Chapter 02 - The Entrepreneurial Mind: Crafting a Personal Entrepreneurial Stra

Student: ___________________________________________________________________________ 1. There is a single psychological model of entrepreneurs. True or false? True False

2. The mind is both influenced by and influences the psychological, physiological, physical, emotional and spiritual elements of the entrepreneur. True False

3. Leaders and managers are the same thing. True False

4. Since entrepreneurs are internally motivated, high-energy people with a passion for discovery and innovation, they are distinct from seasoned business managers with the skill to scale the enterprise. True False

5. After years of research, it is now possible to take a number of people, give them a specialised test, and determine those in the group that do and do not possess entrepreneurial minds. True False

6. Behavioural scientists, venture capitalists, investors, and entrepreneurs believe that the eventual success of a new venture is largely dependent upon the talent and behaviour of the lead entrepreneur and of his or her team. True False

7. A study of 118 entrepreneurs revealed that those who moved quickly and were profit-oriented were much more likely to excel in business than those who were planners. True False

8. One predictable research finding was that driven, successful entrepreneurs are generally not patient individuals. True False

9. While certain individuals possess such inborn characteristics as energy and raw intelligence, these characteristics do not necessarily mean that they will succeed as entrepreneurs. True False

10. Almost without exception, entrepreneurs live under huge, constant pressures until their firms have survived the startup phase; after that, it typically gets easier. True False

11. Founders should compete with peers in the company as a way of fostering team cohesion and spirit. True False

12. In the face of tasks that are deemed unsolvable, entrepreneurs will actually give up sooner than others do. True False

13. Successful entrepreneurs possess a well-developed capacity to exert influence without formal power. True False

14. Successful entrepreneurs often exhibit a strong need to control, influence, and maintain power as the lead entrepreneur. True False

15. Rather than willingly put themselves in situations where they are personally responsible for the success or failure of the operation, the best entrepreneurs find ways to distribute risk among the various stakeholders and constituents. True False

16. The need to possess an objective way of keeping score, such as changes in profits, sales, or stock price, often makes money the primary motivator for driven entrepreneurs. True False

17. Evidence suggests that the most durable entrepreneurial careers, those found to last 25 years or more, were begun at an earlier age before the person had made any substantial commitments to a specific career path. True False

18. The concept of an apprenticeship in entrepreneurship can be a useful one. True False

19. The average age of entrepreneurs starting high-potential businesses is in the mid-40s. True False

20. Effective entrepreneurs are: A. internally motivated, lucky B. high energy leaders C. high energy leaders, internally motivated D. internally motivated, lucky high energy leaders

21. A single psychological model of entrepreneurship: A. has been demonstrated by the story of Ewing Kaufmann B. has not yet been discovered C. has not been supported by research D. none of the given answers

22. The most significant myth about leaders is that: A. any leader can be a successful entrepreneur B. they are born not made C. they need not worry about those they lead D. you have to be a successful entrepreneur

23. Entrepreneurs have to concentrate on certain fundamentals. Which of the following best describe these fundamentals? A. Resiliency, adaptability, and responsiveness B. Adaptability, preparedness, resiliency C. Responsiveness, resiliency, adept D. Responsiveness, resiliency, opportunism

24. What is it that matters most to many successfully entrepreneurs? A. who they know B. how lucky they are C. what they do D. none of the given answers

25. What insight did Kwiatkowski and Sharif have about the entrepreneurial mindset? A. the importance of luck B. the importance of knowledge C. the importance of networks D. the importance of courage

26. Of the eight themes of desirable behaviour, which are more important? A. Commitment, perseverance, motivation B. Commitment, perseverance, determination C. Determination, perseverance, tolerance of risk D. Perseverance, motivation, opportunity obsession

27. A critically important aspect of entrepreneurial attributes is: A. the desire to win B. the desire to succeed at all costs C. to be lucky D. the will to never give up

