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Q:
The three ways to identify an opportunity include observing trends, solving a problem, and finding gaps in the marketplace.
Q:
An idea is a thought, impression, or notion. It may or may not meet the criteria of an opportunity.
Q:
The term "window of opportunity" is a metaphor describing the time period in which a firm can realistically raise money.
Q:
An opportunity has four essential qualities: it is (1) rare, (2) attractive, (3) timely, and (4) resilient.
Q:
An idea is a favorable set of circumstances that creates a need for a new product, service, or business.
Q:
Which of the following is an example of how to encourage creativity at the organizational level?
A) Maintain a "stiff" organizational culture with no room for different behaviors.
B) Elevate creativity's importance throughout the organization.
C) Pigeonhole employees; keep them in the same job for years.
D) Make no attempt to hire creative people.
E) Promote a mentality suggesting that the best solutions to all problems have already been found.
Q:
A(n) ________ is a physical or digital repository for storing ideas.
A) suggestion bank
B) idea depository
C) suggestion pool
D) idea bank
E) proposition pool
Q:
To make sure that its customers are satisfied and to probe for new product ideas, Intuit routinely sends employees to the facilities of their customers. This technique for generating new business ideas is called:
A) brainstorming
B) day-in-the-life research
C) focus group
D) survey
E) customer advisory board
Q:
An example of a valuable library resources is IBISWorld, which is a(n):
A) business publication
B) academic journal
C) Census Bureau publication
D) trade journal
E) database of industry-related information
Q:
According to the textbook, the best approach to utilizing a library for entrepreneurship-related research is to:
A) discuss your general area of interest with a reference librarian
B) focus your efforts on studying newspapers and periodicals
C) focus your efforts on browsing through industry-related materials
D) discuss your general area of interest with other library patrons
E) focus your efforts on academic journals
Q:
According to the textbook, a focus group is a gathering of 5 to 10 people who are selected because:
A) they are most likely to purchase large amounts of the product or service being discussed
B) they responded to a self-selected opinion poll about the topic being discussed
C) of their relationship to the issue being discussed
D) they responded to a mail survey about the topic being discussed
E) they are spokespersons for the topic being discussed
Q:
The number one rule for a brainstorming sessions is:
A) no criticism is allowed
B) no freewheeling is allowed
C) no leapfrogging is allowed
D) no more than 10 people are allowed to participate
E) no wild or unrealistic ideas are allowed
Q:
Which of the following is not one of the rules for a formal brainstorming session?
A) no criticism is allowed
B) the session moves quickly
C) freewheeling is encouraged
D) leapfrogging is encouraged
E) the session is used for decision making
Q:
________ is (are) used to generate a number of ideas quickly.
A) Insight groups
B) Competitive intelligence gatherings
C) Examination groups
D) Survey groups
E) Brainstorming
Q:
In the five-stage creative process, the flash of recognition, or what is sometimes referred to as the "eureka" experience, occurs in the:
A) insight stage
B) preparation stage
C) incubation stage
D) elaboration stage
E) evaluation stage
Q:
Macy is a very creative person. Often, when trying to generate a novel or useful idea, she spends several days "mulling over" the idea, which is her way of thinking it through, at both the conscious and unconscious level. The stage of the creative process that Macy is in while she is mulling over an idea is referred to as:
A) preparation
B) insight
C) evaluation
D) elaboration
E) incubation
Q:
Which of the following represents the correct order of the five stages of the creative process?
A) preparation, incubation, elaboration, insight, evaluation
B) insight, preparation, incubation, elaboration, insight
C) preparation, incubation, insight, evaluation, elaboration
D) incubation, evaluation, insight, preparation, elaboration
E) incubation, preparation, evaluation, elaboration, insight
Q:
________ is the process of generating a novel or useful idea.
A) Innovation
B) Imagining
C) Creativity
D) Visualization
E) Envisioning
Q:
According to research in this area, it is more likely that an entrepreneur will get a new business idea through a ________ relationship than the alternatives.
