and with what consequences?
a. imagineering
b. storyboarding
c. social engineering
d. entrepreneurship
Ans. D
,Learning Objective: 1.1: Explain the importance of action and practice in
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Entrepreneurship Requires Action and Practice
Difficulty Level: Medium
AACSB Standard: Application of knowledge
4. Which of the following is a truth about entrepreneurship?
a. Entrepreneurship is not reserved for startups.
b. Entrepreneurship cannot be taught.
c. Entrepreneurs compete more than they collaborate.
d. Entrepreneurs have a special set of personality traits.
Ans: A
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Entrepreneurship May Be Different From What You Think
Difficulty Level: Easy
AACSB Standard: Analytical thinking
5. The media often cover the meteoric rise of entrepreneurs such as Bill Gates
(Microsoft) and Travis Kalanick (Uber). According to the text, these stories
______.
a. are inspirational, but do little to represent the reality of entrepreneurship
b. are highly relatable
c. have not captured the public imagination
d. are accurate depictions of the reality of entrepreneurship
Ans: A
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Comprehension
Answer Location: Media Images of Entrepreneurs
Difficulty Level: Medium
AACSB Standard: Contexts of organizations in a global society
6. A temporary organization in search of a scalable business model is known as
a(n) ______.
a. startup
b. corporation
c. LLC
d. entrepreneur
Ans: A
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Truth #1: Entrepreneurship Is Not Reserved for Startups
,Difficulty Level: Medium
AACSB Standard: Application of knowledge
7. Effectuation is the idea that ______.
a. businesses should have a positive impact on people‘s lives
b. the effects of ideas can be studied over time
c. the future is unpredictable yet controllable
d. emotions can influence decision making
Ans. C
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Truth #2: Entrepreneurs Do Not Have a Special Set of
Personality Traits
Difficulty Level: Medium
AACSB Standard: Financial theories, analysis, reporting, and markets
8. ______ are people who start several businesses, whether at the same time or
one after the other.
a. Social entrepreneurs
b. Serial entrepreneurs
c. High-risk entrepreneurs
d. Low-risk entrepreneurs
Ans: B
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Truth #2: Entrepreneurs Do Not Have a Special Set of
Personality Traits
Difficulty Level: Easy
AACSB Standard: Group and individual behaviors
9. Which of the following is true about effectual entrepreneurs?
a. They focus on creating a future rather than predicting it.
b. They find markets rather than make them.
c. They do not accept failure.
d. They focus on a single reliable stakeholder.
Ans: A
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Truth #2: Entrepreneurs Do Not Have a Special Set of
Personality Traits
Difficulty Level: Easy
AACSB Standard: Analytical thinking
, 10. According to the authors, what is the precursor to entrepreneurial action?
a. a business process
b. the right mindset
c. an understanding that failure is probable
d. the acquisition of resources
Ans: B
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Truth #2: Entrepreneurs Do Not Have a Special Set of
Personality Traits
Difficulty Level: Easy
AACSB Standard: Application of knowledge
11. The entrepreneurial method requires consistent practice so that ______ can
be continuously developed and applied to future endeavors.
a. a strong business plan
b. education and application
c. business processes
d. knowledge and expertise
Ans: D
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Truth #3: Entrepreneurship Can Be Taught (It‘s a Method That
Requires Practice)
Difficulty Level: Medium
AACSB Standard: Application of knowledge
12. Successful entrepreneurs tend to follow which approach to collaboration?
a. They do not collaborate and work in isolation.
b. They collaborate with potential customers, but not with competitors.
c. They collaborate with both potential customers and competitors.
d. They collaborate with competitors, but not with potential customers.
Ans: C
Learning Objective: 1.2: List the seven lesser-known truths about
entrepreneurship.
Cognitive Domain: Knowledge
Answer Location: Truth #5: Entrepreneurs Collaborate More Than They Compete
Difficulty Level: Medium
AACSB Standard: Application of knowledge
13. Research revealed what percentage of Inc. 500 founders wrote formal
business plans prior to launching their companies?
a. more than 90%
b. more than 75%
