MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) The higher your number of most desirable responses on the Entrepreneurial Quiz is, then:
A) The more your responses agree with those of successful entrepreneurs.
B) The less likely you are to become a successful entrepreneur.
C) The less your responses agree with those of successful entrepreneurs.
D) The more likely you are to abort your attempts at an entrepreneurial venture because of anxiety.
Answer: A

2) Despite scoring high on the Entrepreneurial Quiz, your venture is unlikely to succeed if you fail to demonstrate:
A) People prowess
B) Financial independence
C) Commitment, determination, and perseverance
D) Technical savvy
Answer: C

3) In a study of inductees into the Babson University Academy of Distinguished Entrepreneurs, the three attributes and
behaviours cited as the principal reasons for entrepreneurial success are:
A) Positive attitude, social savvy, and intellectual intelligence.
B) Emotional intelligence, social intelligence, mathematical intelligence.
C) Openness to change, personal initiative, and perseverance.
D) Commitment, dedication, and perseverance.
Answer: C

4) One of the common themes resulting from research into the common attributes shared by successful
entrepreneurs is that:
A) Those attributes cannot be learned, an individual is either born with them or they are not.
B) There are no "common" set of attributes - each entrepreneurial success story is unique.
C) Those attributes are always the same - confidence, determination, and perseverance are always at the top
of the list.
D) Those attributes can be learned.
Answer: D

5) Entrepreneurs are driven by an immense desire to achieve the goals they initially set for themselves and then to
aim for even more challenging standards. This makes them:
A) Profit-oriented
B) Success-oriented
C) Challenge-oriented
D) Goal-oriented
Answer: B

6) Successful entrepreneurs are ________ people; they want to start producing results immediately.
A) Goal-oriented
B) Success-oriented
C) Action-oriented
D) Challenge-oriented
Answer: C

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 7) The best entrepreneurs have a keen sense of their own strengths and weaknesses and of the competitive
environment in which they operate. This makes them ________ -oriented.
A) Goal
B) Action
C) Success
D) Reality
Answer: D

8) Most entrepreneurs are found to be ________ listeners and ________ learners.

A) Good; quick
B) Poor; quick
C) Good; slow
D) Poor; slow
Answer: A

9) The three types of reaction identified by Robinson et al. are:

A) Cognition, Affect, and Behaviour
B) Cognition, Intelligence, and Emotion
C) Passion, Avoidance, and Ignorance
D) Empathy, Confusion, and Clarity
Answer: A

10) Which of the following did Robinson et al. define as the predisposition of the individual to respond in a
generally favourable or unfavourable manner with respect to innovation?
A) Character
B) Empathy
C) Personality
D) Attitude
Answer: D

11) All of the following are subscales in Robinson's EAO Model, except:
A) Innovation in business
B) Desire for retribution
C) Desire for personal control

D) Achievement in business
Answer: B

12) Which of the following entrepreneurial types prefer to identify themselves by their craft first, and as business
owners only as an afterthought?
A) Freedom Fighters
B) Lifestyle Business
C) Empire Building
D) Craftspeople
Answer: D

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13) You can usually identify ________ by the fact that their companies grow by more than 30 percent annually.
A) Empire Builders
B) Venture Capitalists
C) Institutional Developers
D) Freedom Fighters
Answer: A

14) These entrepreneurs go on to build larger companies through hiring and delegation of authority.
A) Team builders
B) Deal-to-dealers
C) Independent innovators
D) Pattern multipliers
Answer: A

15) Which type of entrepreneur takes advantage of the fact that unit costs tend to shrink as volume expands?
A) Pattern multipliers
B) Capital aggregators
C) Economy-of-scale exploiters
D) Deal-to-dealers
Answer: C

16) Arranging financing, handling credit, and budgeting are all considered skills under which broad
entrepreneurial skill set?
A) Managing capital
B) Managing people
C) Managing money
D) Managing inventory
Answer: C

17) Purchasing supplies and raw materials, controlling inventory, and managing the physical facilities are skills
which fall under which of the following broad entrepreneurial skill sets?
A) Directing business operations
B) Setting up a business
C) Directing sales and marketing operations
D) Managing people
Answer: A