A) weak-tie
B) moderate-tie
C) vertical-tie
D) lateral-tie
E) strong-tie
Q:
Alex has a number of casual acquaintances that he interacts with infrequently. The relationships that Alex has with these people are referred to as:
A) strong-tie relationships
B) moderate-tie relationships
C) lateral-tie relationships
D) weak-tie relationships
E) multiple-tie relationships
Q:
Most of Jacob's ideas come from interacting with coworkers, friends, his spouse, his parents, and other people that share the same beliefs that he does. Jacob is getting most of his ideas through:
A) weak-tie relationships
B) horizontal-tie relationships
C) strong-tie relationships
D) multiple-tie relationships
E) vertical-tie relationships
Q:
________ are characterized by frequent interactions that form between coworkers, friends, and spouses.
A) Balanced relationships
B) Weak-tie relationships
C) Lateral-tie relationships
D) Moderate-tie relationships
E) Strong-tie relationships
Q:
A solo entrepreneur is an individual who identified his or her business idea ________. A network entrepreneur is an individual who identified his or her business idea ________.
A) through social contacts, on their own
B) through a business incubator program, through social contacts
C) on their own, through social contacts
D) through the assistance of a paid consultant, through social contacts
E) with one or more partners, on their own
Q:
A network entrepreneur is an individual who identifies his or her business idea:
A) on their own
B) through the assistance of a paid consultant
C) through social contacts
D) with one or more partners
E) through a business incubator program
Q:
An individual who identifies a business idea on his or her own is referred to as a(n):
A) separate entrepreneur
B) functional entrepreneur
C) lone entrepreneur
D) individual entrepreneur
E) solo entrepreneur
Q:
According to the textbook, research results over time consistently suggest that somewhere between ________ of those who start businesses got their ideas through social contacts.
A) 10 percent and 20 percent
B) 20 percent and 30 percent
C) 30 percent and 40 percent
D) 40 percent and 50 percent
E) 50 percent and 60 percent
Q:
Which of the following statements is incorrect in regard to entrepreneurial alertness?
A) The research findings on entrepreneurial alertness are conclusive.
B) Alertness is largely a learned skill.
C) People who have more knowledge of an area tend to be more alert to opportunities in that area than others.
D) The term "entrepreneurial alertness" is often associated with a "sixth sense" that seems to allow some people to see opportunities that others miss.
E) Entrepreneurial alertness is defined as the ability to notice things without engaging in deliberate search.
Q:
Kelly Pryor, who has launched several successful entrepreneurial firms, seems to have a "sixth sense" that allows him to see opportunities that others miss. Kelly's ability is referred to as:
A) individual awareness
B) cognitive alertness
C) entrepreneurial alertness
D) individual readiness
E) cognitive readiness
Q:
The ability to notice things without engaging in deliberate search is referred to as:
A) cognitive alertness
B) cognitive awareness
C) managerial alertness
D) entrepreneurial alertness
E) individual awareness
Q:
Frank Patterson started a firm in 2011 that creates and manufactures accessories for Apple iPhones. He started with four accessories, and after several months added three new accessories that have been very successful. The fact that Frank recognized the opportunity for the three new accessories only after he started his firm and become immersed in the iPhone accessory industry is an example of the ________ at work.
A) opportunity tenet
B) opportunity rule
C) chance rule
D) access principle
E) corridor principle
Q:
Which of the following statements is incorrect regarding the personal characteristics of entrepreneurs?
A) Some people think that entrepreneurs have a "sixth sense" that allows them to see opportunities that others miss.
B) The extent and depth of an individual's social network affects opportunity recognition.
C) Several studies show that prior experience in an industry actually blinds an entrepreneur to the recognition of new opportunities in the same industry.
D) Creativity is the process of generating novel or useful ideas.
E) The corridor principle states that once an entrepreneur starts a firm, he or she begins a journey down a path where "corridors" leading to new venture opportunities become apparent.
