Chapter 1
What is the term for entrepreneurs who are married couples launching and managing a business together?
A. Sharedpreneurs
B. Inlovepreneurs
C. Copreneurs
D. Dualpreneurs
Answer: C. Copreneurs
Which of the following is NOT one of the three levels of ethical standards?
a) The law
b) Organizational policies and procedures
c) Personal morality
d) Government regulations
Answer: d) Government regulations
Gary Hirshberg’s justification for lying to vendors ("It’s for the common good") aligns most closely with which ethical framework?
A) Virtue ethics
B) Deontological ethics
C) Utilitarianism
D) Libertarianism
Answer: C) Utilitarianism
What percentage of U.S. businesses are considered small businesses?
a) 50%
b) 75%
c) 90%
d) 99.7%
Answer: d) 99.7%
Which ethical management style is characterized by a focus on profit but without intentional unethical behavior?
a) Immoral management
b) Amoral management
c) Moral management
d) Unethical management
Answer: b) Amoral management
According to the authors, what is the primary systemic consequence of entrepreneurial deception?
A) Market inefficiencies due to misallocated resources
B) Increased regulatory scrutiny of start-ups
C) Higher employee turnover in venture-backed firms
D) Reduced innovation in competitive industries
Answer: A) Market inefficiencies due to misallocated resources
How does the "lean startup" methodology help entrepreneurs?
a) By requiring large initial investments and then by cutting costs progressively after a few years
b) By eliminating the need for a business plan
c) By focusing only on long-term profits
d) By validating business ideas with minimal resources before scaling
Answer: d) By validating business ideas with minimal resources before scaling
According to the chapter, what is the most common reason for ethical lapses in businesses?
a) Lack of management oversight
b) Pressure to meet business targets
c) Employee laziness
d) Bad communication between employees
Answer: b) Pressure to meet business targets
The authors’ rejection of "business is business" as an excuse for deception relies on which principle?
A) Professional and personal ethics should be bifurcated.
B) Ethical standards are context-dependent.
C) Entrepreneurship is exempt from moral scrutiny.
D) The same ethics should govern all domains of life.
Answer: D) The same ethics should govern all domains of life.