Chapter 2 & 3 Question Bank : Entrepreneurship Development & Theories of Entrepreneurship
Multiple Choice Questions
- The word "entrepreneur" is derived from which language?
a) English
b) Latin
c) French
d) German
Answer: c) French - Who coined the term "entrepreneur" in the 18th century?
a) Richard Cantillon
b) Joseph Schumpeter
c) Adam Smith
d) Max Weber
Answer: a) Richard Cantillon - Which characteristic is not associated with entrepreneurship?
a) Innovation
b) Risk-taking
c) Stability
d) Decision-making
Answer: c) Stability - Entrepreneurship in the industrial revolution was mainly focused on:
a) Agriculture
b) Manufacturing
c) Education
d) Retail
Answer: b) Manufacturing - Entrepreneurs contribute significantly to:
a) Inflation
b) Economic development
c) Unemployment
d) Bureaucracy
Answer: b) Economic development - Which of the following is a key characteristic of a successful entrepreneur?
a) Avoiding risks
b) Creative problem-solving
c) Dependency on others
d) Resistance to change
Answer: b) Creative problem-solving - Entrepreneurs are considered:
a) Passive agents of economic development
b) Active agents of economic development
c) Irrelevant to economic development
d) Solely profit-driven
Answer: b) Active agents of economic development - In history, entrepreneurship was initially linked with:
a) Agriculture
b) Merchants
c) Banking
d) Technology
Answer: b) Merchants - Which factor has historically driven entrepreneurship?
a) Lack of competition
b) Market opportunities
c) Government control
d) Cultural stagnation
Answer: b) Market opportunities - Entrepreneurs in ancient times were primarily:
a) Farmers
b) Traders and craftsmen
c) Teachers
d) Politicians
Answer: b) Traders and craftsmen - Which of the following is NOT a function of entrepreneurship?
a) Innovation
b) Risk-bearing
c) Stabilizing markets
d) Organizing resources
Answer: c) Stabilizing markets - The function of decision-making in entrepreneurship primarily involves:
a) Following market trends
b) Taking calculated risks
c) Organizing trade unions
d) Avoiding uncertainty
Answer: b) Taking calculated risks - Entrepreneurs ensure the effective allocation of resources by acting as:
a) Innovators
b) Organizers
c) Investors
d) Competitors
Answer: b) Organizers - Risk-bearing in entrepreneurship means:
a) Avoiding financial losses
b) Accepting and managing uncertainties
c) Eliminating market competition
d) Investing in only stable ventures
Answer: b) Accepting and managing uncertainties - Which function of entrepreneurship fosters economic progress through new products and processes?
a) Innovation
b) Risk-taking
c) Capital generation
d) Delegation
Answer: a) Innovation - Entrepreneurs improve productivity through:
a) Investment in fixed assets
b) Innovation and process improvement
c) Reducing workforce costs
d) Stagnating production methods
Answer: b) Innovation and process improvement - A core function of entrepreneurship includes:
a) Managing societal norms
b) Resolving political issues
c) Organizing and coordinating production factors
d) Opposing globalization
Answer: c) Organizing and coordinating production factors - The entrepreneurial function of mobilizing resources involves:
a) Gathering only financial capital
b) Allocating and utilizing all types of resources efficiently
c) Avoiding resource diversification
d) Focusing solely on human capital
Answer: b) Allocating and utilizing all types of resources efficiently - Entrepreneurs act as economic leaders by:
a) Stabilizing prices
b) Innovating and leading markets
c) Following existing trends
d) Avoiding competition
Answer: b) Innovating and leading markets - A successful entrepreneur must effectively manage:
a) Financial liabilities only
b) Risks, resources, and innovation
c) Global economic stability
d) Tax evasion strategies
Answer: b) Risks, resources, and innovation - Entrepreneurs primarily focus on:
a) Managing existing operations
b) Innovation and starting new ventures
c) Supervising employees
d) Following instructions from superiors
Answer: b) Innovation and starting new ventures - A manager’s primary role is to:
a) Take risks and innovate
b) Plan, organize, and control resources
c) Invest in new business ideas
d) Create market competition
Answer: b) Plan, organize, and control resources - The key difference between an entrepreneur and a manager lies in:
a) Their level of authority
b) The ownership of the business
c) Their day-to-day tasks
d) Risk-taking and innovation
Answer: d) Risk-taking and innovation - Entrepreneurs are risk-bearers, while managers:
a) Avoid all risks
b) Are salaried employees who implement strategies
c) Share the risks equally with entrepreneurs
d) Work independently without supervision
Answer: b) Are salaried employees who implement strategies - Who among the following is responsible for initiating business ventures?
