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

Question 1

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

Answer 1

False

Question 2

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.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

Hobbies cannot be turned into successful businesses.

Question 6

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

Question 7

A typical Idea To Product (I2P)analysis consists of a one-page response to eight questions-four about the product,three about the process,and one about the people.

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 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.

Question 13

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 14

"C" in the SCAMPER tool stands for copy.

Question 15

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

Question 16

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 17

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

Question 18

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

Question 19

The SCAMPER tool is based on the work of Alex Osborne.

Question 20

Correlation is one of the four stages in the creative process.

Question 21

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 22

One powerful but rarely used source of business ideas are:

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

Question 23

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 24

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

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

Question 25

Josh,an electronics retailer,noticed that the e-commerce business was booming.He started an online shopping Web site 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 26

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(n)_____.

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

Question 27

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 28

_____ 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 29

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 30

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,she was constantly encouraged by her relatives to start a business related to cooking.Realizing that her American friends may not be able to handle or like Indian food due 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.Which of the following factors has encouraged Rashmi to consider the catering business idea?

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

Question 31

Emily likes travelling,but every time she checks for tickets and a decent hotel,she gets overwhelmed with the amount of information she gets.She wants people to have a hassle-free travel experience.As a result,she starts a small business that filters information based on people's requirements and provides them with just the right amount of information they need about the place they are travelling to,the best available hotel,and the cheapest air fares.Which of the following is most likely to be the source of Emily's business idea?

A) A chance happening
B) A personal interest
C) A similar business
D) An expertise

Question 32

When a person happens to be at the right place at the right time resulting in a successful business idea,which of the following would be considered to be the factor that led to the business idea?

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

Question 33

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 34

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 35

RecycleAll Inc.is a company in Memphis,Tennessee,which recycles all the biodegradable waste in the city.Being a staunch environmentalist,Francine,a resident of Memphis,started up a small business that had tie-ups with all the schools and colleges in the city to spread awareness on the importance of recycling.Which of the following factors most likely led Francine to her business idea?

A) A similar business
B) A hobby
C) An education
D) A chance happening

Question 36

_____ 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 37

Working for a very large organization in the tractor manufacturing industry,John always heard complaints from customers about the parts and services aspects of the business.Taking an early retirement,John started his own business to specifically address the many customer complaints he had been hearing.Which of the following is most likely to be the factor that led John to the business idea?

A) A similar business
B) Chance happening
C) Work experience
D) Technology transfer

Question 38

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 39

_____ 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 40

When people find a way to turn their hobbies into successful businesses,which of the following is most likely to be the source of their business idea?

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

Question 41

Sandra has a product idea.She has researched about all the competing products and the companies that produce them.The research helps Sandra to address which of the following aspects of the I2P analysis?

A) The market and its size
B) The extent of IP protection for the idea
C) The initial set of customers
D) The royalty that the product is likely to generate

Question 42

The SCAMPER tool is based on the work of:

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

Question 43

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 44

Which of the following questions in a typical I2P analysis looks at the specific individuals,groups,or organizations you would approach first to buy your product or service?

A) How is your product or idea better?
B) Who will buy it?
C) Why will they buy it?
D) What is the market and its size?

Question 45

Gabriel has a product idea of a device which he believes will help people manage their daily chores,hence making their lives easier.The description of the product is most likely to address which aspect of the I2P analysis?

A) The extent of IP protection for the idea
B) The novelty of the product
C) The royalty that the product is likely to generate
D) The value add for customers

Question 46

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 47

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 48

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 49

In the SCAMPER tool,"M" stands for:

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

Question 50

According to the I2P approach to organizing an opportunity screen,which of the following aspect provides information about the specific individuals,groups,or organizations that entrepreneurs approach first to buy their product or service?

A) The initial set of customers
B) The value-creation for customers
C) The market and its size
D) The extent of IP protection for the product or service

Question 51

Which of the following questions in a typical I2P analysis provides a simple and nontechnical description of the product?

A) How is your product better than your competitor's?
B) What is your product or idea?
C) Why will customers buy your product?
D) What is the market and its size for your product?

Question 52

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 53

In the SCAMPER tool,"S" stands for:

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

Question 54

Mark has developed a novel product and is worried that it might get copied.To address this concern,Mark must address which of the following aspects of the I2P analysis?

A) The royalty the product is most likely to generate
B) The extent of IP protection for the product
C) The initial set of customers
D) The market and its size

Question 55

As a part of her I2P analysis,Amanda conducted a survey in which she asked her potential consumers about their interests.She did the survey to match market demand to a new product idea she has.Amanda addresses which of the following aspects of the I2P analysis?

A) The novelty of the product
B) The extent of IP protection for the idea
C) The reasons for customers to buy the product
D) The royalty that the product is likely to generate

Question 56

Which of the following questions in a typical I2P analysis provides information on competing products?

A) How would you define the best initial set of customers?
B) What is your product or idea?
C) Can you develop IP protection for your idea?
D) What is the market and its size?

Question 57

According to the SCAMPER tool,a feature that allows customers to order directly from a Web site rather than visiting a store is an example of:

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

Question 58

_____ 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 59

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 60

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 61

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

Question 62

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 63

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 64

_____ 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 65

Which of the following is most likely to be true of people with highly innovative businesses?

A) They implement an imitative strategy to their business.
B) They are persistent about asking questions.
C) They give more importance to the problems they face rather than identifying opportunities.
D) They typically are people with political connections.

Question 66

In the SCAMPER tool,"E" stands for:

A) entertain.
B) eliminate.
C) engineer.
D) extrapolate.

Question 67

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 68

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 69

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 70

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 71

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 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.

Question 73

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 74

_____ 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 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

In the SCAMPER tool,"R" stands for:

A) restitution.
B) resolution.
C) reverse.
D) result.

Question 77

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 78

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 79

Which of the following is an entrepreneur most likely to implement to introduce changeability into a core business?

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 80

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.