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Entrepreneurial Small Business Katz 5th Edition- Test Bank
 Sample Questions
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Chapter 02
Small Business Entrepreneurs: Characteristics and Competencies
True / False Questions
| 1. |
The majority of new businesses are run by a solo entrepreneur.
True    False |
| 2. |
One way entrepreneurs display passion is by being persistently focused on the business.
True    False |
| 3. |
Opportunistic planners always plan around the most important aspect of the business first, act on it, and then consider if additional plans are needed.
True    False |
| 4. |
Habit-based planners don’t plan, and they don’t even tend to react to changes in their environments.
True    False |
| 5. |
Most businesses run by teams are not family related.
True    False |
| 6. |
Like every person, every small business is unique. There is no way to predict how the company will progress in the growth process.
True    False |
| 7. |
The competency suggested by exchange relates to the organizational and business processes of a firm called basic business competency.
True    False |
| 8. |
Skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business are called opportunity competencies.
True    False |
| 9. |
With over 8.3 million businesses owned by women, they account for a quarter of small business revenue nationally.
True    False |
| 10. |
Workers are opting for early retirement as corporations merge, downsize, and reorganize.
True    False |
| 11. |
Entrepreneurs get used to a do-it-yourself approach, which can be especially trying for second career entrepreneurs.
True    False |
| 12. |
Succession plans deal with the people who will take over, what roles they will fill, and what supports they will receive.
True    False |
| 13. |
One way to maximize communication in the succession process is to create a family council.
True    False |
| 14. |
In family-owned businesses, the board of directors can only be comprised of family members.
True    False |
| 15. |
Several models exist for the life cycle of the small business firm. Each divides the stages a bit differently.
True    False |
| 16. |
The slowest growing sector of all U.S. businesses is women-owned businesses.
True    False |
| 17. |
Access problems for women- and minority-owned small businesses crop up most often as discrimination in marketing.
True    False |
| 18. |
For corporations, certification for businesses owned by women or minority is handled by organizations that are not affiliated with the government or big business.
True    False |
| 19. |
About a third of the second career types who return to work decide to become self-employed.
True    False |
| 20. |
One of the major issues identified for second career entrepreneurs is keeping personal finances out of the business.
True    False |
Multiple Choice Questions
| 21. |
This stage of the business life cycle occurs once the firm is established in its market.
| D. |
The resource maturity stage. |
|
| 22. |
Which of the following statements concerning family businesses is correct?
| A. |
Family members often work in the business but may not sit on the council. |
| B. |
Family businesses employ about 20 percent of America’s total workforce. |
| C. |
Most top managers at family firms tend to stay in their positions much longer than those at nonfamily firms. |
| D. |
Family businesses plan for succession using a critical-point plan. |
|
| 23. |
Which of the following is one of the most common behaviors found in successful entrepreneurs?
|
| 24. |
Which of the following is best thought of as a type of learned optimism in successful entrepreneurs?
|
| 25. |
The majority of businesses run by teams are comprised of:
|
| 26. |
The problem behavior of trying the same action repeatedly without learning is called _____.
|
| 27. |
Regulatory focus is a mix of two internal focuses, _____ focus and _____ focus.
| A. |
effectuation; comprehension |
| B. |
comprehension; prevention |
| C. |
effectuation; promotion |
|
| 28. |
About 400,000 new firms a year are started by teams, with about 320,000 started by:
| C. |
unrelated business associates. |
| D. |
five or more team members. |
|
| 29. |
When starting a business, more women choose ________ industries that tend to have lower average sales levels.
|
| 30. |
Which of the following approaches yields better results in an established industry or a poor one?
|
| 31. |
Which of the following approaches yields better results in richer, dynamic, uncertain environments or industries?
|
| 32. |
Which of the following was not listed as a time management technique in the textbook?
|
| 33. |
Christopher is a hard-working entrepreneur who looked into all the details of his small gaming software business. He focused on all aspects of the business from the initial launch, promotion, and marketing aspects to the final set up. He finds planning convenient and works according to a plan. Christopher is a(n) _____.
|
| 34. |
Entrepreneurs who develop plans focused on the most important aspect of the business first are known as _____.
| A. |
critical-point planners |
| B. |
opportunistic planners |
| C. |
comprehensive planners |
|
| 35. |
Which among the following is a critical-point planner?
