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

Question 1

One way you can try to practice the business of innovation is to invite someone you never included before to a meeting at which you are solving a problem or searching for a new opportunity.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

Feasibility studies consist of careful investigation of four primary areas: the product/service,the industry and market,profitability,and the plan for future action.

Answer 3

False

Question 4

According to the feasibility study outline,entering into a franchise agreement,partnerships,distributorships,etc. ,should be discussed in the business idea section.

Question 5

A typical I 2 P analysis consists of a one-page response to eight questions-four about the product,three about the process,and one about the people.

Question 6

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

Question 7

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

Question 8

One unusual ability found in the entrepreneurs Gaglio and Katz studied was that many of them can come up with new ideas given nearly any combination of resources.

Question 9

Customers generally view a new company negatively if it imitates established companies and practices in the industry.

Question 10

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

Question 11

Hobbies cannot be turned into successful businesses.

Question 12

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

Question 13

According to entrepreneurs in PSED,work experience was the number one source of ideas for their business.

Question 14

According to research,start-up entrepreneurs felt most confident about obtaining start-up capital.

Question 15

"C" in the creativity tool SCAMPER stands for copy.

Question 16

Alex Osborne,a pioneer in the field of creativity,coined the word brainstorming.

Question 17

A license is a legal agreement granting you rights to use a particular piece of intellectual property.

Question 18

On the question of what came first for new businesses,according to PSED,a majority of entrepreneurs indicated that business idea and the decision to start a business were simultaneous.

Question 19

Preparation and correlation are two stages of the creative process,according to Graham Wallas.

Question 20

With the many sales and service businesses built using the Internet,a low-cost,low-risk approach for testing feasibility exists using the concept of a pilot test.

Question 21

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

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

Question 22

A _____ is a legal agreement granting you rights to use a particular piece of intellectual property.

A)caveat emptor
B)franchise
C)set-aside
D)license

Question 23

_____ 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)An exclusive right

Question 24

All of the following pertain to entrepreneurial alertness EXCEPT

A)entrepreneurs have a special set of observational skills.
B)entrepreneurs have thinking skills that help them identify opportunities.
C)it is the ability to notice things that have been overlooked.
D)it involves launching a formal search for opportunities.

Question 25

Many owners of consulting companies took their own skills and launched businesses by selling those skills to other companies who needed them.This is an example of which of the following factors leading to business ideas?

A)Family and friends
B)Serendipity
C)Education and expertise
D)Personal interest

Question 26

In a typical I 2 P analysis,this is a nontechnical description of the concept simple enough for everyone to understand it.

A)What is the market and its size?
B)What is your product or idea?
C)Why will customers buy your product?
D)Who are the people behind the idea?

Question 27

One powerful but rarely used source of ideas is

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

Question 28

Which of the following best describes a licensee?

A)It is a person or organization offering the rights to use a particular piece of intellectual property.
B)It is a legal agreement granting rights to use a particular piece of intellectual property.
C)It is a person or firm obtaining the rights to use a particular piece of intellectual property.
D)It is a person or organization offering the rights to use any piece of intellectual property.

Question 29

When you happen to be at the right place at the right time resulting in a successful business idea,which of the following factors can be said to be responsible?

A)Family and friends
B)Education and expertise
C)Serendipity
D)Personal interest

Question 30

According to the text,all of the following factors lead business owners to their business ideas EXCEPT

A)work experience.
B)government regulation.
C)serendipity.
D)family and friends.

Question 31

You might see a business in an area that intrigues you because you learn that there is a growing market for this business and you think of a way to expand on the opportunity.Which of the following factors is considered the business idea behind this?

A)Serendipity
B)Personal interest
C)A similar business
D)Work experience

Question 32

According to the PSED,a majority of entrepreneurs indicated that

A)the decision to start a business came first.
B)the business idea came first.
C)both idea and decision were simultaneous.
D)they have no recollection of what happened with business start-up.

