Chapter 01
Entrepreneurship and the Entrepreneurial Mind-Set
Chapter 01 - Entrepreneurship and the Entrepreneurial Mind-Set
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McGraw-Hill Education.
True / False Questions
1. (p. 4) Ewing Kauffman took a risk when he started his company Marion Labs in 1950.
TRUE
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Difficulty: Medium
2. (p. 5) How Ewing Kauffman ran his business illustrates corporate entrepreneurship.
TRUE
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Difficulty: Medium
3. (p. 6) Entrepreneurial opportunities are those situations in which new goods, services, raw
materials and organizing methods can be sold at greater than their production cost.
TRUE
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Difficulty: Medium
4. (p. 6) Entrepreneurial action can be defined as those situations in which new goods, services,
raw materials and organizing methods can be sold at greater than their production cost.
FALSE
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Difficulty: Medium
Chapter 01 - Entrepreneurship and the Entrepreneurial Mind-Set
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Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
5. (p. 6) The McMullen-Shepherd Model helps identify the common traits of successful
entrepreneurs.
FALSE
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Difficulty: Easy
6. (p. 6) The McMullen-Shepherd Model explains how knowledge and motivation influence two
stages of entrepreneurial action.
TRUE
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Difficulty: Medium
7. (p. 6) In the McMullen-Shepherd Model first person opportunity beliefs come before third
person opportunity beliefs.
FALSE
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Difficulty: Hard
8. (p. 6) In the McMullen-Shepherd Model the first stage is the evaluation stage.
FALSE
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Difficulty: Medium
Chapter 01 - Entrepreneurship and the Entrepreneurial Mind-Set
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Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
9. (p. 7) Superficial similarities exist when the underlying mechanisms of the technology
resemble, or match, the underlying mechanisms of the market.
FALSE
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Difficulty: Medium
Chapter 01 - Entrepreneurship and the Entrepreneurial Mind-Set
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Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
10. (p. 7) Structural similarities exist when the underlying mechanisms of the technology
resemble, or match, the underlying mechanisms of the market.
TRUE
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Difficulty: Medium
11. (p. 8) Bricolage is entrepreneurs making do by applying combinations of the resources at
hand to new problems and opportunities.
TRUE
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Difficulty: Medium
12. (p. 9) The effectuation process starts with what one has and selects among possible
outcomes.
TRUE
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Difficulty: Medium
13. (p. 9) Is the example "Curry in a Hurry" is an example of the effectuation process?
TRUE
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Difficulty: Easy
14. (p. 9) The casual process of thinking starts with what one has and selects among possible
outcomes.
FALSE
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Difficulty: Medium
Chapter 01 - Entrepreneurship and the Entrepreneurial Mind-Set
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Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
15. (p. 10) Demographics, ethnic origin, and marital status are examples of segmentation
variables.
TRUE
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Difficulty: Easy
16. (p. 16) The question "What is this technology all about?" is a comprehension question.
TRUE
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Difficulty: Easy
17. (p. 16) Comprehension questions are designed to stimulate entrepreneurs to think about their
own understanding.
FALSE
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Difficulty: Medium
18. (p. 16) Asking "How is this problem similar to problems I've already solved"? is an example
of a connection task.
TRUE
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Difficulty: Medium
19. (p. 16) A reflection task would involve thinking about what strategies should be used to solve