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Essentials of Entrepreneurship and Small Business Management, 9e (Scarborough)
Chapter 3 Creativity and Innovation: Keys to Entrepreneurial Success
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 is the ability to apply creative solutions to problems and opportunities to enhance or
enrich people's lives.
8) Innovation is the ability to develop new ideas and to discover new ways of looking at
problems and opportunities.
9) Creativity is the ability to develop new ideas and to discover new ways of looking at problems
and opportunities.
10) Innovation is the ability to apply creative solutions to problems and opportunities to enhance
or enrich people's lives.
11) Successful entrepreneurs come up with ideas and then find ways to make them work to solve
a problem or fill a need.
12) Creativity and innovation are the signature of large, entrepreneurial businesses.
13) Creativity and innovation are the signature of small, entrepreneurial businesses.
14) Innovation must be a constant process because most ideas do not work and most innovations
fail.
15) For every 5,000 to 10,000 new drug discoveries, only about five make it to clinical trials and
only one typically gets to the market.
16) What is the entrepreneurial "secret" for creating value in the marketplace?
17) 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
18) 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
19) 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
20) 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.
21) Creativity is not only an important source for building a competitive advantage, but it also is
necessary for survival.
22) History is always a reliable predictor of the future of business.
23) Entrepreneurs must embrace traditional assumptions and perspectives about how things
ought to be because they support creativity.
24) The need to enhance creative thinking means that exploring ________ space, not ________
space becomes the challenge of the century.
A) outer; inner
B) big; small
C) small; big
D) inner; outer
25) The ________ space is the space between our brains.
A) outer
B) inner
C) thinking
D) acting
26) ________ reasoning is the ability to create a multitude of original, diverse ideas.
A) Divergent
B) Convergent
C) Asymmetrical
D) Logical
27) ________ reasoning is the ability to evaluate multiple ideas and choose the best solution to a
given problem.
A) Divergent
B) Convergent
C) Lateral
D) Intuitive
28) Christine has the ability to evaluate several options and pick the best one to solve a problem.
The reasoning ability that Christine has is called ________.
A) convergent
B) divergent
C) lateral
D) intuitive
29) While Arturo finds it difficult to evaluate known options to a problem, he finds that he can
generate a number of highly creative solutions to the problem. The reasoning ability that Arturo
has is called ________.
A) convergent
B) divergent
C) rational
D) lateral
30) Successful entrepreneurship requires both ________ and ________ reasoning.
A) divergent; convergent
B) divergent; lateral
C) convergent; lateral
D) asymmetric; symmetric
31) Creative people realize that there may be more than one "right answer."
32) Creative people are not prolific thinkers.
33) Creative people see problems as springboards for new ideas.
34) Creative people see problems as roadblocks.
35) Creative people are upset by failures.
36) Creative people see mistakes as mere "pit stops" on the way to success.
37) Contrary to conventional wisdom, people can be taught to be creative.
38) Creative people challenge custom, routine, and tradition.
39) Innovation and creativity are just for artists, not entrepreneurs.
40) Conventional wisdom held that a person is either creative or not.
41) Tom is high on convergent reasoning because once options are identified, he can evaluate
them to suggest the best solution.
42) Esmeralda is high on divergent reasoning because her skill is in generating multiple creative
options to a problem.
43) Entrepreneurship requires both divergent and convergent reasoning.
44) Explain the differences between convergent and divergent reasoning.
45) 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
46) Viewing play as frivolous is a mental block that stifles creativity.
47) "Constantly being practical" is a mental block that can stifle creativity.
48) Businesses typically foster an environment that encourages creativity.
49) Ambiguity tends to destroy creativity.
50) Failure is an important part of the creative process, as it provides a chance to learn how to
succeed.
51) Employees tend to rise or fall to the level of expectations entrepreneurs have of them.
52) List five of the barriers that limit creativity.
53) 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
54) 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.
55) 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
56) Hiring a diverse workforce ________.
A) helps in cultivating 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
57) The ________ environment has an impact on the level of people's creativity.
A) physical
B) sounds in the
C) external
D) internal
58) 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
59) 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.
60) Which of the following sets 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
61) Research shows that not everyone can be creative.
62) Hiring a diverse workforce makes it more difficult to achieve creativity in the workplace.
63) Entrepreneurs can encourage creative thinking in their employees by setting examples of
creative behavior and rewarding creative behavior when exhibited by their employees.
64) Enhancing individual creativity may be cultivated through such activities as modeling,
encouragement, recognition, allowing failure, listening, talking to children, and taking time off.
65) List five ways entrepreneurs can stimulate their own creativity and encourage it among
workers.
66) List five ways individuals can enhance their own creativity.
67) Which stage of the creative process includes on-the-job training?
A) Implementation
B) Preparation
C) Illumination
D) Verification
68) 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