a) Entrepreneur
b) Manager
c) Supervisor
d) Shareholder
Answer: a) Entrepreneur - Managers usually focus on:
a) Long-term innovation
b) Short-term goals and performance
c) Risk-bearing
d) Investing in new projects
Answer: b) Short-term goals and performance - Entrepreneurs create and own the business, whereas managers:
a) Hold partial ownership
b) Work as employees without ownership
c) Are co-founders of the business
d) Act as risk-takers
Answer: b) Work as employees without ownership - Entrepreneurs focus on opportunities, while managers focus on:
a) Challenges
b) Problem-solving within existing frameworks
c) Competition
d) Risk-taking
Answer: b) Problem-solving within existing frameworks - Entrepreneurs are driven by vision, whereas managers are driven by:
a) Profit-sharing
b) Innovation
c) Organizational objectives
d) Personal goals
Answer: c) Organizational objectives - The reward for an entrepreneur is profit, while for a manager, it is:
a) Equity
b) Salary and incentives
c) Business ownership
d) Market share
Answer: b) Salary and incentives - According to Schumpeter, entrepreneurship is primarily about:
a) Managing resources
b) Driving innovation and change
c) Avoiding risks
d) Following traditional business methods
Answer: b) Driving innovation and change - Schumpeter's Innovation Theory identifies entrepreneurship with:
a) Cost reduction
b) Creative destruction
c) Employee retention
d) Market stabilization
Answer: b) Creative destruction - Schumpeter considered entrepreneurs as individuals who:
a) Invest in stable ventures
b) Disrupt existing markets with innovations
c) Focus only on profits
d) Work in managerial roles
Answer: b) Disrupt existing markets with innovations - Which of the following is not a form of innovation according to Schumpeter?
a) Introduction of new products
b) Creation of new markets
c) Improving existing production methods
d) Minimizing customer service
Answer: d) Minimizing customer service - The term "creative destruction" in Schumpeter's theory refers to:
a) Building on old ideas without change
b) Destroying competitors through unethical practices
c) Replacement of outdated products with innovative solutions
d) Disrupting economies through failure
Answer: c) Replacement of outdated products with innovative solutions - Entrepreneurs in Schumpeter's model are motivated by:
a) Stable job roles
b) Profit and the urge to innovate
c) Following managerial instructions
d) Avoiding risks in competitive markets
Answer: b) Profit and the urge to innovate - Which of these best represents Schumpeter's view of entrepreneurship?
a) Risk aversion
b) Incremental improvements
c) Radical innovations that transform industries
d) Preservation of market traditions
Answer: c) Radical innovations that transform industries - An entrepreneur introducing a revolutionary product is an example of:
a) Market disruption
b) Incremental change
c) Schumpeterian innovation
d) Organizational restructuring
Answer: c) Schumpeterian innovation - According to Schumpeter, which of the following is a result of entrepreneurship?
a) Decrease in competition
b) Increased market monopolies
c) Economic development through innovation
d) Stable market dynamics
Answer: c) Economic development through innovation - Schumpeter emphasized that entrepreneurs are agents of:
a) Market equilibrium
b) Change and development
c) Risk-free investments
d) Standardization
Answer: b) Change and development - Who proposed the Need for Achievement Theory of entrepreneurship?