| A. |
Amanda does not have a very long-term approach to planning and she plans only for those business aspects that are of paramount importance. |
| B. |
Andrew looks at all aspects of the business, from launch to the complete working of it. |
| C. |
Cathy looks for a good chance to achieve her goal and acts according to a routine. |
| D. |
Joshua acts on what he has been doing and does not believe in planning. |
|
| 36. |
Entrepreneurs who start with a goal instead of a plan and look for a chance to achieve it are known as _____.
| B. |
critical-point planner |
|
| 37. |
Which of the following would have a very short-term approach to planning?
| A. |
Individuals who look for opportunities to achieve their goal, even if the opportunity isn’t the one related to their original goal. |
| B. |
Individuals who develop long-range plans for all aspects of the business and act based on the plans they’ve developed. |
| C. |
Individuals who plan around the most important aspect of the business first, act on it, and then consider if additional plans are needed. |
| D. |
Individuals who are comfortable with planning and act based on the plans they have developed. |
|
| 38. |
_____ are completely passive, waiting for cues from the environment to determine what actions to take.
| A. |
Opportunistic planners |
| B. |
Critical-point planners |
| C. |
Comprehensive planners |
|
| 39. |
The successful entrepreneurial personality exhibits certain types of business-related expertise which the text condenses into five competencies. Which of the following statements is NOT true about these competencies?
| A. |
Research shows these competencies can be learned through training. |
| B. |
The amount of expertise is what distinguishes the more successful from the less successful firms. |
| C. |
Determination competencies are activities, knowledge, and skills specific to businesses in a particular industry. |
| D. |
Opportunity competencies are the skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business. |
|
| 40. |
When starting a business using entrepreneurial teams, which number of team members is the most common?
| D. |
Five or more team members |
|
| 41. |
Which of the following characterizes a habit-based planner?
| A. |
They take a long-term view, develop long-range plans for all aspects of the business, are comfortable with planning, and act based on the plans they’ve developed. |
| B. |
They plan around the most important aspect of the business first, act on it, and then consider if additional plans are needed. |
| C. |
They are completely passive and generally wait for cues from the environment to determine what actions to take. |
| D. |
They don’t plan, and they don’t tend to react to changes in their environments. |
|
| 42. |
Which of the following planners do best in terms of getting a start-up launched, keeping it going, and making a living from it?
| A. |
Comprehensive planners |
| C. |
Opportunistic planners |
|
| 43. |
Which of the following kinds of planners generally tend do very poorly in business, even if they do manage to get their firms started?
| A. |
Comprehensive planners |
| C. |
Opportunistic planners |
| D. |
Critical-point planners |
|
| 44. |
The extent to which a firm meets or exceeds the standard business practices for its industry is known as _____.
| D. |
Perceived Organizational Support (POS) |
|
| 45. |
A business action that has been widely adopted within an industry or occupation is known as _____.
| A. |
best business practice |
| B. |
specialized business professionalization |
| C. |
standard business practice |
| D. |
expert professionalization |
|
| 46. |
Which of the following refers the three levels of professionalization?
| B. |
Company, industry, and global |
| C. |
Personal, team, and organizational |
| D. |
Expert, specialized, and minimalized |
|
| 47. |
Which of the following is not listed as a challenge for the late career entrepreneur?
| A. |
access to financial backing |
| B. |
adjusting to the entrepreneurial life |
| C. |
keeping personal finances out of the business |
| D. |
reestablishing self-confidence |
|
| 48. |
Expert business professionalization is a situation that occurs:
| A. |
when only the most critical aspect of business is met. |
| B. |
when most aspects of the business meet or exceed the industry’s standards. |
| C. |
when one or two aspects of the business are met. |
| D. |
when none of the business can achieve the industry standard. |
|
| 49. |
A situation that occurs when businesses have founders or owners who are passionate about one or two of the key business functions, such as sales, operations, accounting, finance, or human resources is known as _____.
| A. |
expert business professionalization |
| B. |
specialized business professionalization |
| C. |
minimized business professionalization |
| D. |
maximized business professionalization |
|
| 50. |
The key difference between a family council and a board of directors is that:
| A. |
the council is comprised of unrelated members while the board is comprised of family members. |
| B. |
the board of directors maximizes communication while the council works on unique company problems. |
| C. |
the council is to keep the family involved while the board is focused on running the business. |
| D. |
the board can seek legal advice while the council gathers legal advice from the board. |
|
| 51. |
Which of the following is true with regard to minimalized business professionalization?