Question 33

If an owner of a fast-food restaurant notices that customers are asking for substitutions of healthier ingredients to food items,she may be motivated to contact her suppliers to ask about getting new ingredients,changing the menu,and increasing the healthy offerings on the menu to keep customers satisfied.This is an example of

A)creativity.
B)technology transfer.
C)innovation.
D)entrepreneurial alertness.

Question 34

Working for a very large organization in the tractor manufacturing industry,John always heard complaints from customers about the parts and service aspect of the business.Taking an early retirement,John started his small business to address the customer complaints he had been hearing.Which of the following best describes the factor that led John to this business idea?

A)A similar business
B)Chance
C)Work experience
D)Family and friends

Question 35

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 36

The person or organization which is offering the rights to use a particular piece of intellectual property is the

A)consignee.
B)assignee.
C)licensor.
D)licensee.

Question 37

When people find a way to turn their hobbies into successful businesses,which of the following factors is considered as leading them to their business idea?

A)Family and friends
B)Education and expertise
C)Serendipity
D)Personal interest

Question 38

A special set of observational and thinking skills that help entrepreneurs identify good opportunities refers to

A)innovation.
B)opportunity recognition.
C)technology transfer.
D)entrepreneurial alertness.

Question 39

Which of the following refers to searching and capturing new ideas that lead to business opportunities?

A)Innovation
B)Entrepreneurial alertness
C)Opportunity recognition
D)Technology transfer

Question 40

According to the entrepreneurs studied in PSED,which of the following factors was the most frequently mentioned source that led to their business idea?

A)Discussion with potential investors
B)Education and expertise
C)Family and friends
D)Work experience

Question 41

Which of the following is NOT a focus while answering the eight questions in a typical I 2 P analysis?

A)People
B)Product
C)Market
D)Intellectual property protection

Question 42

The idea trigger "What separate products,services,or whole businesses can you put together to create another distinct business?" pertains to which cue in SCAMPER?

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

Question 43

"Why might a cell phone that can play music MP3s be a better approach than a dedicated MP3 player?" pertains to which of the following questions?

A)Is your product or idea innovative?
B)Why will customers buy your product?
C)Is your underlying technology unique?
D)Who are the people behind the idea?

Question 44

"M" in the creativity tool SCAMPER stands for

A)manage.
B)match.
C)market.
D)modify.

Question 45

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

A)imitative
B)cost leadership
C)radical innovation
D)integration

Question 46

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)Substitute
C)Combine
D)Put to other use

Question 47

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)Magnifying
B)Adapting
C)Eliminating
D)Rearranging

Question 48

When a bookstore starts to sell videos,music,and coffee as well,they are using which element of SCAMPER?

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

Question 49

When Crest toothpaste introduces "New and Improved" toothpaste,it is an example of which element of SCAMPER?

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

Question 50

The microchip industry was born when someone asked the question,"What if we shrunk them?" This refers to which of the following cues?

A)Rearrange
B)Minimize
C)Put to other uses
D)Adapt

Question 51

Which of the following looks like the simplest question but is actually the hardest one?

A)Is your underlying technology unique?
B)Who will buy your product?
C)What is your product or idea?
D)What is the market and its size?

Question 52

"Beyond the start-up dollars that will be needed to buy any raw materials to make the product or develop the service,what information,relationships,and degree of effort will be needed to turn the idea into reality?" pertains to which of the following?

A)Is your product or idea innovative?
B)What resources are needed to take the idea and sell it to the customer?
C)Describe how you create value for your customers.
D)What marketplace need does your product address better than any other option?

Question 53

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

A)Ethics
B)Creativity
C)Imitation
D)Flexibility

Question 54

Which element of SCAMPER involves thinking of ways to generate a high number of opportunities for a service beyond its traditional function?

A)Putting to other uses
B)Magnifying or modifying
C)Adapting
D)Combining

Question 55

This question looks at the specific individuals,groups,or organizations you would approach first to buy your product or service.

A)Who are the people behind the idea?
B)Describe how you create value for your customers.
C)How would you define the best initial set of customers?
D)What marketplace need does your product address better than any other option?

Question 56

"S" in the creativity tool SCAMPER stands for

A)strategize.
B)substitute.
C)submit.
D)solicit.

