Chapter 1: Practice Questions
1. Entrepreneurial firms______________________.
I. Recognize opportunities
II. Create opportunities
III. Seize opportunities
A) I and II of the above
C) I, II, and III of the above
B) I and III of the above
D) I. Only
Answer: C
2. Inventors and entrepreneurs are the same in the sense that__________
A) their outcome is the creation of new products or things
B) they both have entrepreneurial alertness
C) their outcome is a solid or viable business
D) none of the above, since inventors and entrepreneurs differ from each other
Answer: D
3. Countries around the world are interested in the________ as a way to modernize and
grow their economies, increase its innovativeness, and job creation. All of this are
considered a necessity for its private sector international competitiveness.
A) Marketing
B) Accounting
C) Entrepreneurship
D) Finance
Answer: C
4. ____________can have entrepreneurial alertness, orientation, practices, and behavior.
A) Individuals
B) Teams
C) Firms
D) All of the above
Answer: D
5. Passion_________
A) strengthen the entrepreneur’s ability to learn and iterate
B) creates the entrepreneur’s willingness to work hard
C) creates the entrepreneur’s persistence and perseverance in setbacks
D) All of the above
Answer: D
6. Mohamed, the owner of a successful entrepreneurial firm, is always concentrating on his
product as a means of satisfying a customer need. According to chapter 1, Mohamed is
exhibiting which of the following characteristics?
A) Passion for the business
B) Product/customer focus
C) Tenacity despite failure
D) Execution intelligence
Answer: B
7. Heba is firmly holding of opportunities by relentlessly pursuing them whatever setbacks
or refusal she faces. Heba is______.
A) execution intelligent
B) business indifferent
C) tenacious
D) product/customer focused
Answer: C
8. __________ firms stress innovation, change, and opportunity seizure.
A) Salary-substitute
B) Entrepreneurial
C) Life-style
D) Conservative
Answer: B
9. In ______________the owner seeks to earn an amount of income that is similar or
identical to what s/he can earn by working as an employee for another company.
A) Salary-substitute
B) Entrepreneurial
C) Life-style
D) Conservative
Answer: A
10. Through________an entrepreneur can pursue a desire to experience a certain lifestyle
and earn a sufficient amount of income while doing so.
A) Salary-substitute
B) Entrepreneurial
C) Life-style
D) Conservative
Answer: C
11. Corporate Entrepreneurship is the conceptualization of entrepreneurship at the
organizational level.
A) TRUE
B) FALSE
Answer: A
12. Entrepreneurs are exclusively found in new ventures.
A) TRUE
B) FALSE
Answer: B
13. Entrepreneurship applies in the context of a new or an existing firm, for profit or for not-
for-profit organizations.
A) TRUE
B) FALSE
Answer: A
14. Social entrepreneurship confirms the myth that most entrepreneurs are motivated
primarily by money.
A) TRUE
B) FALSE
Answer: B
15. Entrepreneurs and gamblers are the same because of the high risk they are exposed to.
A) TRUE
B) FALSE
Answer: B
16. Tenacity despite failure is important in the initial phases of the new venture, however,
after the business grew, entrepreneurs are expected to exhibit indolence and irresolution.
A) TRUE
B) FALSE
Answer: B