Q:
The What Went Wrong? feature in Chapter 1 focuses on Clearly Canadian, a company that introduced a line of fruit-flavored bottled water in the early 1990s. The main takeaway from the feature is that:A) if a firm says it's capitalizing on an environmental trend, solving a problem, or filling a gap in the marketplace, it has to deliver on its promisesB) if a firm is basing its business idea on solving a problem, its solution must be better than solutions that are currently availableC) if a firm is capitalizing on an environmental trend, it must be a trend that will stay in place for a minimum of 3-5 years for the opportunity to be sustainableD) brainstorming is an effective technique for generating business ideasE) focus groups are an effective technique for generating business ideas
Q:
A common way that gaps in the marketplace are recognized is:
A) by observing changing environmental trends
B) by recognizing problems that need to be solved
C) via studying industry reports
D) when people become frustrated because they can't find a product or service that they need and recognize that other people feel the same way
E) via combined focus groups and brainstorming sessions
Q:
In 2000, Tish Cirovolo realized that there were no guitars on the market made specifically for women. As a result, she started Daisy Rock Guitars, a company that makes guitars just for women. Daisy Rock Guitars are stylish and come in feminine colors, and incorporate design features that accommodate a woman's smaller hand and build. The best way to describe how Cirovolo's business idea was recognized is:
A) brainstorming
B) talking to consumers
C) reading industry reports
D) observing trends
E) finding a gap in the marketplace
Q:
Clothing boutiques and specialty shops often start because there is a need for a particular product but large retailers like Wal-Mart and Costco can't sell enough of the item to stock it on their shelves. If a clothing boutique started to sell designer clothes or clothing for hard-to-fit people because the clothing wasn't being offered by a larger retailer, the best way to describe how that idea was recognized is:
A) finding a gap in the marketplace
B) brainstorming
C) observing trends
D) solving a problem
E) talking to consumers
Q:
The Savvy Entrepreneurial Firm feature in Chapter 2 focuses on Xhale and Vestagen, two entrepreneurial startups. While each firm is different and is successful in its own right, the main point of the feature is to illustrate that:A) entrepreneurial startups can solve the same problem in different waysB) entrepreneurial firms are often started by everyday people solving everyday problemsC) one of the most important points to consider before launching a business is to determine if its window of opportunity is openD) finding gaps in the marketplace is an effective way of identifying business opportunitiesE) both economic and social forces impact the opportunities available to entrepreneurs
Q:
Sharon Simms is a very capable computer engineer. Recently, she noticed a problem that computer engineers have, and thought of a solution to the problem that might represent an opportunity for a new software product. Sharon's idea for a new software product is an example of a(n) ________ discovery.
A) chance
B) serendipitous
C) traditional
D) conventional
E) opportune
Q:
SafetyWeb is a Web-based service that helps parents protect their children's online reputation, privacy, and safety. Which of the following approaches to identifying an opportunity was most likely the impetus for SafetyWeb?
A) observing trends
B) studying government reports
C) finding gaps in the marketplace
D) talking to consumers
E) solving a problem
Q:
If a new firm was launched to help public schools comply with The No Child Left Behind Act of 2002, that opportunity was created by:
A) changes in economic forces
B) demographic changes
C) changes in social forces
D) changes in technological forces
E) political actions and regulatory changes
Q:
Hulu.com allows people to watch television shows and movies on the Internet. Hulu.com's business opportunity was made possible by ________ that enhanced the ability of television shows and movies to be uploaded to the Internet and played by anyone with a suitable computer and an Internet connection.
A) social forces
B) technological advances
C) legal changes
D) regulatory changes
E) economic forces
Q:
The increasing number of social networks on the Internet is attributed to a jump in the number of people who are wanting to connect with one another online. The increasing number of social networks is an important:
A) political trend
B) economic trend
C) legal trend
D) social trend
E) economic trend
Q:
An increased focus on health and wellness has resulted in a number of new business ideas including healthier foods and beverages, yoga instruction and training centers, and nutrition consulting. An increased focus on health and wellness is an important ________ that is creating opportunities in many areas for entrepreneurial firms.