28. Courage is the second of what the text authors outline as the eight key themes of entrepreneurs. How do they view courage? A. Moral strength and principles, lack of fear of failure or lack of a fear of conflict, fearless experimenter B. Moral strength and principles, lack of a fear of conflict, a fearless experimenter C. Moral strength, lack of a fear of failure, lack of a fear of conflict D. None of the given answers

29. Grant developed an entrepreneurial leadership paradigm as being: A. all about luck and networks B. all about being in the right place at the right time C. the lead entrepreneur, the external environment, the venture team D. the lead entrepreneur, the amount of venture capital, the external term

30. Successful entrepreneurs are obsessed first with: A. opportunity B. finance C. ideas D. markets

31. Successful entrepreneurs tolerate: A. ambiguity, uncertainty and risk B. uncertainly, conflict, risk C. ambiguity, uncertainty and lack of finance D. risk, conflict, ambiguity

32. In terms of decision making, serial entrepreneurs in particular use: A. networks B. intuition C. guesswork D. risk transfer

33. A vital aspect of entrepreneurial education is: A. appropriate instructors B. appropriate mentors C. apprenticeship D. connections

34. Which of the following is not a persistent myth about entrepreneurs? A. Leaders are born, not made B. Entrepreneurs are gamblers C. Solo entrepreneurs limit their potential for growth D. Entrepreneurs should be young and energetic

35. Research has found that people are motivated by which of the following? A. The need for achievement B. The need for power C. The need for affiliation D. All of the given answers

36. Which of the following was not one of the three principle success factors cited by the first 21 inductees into Babson College's Academy of Distinguished Entrepreneurs? A. The ability to respond positively to challenges and learn from mistakes B. The ability to attract and motivate an effective team C. Personal initiative D. Perseverance and determination

37. According to the authors, which of the eight dominant themes of entrepreneurship is the most important? A. Leadership B. Opportunity Obsession C. Courage D. Commitment and Determination and perseverance E. Tolerance of Risk, Ambiguity and Uncertainty F. Creativity, Self-Reliance, and Adaptability G. Motivation to Excel H. Intuitive

38. Which of the following are Non-entrepreneurial Attributes? A. Invulnerability B. Perfectionist C. Outer control D. All of the given answers

39. Building a substantial enterprise that will contribute something lasting and relevant to the world while realising a capital gain can typically take how long? A. 1-3 years B. 3-5 years C. 5-10 years D. 10-15 years

40. Successful entrepreneurs initially focus on what? A. Money B. Resources C. Networking D. Opportunity

41. What was the primary business principle that entrepreneur Ross Hyland applied as he formulated his concept for his chain of boutique stock feeds? A. Point-of-sale marketing B. Franchising C. Mass distribution D. Differentiation

42. 'Veridical awareness' refers to entrepreneurs' ability to A. Understand their limitations B. Believe in themselves C. Maintain a sense of perspective D. All of the given answers

43. What is one of the primary attributes that separates entrepreneurial types from Inventors, Promoters, and Managers? A. Creativity and insight B. Conservation of resources C. Long range planning D. Marshalling diverse resources

44. In general, how long will venture capitalists work with a startup before declaring the company a 'lemon'? A. Up to a year B. About two and half years C. At least three years D. Three to five years

45. According to venture investors, what is a realistic time frame for growing a higher potential business to the point where a capital gain can be realised? A. 1-3 years B. 2-5 years C. 5-7 years D. 7-8 years

46. Which of the following is not a paradox of entrepreneurship? A. Flexibility vs. opportunity focus B. Resource requirements vs. ownership C. Age vs. experience D. Drive and ambition vs. wisdom and judgment

47. Increasingly, research studies on the career paths of entrepreneurs and the self-employed suggest that which of the following is the central factor in successful venture creation? A. Networking B. The ability to marshal resources C. Experience and know-how D. The ability to attract and motivate an effective team

48. According to research, which of the following statements is false? A. Many successful entrepreneurs do not have prior industry experience B. Most successful entrepreneurs start companies by their late 20s C. Most successful entrepreneurs follow a pattern of apprenticeship D. Family firms spawn entrepreneurs