| A. |
The entrepreneur does nearly everything in the simplest way possible. |
| B. |
The entrepreneur is passionate about one or two of the key business functions. |
| C. |
The entrepreneur meets or exceeds the industry’s standards. |
| D. |
The entrepreneur brings the highest levels of trust among customers. |
|
| 52. |
Competencies are defined as:
| A. |
forms of business-related expertise. |
| B. |
forms of personal development model. |
| C. |
different forms of self-assessment. |
| D. |
different forms of personality theories. |
|
| 53. |
Getting the business organized and registered is an example of _____ competency.
|
| 54. |
The competency suggested by _____ relates to the organizational and business processes of a firm.
|
| 55. |
This stage of the business life cycle is characterized by a stable level of sales and profits over several years. The functional areas, the market, and the products or services are all being dealt with consistently and efficiently.
| C. |
The resource maturity stage. |
|
| 56. |
Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources are known as _____.
| A. |
key business functions |
| C. |
business accreditations |
| D. |
business-related expertise |
|
| 57. |
Certain businesses demand higher safety related rules. For example, window cleaners that specialize in high-rise buildings have certain rules and safety protocols. These specific rules would comprise the _____.
| A. |
specialized business professionalization |
| B. |
infant-industry argument |
| C. |
industry-specific knowledge |
| D. |
key business functions |
|
| 58. |
The ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business such as time, information, location, financing, raw materials, and expertise is known as _____.
| A. |
basic business competencies |
| C. |
opportunity competencies |
| D. |
determination competencies |
|
| 59. |
Which of the following stages of the business life cycle do most small business never go through?
| D. |
The entrepreneur stage. |
|
| 60. |
Martin runs a successful house painting business. He runs his business out of his garage, which he converted into office space. Martin, who had previously worked as a house painter in another company had good knowledge of how to run a house-painting business. After a storm destroyed public properties in his neighboring town, he contracted with the mayor of that town to fulfill any painting jobs required during the town’s reconstruction. In order to meet this demand and expand business, he hired more house painters.
According to the BRIE model, which of the following is an example of Martin’s basic business competency?
| A. |
Martin hiring more house painters to meet demand |
| B. |
Martin contracting with the mayor to help paint during reconstruction |
| C. |
Martin getting his company registered |
| D. |
Martin having prior knowledge of the house-painting business |
|
| 61. |
Martin runs a successful house painting business. He runs his business out of his garage, which he converted into office space. Martin, who had previously worked as a house painter in another company had good knowledge of how to run a house-painting business. After a storm destroyed public properties in his neighboring town, he contracted with the mayor of that town to fulfill any painting jobs required during the town’s reconstruction. In order to meet this demand and expand business, he hired more house painters.
According to the BRIE model, which of the following provides industry-specific knowledge to martin?
| A. |
Martin hiring more house painters to meet demand |
| B. |
Martin contracting with the mayor to help paint during reconstruction |
| C. |
Martin getting his company registered |
| D. |
Martin having worked in a house-painting company before starting his own business |
|
| 62. |
Martin runs a successful house painting business. He runs his business out of his garage, which he converted into office space. Martin, who had previously worked as a house painter in another company had good knowledge of how to run a house-painting business. After a storm destroyed public properties in his neighboring town, he contracted with the mayor of that town to fulfill any painting jobs required during the town’s reconstruction. In order to meet this demand and expand business, he hired more house painters.
According to the BRIE model, which of the following is an example of Martin’s resource competency?
| A. |
Martin hiring more house painters to meet demand |
| B. |
Martin contracting with the mayor to help paint during reconstruction |
| C. |
Martin setting up the business’s office in his garage |
| D. |
Martin having prior knowledge of the house-painting business |
|
| 63. |
Martin runs a successful house painting business. He runs his business out of his garage, which he converted into office space. Martin, who had previously worked as a house painter in another company had good knowledge of how to run a house-painting business. After a storm destroyed public properties in his neighboring town, he contracted with the mayor of that town to fulfill any painting jobs required during the town’s reconstruction. In order to meet this demand and expand business, he hired more house painters.