A) economic force
B) regulatory force
C) legal force
D) technological advances
E) social force
Q:
Which of the following is not an example of a social force?
A) changes in interest rates
B) emphasis on clean forms of energy including wind, solar, biofuels, and others
C) aging of baby boomers
D) increased diversity of the workforce
E) increasing number of people going back to school and/or retraining for new jobs
Q:
Economic forces impact the opportunities available to entrepreneurs. Which of the following alternatives reflects a set of economic forces that would be of interest to entrepreneurs?
A) level of disposable income, new uses of old technologies, and new laws and regulations
B) new technologies, consumer spending patterns, and new laws
C) interest rates, consumer spending patterns, and level of disposable income
D) social and cultural trends, level of interest rates, and what people think is "in"
E) new changes in political areas, new laws, and level of disposable income
Q:
GasBuddy and GasPriceWatch.com are companies started to help consumers save money on gas. Which environmental trend is most likely to have provided the impetus for the creation of these companies?
A) regulatory changes
B) political changes
C) economic forces
D) technological advances
E) social forces
Q:
The three ways to identify an opportunity include:
A) observing trends, solving a problem, and finding gaps in the marketplace
B) studying industry trade journals, talking to consumers, and solving a problem
C) observing trends, conducting brainstorming sessions, and studying industry trade journals
D) observing trends, talking to consumers, and finding gaps in the marketplace
E) reading books, solving a problem, and findings gaps in the marketplace
Q:
Jessica Smith is thinking about starting a chain of fitness centers for young adults ages 18-30. Which of the following is not an appropriate criteria for Jessica to test her idea against?
A) Determine whether the "window of opportunity" is open.
B) Determine whether a fitness center for young adults ages 18-30 meets the threshold of being a good idea.
C) Determine the extent to which the notion takes advantage of an environmental trend, solves a problem, or fills a gap in the marketplace.
D) Determine whether opening a fitness center for young adults ages 18-30 is timely.
E) Determine whether opening a fitness center for young adults ages 18-30 is a concept that creates value for its buyer or end user.
Q:
A(n) ________ is a favorable set of circumstances that creates the need for a new product, service, or business. A(n) ________ is a thought, an impression or a notion.
A) scheme, notion
B) opportunity, idea
C) idea, design
D) idea, opportunity
E) notion, scheme
Q:
Which of the following is correct regarding opportunities and ideas?
A) An opportunity and an idea are essentially the same thing.
B) An idea almost always meets the criteria of an opportunity.
C) An opportunity is a thought, an impression, or a notion.
D) An idea is a favorable set of circumstances that creates a need for a new product, service, or business.
E) It's important to discern whether a particular idea meets the criteria for an opportunity.
Q:
The term "window of opportunity," as discussed in Chapter 2, is a metaphor that describes the time period in which a firm can:A) obtain funding or financingB) hire new employeesC) complete a financial analysisD) realistically enter a new marketE) write a business plan
Q:
Shelly Ford is starting a fashion boutique in an upscale mall near San Antonio. She wants to open her store during the time period in which a business like hers can realistically enter the new market. Shelly is trying to open her business while the ________ is open.
A) safe harbor
B) window of opportunity
C) portal of entry
D) doorway of opportunity
E) safety zone
Q:
An opportunity has four essential qualities:
A) attractive, timely, durable, and anchored in a product, service, or business that creates or adds value for its buyer or end user
B) practical, opportune, appropriate, and anchored in a product, service, or business that is efficient and effective
C) realistic, striking, timely, and anchored in a product, service, or business that is timely
D) attention-getting, attractive, timely, and anchored in a product, service, or business that creates or adds value for its buyer or end user
E) attractive, durable, resilient, and opportune
Q:
According to the textbook, opportunities are:
A) easy to spot
B) easy to spot in fast growing industries but tough to spot in slow growing industries
C) easy to spot in the manufacturing sector but tough to spot in the service sector
D) tough to spot
E) neither easy nor tough to spot
Q:
A(n) ________ is a favorable set of circumstances that creates a need for a new product, service, or business.