a) Joseph Schumpeter
b) David McClelland
c) Max Weber
d) Everett Hagen
Answer: b) David McClelland - According to McClelland, entrepreneurs are primarily motivated by:
a) Wealth accumulation
b) Need for achievement
c) Social status
d) Avoidance of failure
Answer: b) Need for achievement - The Need for Achievement is a:
a) Social attribute
b) Personality trait
c) Market phenomenon
d) Government initiative
Answer: b) Personality trait - People with a high need for achievement tend to:
a) Seek out risky and challenging goals
b) Avoid uncertain situations
c) Prioritize social connections over performance
d) Focus only on short-term outcomes
Answer: a) Seek out risky and challenging goals - Which of the following is not a characteristic of entrepreneurs with a high need for achievement?
a) Preference for moderate risks
b) Desire for immediate rewards
c) Focus on long-term goals
d) Strong internal locus of control
Answer: b) Desire for immediate rewards - McClelland’s theory emphasizes which kind of risk-taking by entrepreneurs?
a) Extreme risk-taking
b) Moderate risk-taking
c) Risk aversion
d) No risk at all
Answer: b) Moderate risk-taking - Entrepreneurs with a high need for achievement are likely to:
a) Delegate decision-making to others
b) Take personal responsibility for outcomes
c) Avoid performance feedback
d) Focus on maintaining the status quo
Answer: b) Take personal responsibility for outcomes - McClelland identified which factor as essential for entrepreneurial success?
a) High IQ
b) Strong financial backing
c) Motivation driven by achievement
d) Family background
Answer: c) Motivation driven by achievement - According to McClelland, individuals with a high need for achievement are likely to:
a) Work on tasks where success depends on their effort
b) Avoid tasks that require personal initiative
c) Rely on others to complete projects
d) Avoid challenges in their profession
Answer: a) Work on tasks where success depends on their effort - The Need for Achievement Theory is most applicable to:
a) Bureaucrats
b) Entrepreneurs
c) Factory workers
d) Clerical staff
Answer: b) Entrepreneurs - Hoselitz's theory emphasizes the role of entrepreneurship in:
a) Economic stagnation
b) Economic development
c) Political stability
d) Technological redundancy
Answer: b) Economic development - According to Hoselitz, entrepreneurship thrives in societies with:
a) Uniform income distribution
b) Cultural diversity
c) High dependence on agriculture
d) Strict traditional norms
Answer: b) Cultural diversity - The theory highlights the importance of ________ in promoting entrepreneurship.
a) Social marginality
b) Risk aversion
c) Wealth inheritance
d) Political influence
Answer: a) Social marginality - Hoselitz linked entrepreneurship to individuals who are:
a) In the mainstream society
b) Marginal in social hierarchy
c) Financially dependent
d) Risk-averse
Answer: b) Marginal in social hierarchy - Which societal group, according to Hoselitz, is more likely to become entrepreneurs?
a) The elite class
b) The socially marginalized
c) Government employees
d) Industrial workers
Answer: b) The socially marginalized - Hoselitz argued that entrepreneurship is often driven by:
a) Personal leisure
b) Economic incentives
c) Lack of education
d) Random opportunities
Answer: b) Economic incentives - What is the key factor for entrepreneurial growth in Hoselitz’s theory?
a) Access to technology
b) Social displacement
c) Large-scale industries
d) Government regulation
Answer: b) Social displacement - Which of the following supports entrepreneurial growth in Hoselitz’s view?
a) Bureaucratic control
b) Flexible social norms
c) Economic isolation
d) Reduced competition
Answer: b) Flexible social norms - Hoselitz believed that the entrepreneurial spirit arises in areas with:
a) Traditional stability
b) Cultural and economic change
c) Strict religious practices
d) Lack of innovation
Answer: b) Cultural and economic change - Which of these best explains Hoselitz's theory of entrepreneurship?
a) The role of heredity
b) Social mobility and marginality
c) Dependence on agriculture
d) Absence of education
Answer: b) Social mobility and marginality
True/False Questions
- The term "entrepreneur" originally meant "undertaker" in French.
