Question 1

Describe the difference between an idea and an opportunity. Why is the distinction important?

Accepted Answer

An opportunity is a favorable set of circumstances that creates a need for a new product, service, or business. An opportunity has four essential qualities. It is (1) attractive, (2) durable, (3) timely, and (4) is anchored in a product, service, or business that creates or adds value for its buyer or end user. In contrast, an idea is a thought, impression, or notion. It may or may not meet the criteria of an opportunity. This distinction between an idea and an opportunity is important because many entrepreneurial ventures fail not because the entrepreneurs that launched them didn't work hard, but rather because there was no real opportunity to begin with.

Question 2

The three ways to identify an opportunity include observing trends, solving a problem, and finding gaps in the marketplace.

Accepted Answer

A) True 
 B)False  True

Question 3

The Savvy Entrepreneurial Firm feature in Chapter 2 features three firms: Swipe Out Hunger, Soko, and Drive for Change. All three are examples of ________.

Accepted Answer

A)  corporate ventures 
B)  non-altruistic ventures 
C)  targeted ventures 
D)  social ventures 
E)  for-profit ventures 
A)  corporate ventures 
B)  non-altruistic ventures 
C)  targeted ventures 
D)  social ventures 
E)  for-profit ventures D

Question 4

An opportunity has four essential qualities. It is (1) rare, (2) attractive, (3) timely, and (4) anchored in a product, service, or business that creates or adds value for its buyer or end user.

Accepted Answer

A) True 
 B)False

Question 5

Economic forces impact the opportunities available to entrepreneurs. Which of the following alternatives reflects a set of economic forces that would be of interest to entrepreneurs?

Accepted Answer

A)  Level of disposable income, new uses of old technologies, and new laws and regulations 
B)  New technologies, consumer spending patterns, and new laws 
C)  Housing starts, consumer spending patterns, and stability of interest rates 
D)  Social and cultural trends, level of interest rates, and what people think is "in" 
E)  New changes in political areas, new laws, and level of disposable income 
A)  Level of disposable income, new uses of old technologies, and new laws and regulations 
B)  New technologies, consumer spending patterns, and new laws 
C)  Housing starts, consumer spending patterns, and stability of interest rates 
D)  Social and cultural trends, level of interest rates, and what people think is "in" 
E)  New changes in political areas, new laws, and level of disposable income

Question 6

Many new businesses are successful by taking advantage of fads.

Accepted Answer

A) True 
 B)False

Question 7

GasBuddy is a company started to help consumers save money on gas. Which environmental trend is most likely to have provided the impetus for the creation of this company?

Accepted Answer

A)  Regulatory changes 
B)  Political changes 
C)  Economic forces 
D)  Technological advances 
E)  Social forces 
A)  Regulatory changes 
B)  Political changes 
C)  Economic forces 
D)  Technological advances 
E)  Social forces

Question 8

The five stages of the creative process include preparation, incubation, insight, evaluation, and elaboration.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following represents the correct order of the five stages of the creative process?

Accepted Answer

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 
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

Question 10

Clothing boutiques and specialty shops often start because there is a need for a particular product, but large retailers like Wal-Mart and Costco can't sell enough of the item to stock it on their shelves. If a clothing boutique started to sell designer clothes or clothing for hard-to-fit people because the clothing wasn't being offered by a larger retailer, the best way to describe how that idea was recognized is ________.

Accepted Answer

A)  finding a gap in the marketplace 
B)  brainstorming 
C)  observing trends 
D)  solving a problem 
E)  talking to consumers 
A)  finding a gap in the marketplace 
B)  brainstorming 
C)  observing trends 
D)  solving a problem 
E)  talking to consumers

Question 11

According to the textbook, opportunities are ________.

Accepted Answer

A)  easy to spot 
B)  easy to spot in fast growing industries, but tough to spot in slow growing industries 
C)  easy to spot in the manufacturing sector, but tough to spot in the service sector 
D)  tough to spot 
E)  neither easy nor tough to spot 
A)  easy to spot 
B)  easy to spot in fast growing industries, but tough to spot in slow growing industries 
C)  easy to spot in the manufacturing sector, but tough to spot in the service sector 
D)  tough to spot 
E)  neither easy nor tough to spot

Question 12

In the five-stage creative process, the flash of recognition, or what is sometimes referred to as the "eureka" experience, occurs in the ________ stage.

Accepted Answer

A)  insight 
B)  preparation 
C)  incubation 
D)  elaboration 
E)  evaluation 
A)  insight 
B)  preparation 
C)  incubation 
D)  elaboration 
E)  evaluation

Question 13

An idea is a favorable set of circumstances that creates a need for a new product, service, or business.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is incorrect in regard to entrepreneurial alertness?

Accepted Answer

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. 
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.

Question 15

________ relationships are characterized by frequent interactions that form between coworkers, friends, and spouses.

Accepted Answer

A)  Balanced 
B)  Weak-tie 
C)  Lateral-tie 
D)  Moderate-tie 
E)  Strong-tie 
A)  Balanced 
B)  Weak-tie 
C)  Lateral-tie 
D)  Moderate-tie 
E)  Strong-tie

Question 16

In the five-stage creative process, the stage in which the creative idea is put into final form is referred to as the ________ stage.