A) idea
B) scheme
C) design
D) proposal
E) opportunity
Q:
BenchPrep, the company profiled in the opening feature for Chapter 2, sells an iPhone app to help students prepare for the GMAT and other exams. The original idea for the company stemmed from the founders' recognition that if people could use their iPhones to study for the GMAT:A) they wouldn't have to carry heavy study books around and they could maximize their study time by catching a few minutes of studying between meetings and on similar occasionsB) they could study more questions and a computer within the app could keep track of their progress on practice examsC) they could save money by not having to buy multiple study guides and a small computer within the app could keep track of their progress on practice examsD) they wouldn't have to carry heavy study books around and they could interact online with other people preparing for the GMAT and similar examsE) they could maximize their study time by catching a few minutes of studying between meetings and on similar occasions and they could save money by not having to buy multiple study guides
Q:
Identify and discuss the three primary reasons that entrepreneurial behavior has a strong impact on the United States economy.
Q:
Identify the three types of startup firms, and discuss how they differ. Provide examples of each type of firm.
Q:
Describe the three primary reasons that people become entrepreneurs and start their own firms.
Q:
What is entrepreneurship? What is the essence of entrepreneurial behavior?
Q:
The entrepreneurial process consists of four steps: deciding to become an entrepreneur, developing successful business ideas, moving from an idea to an entrepreneurial firm, and divesting or selling the entrepreneurial firm.
Q:
Small businesses outperform their larger counterparts in terms of patent activity (issuance).
Q:
Innovation is the process of creating something new, which is central to the entrepreneurial process.
Q:
Joseph Schumpeter argued that entrepreneurs develop new products and technologies that over time make current products and technologies obsolete, and this process, which he called creative destruction, is good because it stimulates economic activity.
Q:
Unfortunately, statistics show that there is very little interest in entrepreneurship among young entrepreneurs in the United States.
Q:
Of the 27.5 million businesses in the United States, women, minorities, seniors, and young people increasingly own a smaller number of them.
Q:
Over the past 10 years, the demographic makeup of entrepreneurial firms has remained fairly stable in the United States and around the world.
Q:
In terms of the "types" of startup firms, entrepreneurial firms bring new products and services to market.
Q:
Entrepreneurs are motivated primarily by money.
Q:
Entrepreneurs are usually moderate, rather than high, risk-takers.
Q:
According to the consensus of the research, some people are genetically predisposed to be entrepreneurs.
Q:
The passion that entrepreneurs have typically stems from the potential financial rewards that are associated with an entrepreneurial career.
Q:
The four main characteristics of successful entrepreneurs are: passion for the business, execution intelligence, product/customer focus, and tenacity despite failure.
Q:
The number one characteristic shared by successful entrepreneurs is passion for the business.
Q:
The number one reason that people become entrepreneurs is to be their own boss.
Q:
Established firms with an entrepreneurial emphasis are proactive, innovative, and risk-taking.
Q:
Entrepreneurship is the process by which individuals pursue opportunities within the constraints of the resources they control.
Q:
According to reliable statistics, 9 out of 10 businesses fail in their first few years of existence.
Q:
According to the results of the GEM 2010 survey, about 1 out of every 13 American adults is actively engaged in starting a business or is the owner/manager of a business that is less than 3 1/2 years old.
Q:
According to the opening feature on GiftZip, raising funding was the biggest challenge that Sam Hogg experienced in making his company a success.
Q:
A firm's ________ is a plan for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the value it creates.
A) business plan
B) business model
C) tactical model
D) strategic plan
E) operations model