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Business English Exercises
 

Entrepreneurial Behavior

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Home > Teaching Business English > Business English Lessons, Advanced Level # 280
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The term 'entrepreneur' was introduced to economics by Richard Cantillon in 1755; since then, entrepreneurship and its central figure, the entrepreneur, have been the focus of numerous studies, including the qualities of entrepreneurial behavior, and corporate entrepreneurship.

Correct answer: (a) figure

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Recently, a new stream of literature has formed around strategic entrepreneurship (Hitt et al. 2002a; Meyer and Heppard).

Correct answer: (b) around

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This new area of research is different from what has been traditionally identified as strategic management research.

Correct answer: (a) identified

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Instead of focusing on the mechanisms that can be used to sustain competitive advantage (i.e., existing market position), strategic entrepreneurship is about recognizing and taking advantage of new profit opportunities.

Correct answer: (b) mechanisms

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A firm that manages for strategic flexibility and constant renewal is able to generate above-average profits and thus is rewarded for its entrepreneurial behavior.

Correct answer: (b) generate

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The return to entrepreneurial behavior is entrepreneurial rent, and unlike most factor costs, entrepreneurial rents are noncontractible; this is because the entrepreneur exercises judgments to allocate resources in an uncertain environment.

Correct answer: (b) exercises

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Because the judgments are framed in an uncertain environment, the judgments themselves are uncertain and are thus ex ante noncontractible.

Correct answer: (a) ante

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Because entrepreneurship is not as homogenous as other factors, the analysis of payments to entrepreneurial behavior is complex.

Correct answer: (a) homogenous

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The aim of Ross and Westgren's paper is to include entrepreneurship in a model of the firm while reducing this dimensionality to two categories, arbitrage and innovation; they highlight what the entrepreneur receives for these activities and what governs their imputation from the stream of profits.

Correct answer: (d) imputation

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Following this model, entrepreneurial rents are then empirically calculated for a three-site hog production farm.

Correct answer: (a) empirically

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