Question 1

In 2000, Tish Cirovolo realized that there were no guitars on the market made specifically for women. As a result, she started Daisy Rock Guitars, a company that makes guitars just for women. Daisy Rock Guitars are stylish and come in feminine colors, and incorporate design features that accommodate a woman's smaller hand and build. The best way to describe how Cirovolo's business idea was recognized is ________.

Accepted Answer

A)  brainstorming 
B)  talking to consumers 
C)  reading industry reports 
D)  observing trends 
E)  finding a gap in the marketplace

Question 2

A common way that gaps in the marketplace are recognized is ________.

Accepted Answer

A)  by observing changing environmental trends 
B)  by recognizing problems that need to be solved 
C)  via studying industry reports 
D)  when people become frustrated because they can't find a product or service that they need and recognize that other people feel the same way 
E)  via combined focus groups and brainstorming sessions

Question 3

Economic factors, social factors, technological advances, and political action and regulatory changes are the most important trends to follow in trying to identify opportunities.

Accepted Answer

A) True 
 B)False

Question 4

An idea is a thought, impression, or notion. It may or may not meet the criteria of an opportunity.

Accepted Answer

A) True 
 B)False

Question 5

A(n) ________ is a favorable set of circumstances that creates the need for a new product, service, or business. A(n) ________ is a thought, an impression or a notion.

Accepted Answer

A)  scheme, notion 
B)  opportunity, idea 
C)  idea, design 
D)  idea, opportunity 
E)  notion, scheme

Question 6

Several studies have shown that prior experience in an industry helps entrepreneurs recognize business opportunities.

Accepted Answer

A) True 
 B)False

Question 7

SafetyWeb is a Web-based service that helps parents protect their children's online reputation, privacy, and safety. Which of the following approaches to identifying an opportunity was most likely the impetus for SafetyWeb?

Accepted Answer

A)  Observing trends 
B)  Studying government reports 
C)  Finding gaps in the marketplace 
D)  Talking to consumers 
E)  Solving a problem

Question 8

Weak-tie relationships are characterized by infrequent interaction and ties between casual acquaintances.

Accepted Answer

A) True 
 B)False

Question 9

________ is the process of generating a novel or useful idea.

Accepted Answer

A)  Innovation 
B)  Imagining 
C)  Creativity 
D)  Visualization 
E)  Envisioning

Question 10

Which of the following is an example of how to encourage creativity at the organizational level?

Accepted Answer

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.

Question 11

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.

Accepted Answer

A)  weak-tie 
B)  moderate-tie 
C)  vertical-tie 
D)  lateral-tie 
E)  strong-tie

Question 12

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)  Interest rates, consumer spending patterns, and level of disposable income 
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 13

Kelly Pryor, who has launched several successful entrepreneurial firms, seems to have a "sixth sense" that allows him to see opportunities that others miss. Kelly's ability is referred to as _________.

Accepted Answer

A)  individual awareness 
B)  cognitive alertness 
C)  entrepreneurial alertness 
D)  individual readiness 
E)  cognitive readiness

Question 14

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

Question 15

Hulu.com allows people to watch television shows and movies on the Internet. Hulu.com's business opportunity was made possible by ________ that enhanced the ability of television shows and movies to be uploaded to the Internet and played by anyone with a suitable computer and an Internet connection.

Accepted Answer

A)  social forces 
B)  technological advances 
C)  legal changes 
D)  regulatory changes 
E)  economic forces

Exam 2: Recognizing Opportunities and Generating Ideas

A common way that gaps in the marketplace are recognized is ________.

Economic factors, social factors, technological advances, and political action and regulatory changes are the most important trends to follow in trying to identify opportunities.

An idea is a thought, impression, or notion. It may or may not meet the criteria of an opportunity.

A(n) is a favorable set of circumstances that creates the need for a new product, service, or business. A(n) is a thought, an impression or a notion.

Several studies have shown that prior experience in an industry helps entrepreneurs recognize business opportunities.

SafetyWeb is a Web-based service that helps parents protect their children's online reputation, privacy, and safety. Which of the following approaches to identifying an opportunity was most likely the impetus for SafetyWeb?

Weak-tie relationships are characterized by infrequent interaction and ties between casual acquaintances.

________ is the process of generating a novel or useful idea.

Which of the following is an example of how to encourage creativity at the organizational level?

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.

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?

Kelly Pryor, who has launched several successful entrepreneurial firms, seems to have a "sixth sense" that allows him to see opportunities that others miss. Kelly's ability is referred to as _________.

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

Hulu.com allows people to watch television shows and movies on the Internet. Hulu.com's business opportunity was made possible by ________ that enhanced the ability of television shows and movies to be uploaded to the Internet and played by anyone with a suitable computer and an Internet connection.