49. Crafting a Personal Entrepreneurial Strategy can A. Create tension and pressure B. Heighten the fear of failure C. Spark action towards achievable goals D. All of the given answers

50. The ________ is the need to excel and for measurable personal accomplishment. ________________________________________

51. The ________ is the need to build a warm relationship with someone else and/or to enjoy mutual friendship. ________________________________________

52. Successful entrepreneurs are not gamblers; they take ______. ________________________________________

53. Entrepreneurs realise good ideas are a dime a dozen, but good ________ are few and far between. ________________________________________

54. For a successful entrepreneur, seeking and using ________ is central to the habit of learning from mistakes and setbacks, and of responding to the unexpected. ________________________________________

55. Since entrepreneurs frequently evolve from an entrepreneurial heritage or are shaped and nurtured by their closeness to entrepreneurs and others, the concept of ________ can be a useful one. ________________________________________

56. Numerous studies show a strong connection between the presence of ________ in their lives and the emergence of successful entrepreneurs. ________________________________________

57. Most successful entrepreneurs have had a ________ to help them achieve their dreams and goals, both implicitly and explicitly. ________________________________________

58. Two of the three core principles that are the cornerstone of the values, philosophy, and culture of the Kauffman Foundation are Treat others as you would want to be treated, and Share the wealth that is created with all those who have contributed to it at all levels. What is the third core principle?

59. Discuss the concept of 'hero maker' with regard to entrepreneurial leadership.

Chapter 02 - The Entrepreneurial Mind: Crafting a Personal Entrepreneurial Stra Key

1. (p. 60) There is a single psychological model of entrepreneurs. True or false? FALSE Entrepreneurs come in all shapes and sizes. There is (and cannot be) one single model as entrepreneurial endeavours require abilities in combinations unique to individuals.

Difficulty: Easy

2. (p. 45) The mind is both influenced by and influences the psychological, physiological, physical, emotional and spiritual elements of the entrepreneur. TRUE There is no doubt that there are a set of feedback loops between each of these features. Otherwise the entrepreneur could be a fairly shallow being.

Difficulty: Easy

3. (p. 47) Leaders and managers are the same thing. FALSE Both categories of people have distinct sets of skills, knowledge, and abilities. Purposes also vary between the two.

Difficulty: Medium

4. (p. 45) Since entrepreneurs are internally motivated, high-energy people with a passion for discovery and innovation, they are distinct from seasoned business managers with the skill to scale the enterprise. FALSE

Difficulty: Easy

5. (p. 46) After years of research, it is now possible to take a number of people, give them a specialised test, and determine those in the group that do and do not possess entrepreneurial minds. FALSE

Difficulty: Easy

6. (p. 46) Behavioural scientists, venture capitalists, investors, and entrepreneurs believe that the eventual success of a new venture is largely dependent upon the talent and behaviour of the lead entrepreneur and of his or her team. TRUE

Difficulty: Easy

7. (p. 47) A study of 118 entrepreneurs revealed that those who moved quickly and were profit-oriented were much more likely to excel in business than those who were planners. FALSE

Difficulty: Hard

8. (p. 47) One predictable research finding was that driven, successful entrepreneurs are generally not patient individuals. FALSE

Difficulty: Hard

9. (p. 49) While certain individuals possess such inborn characteristics as energy and raw intelligence, these characteristics do not necessarily mean that they will succeed as entrepreneurs. TRUE

Difficulty: Easy

10. (p. 52) Almost without exception, entrepreneurs live under huge, constant pressures until their firms have survived the startup phase; after that, it typically gets easier. FALSE

Difficulty: Medium

11. (p. 52) Founders should compete with peers in the company as a way of fostering team cohesion and spirit. FALSE

Difficulty: Easy

12. (p. 53) In the face of tasks that are deemed unsolvable, entrepreneurs will actually give up sooner than others do. TRUE

Difficulty: Medium

13. (p. 54) Successful entrepreneurs possess a well-developed capacity to exert influence without formal power. TRUE

Difficulty: Medium

14. (p. 54) Successful entrepreneurs often exhibit a strong need to control, influence, and maintain power as the lead entrepreneur. FALSE

