Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Chapter 5: Generating New Ideas
Test Bank
Multiple Choice
1. What are the three central characteristics of opportunity?
a. size of the market, level of disposable income of the customer, and access to
manufacturing
b. the niche appeal, degree of innovation, and knowledge of market
c. affordability, simplicity, and reliability
d. potential economic value, novelty or newness, and perceived desirability
2. According to the text, what is the most common form of value?
a. practical
b. environmental
c. social
d. economic
3. The Bigbelly waste management and recycling company is an example of a company
that generates what kind of value?
a. economic and environmental value
b. social and emotional value
c. only environmental value
d. only economic value
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
4. Opportunity is defined as ______.
a. the worth of something in terms of the amount of other things for which it can be
exchanged
b. any conception, thought, or notion existing in the mind as a result of mental
understanding and awareness
c. being perceived as desirable
d. an apparent way of generating value through unique, novel, or desirable products or
services that have not been previously exploited
5. Maci has an idea for a business. For it to be recognized as a viable opportunity, the
idea must ______.
a. have the capacity to generate value
b. include a pitch deck
c. be tried and true
d. be market researched already
6. A shoe company starts an initiative to manufacture an affordable shoe for the poor in
developing countries. This is an example of what form of value?
a. economic value
b. market value
c. social value
d. environmental value
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
7. According to the text, all forms of value are predicated on what assumption?
a. The entrepreneur is emotionally invested in the product or service.
b. There is an existing market for a product or service that can be tapped into.
c. There is a market populated with enough people to buy your product or service.
d. The product or service is able to reach a large, diverse audience.
8. Bette Nesmith Graham’s Liquid Paper correction fluid is an example of an ______.
a. improvement that developed into an innovation
b. innovation that developed into an improvement
c. improvement that developed into an invention
d. invention that developed into an innovation
9. According to the text, on what dimension would today’s smartphone score the highest
in the idea framework?
a. innovation
b. invention
c. improvement
d. irrelevant
10. Mila has an idea that is high on value and usefulness and high on degree of novelty.
According to the Neck Idea Generation Matrix, the idea has the quality of ______.
a. innovation
b. invention
c. improvement
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
d. irrelevant
11. Nan has an idea that is high on value and usefulness and low on degree of novelty.
According to the Neck Idea Generation Matrix, the idea has the quality of ______.
a. innovation
b. invention
c. improvement
d. irrelevant
12. Val has an idea that is low on value and usefulness and high on degree of novelty.
According to the Neck Idea Generation Matrix, the idea has the quality of ______.
a. innovation
b. invention
c. improvement
d. irrelevant
13. Tracy has an idea that is low on value and usefulness and low on degree of novelty.
According to the Neck Idea Generation Matrix, the idea has the quality of ______.
a. innovation
b. invention
c. improvement
d. irrelevant
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
14. According to the text, what three criteria does an idea have to meet in order to be
rated as an innovation?
a. longevity, utility, inventiveness
b. efficiency, creativity, and authenticity
c. reliability, profitability, and desirability
d. novelty, usefulness, and value
15. In what area does the difference between innovation and invention lie?
a. demand
b. cost
c. originality
d. value
16. Inventions that succeed in finding a market move on to what stage?
a. innovation stage
b. manufacturing stage
c. product development stage
d. testing stage
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
17. “An apparent way of generating value through unique, novel, or desirable products
or services that have not been previously exploited” is the definition of what term?
a. an opportunity
b. an idea
c. an innovation
d. an invention
18. What accounted for the popularity of Bette Nesmith Graham’s Liquid Paper
correction fluid?
a. It was novel, useful, and practical.
b. It was efficient, affordable, and reliable.
c. It was an improvement on existing correction fluid.
d. It was cleverly marketed.
19. What is the first step in creating and identifying opportunities?
a. market analysis
b. cost benefit analysis
c. idea generation
d. product testing
20. What strategies involve taking time to think carefully about a problem by breaking it
up into parts, or looking at it in a more general way in order to generate ideas about how
certain products or services can be improved or made more innovative?
a. analytical strategies
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
b. search strategies
c. imagination-based strategies
d. development strategies
21. What strategies involve using memory to retrieve information to make links or
connections based on past experience that are relevant to the current problem using
stimuli?
a. analytical strategies
b. search strategies
c. imagination-based strategies
d. development strategies
22. What strategies involve suspending disbelief and dropping constraints in order to
create unrealistic states, or fantasies?
a. analytical strategies
b. search strategies
c. imagination-based strategies
d. development strategies
23. What are techniques that help to break our minds out of mental fixedness in order to
bring about creative insights?
a. analytical strategies
b. interpersonal strategies
c. relationship-seeking strategies
d. habit-breaking strategies
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
24. What strategies involve consciously making links between concepts or ideas that
are not normally associated with each other?
a. development
b. interpersonal strategies
c. relationship-seeking strategies
d. habit-breaking strategies
25. What strategies are employed to enhance and modify existing ideas in order to
create better alternatives and new possibilities?
