Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough)
Chapter 2 Inside the Entrepreneurial Mind: From Ideas to Reality
1) The ability to develop new ideas and to discover new ways of looking at problems and
opportunities is called:
A) entrepreneurship.
B) innovation.
C) creativity.
D) creative thinking.
2) An entrepreneurial “secret” for creating value in the marketplace is:
A) applying creativity and innovation to solve problems.
B) creating new products and services.
C) learning by doing.
D) applying lessons learned from history.
3) The ability to apply creative solutions to problems and opportunities to enhance or to enrich
people’s lives is called:
A) entrepreneurship.
B) innovation.
C) creativity.
D) creative thinking.
4) Harvard’s Ted Levitt says that creativity is ________ new things, and innovation is ________
new things.
A) thinking; doing
B) doing; thinking
C) seeing; doing
D) thinking; applying
5) Entrepreneurship is a constant process that relies on:
A) creativity, innovation, and profit.
B) the ability to win over the consumer.
C) creativity, innovation, and application in the marketplace.
D) intellectual property rights.
6) ________ is necessary for building a competitive advantage and for business survival.
A) One single idea
B) A motivated owner
C) Creativity
D) A low-priced product
7) Creativity often involves creating something from nothing. However, it is more likely to result
in:
A) elaborating on the present.
B) putting old things together in new ways.
C) taking something away to create something simpler or better.
D) All of the above
8) When developing creative solutions to modern problems, entrepreneurs must:
A) go beyond merely using whatever has worked in the past.
B) limit the creative process to only profitable ventures.
C) remember what has worked in the past.
D) pay attention to limiting factors.
9) Research shows that anyone can learn to be creative. The problem is:
A) many organizations fail to foster an environment that encourages creativity.
B) most people never tap into their pools of innate creativity.
C) most people have never been taught to be creative.
D) All of the above
10) Research into the operation of the human brain shows that each hemisphere of the brain:
A) develops symmetrically.
B) controls similar functions.
C) does not dominate the other hemisphere.
D) processes information differently.
11) The left brain is guided by:
A) kaleidoscopic, lateral thinking.
B) linear, vertical thinking.
C) asymmetrical thinking.
D) intuitive thinking.
12) The right brain is guided by:
A) kaleidoscopic, lateral thinking.
B) linear, vertical thinking.
C) asymmetrical thinking.
D) logical thinking.
13) Which hemisphere of the brain is responsible for language, logic, and symbols?
A) Right hemisphere
B) Left hemisphere
C) Lateral hemisphere
D) Intuitive hemisphere
14) Which hemisphere of the brain is responsible for the body’s emotional, intuitive, and spatial
functions?
A) Right hemisphere
B) Left hemisphere
C) Vertical hemisphere
D) Logical hemisphere
15) Which hemisphere of the brain processes information in a step-by-step fashion?
A) Right hemisphere
B) Left hemisphere
C) Lateral hemisphere
D) Intuitive hemisphere
16) Which hemisphere of the brain processes information all at once and by relying heavily on
images?
A) Right hemisphere
B) Left hemisphere
C) Vertical hemisphere
D) Logical hemisphere
17) ________ vertical thinking is narrowly focused and systematic, proceeding in a highly
logical fashion from one point to the next.
A) Left-brained
B) Right-brained
C) Unconventional
D) Intuitive
18) ________ lateral thinking is somewhat unconventional and unstructured.
A) Left-brained
B) Right-brained
C) Systematic
D) Logical
19) All of the following represent barriers to creativity that entrepreneurs impose upon
themselves except:
A) focusing on being too logical.
B) being too practical.
C) blindly following rules.
D) searching for more than one answer.
20) Entrepreneurs can stimulate their own creativity and encourage it among workers by:
A) expecting and tolerating failure.
B) avoiding problems.
C) limiting rewards.
D) not taking chances.
21) Which of the following is not one of the ways entrepreneurs can stimulate their own
creativity and encourage it among their workers?
A) Provide creativity training.
B) Encourage curiosity.
C) View challenges as problems.
D) Develop a corporate culture that both fosters and rewards creativity.
22) Employees must be given the tools and resources they need to be creative. One of the most
valuable set of resources is:
A) setting limits and providing challenges.
B) establishing rules and guidelines.
C) time, support and encouragement.
D) reinforce traditional problem solving methods.
23) Hiring a diverse workforce:
A) helps in enhancing organizational creativity.
B) allows for different ideas and varying methods of problem solving.
C) brings in people from different backgrounds, with different cultural experiences, hobbies, and
interests.
D) All of the above
24) The ________ environment has an impact on the level of people’s creativity.
A) physical
B) sounds in the
C) external
D) internal
25) All of the following are enhancements to individual creativity except:
A) keeping a journal to record thoughts and ideas.
B) limiting your reading sources.
C) taking time off.
D) allowing yourself to be creative.
26) Which of the following is not an enhancement to individual creativity?
A) Listening to other people
B) Recognizing the creative power of mistakes
C) Keeping a toy box in your office
D) Working without breaks until the project is complete or the problem is solved
27) Which stage of the creative process includes on-the-job training?
A) Implementation
B) Preparation
C) Illumination
D) Verification
28) This set of experiences may enhance individual creativity.
A) Travel and recognize the creative power of mistakes and accidents
B) Notice what is missing
C) Journal and listen to people and customers
D) All the above
29) Which stage of the creative process requires one to develop a solid understanding of the
problem or decision?
A) Investigation
B) Preparation
C) Illumination
D) Verification
30) Which stage of the creative process involves viewing the similarities and differences in the
information collected?
A) Transformation
B) Incubation
C) Illumination
D) Verification
31) The ability to see the similarities and the connections among various data and events is
called:
A) convergent thinking.
B) divergent thinking.
