Chapter 1

Question 1

Entrepreneurial opportunities

Answer 1

New goods/services/raw materials can be introduced and sold at greater cost than to produce

Question 2

Small business characteristics

Answer 2

Employs fewer than 50/100 people, CRA limit $300k operating profit for small business deduction qualification, degree to which owner is also the day-to-day manager

Question 3

Structural thinking

Answer 3

Creative mental leap that come from existing knowledge, superficial similarities: basic technology elements match basic market elements

Question 4

Bricolage

Answer 4

Combination of resources at hand to new problems and opportunities, use in a way for which they weren’t originally designed

Question 5

Effectuation

Answer 5

See what’s available and select among possible outcomes

Question 6

Causation

Answer 6

Starts with desired outcome and focuses on means to generate that outcome

Question 7

Differences between effectuation + causation

Answer 7

Experimentation, affordable loss, flexibility, pre-commitments

Question 8

Bootstrapping

Answer 8

Addresses resource scarcity, 4 categories: customer related, joint resource utilization, self-financing, temporary resources

Question 9

Cognitive adaptability

Answer 9

Controlling one’s thinking (ex. emotions in a crisis), 4 steps: comprehension, connection, strategy, reflection

Question 10

Characteristics of entrepreneurship

Answer 10

Need for achievement, need for power, need for affiliation

Question 11

Entrepreneur desirable attitudes

Answer 11

Opportunity obsession, risk tolerance, creativity/ adaptability, motivation to excel, commitment, courage, leadership