18) You are able to acquire many of the skills needed prior to considering an entrepreneurial career through all of
the following means, except:
A) Organizational (or club) activities
B) Vacationing
C) Managing a home
D) Job experience
Answer: B

19) The personal net worth required to start a business is generally thought to be in the range of:
A) $5,000-$10,000
B) Every business opportunity has its own unique capital requirements.
C) $100,000-$500,000
D) $20,000-$50,000
Answer: B

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20) Your credit rating is based on:
A) Your employment income only.
B) The value of your home equity.
C) Your overall debt load, compared to your ability to generate income.
D) Your prior history in borrowing and repaying money.
Answer: D

21) Agencies such as Equifax Canada Inc. assemble information about how you pay your bills and then enter this
information into your credit file. An individual who is always late in paying their bills is given a rating of:
A) R4
B) R1
C) R3
D) R2
Answer: A

22) Social entrepreneurship seeks:

A) Welfare management
B) Social change
C) Financial profit
D) Social media business opportunities
Answer: B

23) Well-known social entrepreneurs include all of the following, except:

A) Jeff Skoll
B) Craig and Mark Kielburger
C) Shannon Tessier and Zack Patterson
D) Kenneth Lay
Answer: D

24) Which of the following is not among the three questions to address when confronted with an ethical problem?
A) What will others think?
B) How will it make you feel about yourself?
C) Is it balanced?
D) Is it legal?
Answer: A

25) A ________ should be a formal statement of a business's values concerning ethics and social issues.
A) Code of ethics
B) Code of behaviour
C) Vision statement
D) Mission statement
Answer: A

26) A code of ethics should be guided by all of the following areas of concern, except:
A) Integrity
B) Responsibility
C) Competition
D) Citizenship
Answer: C

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27) All of the following are included in the triple bottom line assessment, except:
A) Financial performance
B) Environmental impact
C) Social well-being
D) Global equality
Answer: D

28) Researchers are unable to identify a set of common attributes, attitudes, and experiences among entrepreneurs
that appear to lead to success.
A) True
B) False
Answer: B

29) There is considerable evidence which suggests that the "right stuff" needed to become a successful entrepreneur
can be learned.
A) True
B) False
Answer: A

30) Most entrepreneurs are self-confident, and with this confidence comes a strong ego.
A) True
B) False
Answer: A

31) High energy, good health, and emotional stability are thought to be some of the "not so learnable" qualities of
successful entrepreneurs.
A) True
B) False
Answer: A

32) High intelligence and conceptual ability are two of the most "learnable" attributes of successful entrepreneurs.
A) True
B) False
Answer: B

33) The Managerial Sills Inventory questionnaire can be used to develop an inventory of your skills and capabilities
in the areas of financial accounting, human resources, and ethics.
A) True
B) False
Answer: B

34) The "typical entrepreneur" is most closely associated with the Empire Builder type of entrepreneur.
A) True
B) False
Answer: A

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35) Craftspeople are a type of entrepreneur that seek financial independence above anything else and the freedom
to spend their time as they wish.
A) True
B) False
Answer: B

36) Deal-to-dealers are small business owners which have had more than one venture, often in quite different lines
of business.
A) True
B) False
Answer: A

37) According to Vesper’s typology, "Acquirers" are entrepreneurs that will often take over businesses that are in
trouble and try to straighten them out or buy businesses that they can add value to in some way, perhaps before
selling them off again.
A) True
B) False
Answer: A

38) Many small business owners experience an immediate increase in the level of personal income they can earn.
A) True
B) False
Answer: B

39) It is estimated that the principal reason for the failure of small firms is poor cash flow.
A) True
B) False
Answer: B

40) Training employees, motivating people, and evaluating workers fall under the "directing business operations"
skill set.
A) True
B) False
Answer: B

41) Your personal balance sheet includes a summary of all your assets–what you own that has some cash value–and
your liabilities or debts.
A) True
B) False
Answer: A

42) Your credit rating is based on your income earning potential in a five year period.
A) True
B) False
Answer: B

43) Equifax Canada Inc. is a venture capital firm headquartered in western Canada.
A) True
B) False
Answer: B

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 44) Craig and Mark Kielburger are well known for the role they played in the Ponzi scheme and eventual collapse
of Enron.
A) True
B) False
Answer: B