Difficulty: Medium

15. (p. 57) Rather than willingly put themselves in situations where they are personally responsible for the success or failure of the operation, the best entrepreneurs find ways to distribute risk among the various stakeholders and constituents. FALSE

Difficulty: Hard

16. (p. 58) The need to possess an objective way of keeping score, such as changes in profits, sales, or stock price, often makes money the primary motivator for driven entrepreneurs. FALSE

Difficulty: Medium

17. (p. 64) Evidence suggests that the most durable entrepreneurial careers, those found to last 25 years or more, were begun at an earlier age before the person had made any substantial commitments to a specific career path. FALSE

Difficulty: Medium

18. (p. 61) The concept of an apprenticeship in entrepreneurship can be a useful one. TRUE

Difficulty: Medium

19. (p. 65) The average age of entrepreneurs starting high-potential businesses is in the mid-40s. FALSE

Difficulty: Medium

20. (p. 45) Effective entrepreneurs are: A. internally motivated, lucky B. high energy leaders C. high energy leaders, internally motivated D. internally motivated, lucky high energy leaders It is necessary to high levels of energy to undertake entrepreneurial endeavours and due to the very nature of entrepreneurship motivation has to be internal as there is often no other motivator available (nor likely to be) for some time.

Difficulty: Easy

21. (p. 46) A single psychological model of entrepreneurship: A. has been demonstrated by the story of Ewing Kaufmann B. has not yet been discovered C. has not been supported by research D. none of the given answers All the research that has been carried out into the personality types of entrepreneurs is inconclusive in that it has not been possible to identify any specific traits that entrepreneurs have that are not, at least in some degree, shared by everyone.

Difficulty: Medium

22. The most significant myth about leaders is that: A. any leader can be a successful entrepreneur B. they are born not made C. they need not worry about those they lead D. you have to be a successful entrepreneur Leaders come from everywhere. The 'born not made' myth is attributable to what was once know as the 'great man theory', that is, it was only great men who could become leaders.

Difficulty: Hard

23. (p. 47) Entrepreneurs have to concentrate on certain fundamentals. Which of the following best describe these fundamentals? A. Resiliency, adaptability, and responsiveness B. Adaptability, preparedness, resiliency C. Responsiveness, resiliency, adept D. Responsiveness, resiliency, opportunism It is in the very nature of entrepreneurship that unless entrepreneurs possess these certain fundamentals, then their chances of success are minimal as there are no certainties in any entrepreneurial venture.

Difficulty: Medium

24. What is it that matters most to many successfully entrepreneurs? A. who they know B. how lucky they are C. what they do D. none of the given answers This is one of the factors which drives entrepreneurs. It is the task which is important, not necessarily the outcome.

Difficulty: Hard

25. What insight did Kwiatkowski and Sharif have about the entrepreneurial mindset? A. the importance of luck B. the importance of knowledge C. the importance of networks D. the importance of courage Unless one is possessed of the appropriate courage attributes, then there is less chance an entrepreneurial venture will succeed, as courage is necessary at various stages along the way to face all the various impediments that will be encountered.

Difficulty: Easy

26. (p. 50) Of the eight themes of desirable behaviour, which are more important? A. Commitment, perseverance, motivation B. Commitment, perseverance, determination C. Determination, perseverance, tolerance of risk D. Perseverance, motivation, opportunity obsession Without the commitment, determination, and perseverance than at the first obstacle the potential entrepreneur could pack up and go home and leave their dream unfulfilled.

Difficulty: Medium

27. A critically important aspect of entrepreneurial attributes is: A. the desire to win B. the desire to succeed at all costs C. to be lucky D. the will to never give up

Difficulty: Medium

28. (p. 53) Courage is the second of what the text authors outline as the eight key themes of entrepreneurs. How do they view courage? A. Moral strength and principles, lack of fear of failure or lack of a fear of conflict, fearless experimenter B. Moral strength and principles, lack of a fear of conflict, a fearless experimenter C. Moral strength, lack of a fear of failure, lack of a fear of conflict D. None of the given answers Unless an entrepreneur possesses these various courage characterics, then the chances of success can drop as in an attempt to establish a successful business, all these features are needed.