Answer: True - Richard Cantillon emphasized the risk-taking aspect of entrepreneurship.
Answer: True - Entrepreneurs were unrelated to the industrial revolution.
Answer: False - Stability is a primary characteristic of entrepreneurship.
Answer: False - Entrepreneurship drives both innovation and economic development.
Answer: True - Entrepreneurs are passive contributors to economic growth.
Answer: False - The industrial revolution limited the scope of entrepreneurship.
Answer: False - Early entrepreneurship was tied to technological advancements.
Answer: False - Entrepreneurs often operate in uncertain environments.
Answer: True - Risk-taking is not a key feature of entrepreneurship.
Answer: False - Innovation is not a function of entrepreneurship.
Answer: False - Entrepreneurs avoid taking risks in their ventures.
Answer: False - The primary role of an entrepreneur is to organize and allocate resources effectively.
Answer: True - Decision-making in entrepreneurship involves tackling uncertainties.
Answer: True - Risk-bearing does not involve financial uncertainties.
Answer: False - Mobilizing resources is a secondary function of entrepreneurship.
Answer: False - Entrepreneurs lead economic progress by introducing new technologies.
Answer: True - Entrepreneurship functions do not include coordinating production factors.
Answer: False - Economic growth is directly linked to entrepreneurial innovation.
Answer: True - Entrepreneurs focus only on financial risks.
Answer: False - Entrepreneurs and managers both bear the risks of the business equally.
Answer: False - Managers are primarily responsible for implementing the vision of the entrepreneur.
Answer: True - Entrepreneurs are salaried employees of a business.
Answer: False - Managers focus on day-to-day operations, while entrepreneurs focus on long-term growth.
Answer: True - Managers own the business they work for.
Answer: False - Entrepreneurs need to innovate and take risks to create new ventures.
Answer: True - Managers work towards achieving the organizational goals set by the entrepreneur.
Answer: True - Entrepreneurs usually avoid risks to ensure steady business operations.
Answer: False - The primary reward for an entrepreneur is profit, while for a manager, it is salary.
Answer: True - Entrepreneurs always operate independently, without managers.
Answer: False - Schumpeter believed entrepreneurs play a key role in economic development through innovation.
Answer: True - Creative destruction means improving existing products without replacing them.
Answer: False - Schumpeter's theory highlights incremental changes over radical innovations.
Answer: False - Introducing a new production method is an example of Schumpeterian entrepreneurship.
Answer: True - According to Schumpeter, entrepreneurship helps maintain market stability.
Answer: False - Profit is a primary motivator for entrepreneurs in Schumpeter’s model.
Answer: True - The creation of entirely new markets is part of innovation according to Schumpeter.
Answer: True - Entrepreneurs in Schumpeter’s theory are focused on sustaining traditional business models.
Answer: False - Schumpeter viewed innovation as a destructive force in business.
Answer: True - Creative destruction leads to the elimination of outdated products.
Answer: True - The Need for Achievement Theory was proposed by David McClelland.
Answer: True - Entrepreneurs with a high need for achievement prefer to avoid risks.
Answer: False - A high need for achievement motivates individuals to pursue challenging goals.
Answer: True - McClelland’s theory is irrelevant for understanding entrepreneurial behavior.
Answer: False - High achievers prefer tasks where success depends on luck rather than effort.
Answer: False - The Need for Achievement Theory emphasizes the role of personality traits in entrepreneurship.
Answer: True - Entrepreneurs with high achievement motivation rely heavily on external feedback.
Answer: False - Individuals with a high need for achievement avoid tasks with uncertain outcomes.
Answer: False - Entrepreneurs are driven by a desire to improve performance and attain success.
Answer: True - According to McClelland, cultural factors do not influence the need for achievement.
Answer: False - Hoselitz's theory highlights the role of social marginality in entrepreneurship.
Answer: True - According to Hoselitz, entrepreneurship is limited to the elite class.