According to the BRIE model, which of the following is an example of Martin’s opportunity competency?
| A. |
Martin hiring more house painters to meet demand |
| B. |
Martin contracting with the mayor to help paint during reconstruction |
| C. |
Martin setting up the business’s office in his garage |
| D. |
Martin deciding to set up his own business after quitting his previous job |
|
| 64. |
Which of the following deals with the actual process of exploiting an opportunity for profit?
|
| 65. |
Which of the following relates to the skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business?
| A. |
Determination competencies |
| B. |
Basic business competencies |
| D. |
Opportunity competencies |
|
| 66. |
Which of the following comprises a family business?
| A. |
A firm in which two or more families own a stake in a company but with no authority for daily management |
| B. |
A firm in which no family members are involved in the management of the business |
| C. |
A firm in which two or more families are involved in the occasional management of the business |
| D. |
A firm in which one family owns a majority stake |
|
| 67. |
Which of the following is a major economic force, employing 58 percent of America’s total workforce?
| B. |
Government enterprises |
| D. |
International assignments |
|
| 68. |
Which of the following is true as an advantage of businesses run by a group of tight-knit family members?
| A. |
Succession issues don’t crop up in family-owned businesses. |
| B. |
Role conflicts never happen in family owned businesses. |
| C. |
Board of members are not used in family-owned businesses. |
| D. |
Communication-based integration is most effective in family-owned business. |
|
| 69. |
Which of the following challenges is typical to family businesses?
| A. |
Motivation and nepotism |
| B. |
Role conflict and succession |
| C. |
Succession and finances |
| D. |
Leadership and finances |
|
| 70. |
Which of the following best describes the problem that arises when people have multiple responsibilities and each makes different demands on them?
| C. |
Strategizing challenges |
| D. |
Leadership constraints |
|
| 71. |
Which of the following is the most effective approach for avoiding role conflict?
| A. |
Keep family issues out of the family business |
| B. |
Keep separate rules for family members and employees |
| C. |
Have constant role reversals |
| D. |
Have decisions narrowed down for family members based on family necessities |
|
| 72. |
Which of the following problems is closely related to role conflict?
|
| 73. |
The organizing process to help make the most efficient use of the day is known as _____.
|
| 74. |
Only _____ of family-owned businesses survive beyond the first generation.
|
| 75. |
____ refers to the process of intergenerational transfer of business.
|
Chapter 04
Small Business Ideas: Creativity, Opportunity, and Feasibility
True / False Questions
| 1. |
Search and capture of new ideas that lead to business opportunities is called opportunity recognition.
True    False |
| 2. |
According to the Panel Study of Entrepreneurial Dynamics, the business idea and the decision to start a business were simultaneous for a majority of entrepreneurs.
True    False |
| 3. |
A business model is a preliminary run of a business with the goal of assessing how well the overall approach works and what problems it might have.
True    False |
| 4. |
A license is a legal agreement that grants rights to use a particular piece of intellectual property.
True    False |
| 5. |
In entrepreneurship, every good idea is a viable business opportunity.
True    False |
| 6. |
There are only a few good business models available for the new entrepreneur.
True    False |
| 7. |
The business model canvas and the classic feasibility study produce very different results.
True    False |
| 8. |
“S” in the creativity tool SCAMPER stands for summarize.
True    False |
| 9. |
“C” in the SCAMPER tool stands for copy.
True    False |
| 10. |
The SCAMPER tool is effective for solving problems only in traditional ways.
True    False |
| 11. |
Correlation is one of the four steps in the process for organizing creative thinking developed by Graham Wallas.
True    False |
| 12. |
One of the ways to practice the business of innovation is to invite someone who was never included before in a meeting for solving a problem.
True    False |
| 13. |
Research suggests that the first good idea entrepreneurs come up with is always the best.
True    False |
| 14. |
The text outlines five major pitfalls that business owners can become victim to when trying to become more innovative, but obeying nonexistent rules is not one of those pitfalls.
True    False |
| 15. |
Taking an idea and offering a way to do something slightly better than it is done presently is an imitative strategy.
True    False |
| 16. |
At times of great change, people become more willing to try extreme new ideas.
True    False |
| 17. |
The feasibility of an idea is the extent to which it is viable and realistic.
True    False |
| 18. |
In crafting a feasibility study, the goal is to assess if the idea can be profitably brought to market.
True    False |
| 19. |
An online pilot test is low-cost, low-risk approach for testing feasibility when preparing the business model canvas.
True    False |
| 20. |
One of the pitfalls small business owners fall into is to fail to build a company culture that encourages new ideas and embraces change.