Difficulty: Hard

29. Grant developed an entrepreneurial leadership paradigm as being: A. all about luck and networks B. all about being in the right place at the right time C. the lead entrepreneur, the external environment, the venture team D. the lead entrepreneur, the amount of venture capital, the external term Grant makes the point that there is really no such thing as the heroic, lone entrepreneur battling against all the odds. Generally there will be a variety of people helping and if the external environment is not conducive to the entrepreneur's project, then the chances of success are minimal.

Difficulty: Medium

30. Successful entrepreneurs are obsessed first with: A. opportunity B. finance C. ideas D. markets No opportunity, no venture.

Difficulty: Medium

31. Successful entrepreneurs tolerate: A. ambiguity, uncertainty and risk B. uncertainly, conflict, risk C. ambiguity, uncertainty and lack of finance D. risk, conflict, ambiguity As in all business, risks are involved. It is the capacity to surmount risk, and the accompanying uncertainty and ambiguity which is a key feature of entrepreneurs.

Difficulty: Medium

32. In terms of decision making, serial entrepreneurs in particular use: A. networks B. intuition C. guesswork D. risk transfer The very nature of the entrepreneurial endeavour will often mean that the only support the entrepreneur has in terms of the success or otherwise of a venture is their instinct, or gut feeling, or intuition.

Difficulty: Hard

33. (p. 65) A vital aspect of entrepreneurial education is: A. appropriate instructors B. appropriate mentors C. apprenticeship D. connections Learning with someone to help and advise can provide valuable experience to the potential entrepreneur and help to eliminate the more common mistakes that can result from inexperience.

Difficulty: Easy

34. (p. 46) Which of the following is not a persistent myth about entrepreneurs? A. Leaders are born, not made B. Entrepreneurs are gamblers C. Solo entrepreneurs limit their potential for growth D. Entrepreneurs should be young and energetic

Difficulty: Medium

35. (p. 47) Research has found that people are motivated by which of the following? A. The need for achievement B. The need for power C. The need for affiliation D. All of the given answers

Difficulty: Easy

36. (p. 49) Which of the following was not one of the three principle success factors cited by the first 21 inductees into Babson College's Academy of Distinguished Entrepreneurs? A. The ability to respond positively to challenges and learn from mistakes B. The ability to attract and motivate an effective team C. Personal initiative D. Perseverance and determination

Difficulty: Medium

37. (p. 50-51) According to the authors, which of the eight dominant themes of entrepreneurship is the most important? A. Leadership B. Opportunity Obsession C. Courage D. Commitment and Determination and perseverance E. Tolerance of Risk, Ambiguity and Uncertainty F. Creativity, Self-Reliance, and Adaptability G. Motivation to Excel H. Intuitive

Difficulty: Medium

38. (p. 52) Which of the following are Non-entrepreneurial Attributes? A. Invulnerability B. Perfectionist C. Outer control D. All of the given answers

Difficulty: Easy

39. (p. 54) Building a substantial enterprise that will contribute something lasting and relevant to the world while realising a capital gain can typically take how long? A. 1-3 years B. 3-5 years C. 5-10 years D. 10-15 years

Difficulty: Easy

40. (p. 55) Successful entrepreneurs initially focus on what? A. Money B. Resources C. Networking D. Opportunity

Difficulty: Hard

41. (p. 55) What was the primary business principle that entrepreneur Ross Hyland applied as he formulated his concept for his chain of boutique stock feeds? A. Point-of-sale marketing B. Franchising C. Mass distribution D. Differentiation

Difficulty: Hard

42. (p. 58) 'Veridical awareness' refers to entrepreneurs' ability to A. Understand their limitations B. Believe in themselves C. Maintain a sense of perspective D. All of the given answers

Difficulty: Hard

43. (p. 61) What is one of the primary attributes that separates entrepreneurial types from Inventors, Promoters, and Managers? A. Creativity and insight B. Conservation of resources C. Long range planning D. Marshalling diverse resources