Answer: False - Economic incentives play a critical role in entrepreneurial growth according to Hoselitz.
Answer: True - Flexible social norms hinder entrepreneurship in Hoselitz's view.
Answer: False - Hoselitz linked entrepreneurship with cultural and economic changes.
Answer: True - Social displacement is a key factor for entrepreneurship in Hoselitz’s theory.
Answer: True - The theory suggests that entrepreneurship flourishes in highly traditional societies.
Answer: False - Hoselitz emphasized the need for risk aversion in entrepreneurs.
Answer: False - Social mobility is unrelated to entrepreneurship in Hoselitz's theory.
Answer: False - Entrepreneurship contributes to economic development according to Hoselitz.
Answer: True
Fill in the Blanks
- The term "entrepreneur" was introduced in the 18th century by ________.
Answer: Richard Cantillon - Entrepreneurs are often described as ________ agents of economic development.
Answer: Active - Entrepreneurship is primarily associated with ________ and creativity.
Answer: Innovation - During the industrial revolution, entrepreneurship flourished in ________.
Answer: Manufacturing - Entrepreneurs are known for their ability to take ________ in uncertain situations.
Answer: Risks - The historical focus of entrepreneurship was on ________ and craftsmanship.
Answer: Trade - Entrepreneurship requires ________ problem-solving skills.
Answer: Creative - An entrepreneur contributes to reducing ________ through job creation.
Answer: Unemployment - Entrepreneurship drives ________ development in society.
Answer: Economic - The industrial revolution marked a shift from agriculture to ________ as the focal point of entrepreneurship.
Answer: Manufacturing - The function of ________ in entrepreneurship involves introducing new products and processes.
Answer: Innovation - Risk-bearing is the function of dealing with ________ in business ventures.
Answer: Uncertainty - Entrepreneurs act as ________ of economic growth.
Answer: Leaders - Effective ________ is a core function of entrepreneurship to ensure resource utilization.
Answer: Organization - Decision-making involves choosing among various ________ to tackle challenges.
Answer: Alternatives - Mobilizing resources includes human, financial, and ________ capital.
Answer: Material - Entrepreneurs influence productivity through ________ improvements.
Answer: Process - The coordination of ________ is a crucial entrepreneurial function.
Answer: Production factors - Innovation drives ________ and progress in markets.
Answer: Growth - Entrepreneurs must ________ risks to achieve their goals.
Answer: Accept - Entrepreneurs focus on ________ and innovation.
Answer: Risk-taking - Managers implement the plans and strategies made by the ________.
Answer: Entrepreneur - Entrepreneurs are rewarded with ________, while managers receive a salary.
Answer: Profit - Managers focus on achieving ________ objectives.
Answer: Organizational - ________ are salaried employees who supervise daily operations.
Answer: Managers - Entrepreneurs are ________ of the business they establish.
Answer: Owners - The role of a manager is focused on ________ term goals.
Answer: Short - Entrepreneurs are considered ________ because they accept the risks of business ventures.
Answer: Risk-bearers - Managers prioritize maintaining ________ in the organization.
Answer: Stability - Entrepreneurs are driven by ________ and market opportunities.
Answer: Vision - Schumpeter’s theory of entrepreneurship is also known as the ________ Theory.
Answer: Innovation - The process of replacing outdated products with new innovations is called ________.
Answer: Creative destruction - Schumpeter highlighted entrepreneurship as a driver of ________ development.
Answer: Economic - ________ are individuals who disrupt existing markets with innovations.
Answer: Entrepreneurs - Schumpeter classified ________ as the essence of entrepreneurship.
Answer: Innovation - Introducing new production methods is a form of ________ according to Schumpeter.
Answer: Innovation - Creative destruction results in the elimination of ________ technologies.
Answer: Outdated - Entrepreneurs are motivated by profit and the urge to ________.
Answer: Innovate - Schumpeter described entrepreneurs as agents of ________ and transformation.
Answer: Change - Economic development through innovation is a key aspect of ________ entrepreneurship.