45) A socially responsible organization behaves in such a way as to achieve a high level of financial performance,
coupled with obvious efforts to act as good citizens and give something back to the societies in which they exist.
A) True
B) False
Answer: A

46) Social entrepreneurship refers to the discovery, evaluation, and exploitation of opportunities for financial profit.
A) True
B) False
Answer: B

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

47) Of the many attributes shared by successful entrepreneurs, which of those is believed to be the most critical to
their success? Explain.
Answer: More than any other single factor, a combination of perseverance and total dedication is critical. In many
cases, these qualities have won out against odds considered impossible to overcome. Determination and
commitment can compensate for other weaknesses you may have.

48) List and describe the "not-so-learnable" traits of an entrepreneur.

Answer: The not-so-learnable traits are those which experts consider to be innate. 1. High energy, good health,
and emotional stability; 2. Creativity and an innovative nature; 3. High intelligence and conceptual
ability; 4. The ability to see a better future and a capacity to inspire others to see it.

49) Most entrepreneurs are described as having a high risk tolerance. Do you agree or disagree? Why?
Answer: Despite the myth that suggests entrepreneurs are gamblers, quite the opposite is true. Effective
entrepreneurs have been found, in general, to prefer taking moderate, calculated risks, where the chances
of losing are neither so small as to be a sure thing nor so large as to be a considerable gamble.

50) List and briefly describe the three entrepreneurial archetypes developed by John Warrillow.
Answer: Craftspeople don't think of themselves as entrepreneurs, they still have the resources and confidence to
operate independently. They are more interested in developing their skills than growing their revenue
and generally work alone or employ one other person, often a spouse. Freedom Fighters/Lifestyle
Business seek financial independence above anything else and the freedom to spend their time as they
wish. Their prime motivator isn't growth, but simply being in business for themselves. Empire Building
refers to entrepreneurs who represent the 10 percent of growth-oriented business owners who are
motivated almost solely by achievement, usually measured in terms of company growth. The empire
building is the one most generally associated in popular imagination as the "typical entrepreneur"
–always busy with the next project, an insatiable thirst for growth and wealth, aiming to take over or
revolutionize markets and industries.

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51) In addition to the proper background, attitude, and lifestyle, what else should be considered in assessing your
potential for becoming a successful entrepreneur?
Answer: Possessing the necessary managerial skills is an essential ingredient to succeeding in any small venture. It
is estimated that the principal reason for the failure of small firms is poor management. Businesses,
whether large or small, have to perform in a number of diverse functions to operate successfully. An
entrepreneur, because of the limited amount of resources (human and financial) at his or her disposal,
faces a particularly difficult time.
The business skills required by an entrepreneur (or some other member of the organization) can be
broken down by function, as shown in Table 1.1.

52) Outline the five steps in preparing a personal balance sheet.

Answer: Step 1: Estimate the current market value of all your "assets"the items you own that have cash value
and list them.
Step 2: Add up the value of these assets.
Step 3: List all your debts, also known as "liabilities."
Step 4: Add up your liabilities.
Step 5: Deduct your total liabilities from your total assets to find your "net worth."

53) Summarize the basis for the argument that companies should give back to the communities in which they live.
Answer: First, all firms make use of society’s basic infrastructureland, plants, animals, and so on–to earn a profit.
Second, companies should reimburse society for the negative consequences their activities might create
noise, smell, traffic congestion, and toxic emissions

54) List the reasons why businesses should be concerned with being more socially responsible.
Answer: Cost savings due to more efficient operations
Development of a more positive organizational image and reputation
Creation of a clearly identifiable market niche with consumers who are interested in health and the
environment, social justice, and sustainable living
Being forced to become more innovative to accommodate these values within the company’s
organizational strategy.

55) Outline the three key questions in Blanchard and Peale’s Ethics Check to help you sort out dilemmas by
examining the situation at several different levels.
Answer: 1. Is it legal?
Will you be violating either civil law or your organization’s code of ethics?
2. Is it balanced?
Is it fair to all concerned in the short term as well as the long term? Does it promote win—win
relationships?
3. How will it make you feel about yourself?
Will it make you proud?
Would you feel good if your decision was published in the newspaper?
Would you feel good if your family knew about it?