Introduction to Entrepreneurship

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Questions and Answers

What is the origin of the word 'entrepreneur'?

Derived from the Greek word 'enterprisos'

Derived from the Spanish verb 'emprender'

Derived from the French verb 'enterprendre' (correct)

Derived from the Latin word 'entrepreneurus'

What role do entrepreneurs play in the economy?

Generate unemployment

Reduce individual savings

Increase inflation rates

Provide opportunities for unemployed individuals (correct)

What is one of the characteristics of entrepreneurs mentioned in the text?

Innovators and willing to take risks (correct)

Unconcerned about profit

Reluctant to generate new ideas

Risk-averse and resistant to change

Which statement best describes entrepreneurship according to the text?

Building and scaling businesses to generate profit Signup and view all the answers

What is one of the benefits of entrepreneurship mentioned in the text?

Increased individual savings Signup and view all the answers

Why are entrepreneurs encouraged by the economy according to the text?

To provide opportunities for unemployed young people Signup and view all the answers

According to the passage, what is the key difference between customers and consumers?

Customers are the buyers of the product, while consumers are the users of the product. Signup and view all the answers

Who is considered the 'father of the Theory of Entrepreneurship' according to the passage?

Richard Cantillon Signup and view all the answers

What did Jean Baptiste Say add to Cantillon's definition of an entrepreneur?

That entrepreneurs have to be leaders who bring other people together to build a single productive organism. Signup and view all the answers

Which of the following is NOT a characteristic of entrepreneurship mentioned in the passage?

Having a clear understanding of the market. Signup and view all the answers

According to the passage, where did the term 'entrepreneur' originate from?

France Signup and view all the answers

What is the main purpose of the passage?

To trace the origins and development of the concept of entrepreneurship. Signup and view all the answers

What is the primary investment of an entrepreneur?

An idea Signup and view all the answers

Why are entrepreneurs considered significant risk-takers?

The success of their new ideas is uncertain Signup and view all the answers

What do entrepreneurs bring to the market?

Finished products Signup and view all the answers

Which of the following is NOT considered a factor used by an entrepreneur to turn an idea into a profitable product?

Market research Signup and view all the answers

What does the term "capital" refer to in the context of an entrepreneur's business?

Buildings, machinery, equipment, and tools used in production Signup and view all the answers

What makes entrepreneurs innovators?

They come up with new products or services Signup and view all the answers

According to Harvey Leibenstein, what is the dominant and necessary characteristic of entrepreneurs?

Being gap-fillers Signup and view all the answers

In the 19th century, Joseph Schumpeter believed that entrepreneurs are primarily:

Innovators and developers of untried technology Signup and view all the answers

According to David McClelland, what is the relationship between productivity and entrepreneurs?

Productivity is dependent on the energy levels of people, and entrepreneurs are energetic and productive Signup and view all the answers

What did Peter Drucker emphasize about entrepreneurs?

They look for and maximize opportunities Signup and view all the answers

Albert Shapiro argued that entrepreneurs take initiative to:

Organize social and economic mechanisms and accept the risks of failure Signup and view all the answers

How does entrepreneurship education benefit students according to the text?

Teaches crucial life skills for navigating an uncertain future Signup and view all the answers

Which of the following economists first formally recognized the necessity of entrepreneurship for production?

Alfred Marshall Signup and view all the answers

What did John Stuart Mill claim about entrepreneurship?

It requires no ordinary skill Signup and view all the answers

What is the 'Invisible Hand Theory' proposed by Adam Smith?

Business ventures and nations will develop naturally without necessitating effort or desire Signup and view all the answers

Which of the following is NOT one of the four factors of production identified by Alfred Marshall?

Entrepreneurship Signup and view all the answers

What did Adam Smith and David Ricardo likely do with regards to entrepreneurship, according to the text?

They undervalued its significance Signup and view all the answers

What was the 'Law of Nature' referred to in the text?

Adam Smith's theory that economic development is a natural phenomenon Signup and view all the answers

Study Notes

Entrepreneurs are vital for economic development as they provide products, services, and solutions to problems like unemployment.
The word "entrepreneur" comes from the French verb "enterprendre," meaning to undertake risks in creating and scaling businesses.
Entrepreneurs are innovators who take risks and generate unique and profitable ideas to address current challenges.
The origins of entrepreneurship can be traced back to historical figures like Marco Polo, Richard Cantillon, and Jean Baptiste Say.
Entrepreneurs play a crucial role in turning ideas into profitable products by utilizing resources like ideas, raw materials, capital, labor, and innovation.
Various economists have different perspectives on entrepreneurship, viewing entrepreneurs as risk-takers, gap-fillers, innovators, energetic individuals, and opportunity maximizers.
Entrepreneurship education equips students with essential life skills to adapt to an uncertain future and has been recognized as crucial for economic growth by economists like Adam Smith, David Ricardo, John Stuart Mill, and Alfred Marshall.

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Description

Learn about the concept and origin of entrepreneurship along with its relevance in the economy. Understand how entrepreneurs contribute to economic development and address unemployment.