Difficulty: Medium

44. (p. 64) In general, how long will venture capitalists work with a startup before declaring the company a 'lemon'? A. Up to a year B. About two and half years C. At least three years D. Three to five years

Difficulty: Medium

45. (p. 64) According to venture investors, what is a realistic time frame for growing a higher potential business to the point where a capital gain can be realised? A. 1-3 years B. 2-5 years C. 5-7 years D. 7-8 years

Difficulty: Medium

46. (p. 65) Which of the following is not a paradox of entrepreneurship? A. Flexibility vs. opportunity focus B. Resource requirements vs. ownership C. Age vs. experience D. Drive and ambition vs. wisdom and judgment

Difficulty: Medium

47. (p. 65) Increasingly, research studies on the career paths of entrepreneurs and the self-employed suggest that which of the following is the central factor in successful venture creation? A. Networking B. The ability to marshal resources C. Experience and know-how D. The ability to attract and motivate an effective team

Difficulty: Medium

48. (p. 66) According to research, which of the following statements is false? A. Many successful entrepreneurs do not have prior industry experience B. Most successful entrepreneurs start companies by their late 20s C. Most successful entrepreneurs follow a pattern of apprenticeship D. Family firms spawn entrepreneurs

Difficulty: Hard

49. (p. 70-71) Crafting a Personal Entrepreneurial Strategy can A. Create tension and pressure B. Heighten the fear of failure C. Spark action towards achievable goals D. All of the given answers

Difficulty: Easy

50. (p. 47) The ________ is the need to excel and for measurable personal accomplishment. need for achievement

Difficulty: Easy

51. (p. 47) The ________ is the need to build a warm relationship with someone else and/or to enjoy mutual friendship. need for affiliation

Difficulty: Easy

52. (p. 57) Successful entrepreneurs are not gamblers; they take ______. calculated risks

Difficulty: Easy

53. (p. 56) Entrepreneurs realise good ideas are a dime a dozen, but good ________ are few and far between. opportunities

Difficulty: Easy

54. (p. 58) For a successful entrepreneur, seeking and using ________ is central to the habit of learning from mistakes and setbacks, and of responding to the unexpected. feedback

Difficulty: Medium

55. (p. 64) Since entrepreneurs frequently evolve from an entrepreneurial heritage or are shaped and nurtured by their closeness to entrepreneurs and others, the concept of ________ can be a useful one. an apprenticeship

Difficulty: Easy

56. (p. 66) Numerous studies show a strong connection between the presence of ________ in their lives and the emergence of successful entrepreneurs. role models

Difficulty: Easy

57. (p. 70-71) Most successful entrepreneurs have had a ________ to help them achieve their dreams and goals, both implicitly and explicitly. personal strategy

Difficulty: Easy

58. (p. 45) Two of the three core principles that are the cornerstone of the values, philosophy, and culture of the Kauffman Foundation are Treat others as you would want to be treated, and Share the wealth that is created with all those who have contributed to it at all levels. What is the third core principle? Give back to the community.

Difficulty: Medium

59. (p. 55) Discuss the concept of 'hero maker' with regard to entrepreneurial leadership. Entrepreneurs who create and build substantial enterprises are not lone wolves and super-independent. They do not need to collect all the credit for the effort. They not only recognise the reality that it is rarely possible to build a substantial business working all alone, but also actively build a team. They have an uncanny ability to make heroes out of the people they attract to the venture by giving responsibility and sharing credit for accomplishments. Hero makers try to make the pie bigger and better, rather than jealously clutching and hoarding a tiny pie that is all theirs. They have a capacity for objective interpersonal relationships as well, which enables them to smooth out individual differences of opinion by keeping attention focused on the common goal to be achieved.

Difficulty: Hard

Chapter 02 - The Entrepreneurial Mind: Crafting a Personal Entrepreneurial Stra Summary

Category Difficulty: Easy Difficulty: Hard Difficulty: Mediu m # of Questio ns 21 12 26