Chapter 1: Introduction

1. Which of the following is the correct definition of the term ‘entrepreneur’, as used by the OECD?

  1. Entrepreneurs are those people who start new businesses with the aim of making a profit.
  2. Entrepreneurs are those persons (business owners) who seek to generate value through the creation or expansion of economic activity, by identifying and exploiting new products, processes or markets.
  3. Entrepreneurs are those persons who seek to create value by starting new businesses with innovative products and services.
  4. Entrepreneurs are those people who seek to create value for local communities, people or customers by starting new ventures which exploit new products, processes or markets.

Answer: B

2. What is the definition of the term ‘social enterprise’?

  1. a commercial organization that seeks to combine a profit seeking motive with the provision of social benefits
  2. a trading organization that is motivated by profit and a societal orientation
  3. a social enterprise undertakes social marketing and can take a variety of legal forms, including co-operative, a limited company and a community interest company
  4. a trading organization which serves a social purpose and which can take a variety of legal forms, including co-operative, a limited company and a community interest company

Answer: D

3. Intrapreneurship can be described as ______.

  1. entrepreneurial activity taking place in established organisations, including large corporations, government agencies and charities
  2. a spinout venture from a university to commercial a new invention
  3. a subsidiary of a large corporation developing a new product
  4. a semi-autonomous group operating outside the overarching structure of the parent organization

Answer: A

4. The goals motivating entrepreneurial activity can include which of the following?

  1. to improve the social welfare of people, e.g. in terms of their health
  2. to improve the wealth of the entrepreneurs
  3. to maintain influence amongst powerful local figures
  4. all of these

Answer: D

Explanation

The goals motivating entrepreneurial activity can include a wide range of factors and the options given cover just some of them.

5. Can entrepreneurship be ‘learned’? What is the view presented in this text?

i. Entrepreneurs are born and not made.

ii. It’s a discipline and like any other discipline it can be learned.

iii. You will never become an entrepreneur simply by reading a book.

iv. Practical exercises, study and critical reflection can be a good way to think about entrepreneurship

  1. ii and iv
  2. i and iii
  3. ii, iii and iv
  4. all of these

Answer: C

Explanation

This book argues that entrepreneurship can be learned and that there are effective and ineffective ways in which this can be accomplished. More effective methods involve studying how others have achieved success, and undertaking appropriate exercises.

6. The French expression ‘entreprendre’ means to ‘enter and take’.

  1. True
  2. False

Answer: B

Explanation

The phrase means to ‘take between’.

7. The ‘enterprise culture’ is a general interest in developing new ventures.

  1. True
  2. False

Answer: B

Explanation

‘The enterprise culture is a political project designed to encourage an increase in entrepreneurial activity and a corresponding decrease in the role of the state in regulating and intervening in the economy.’