Question 1

In Chapter 3, Weick's expression sensemaking is explained as a way of handling uncertainty in social situations,

Accepted Answer

A)   decides what has happened, what is happening and what rules apply in various situations through conversations and social agreements
B)   comes to one's senses and shapes up
C)   makes sense with expressions that describe a phenomenon
D)   makes sense of highly uncertain situations
E)   creates organization by eliminating nonsense A,D

Question 2

Two principal dimensions are applied to entrepreneurship from the cognitive school: locus of control and self-efficacy . The psychological term external locus of control is an attempt to describe the fact that:

Accepted Answer

A)   the world is deterministic and we humans can do nothing about it
B)   external circumstances control us
C)   one feels that one is in control
D)   people explain what has happened to them from their own perspective
E)   people often explain what has happened to them with external factors, those over which they have no controlF)  people rarely control external circumstances E

Question 3

"What entrepreneurs think about, and how they go about thinking about what they think about, is critical to understanding much of what occurs during an entrepreneur's activities" is a quote from the book. That quote is explaining a school of thought within the field of psychology which attempts to understand and explain entrepreneurship and entrepreneurial activities. What is the name of that school of thought?

Accepted Answer

A)   the analytical school
B)   the emotional school
C)   the hermeneutic school
D)   the humanistic school
E)   the cognitive school E

Question 4

When delving into the relationship between entrepreneur and company (creator and creation), a third more interactive alternative is presented, one which differentiates itself from either the option that the individual creates the structure or that the structure creates the individual (the conventional either-or approach). The third option states that:

Accepted Answer

A)   the entrepreneur and company are independent parts
B)   the entrepreneur creates the company that then creates the entrepreneur
C)   both are mutually intertwined
D)   the relationship is purely financial/technical (instrumental)

Question 5

In an attempt to differentiate between high and low self-efficacy, people with a strong sense of self-efficacy are said to be characterized by their tendency to: (four are correct)

Accepted Answer

A)   get stuck in negative thought patterns and mull over failures
B)   get over setbacks rather quickly and move on
C)   give up at the first sign of difficulty
D)   be attracted to challenging tasks
E)   not have faith in their ability to set nor reach goalsF)  show stronger perseverance in what they undertakeG)  become strongly involved in the activities they undertake

Question 6

Under the heading "No entrepreneur is an island" in Chapter 3, the concept of the network as a resource for entrepreneurs is addressed. The theme is that within the network, the entrepreneur exchanges capacities and is not limited by his/her own mental or other resources. The following list contains three incorrect options (which are not included in the book) pertaining to the qualities of the network - choose the correct ones!
The network:

Accepted Answer

A)   provides an arena to build an identity (business identity) 
B)   offers access to knowledge and additional resources
C)   as a place to test out ideas
D)   functions as a warning system
E)   provides encouragement, motivation and resourcesF)  helps by keeping the competition at bayG)  inspires perseverance, courage and agencyH) enables a system of cartels and price agreements at the bidding stageI) creates a brotherhood which rejects new ideas

Question 7

The trait approach is described in the book's third chapter. This research typically takes the following approach: (multiple correct answers)

Accepted Answer

A)   that traits don't play a major role
B)   that an individual can be trained in certain traits
C)   that traits are consistent over time
D)   that entrepreneurs form a homogenous group
E)   that entrepreneurs have a unique personality

Question 8

Researchers have concluded that entrepreneurs, with a certain degree of regularity, make a number of misjudgments and irrational decisions due to letting their thinking be steered by a variety of prejudices and biased reasoning. Some of these mentioned in the book include:

Accepted Answer

A)   affect (one's feelings gain the upper hand) 
B)   ignorance of facts (misinterpretation or disregard of pertinent facts) 
C)   joy of optimism (acts according to how one wishes it was in reality) 
D)   hubris (overestimation of one's ability) 
E)   lure of little numbers (not taking a realistic approach to costs) F)  magic of big numbers (grossly over-exaggerating positive facts and figures) G) time optimism (systematically underestimating the time tasks require) H) overgeneralization (judging reality on the basis of a few observations)

Question 9

The psychological term self-efficacy was addressed in Chapter 3 as a means of explaining entrepreneurship. High self-efficacy implies:

Accepted Answer

A)   that a person believes in his or her ability to make subjective judgments and to act in situations of uncertainty
B)   that a person is most effective when working alone
C)   that a person is less effective when working alone
D)   belief in one's ability to effectively work alone
E)   that a person believes in his or her ability to influence and impact a specific situationF)  that a person believes he/she can do what is required in a situation

Question 10

The book discusses how research shows that entrepreneurs seek out environments that correspond to their way of living, for example gravitating towards environments (markets, situations, etc.) which "match" their own needs for certainty/uncertainty . This means:

Accepted Answer

A)   that entrepreneurs easily adapt to various settings and situations
B)   that entrepreneurs are risk-taking players
C)   that entrepreneurs conform to the preconceived notion others hold of them
D)   that people with a high tolerance for uncertainty gravitate to entrepreneurial environments
E)   that people with a low tolerance for uncertainty do not gravitate to entrepreneurial environmentsF)  that highly-uncertain situations attract people with a high tolerance for uncertainty

Question 11

In Chapter 3, we address the psychological term the fundamental attribution error. This refers to the fact that humans have a tendency to:

Accepted Answer

A)   erroneously assess someone's reputation from scandalous information
B)   erroneously affiliate someone with a professional group
C)   make sense of situations by erroneously assigning traits to people
D)   erroneously describe a situation

Question 12

Chapter 3 contains the sentence, "Several of the traits studied are deemed to be over-represented among entrepreneurs - the traits are more common among entrepreneurs than among the population at large." According to the book, which of the following four psychological traits are deemed to be over-represented amongst entrepreneurs?

Accepted Answer

A)   high level of aggression
B)   high IQ
C)  high tolerance for ambiguity
D)   high self-efficacy
E)   high need for achievementF)  internal locus of controlG)  strong charismaH) high capacity to bargain

Question 13

The concept of self-efficacy claims that the future can be influenced or created by human agency . This expression can be defined as:

Accepted Answer

A)   considering the entrepreneur to be an agent of change
B)   the fact that the entrepreneur is often motivated by human factors
C)   the human in the realm of entrepreneurship
D)   the human capacity to make decisions, act on them and influence reality

Question 14

Some of the fundamental issues surrounding the subject of entrepreneurship and the individual are that he/she is… Select those which apply in this context.

Accepted Answer

A)   born or made
B)   found or created
C)   homo economicus, homo agens or homo ludens
D)   imitative or innovative
E)   individual or collectiveF)  linear or non-linear

Question 15

When researchers attempt to define entrepreneurship, there is a risk of relying upon what American sociologist Mark Granovetter calls over-socialized or under-socialized explanations. An over-socialized explanation implies a tendency to:

Accepted Answer

A)   insist that structures create the individual
B)   believe that the entrepreneur identifies and acts on opportunities, more or less unaffected by surroundings
C)   imply that the individual creates the structures
D)   view the individual and human agency as playing a crucial role in the course of events
E)   view the entrepreneur as a marionette in the structuresF)  view institutions and structures as the factors which spark and create the course of events

Question 16

In entrepreneurship, the cognitive school addresses:

Accepted Answer

A)   how entrepreneurs act and react in a group
B)   how entrepreneurs work
C)   how entrepreneurs feel and motivate themselves
D)   how entrepreneurs lead others
E)   how entrepreneurs think, interpret and structure their world

Exam 3: People