Accepted Answer

A)  insight 
B)  preparation 
C)  incubation 
D)  elaboration 
E)  evaluation 
A)  insight 
B)  preparation 
C)  incubation 
D)  elaboration 
E)  evaluation

Question 17

An individual who identifies a business idea on his or her own is referred to as a(n) ________ entrepreneur.

Accepted Answer

A)  separate 
B)  functional 
C)  lone 
D)  individual 
E)  solo 
A)  separate 
B)  functional 
C)  lone 
D)  individual 
E)  solo

Question 18

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 ________.

Accepted Answer

A)  brainstorming 
B)  day-in-the-life research 
C)  focus group 
D)  survey 
E)  customer advisory board 
A)  brainstorming 
B)  day-in-the-life research 
C)  focus group 
D)  survey 
E)  customer advisory board

Question 19

The term "window of opportunity," as discussed in Chapter 2, is a metaphor that describes the time period in which a firm can ________.

Accepted Answer

A)  obtain funding or financing 
B)  hire new employees 
C)  complete a financial analysis 
D)  realistically enter a new market 
E)  write a business plan 
A)  obtain funding or financing 
B)  hire new employees 
C)  complete a financial analysis 
D)  realistically enter a new market 
E)  write a business plan

Question 20

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 ________ -tie relationships.

Accepted Answer

A)  weak 
B)  horizontal 
C)  strong 
D)  multiple 
E)  vertical 
A)  weak 
B)  horizontal 
C)  strong 
D)  multiple 
E)  vertical

Describe the difference between an idea and an opportunity. Why is the distinction important?

The three ways to identify an opportunity include observing trends, solving a problem, and finding gaps in the marketplace.

The Savvy Entrepreneurial Firm feature in Chapter 2 features three firms: Swipe Out Hunger, Soko, and Drive for Change. All three are examples of ________.

An opportunity has four essential qualities. It is (1) rare, (2) attractive, (3) timely, and (4) anchored in a product, service, or business that creates or adds value for its buyer or end user.

Economic forces impact the opportunities available to entrepreneurs. Which of the following alternatives reflects a set of economic forces that would be of interest to entrepreneurs?

Many new businesses are successful by taking advantage of fads.

GasBuddy is a company started to help consumers save money on gas. Which environmental trend is most likely to have provided the impetus for the creation of this company?

The five stages of the creative process include preparation, incubation, insight, evaluation, and elaboration.

Which of the following represents the correct order of the five stages of the creative process?

According to the textbook, opportunities are ________.

In the five-stage creative process, the flash of recognition, or what is sometimes referred to as the "eureka" experience, occurs in the ________ stage.

An idea is a favorable set of circumstances that creates a need for a new product, service, or business.

Which of the following statements is incorrect in regard to entrepreneurial alertness?

________ relationships are characterized by frequent interactions that form between coworkers, friends, and spouses.

In the five-stage creative process, the stage in which the creative idea is put into final form is referred to as the ________ stage.

An individual who identifies a business idea on his or her own is referred to as a(n) ________ entrepreneur.

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 ________.

The term "window of opportunity," as discussed in Chapter 2, is a metaphor that describes the time period in which a firm can ________.

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 ________ -tie relationships.

Introduction to Entrepreneurship

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New-Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

Exam 2: Recognizing Opportunities and Generating Ideas

Describe the difference between an idea and an opportunity. Why is the distinction important?

The three ways to identify an opportunity include observing trends, solving a problem, and finding gaps in the marketplace.

The Savvy Entrepreneurial Firm feature in Chapter 2 features three firms: Swipe Out Hunger, Soko, and Drive for Change. All three are examples of ________.

An opportunity has four essential qualities. It is (1) rare, (2) attractive, (3) timely, and (4) anchored in a product, service, or business that creates or adds value for its buyer or end user.

Economic forces impact the opportunities available to entrepreneurs. Which of the following alternatives reflects a set of economic forces that would be of interest to entrepreneurs?

Many new businesses are successful by taking advantage of fads.

GasBuddy is a company started to help consumers save money on gas. Which environmental trend is most likely to have provided the impetus for the creation of this company?

The five stages of the creative process include preparation, incubation, insight, evaluation, and elaboration.

Which of the following represents the correct order of the five stages of the creative process?

According to the textbook, opportunities are ________.

In the five-stage creative process, the flash of recognition, or what is sometimes referred to as the "eureka" experience, occurs in the ________ stage.

An idea is a favorable set of circumstances that creates a need for a new product, service, or business.

Which of the following statements is incorrect in regard to entrepreneurial alertness?

________ relationships are characterized by frequent interactions that form between coworkers, friends, and spouses.

In the five-stage creative process, the stage in which the creative idea is put into final form is referred to as the ________ stage.

An individual who identifies a business idea on his or her own is referred to as a(n) ________ entrepreneur.

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 ________.

The term "window of opportunity," as discussed in Chapter 2, is a metaphor that describes the time period in which a firm can ________.

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 ________ -tie relationships.

Introduction to Entrepreneurship

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New-Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters