38) 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.
39) According to the textbook, research results over time consistently suggest that somewhere
between ________ percent of those who start businesses got their ideas through social contacts.
A) 10 and 20
B) 20 and 30
C) 30 and 40
D) 40 and 50
E) 50 and 60
40) An individual who identifies a business idea on his or her own is referred to as a(n)
________ entrepreneur.
A) separate
B) functional
C) lone
D) individual
E) solo
41) 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
42) 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
43) ________ relationships are characterized by frequent interactions that form between
coworkers, friends, and spouses.
A) Balanced
B) Weak-tie
C) Lateral-tie
D) Moderate-tie
E) Strong-tie
44) Most of Sarah’s ideas come from interacting with coworkers, friends, her spouse, her parents,
and other people that share the same beliefs that she does. Sarah is getting most of her ideas
through ________ relationships.
A) weak-tie
B) horizontal-tie
C) strong-tie
D) multiple-tie
E) vertical-tie
45) Alex has a number of casual acquaintances that he interacts with infrequently. The
relationships that Alex has with these people are referred to as ________ relationships.
A) strong-tie
B) moderate-tie
C) lateral-tie
D) weak-tie
E) multiple-tie
46) 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
47) ________ is the process of generating a novel or useful idea.
A) Innovation
B) Imagining
C) Creativity
D) Visualization
E) Envisioning
48) 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
49) 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
50) In the five-stage creative process, the flash of recognition, or what is sometimes referred to
as the “eureka” experience, occurs in the ________ stage.
A) insight
B) preparation
C) incubation
D) elaboration
E) evaluation
51) In the five-stage creative process, the stage in which the creative idea is put into final form is
referred to as the ________ stage.
A) insight
B) preparation
C) incubation
D) elaboration
E) evaluation
52) Several studies have shown that prior experience in an industry helps entrepreneurs
recognize business opportunities.
53) Opportunity recognition may be an innate skill or cognitive process.
54) Weak-tie relationships are characterized by infrequent interaction and ties between casual
acquaintances.
55) It is more likely that an entrepreneur will get a new business idea through a strong-tie than a
weak-tie relationship.
56) The five stages of the creative process include preparation, incubation, insight, evaluation,
and elaboration.
57) Incubation is the stage of the creative process during which an idea is subjected to scrutiny
and analyzed for its viability.
58) Evaluation is the stage of the creative process during which the idea is put into its final form.
59) Describe the difference between strong-tie and weak-tie relationships. Is it more likely that
an entrepreneur will get new ideas through strong-tie or weak-tie relationships?
60) ________ 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
61) 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.
62) The number one rule for a brainstorming session 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
63) 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
64) 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
65) An example of a valuable library resource 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
66) 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
67) Brainstorming is used to generate a number of ideas quickly.
68) Brainstorming sessions are designed to move slowly, so ideas can be presented and
evaluated.
69) Focus groups typically involve a group of people who are unfamiliar with a topic and are
brought together to respond to questions.
70) Describe how brainstorming can help facilitate the generation of ideas, and outline the four
rules for conducting a brainstorming session.
71) Describe how library and Internet research can be used to generate new business ideas.
72) 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
73) 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.
74) An idea bank is a physical or digital repository for storing ideas.
75) Creativity and innovation are almost identical concepts.