C) transformational thinking.
D) illumination.
32) The ability to see the differences among various data and events is called:
A) convergent thinking.
B) divergent thinking.
C) transformational thinking.
D) illumination.
33) ________ thinking is the ability to see similarities and ________ thinking is the ability to see
differences among various data and events.
A) Divergent; convergent
B) Convergent; divergent
C) Convergent; transformational
D) None of the above
34) During the incubation phase of the creative process, the entrepreneur might do all of the
following EXCEPT which one to let ideas “marinate” in his mind?
A) Do something totally unrelated for awhile.
B) Relax and play regularly.
C) Work on the problem or opportunity in a different environment.
D) Don’t allow one’s self to daydream.
35) At which stage of the creative process does a spontaneous breakthrough occur, allowing all
of the previous stages to come together to produce the “Eureka factor” or the “light bulb goes
on”?
A) Implementation
B) Preparation
C) Illumination
D) Verification
36) “Verification” refers to:
A) validating the idea as accurate and useful.
B) possibly conducting experiments, running simulations, and test marketing a product or
service.
C) possibly asking questions such as “will it work?” and “is it really a better solution?”
D) All of the above
37) The focus of this step in the creative process is to transform the idea into reality.
A) Implementation
B) Preparation
C) Illumination
D) Verification
38) ________ is a process in which a small group of people interacts to produce a large quantity
of imaginative ideas.
A) Groupthink
B) Mind-mapping
C) Brainstorming
D) Prototyping
39) Effective brainstorming involves all of the following except:
A) a small group of people.
B) an open, uninhibited environment.
C) an effective method to evaluate ideas.
D) very little structure.
40) ________ is a graphical technique that encourages thinking on both sides of the brain,
visually displays the various relationships among the ideas, and improves the ability to view a
problem from many sides.
A) Brainstorming
B) Mind-mapping
C) Prototyping
D) Groupthink
41) Mind-mapping is a useful tool for jump-starting creativity. It includes all of the following
except:
A) sketching a picture to symbolize the problem or area of focus in the center of a sheet of paper.
B) writing down every idea that comes into your mind, connecting each idea to the central
picture.
C) allowing your mind to rest for a few minutes before integrating the ideas.
D) forcing creativity when ideas start to trickle.
42) The technique of ________ uses three columns that allows the entrepreneur to weigh both
the advantages and the disadvantages of a particular decision and work to maximize the variables
that support it while minimizing those that work against it.
A) force-field analysis
B) TRIZ
C) brainstorming
D) mind mapping
43) The “theory of inventive problem solving” is a left-brained, scientific, systematic process
based on innovative patents and is referred to as:
A) JIT.
B) RP.
C) TQM.
D) TRIZ.
44) The premise behind ________ is that transforming an idea into an actual model will lead to
improvements in its design.
A) rapid prototyping
B) mind-mapping
C) brainstorming
D) inventions
45) The three principles (three Rs) of rapid prototyping are:
A) develop a rough model, rapidly, and for the right price.
B) develop a complete model, rapidly, and for the right problem.
C) develop a rough model, rapidly, and for the right problem.
D) develop a right model, roughly, for the right price.
46) Steps in the patent process include:
A) establishing whether it is a novelty.
B) documenting and verifying the date the idea was first conceived.
C) searching existing patents.
D) All of the above
47) To which governmental office must applications for patents be submitted?
A) The U.S. Patent and Trademark Office
B) The individual State Offices of Patent Development
C) The Federal Trade Commission
D) The Securities and Exchange Commission
48) To protect patent claims, an inventor should be able to verify and document the:
A) research conducted to create the invention.
B) fact that the invention was created in another country.
C) date on which the idea was first conceived.
D) initial sales of the invention.
49) More than ________ percent of those holding patents win their infringement suits.
A) 15
B) 30
C) 45
D) 60
50) Any distinctive word, phrase, symbol, name, or logo a firm uses to distinguish itself or its
products is called a:
A) trademark.
B) patent.
C) copyright.
D) service mark.
51) Which of the following questions should you consider before entering a lawsuit to protect
intellectual property?
A) Can you afford the loss of time, money, and privacy the lawsuit will bring?
B) Can the opponent afford to pay if you win?
C) Do you expect to get enough from the suit to pay for the costs of hiring an attorney?
D) All of the above
52) A ________ is an exclusive right that protects the creators of original works such as literary,
dramatic, musical, and artistic works.
A) trademark
B) patent
C) copyright
D) service mark
53) Copyrights protect the creator of original works such as:
A) software, choreography, and motion pictures.
B) symbols, names, and designs.
C) text and verbiage of any kind.
D) slogans and designs.
54) Creativity is the ability to apply creative solutions to problems and opportunities to enhance
or enrich people’s lives.
55) Innovation is the ability to develop new ideas and to discover new ways of looking at
problems and opportunities.
56) Creativity is the ability to develop new ideas and to discover new ways of looking at
problems and opportunities.
57) Innovation is the ability to apply creative solutions to problems and opportunities to enhance
or enrich people’s lives.
58) Successful entrepreneurs come up with ideas and then find ways to make them work to solve
a problem or fill a need.
59) Creativity and innovation are the signature of large, entrepreneurial businesses.
60) Creativity and innovation are the signature of small, entrepreneurial businesses.
61) Innovation must be a constant process because most ideas do not work and most innovations
fail.
62) For every 3,000 new product ideas, four make it to the development stage, two are actually
launched, and only one becomes successful in the market.
63) Although creativity sometimes involves generating something from nothing, it more likely
results in elaborating on the present, putting old things together in new ways, or taking
something away to create something simpler or better.
64) Creativity is not only an important source for building a competitive advantage, but it also is
necessary for survival.
65) History is always a reliable predictor of the future of business.