Deck 4: Small Business Ideas: Creativity, opportunity, and Feasibility

Question 1

Research suggests that the first good idea entrepreneurs come up with is always the best.

Answer 1

False

Question 2

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.

Answer 2

False

Question 3

The SCAMPER tool is effective for solving problems only in traditional ways.

Answer 3

False

Question 4

In crafting a feasibility study,the goal is to assess if the idea can be profitably brought to market.

Question 5

"C" in the SCAMPER tool stands for copy.

Question 6

At times of great change,people become more willing to try extreme new ideas.

Question 7

In entrepreneurship,every good idea is a viable business opportunity.

Question 8

Taking an idea and offering a way to do something slightly better than it is done presently is an imitative strategy.

Question 9

There are only a few good business models available for the new entrepreneur.

Question 10

Search and capture of new ideas that lead to business opportunities is called opportunity recognition.

Question 11

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.

Question 12

An online pilot test is low-cost,low-risk approach for testing feasibility when preparing the business model canvas.

Question 13

Correlation is one of the four steps in the process for organizing creative thinking developed by Graham Wallas.

Question 14

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.

Question 15

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.

Question 16

A license is a legal agreement that grants rights to use a particular piece of intellectual property.

Question 17

"S" in the creativity tool SCAMPER stands for summarize.

Question 18

The business model canvas and the classic feasibility study produce very different results.

Question 19

One of the pitfalls small business owners fall into is to fail to build a company culture that encourages new ideas and embraces change.

Question 20

The feasibility of an idea is the extent to which it is viable and realistic.

Question 21

A _____ is a legal agreement that grants the rights to use a particular piece of intellectual property.

A) codicil
B) franchise
C) writ
D) license

Question 22

One of the quickest and simplest ways to screen an idea for business potential is through the ______.

A) use of a pilot test
B) business model canvas
C) feasibility study
D) RBI screen

Question 23

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)____________.

A) pilot test
B) business model canvas
C) classic feasibility study
D) RBI screen

Question 24

_____ is a payment to a licensor based on the number or value of licensed items sold.

A) Milestone payment
B) Lump sum payment
C) Royalty
D) Pay-off

Question 25

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.

Question 26

Researchers in the field of entrepreneurship and small business believe that _____ behavior is the most basic and important entrepreneurial behavior.

A) opportunity recognition
B) idea networking
C) observational
D) question-seeking

Question 27

The firm that obtains the rights to use a particular piece of intellectual property is referred to as the:

A) franchisee.
B) licensee.
C) obligor.
D) assignor.

Question 28

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:

A) creativity.
B) radical ability.
C) incremental skill.
D) entrepreneurial alertness.

Question 29

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 _______.

A) target market
B) conversion rate
C) royalty
D) verification

Question 30

_____ is a special set of observational and thinking skills that help entrepreneurs identify good opportunities.

A) Screening ability
B) Incremental skill
C) Radical ability
D) Entrepreneurial alertness

Question 31

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.

Question 32

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)___________.

A) business model canvas
B) pilot test
C) feasibility study
D) RBI screen

Question 33

One powerful but rarely used source of business ideas are:

A) family and friends.
B) work experiences.
C) existing customers.
D) government agencies.

Question 34

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 ______.

A) "Check"; "Plan"
B) "Plan"; "Check"
C) "Feel"; "Check"
D) "Check"; "Feel"

Question 35

A person or organization offering the rights to use a particular piece of intellectual property is referred to as the:

A) bailor.
B) franchisor.
C) licensor.
D) licensee.

Question 36

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 _____.

A) pay-off
B) royalty
C) lump sum payment
D) payout

Question 37

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
C) Family and friends
D) Work experience

Question 38

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?

A) Who are you?
B) Who are your competitors?
C) What are you offering?
D) Why do they care?

Question 39

_____ refers to searching and capturing new ideas that lead to business opportunities.

A) Opportunity charging
B) Entrepreneurial alertness
C) Opportunity recognition
D) Opportunity encryption

Question 40

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.