True    False |
Multiple Choice Questions
| 21. |
_____ refers to searching and capturing new ideas that lead to business opportunities.
| B. |
Entrepreneurial alertness |
| C. |
Opportunity recognition |
| D. |
Opportunity encryption |
|
| 22. |
Researchers in the field of entrepreneurship and small business believe that _____ behavior is the most basic and important entrepreneurial behavior.
| A. |
opportunity recognition |
|
| 23. |
_____ is a special set of observational and thinking skills that help entrepreneurs identify good opportunities.
| D. |
Entrepreneurial alertness |
|
| 24. |
Which of the following is true of entrepreneurial alertness?
| A. |
It allows entrepreneurs to launch a formal search for opportunities. |
| B. |
It allows entrepreneurs to notice things that have been overlooked. |
| C. |
It gives entrepreneurs the experience required to start a small business. |
| D. |
It is an approach that allows entrepreneurs to do more or less what others do. |
|
| 25. |
Josh, an electronics retailer, noticed that the e-commerce business was booming. He started an online shopping website to take advantage of this surge in business. As a result, his business attracted more customers from all across the country. This reflects Josh’s:
| D. |
entrepreneurial alertness. |
|
| 26. |
According to the Panel Study of Entrepreneurial Dynamics (PSED), a majority of entrepreneurs indicated that:
| A. |
the decision to start a business came first. |
| B. |
the business idea came first. |
| C. |
the idea and decision were simultaneous. |
| D. |
starting a business is a loss-making proposition. |
|
| 27. |
Joe is planning a new mobile restaurant business. He wants to convert an antique bus into a sit-down restaurant with a service window allowing him to serve people within the bus and walk-ups who want to get their food and take it home. Joe is performing some research into his project and is looking at the overall business idea, the product/service, the industry and market, financial projections (profitability), and the plan for the future action. Joe is performing a(n) ___________.
|
| 28. |
During a feasibility study, the examination of customers you wish to serve and those who would show interest in your product is helpful. This step defines your _______.
|
| 29. |
The RBI screen consists of asking yourself five questions to help you screen entrepreneurial ideas. Which of the following is NOT one of those five questions?
| B. |
Who are your competitors? |
| C. |
What are you offering? |
|
| 30. |
One of the quickest and simplest ways to screen an idea for business potential is through the ______.
|
| 31. |
Which of the following statements is true when referring to the RBI screen?
| A. |
The RBI screen should be the final step in the screening process. |
| B. |
The RBI screen does not rule out unprofitable ideas. |
| C. |
You should answer the RBI screen questions with only a few words. |
| D. |
The RBI screen is the most comprehensive screening tool. |
|
| 32. |
Joe has an idea for a new mobile restaurant business. He wants to convert an antique bus into a sit-down restaurant with a service window allowing him to serve people within the bus and walk-ups who want to get their food and take it home. Joe takes his idea and looks at the people, the offerings, the customers, the value proposition, and his distinctive competencies. Joe is performing a(n) ____________.
| C. |
classic feasibility study |
|
| 33. |
It can take 3000 ideas to yield one commercially viable product. To increase the odds of finding a good idea, the screening process takes all the thoughts from the ______ step of the entrepreneurial process, and puts them through a ______.
|
| 34. |
According to a majority of entrepreneurs in the Panel Study of Entrepreneurial Dynamics (PSED), which of the following is the most frequently mentioned source of business ideas?
| A. |
Discussion with potential investors |
| B. |
Education and expertise |
|
| 35. |
One powerful but rarely used source of business ideas are:
|
| 36. |
A _____ is a legal agreement that grants the rights to use a particular piece of intellectual property.
|
| 37. |
The firm that obtains the rights to use a particular piece of intellectual property is referred to as the:
|
| 38. |
A person or organization offering the rights to use a particular piece of intellectual property is referred to as the:
|
| 39. |
_____ is a payment to a licensor based on the number or value of licensed items sold.
|
| 40. |
Adam owns a software development company. He and his team developed and licensed new software that could help many organizations strengthen their web security. Any organization that wishes to use Adam’s licensed software would most likely have to pay him in the form of a _____.
|
| 41. |
Which of the following statements about idea-prone companies is true?