Question 57

Which of the following is an idea trigger for the "substitute" cue in SCAMPER?

A)What opportunities can you think of that come as a result of replacing something that already exists?
B)What separate products,services,or whole businesses can you put together to create another distinct business?
C)What could you adapt from other industries or fields to your business?
D)What could I make more noticeable or dramatic,or different in some way from my competitors?

Question 58

Looking at the concept of "Book-of-the-Week" from Borders,if Olive Garden starts a "Pasta-of-the-Week",it would be an example of which element of SCAMPER?

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

Question 59

The idea trigger "Suppose you learned that all the traditional uses for your product had disappeared and that you have trailer truckloads out back with tons of product.What other uses might there be?" refers to which cue?

A)Substitute
B)Put to other uses
C)Eliminate
D)Rearrange

Question 60

A feature that allows your customers to order directly from a Web site rather than visiting your store is an example of

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

Question 61

Using paradox to challenge old ways of thinking such as using stimulants to calm hyperactive children refers to which of the following cues?

A)Minimize
B)Substitute
C)Reverse
D)Rearrange

Question 62

All of the following are major pitfalls that business owners can become victims of when trying to become more innovative EXCEPT

A)judging ideas too quickly.
B)stopping with the first good idea.
C)obeying rules that do not exist.
D)getting the "bandits on the train."

Question 63

What is the goal of a feasibility study?

A)To create additional value for customers through great products or services.
B)To get useful ideas out of creative employees that affect the business's bottom line.
C)To assess if an idea can be profitably brought to market.
D)To assess how well a preliminary run of a business works and what problems it might have.

Question 64

_____ means the extent to which the 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 65

According to PSED,start-up entrepreneurs feel most confident about which of the following aspects?

A)Complying with local/state/federal regulations
B)Obtaining start-up capital
C)Obtaining a bank's help
D)Attracting employees

Question 66

According to the text,all of the following are techniques that you can try as you practice the business of innovation EXCEPT

A)read magazines and trade journals about your area.
B)have a "scan the environment" day.
C)redesign your work environment.
D)invite someone you have never included before to a meeting at which you are solving a problem.

Question 67

This model has the entrepreneur 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 68

The product/service component of the feasibility study should include which of the following aspects?

A)Stage of development
B)Competition
C)Market penetration
D)Cost forecast

Question 69

You assume,as the business owner,that you need to do all the work,make all the sales calls,and solve everybody's problems.This refers to which major pitfall that business owners can become victim to when trying to become more innovative?

A)Obeying rules that do not exist
B)Judging ideas too quickly
C)Identifying the wrong problem
D)Getting the "bandits on the train."

Question 70

The creative thought process,according to Graham Wallas,includes all of the following stages EXCEPT

A)incubation.
B)illumination.
C)combination.
D)verification.

Question 71

The industry and market component of the feasibility study should include which of the following components?

A)Sales revenue forecast
B)The competition
C)Writing a business plan
D)Pricing

Question 72

The business idea component of the feasibility study includes which of the following aspects?

A)Stage of development
B)Competition
C)Market penetration
D)You,your firm,and your fit

Question 73

Feasibility studies consist of careful investigation of all the following areas EXCEPT

A)product/service.
B)industry and market.
C)profitability.
D)idea generation.

Question 74

An overall strategic approach in which the entrepreneur does more or less what others are already doing refers to

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

Question 75

"What if people didn't have to leave their houses to go grocery shopping?" refers to which cue?

A)Minimize
B)Reverse
C)Eliminate
D)Substitute

Question 76

According to Graham Wallas,the creative thought includes which of the following stages?

A)Industry survey
B)Elimination
C)Combination
D)Incubation

Question 77

According to Graham Wallas,exploring the problem or opportunity in all directions is called

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

Question 78

According to Graham Wallas,thinking about the problem or opportunity in a "not-conscious" way is called

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

Question 79

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

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

Question 80

Searching for opportunities that arise when you get rid of something or stop doing something refers to

A)adapting.
B)eliminating.
C)rearranging.
D)modifying.