Answer: Schumpeterian - The Need for Achievement Theory was developed by ________.
Answer: David McClelland - Entrepreneurs are primarily motivated by the ________ to achieve.
Answer: Need - McClelland’s theory is based on the psychological concept of ________.
Answer: Motivation - Individuals with a high need for achievement prefer tasks that involve ________.
Answer: Moderate risks - Entrepreneurs take ________ responsibility for their outcomes.
Answer: Personal - The Need for Achievement Theory identifies a high ________ locus of control in entrepreneurs.
Answer: Internal - McClelland’s theory emphasizes motivation as a critical ________ trait.
Answer: Personality - Entrepreneurs are driven by a desire for feedback on their ________.
Answer: Performance - The theory highlights the importance of ________ in achieving entrepreneurial success.
Answer: Effort - Individuals with a high need for achievement value ________ over external rewards.
Answer: Intrinsic satisfaction - Hoselitz’s theory of entrepreneurship focuses on ________ marginality.
Answer: Social - Entrepreneurship is driven by ________ and economic changes, as per Hoselitz.
Answer: Cultural - The key societal group for entrepreneurship is the ________.
Answer: Socially marginalized - Social displacement fosters ________ growth in Hoselitz’s theory.
Answer: Entrepreneurial - Flexible ________ norms are essential for entrepreneurship.
Answer: Social - Hoselitz highlighted the role of ________ mobility in entrepreneurship.
Answer: Social - Entrepreneurship contributes to ________ development.
Answer: Economic - According to Hoselitz, entrepreneurship thrives in societies with ________ diversity.
Answer: Cultural - Entrepreneurs often emerge from ________ groups in society.
Answer: Marginalized - Economic ________ is a significant motivator for entrepreneurs.
Answer: Incentives
One-Sentence Answer Questions
- What does the term "entrepreneur" mean in French?
Answer: It means "undertaker." - Who is credited with introducing the concept of entrepreneurship?
Answer: Richard Cantillon. - How does entrepreneurship contribute to the economy?
Answer: By creating jobs and driving innovation. - What are the two key characteristics of entrepreneurship?
Answer: Risk-taking and innovation. - Why is creativity essential in entrepreneurship?
Answer: Creativity helps solve problems and develop innovative ideas. - What role did entrepreneurship play during the industrial revolution?
Answer: It drove the growth of manufacturing industries. - What is a primary trait of successful entrepreneurs?
Answer: Decision-making under uncertainty. - How does entrepreneurship reduce unemployment?
Answer: By creating new jobs through business ventures. - Which industry was the focus of early entrepreneurs?
Answer: Trade and craftsmanship. - Why is risk-taking considered vital in entrepreneurship?
Answer: It enables entrepreneurs to pursue opportunities in uncertain environments. - What is the most critical function of an entrepreneur?
Answer: Innovation. - How does risk-bearing benefit entrepreneurship?
Answer: It helps entrepreneurs manage uncertainties and pursue opportunities. - What does the function of organizing involve?
Answer: Effective allocation and coordination of resources. - Why is decision-making important for entrepreneurs?
Answer: It allows them to tackle challenges and uncertainties effectively. - What resources do entrepreneurs mobilize?
Answer: Human, financial, and material resources. - How do entrepreneurs contribute to economic growth?
Answer: By introducing innovations and improving productivity. - What is the role of innovation in entrepreneurship?
Answer: It drives progress and creates new market opportunities. - What does the coordination of production factors include?
Answer: Bringing together labor, capital, and materials efficiently. - How do entrepreneurs ensure efficient resource utilization?
Answer: Through proper organization and planning. - Why is risk-taking considered a key entrepreneurial function?
Answer: It helps entrepreneurs pursue opportunities despite uncertainties. - What is the primary reward for an entrepreneur?
Answer: Profit. - How do managers contribute to a business?
Answer: By implementing plans, organizing resources, and ensuring operational efficiency. - Who bears the risks in a business, entrepreneur or manager?