| A. |
If owners deliberately set their expectations, they are limiting their employees. |
| B. |
An innovative company does not automatically develop out of an innovative business idea. |
| C. |
Money is the best motivator for creative minds. |
| D. |
It takes a team to be creative. |
|
| 42. |
Which of the following is NOT one of the great ideas for making idea-prone companies outlined in the text?
| A. |
Only reinforce good ideas. |
| B. |
Get a room with a view. |
| C. |
Look to unlikely sources of opportunities. |
| D. |
Give yourself and your employees time to think of ideas. |
|
| 43. |
When it comes to building an idea-prone culture, remember that ___________ is the fuel that fans the fires of creativity and helps your business reach potentials that you may never have anticipated.
| B. |
research and development |
|
| 44. |
Gabriel has a product idea of a device which he believes will help people manage their daily chores, hence making their lives easier. He is unsure if the device is actually a feasible product but shares the idea with his boss and coworkers anyway. Gabriel is positive his device will get a fair review. He has offered other ideas in the past and one was now a viable product for the company. Which of the four ideas for making a creative business culture best describes Gabriel’s company?
| A. |
Never rest on your laurels. |
| B. |
Get a room with a view. |
| C. |
Look to unlikely sources of opportunities. |
| D. |
Positively reinforce ideas. |
|
| 45. |
When developing the customer segments of your business canvas model, which of the following statements is true?
| A. |
Each type of customer is a customer segment. |
| B. |
There will be one canvas encompassing all customer segments. |
| C. |
All segments will have the same problem and need a viable solution. |
| D. |
You must satisfy all customer segments. |
|
| 46. |
When building a business model canvas, the ________ is where your offering goes – how you plan to solve the pains or create the gains for your customers.
|
| 47. |
Which of the following is not one of the five pitfalls that hinder innovation?
| A. |
Judging ideas too quickly. |
| B. |
Obeying rules that do not exist. |
| D. |
Hiring the wrong people. |
|
| 48. |
Of the following statements concerning the five major pitfalls business owners can fall into when trying to become more innovative; which statement is not true?
| A. |
If a problem does not stay solved, the entrepreneur may have fallen victim to the pitfall of identifying the wrong problem. |
| B. |
At the end of the month, the entrepreneur has to shuffle money from one account to another, falling victim to the pitfall of not minding the money. |
| C. |
Trying to solve everyone’s problems is tiring out the new entrepreneur, they have fallen victim to the pitfall of obeying rules that do not exist. |
| D. |
A worker suggests a new time saving process but the entrepreneur brushes it aside as silly, falling victim to the pitfall of judging ideas too quickly. |
|
| 49. |
The SCAMPER tool is based on the work of:
|
| 50. |
_____ is a process of producing an idea or opportunity that is novel and useful, frequently derived from making connections among distinct ideas or opportunities.
|
| 51. |
In the SCAMPER tool, “S” stands for:
|
| 52. |
According to the SCAMPER tool, a feature that allows customers to order directly from a website rather than visiting a store is an example of:
|
| 53. |
Which of the following is the idea trigger for the “substitute” cue of the SCAMPER tool?
| A. |
The opportunities that come as a result of replacing something that already exists |
| B. |
The separate products, services, or whole businesses that can be put together to create another distinct business |
| C. |
The products or services that can be imitated from other industries or fields |
| D. |
The factor that can be used to make a product different from that of competitors’ products |
|
| 54. |
When a bookstore starts to sell videos, music, and coffee as well, it uses which of the following elements of the SCAMPER tool?
|
| 55. |
The idea trigger of the separate products, services, or whole businesses that entrepreneurs can put together to create another distinct business represents which cue of the SCAMPER tool?
|
| 56. |
According to the SCAMPER tool, which popular innovation strategy can be just as effective and much more likely in the real world than business opportunities that result from radical innovations?
|
| 57. |
Rejecting existing ideas, and presenting a way to do things differently refers to the _____ strategy.
|
| 58. |
Which of the following is the idea trigger for the magnify cue of the SCAMPER tool?
| A. |
The opportunities that come as a result of replacing things that already exist |
| B. |
The separate products, services, or whole businesses that can be put together to create another distinct business |
| C. |
The products or services that can be imitated from other industries or fields |
| D. |
The factor that can be used to make a product different from that of competitors’ products |
|
| 59. |
If entrepreneurs realize that all the traditional applications for their products have disappeared and that they have surplus products, which of the following elements of the SCAMPER tool are they most likely to employ?