Question 41

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.
C) Failing to act.
D) Hiring the wrong people.

Question 42

Rejecting existing ideas,and presenting a way to do things differently refers to the _____ strategy.

A) imitative
B) prototyping
C) radical innovation
D) integrative

Question 43

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.

Question 44

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

Question 45

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.

Question 46

In the SCAMPER tool,"S" stands for:

A) Strategize
B) Substitute
C) Submit
D) Solicit

Question 47

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.

A) value proposition
B) solution
C) key resources
D) key activities

Question 48

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.

Question 49

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.

A) money
B) research and development
C) recognition
D) education

Question 50

The SCAMPER tool is based on the work of:

A) David McClelland.
B) Abraham Maslow.
C) Alex Osborne.
D) Frederick Herzberg.

Question 51

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.

Question 52

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?

A) Sectionalize
B) Put to other uses
C) Eliminate
D) Restitute

Question 53

In the SCAMPER tool,"M" stands for:

A) Manage
B) Match
C) Market
D) Modify

Question 54

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?

A) Magnify
B) Adapt
C) Eliminate
D) Restitute

Question 55

When a bookstore starts to sell videos,music,and coffee as well,it uses which of the following elements of the SCAMPER tool?

A) Rearrange
B) Eliminate
C) Combine
D) Substitute

Question 56

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.

Question 57

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:

A) elimination.
B) adaptation.
C) magnification.
D) substitution.

Question 58

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

Question 59

_____ is a process of producing an idea or opportunity that is novel and useful,frequently derived from making connections among distinct ideas or opportunities.

A) Prototyping
B) Creativity
C) Benchmarking
D) Incubation

Question 60

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?

A) Substitute
B) Magnify
C) Adapt
D) Combine

Question 61

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

Question 62

_____ means the extent to which an idea is viable and realistic,and the extent to which you are aware of internal and external forces that could affect your business.

A) Flexibility
B) Consistency
C) Feasibility
D) Innovation

Question 63

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.

Question 64

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?

A) Magnify
B) Saturate
C) Correlate
D) Put to other use

Question 65

In the SCAMPER tool,"R" stands for:

A) Restitution
B) Resolution
C) Result
D) Reverse

Question 66

In the SCAMPER tool,"E" stands for:

A) Entertain
B) Extrapolate
C) Engineer
D) Eliminate

Question 67

According to Graham Wallas' description of the creative process,a creative thought includes a(n)_____ stage.

A) industry survey
B) elimination
C) combination
D) incubation

Question 68

According to Graham Wallas' description of the creative process,the _____ stage of a creative thought involves exploring the problem or opportunity in all directions.

A) illumination
B) incubation
C) preparation
D) verification

Question 69

Taking an idea and offering a way to do something slightly better than it is done presently refers to a(n):

A) imitative strategy.
B) incremental strategy.
C) status quo strategy.
D) innovative strategy.

Question 70

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?

A) Adapt
B) Eliminate
C) Rearrange
D) Modify

Question 71

In an attempt to become more innovative,a major pitfall that business owners are most likely to become victim to is:

A) judging ideas slowly.
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.

Question 72

An overall strategic approach in which the entrepreneur does more or less what others are already doing refers to a(n):

A) imitative strategy.
B) innovative strategy.
C) incremental strategy.
D) radical innovation strategy.

Question 73

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.

Question 74

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?

A) Minimize
B) Saturate
C) Restitute
D) Rearrange

Question 75

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?

A) Modify
B) Substitute
C) Restitute
D) Eliminate

Question 76

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.

Question 77

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

Question 78

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.

Question 79

_____ 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
C) Pilot test
D) Radical innovation strategy

Question 80

According to Graham Wallas' description of the creative process,ideas begin to flow in which of the following stages?

A) Preparation
B) Illumination
C) Incubation
D) Verification