Answer: Entrepreneur. - What is the main focus of managers?
Answer: Achieving organizational objectives and managing daily operations. - What differentiates an entrepreneur from a manager?
Answer: Entrepreneurs focus on innovation and risk-taking, while managers focus on planning and execution. - What drives entrepreneurs in their ventures?
Answer: Vision and market opportunities. - What is the source of income for managers?
Answer: Salary and incentives. - Why are entrepreneurs considered innovators?
Answer: Because they create new products, services, or processes. - Who is responsible for ensuring the smooth running of business operations?
Answer: Manager. - What is the key characteristic of entrepreneurs regarding risk?
Answer: They are willing to take calculated risks. - What is the primary focus of Schumpeter’s Innovation Theory?
Answer: Driving economic development through innovation and creative destruction. - What does "creative destruction" mean in Schumpeter’s theory?
Answer: The process of replacing outdated products or processes with innovative solutions. - How do entrepreneurs contribute to economic growth according to Schumpeter?
Answer: By introducing innovations that disrupt markets and create new opportunities. - What motivates entrepreneurs in Schumpeter’s model?
Answer: Profit and the urge to innovate. - What is the role of innovation in entrepreneurship according to Schumpeter?
Answer: It is the essence of entrepreneurship that drives market and economic transformation. - Who are the agents of change in Schumpeter’s theory?
Answer: Entrepreneurs. - What are the types of innovation mentioned by Schumpeter?
Answer: New products, new production methods, new markets, and new business models. - Why is Schumpeter’s theory significant for understanding entrepreneurship?
Answer: It highlights the critical role of innovation in driving economic development. - What happens to outdated products in the process of creative destruction?
Answer: They are replaced by innovative and improved solutions. - How does Schumpeter define the economic role of entrepreneurs?
Answer: As catalysts of innovation and economic progress. - Who proposed the Need for Achievement Theory?
Answer: David McClelland. - What motivates individuals according to McClelland's theory?
Answer: The need for achievement. - What type of risks do entrepreneurs with high achievement motivation prefer?
Answer: Moderate risks. - Why is feedback important to high achievers?
Answer: It helps them improve performance and track progress. - What kind of tasks do individuals with high need for achievement prefer?
Answer: Tasks where success depends on their effort and ability. - How does McClelland's theory explain entrepreneurial behavior?
Answer: It emphasizes achievement motivation as a key driver. - What is the role of personal responsibility in McClelland’s theory?
Answer: Entrepreneurs take personal responsibility for their outcomes. - How does internal locus of control relate to McClelland’s theory?
Answer: Entrepreneurs believe their actions determine success. - Why is the Need for Achievement Theory significant?
Answer: It explains the psychological traits influencing entrepreneurship. - What distinguishes high achievers from others in McClelland's theory?
Answer: Their strong drive to achieve and focus on intrinsic rewards. - What does Hoselitz’s theory emphasize about entrepreneurship?
Answer: It emphasizes the role of social marginality and cultural diversity in entrepreneurship. - Which group does Hoselitz identify as potential entrepreneurs?
Answer: Socially marginalized groups. - What is a key factor for entrepreneurial growth according to Hoselitz?
Answer: Social displacement. - What type of societies does Hoselitz believe encourage entrepreneurship?
Answer: Societies experiencing cultural and economic change. - How does social mobility relate to entrepreneurship in Hoselitz's theory?
Answer: Social mobility facilitates entrepreneurial activities. - What kind of social norms support entrepreneurship according to Hoselitz?
Answer: Flexible social norms. - How does entrepreneurship contribute to society in Hoselitz’s view?
Answer: It promotes economic development. - Why does Hoselitz link entrepreneurship to cultural diversity?
Answer: Cultural diversity provides varied perspectives and opportunities for innovation. - What motivates entrepreneurs in Hoselitz's theory?
Answer: Economic incentives and opportunities. - Why is social displacement significant in entrepreneurship?
Answer: It creates opportunities for marginalized groups to engage in entrepreneurial ventures.
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