|
| 60. |
In the SCAMPER tool, “M” stands for:
|
| 61. |
Born and raised in India, Rashmi has always enjoyed Indian cooking. As a matter of fact, cooking was her passion and she always enjoyed reading, learning, and experimenting with different ethnic cuisines. Ever since Rashmi’s family moved to the United States, her cousins, friends, and other people at dinner gatherings have always commented that Rashmi should start a catering business. Realizing that her American friends may not be able to handle or like the Indian food because of its spiciness, Rashmi decided to make changes to the recipes to suit the local taste. Rashmi is seriously contemplating whether she should start a catering business—Tastes of India. Rashmi appears to be applying which element of the SCAMPER tool in her entrepreneurship ideas?
|
| 62. |
There is much a small business can do to create memorable images and advertising for itself, and it does not need expensive television ads to do it. Which element of SCAMPER is being referred to here?
|
| 63. |
In the SCAMPER tool, “E” stands for:
|
| 64. |
In the SCAMPER tool, “R” stands for:
|
| 65. |
Using paradoxes such as using stimulants to calm hyperactive children, to challenge old ways of thinking, refers to which of the following cues of the SCAMPER tool?
|
| 66. |
Which of the following aspects of the SCAMPER tools involves searching for opportunities that arise when a person gets rid of something or stops doing something?
|
| 67. |
Which of the following is an advantage of the SCAMPER tool?
| A. |
It helps entrepreneurs to come up with alternative solutions. |
| B. |
It helps entrepreneurs to generate more royalty than any other method. |
| C. |
It gives IP protection to products and services. |
| D. |
It helps entrepreneurs to avoid governmental taxes and liabilities. |
|
| 68. |
Which of the following is true of creative business owners?
| A. |
They implement an imitative strategy to their business. |
| B. |
They do not ask many questions. |
| C. |
They question and challenge the way things appear. |
| D. |
They give more importance to the problems they face rather than identifying opportunities. |
|
| 69. |
Which of the following statements about innovation and building an idea-prone culture is not true?
| A. |
Techniques, like SCAMPER, may be helpful in the innovation process. |
| B. |
Innovative companies automatically develop out of innovative business ideas. |
| C. |
Innovation is not always unpredictable and uncontrollable. |
| D. |
Varied experiences allow different perspectives, sometimes leading to breakthrough ideas. |
|
| 70. |
According to Graham Wallas’ description of the creative process, a creative thought includes a(n) _____ stage.
|
| 71. |
According to Graham Wallas’ description of the creative process, the _____ stage of a creative thought involves exploring the problem or opportunity in all directions.
|
| 72. |
According to Graham Wallas’ description of the creative process, which of the following is true of the incubation stage of a creative thought?
| A. |
It involves exploring the problem or opportunity in all directions. |
| B. |
It involves the flow of ideas. |
| C. |
It involves the testing of the idea. |
| D. |
It involves putting the problem on the back burner. |
|
| 73. |
According to Graham Wallas’ description of the creative process, ideas begin to flow in which of the following stages?
|
| 74. |
Which of the following is an entrepreneur most likely to implement to make his company more “idea prone”?
| A. |
Redesign the work environment |
| B. |
Increase the IP protection on the products or services |
| C. |
Simply sell the products or services |
| D. |
Read journals related to the area of expertise |
|
| 75. |
In an attempt to become more innovative, a major pitfall that business owners are most likely to become victim to is:
| B. |
asking for support after failing the first time. |
| C. |
obeying all the rules to get investors. |
| D. |
using the first good idea as a business opportunity. |
|
| 76. |
If a business owner assumes that he or she needs to do all the work, make all the sales calls, and solve everybody’s problems, which major pitfall is the business owner becoming a victim to while trying to become more innovative?
| A. |
Obeying rules that do not exist |
| B. |
Judging ideas too quickly |
| C. |
Identifying the wrong problem |
| D. |
Failing to ask for support |
|
| 77. |
An overall strategic approach in which the entrepreneur does more or less what others are already doing refers to a(n):
| D. |
radical innovation strategy. |
|
| 78. |
_____ requires an entrepreneur to assess whether the situation faced is one that is the same as it has been traditionally or if it is changing.
| A. |
Business process modeling |
| B. |
Opportunity identification process |
| D. |
Radical innovation strategy |
|
| 79. |
Taking an idea and offering a way to do something slightly better than it is done presently refers to a(n):
|
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