a. development strategies
b. interpersonal strategies
c. relationship-seeking strategies
d. habit-breaking strategies
26. What technique involves group members stimulating each other to come up with
new or improved ideas?
a. development strategies
b. interpersonal strategies
c. relationship-seeking strategies
d. habit-breaking strategies
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
27. By envisioning themselves as human hairs, which strategy did the Gillette team use
to come up with a new shampoo?
a. analytical strategy
b. search strategy
c. imagination-based strategy
d. development strategy
28. What strategy is related to the technique of thinking about the opposite of something
you believe, in order to explore a new perspective?
a. development strategies
b. search strategy
c. imagination-based strategy
d. habit-breaking strategies
29. Asking yourself “What would Napoleon do?” in order to perceive what he would do
in a situation is a technique related to which of the following strategies?
a. development strategy
b. search strategy
c. imagination-based strategy
d. habit-breaking strategies
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
30. Brainstorming is an example of what idea generation strategy?
a. development strategies
b. interpersonal strategies
c. relationship-seeking strategies
d. habit-breaking strategies
31. The ______ approach is a concept that assumes that opportunities exist
independent of entrepreneurs and are waiting to be discovered.
a. mountain
b. idea location
c. finding
d. searching
32. The ______ approach states that opportunities do not exist independent of
entrepreneurs but are, instead, a product of the mind.
a. building
b. mind product
c. opportunity
d. entrepreneurial
33. Having had no prior knowledge of the market for his product sweater, what
approach did Jack McCarthy of Ugly Christmas Sweaters utilize when putting his
product up for sale?
a. discovery approach
b. finding approach
c. exploration approach
d. building approach
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
34. What method is used by entrepreneurs in systematically attempting to discover
existing opportunities?
a. active search
b. experimentation
c. surveying
d. trial and error
35. What term do the authors use to describe the ability some people have to identify
opportunities?
a. perception
b. alertness
c. intuition
d. instinct
36. Why do Bette Nesmith Graham’s experiences inventing Liquid Paper correction fluid
adhere to the concept of alertness?
a. She was able to identify an opportunity by conducting a systematic search.
b. She was able to recognize an opportunity while not actively searching for one.
c. She was able to use prior knowledge in order to identify a need for a product.
d. She was able to employ a rational process to narrow down what was needed in the
market.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
37. Which of the following is NOT a reason entrepreneurs may be more adept at
spotting opportunities than non-entrepreneurs?
a. They have access to more information.
b. They may be more prone to pursuing risks rather than avoiding them.
c. They have a greater tolerance for failure.
d. They may possess different cognitive styles from those of non-entrepreneurs.
38. Sasha makes her decisions based on pre-existing information gained from a
combination of life and work experience. In building opportunities, Sasha uses ______.
a. intuition
b. prior knowledge
c. alertness
d. habit-breaking strategies
39. Pattern recognition is the process of identifying links or connections between
______.
a. unrelated things or events
b. related things or events
c. product and customer
d. value and demand
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
40. Put the following in order of increasing relevance (from low to high) to founding new
ventures:
idea generation
creativity
opportunity recognition
a. creativity, idea generation, opportunity recognition
b. creativity, opportunity recognition, idea generation
c. idea generation, creativity, opportunity recognition
d. idea generation, opportunity recognition, creativity
41. Idea generation is defined as ______.
a. production of ideas for something profitable
b. production of ideas for something new
c. production of ideas for something useful
d. production of ideas for something scalable
42. Creativity is defined in the text as ______.
a. production of ideas that will generate significant economic value
b. production of ideas for something new but not useful
c. production of ideas for something that is new and also potentially useful
d. the results of brainstorming with friends and family
43. Opportunity recognition is defined as ______.
a. recognition that ideas are not only new and potentially useful, but have the potential
to generate economic value
b. production of ideas for something new
c. production of ideas for something that is also potentially useful
d. the results of brainstorming with friends and family
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
44. What are the three processes that entrepreneurs typically go through before they
are able to identify an opportunity for a new business venture?
a. cost benefit analysis, market research, and product development
b. networking, resourcing, and marketing
c. funding, team building, and resource allocation
d. idea generation, creativity, and opportunity recognition.
45. What term describes the capacity to focus on and sustain new ideas?
a. expanding
b. challenging
c. securing
d. exposing
46. What term describes the broadening or the acquisition of new skills that enable
people to generate ideas and share knowledge?
a. expanding
b. challenging
c. securing
d. exposing
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
47. What term is used to describe the skills required to open ourselves to diverse and
fluctuating circumstances and events?
a. expanding
b. challenging
c. securing
d. exposing
48. What term is used to describe the process of building on past failures by braving
new encounters?
a. expanding
b. challenging
c. securing
d. exposing
49. What is the most dominant of the strategies for idea generation within group
scenarios?
a. development strategies
b. interpersonal strategies
c. relationship-seeking strategies
d. habit-breaking strategies
50. Whereas decision-making is perceived as ______ within the finding approach,
decision-making is thought to be ______ in the building approach.
a. time-consuming; quick
b. simple; complex
c. risky; uncertain
d. uncertain; risky