Deck 2: Recognizing Opportunities and Generating Ideas

Question 1

The three ways to identify an opportunity include ________.

A) observing trends, solving a problem, and finding gaps in the marketplace
B) studying industry trade journals, talking to consumers, and solving a problem
C) observing trends, conducting brainstorming sessions, and studying industry trade journals
D) observing trends, talking to consumers, and finding gaps in the marketplace
E) reading books, solving a problem, and findings gaps in the marketplace

Answer 1

A

Question 2

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

Answer 2

True

Question 3

GasBuddy and GasPriceWatch.com are companies started to help consumers save money on gas. Which environmental trend is most likely to have provided the impetus for the creation of these companies?

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

Answer 3

C

Question 4

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.

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

Question 5

Jessica Smith is thinking about starting a chain of fitness centers for young adults ages 18-30. Which of the following is not an appropriate criterion for Jessica to test her idea against?

A) Determine whether the "window of opportunity" is open.
B) Determine whether a fitness center for young adults ages 18-30 meets the threshold of being a good idea.
C) Determine the extent to which the notion takes advantage of an environmental trend, solves a problem, or fills a gap in the marketplace.
D) Determine whether opening a fitness center for young adults ages 18-30 is timely.
E) Determine whether opening a fitness center for young adults ages 18-30 is a concept that creates value for its buyer or end user.

Question 6

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

Question 7

iCracked, the company profiled in the opening feature of Chapter 2, was started by AJ Forsythe and Anthony Martin, two California college students. Through personal experiences, the two discovered that an opportunity existed to start a company that would ________.

A) repair computer printers inexpensively and conveniently
B) repair used automobiles inexpensively and conveniently
C) repair broken items (e.g., furniture and appliances) in college dorm rooms and apartments inexpensively and conveniently
D) repair laptop computers inexpensively and conveniently
E) repair iPhones inexpensively and conveniently

Question 8

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

Question 9

The term "window of opportunity" is a metaphor describing the time period in which a firm can realistically raise money.

Question 10

Which of the following is not an example of a social force?

A) Changes in interest rates
B) Increasing participation in social networks
C) Increasing diversity of the workplace
D) Aging of the population
E) Continual migration of people from small towns and rural areas to cities

Question 11

The increasing number of social networks on the Internet is attributed to a jump in the number of people who are wanting to connect with one another online. The increasing number of social networks is an important ________ trend.

A) political
B) economic
C) legal
D) social
E) demographic

Question 12

Which of the following is correct regarding opportunities and ideas?

A) An opportunity and an idea are essentially the same thing.
B) An idea almost always meets the criteria of an opportunity.
C) An opportunity is a thought, an impression, or a notion.
D) An idea is a favorable set of circumstances that creates a need for a new product, service, or business.
E) It's important to discern whether a particular idea meets the criteria for an opportunity.

Question 13

Brad Johnson is starting an upscale men's clothing store in a mall near Seattle. He wants to open his store during the time period in which a business like his can realistically enter the new market. Brad is trying to open his business while the ________ is open.

A) safe harbor
B) window of opportunity
C) portal of entry
D) doorway of opportunity
E) safety zone

Question 14

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.

Question 15

According to the textbook, opportunities are ________.

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 16

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

A) idea
B) scheme
C) design
D) proposal
E) opportunity

Question 17

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?

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 18

An opportunity has the following four essential qualities ________.

A) attractive; timely; durable; and anchored in a product, service, or business that creates or adds value for its buyer or end user
B) practical; opportune; appropriate; and anchored in a product, service, or business that is efficient and effective
C) realistic; striking; timely; and anchored in a product, service, or business that is timely
D) attention-getting; attractive; timely; and anchored in a product, service, or business that creates or adds value for its buyer or end user
E) attractive, durable, resilient, and opportune

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 ________.

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

An increased focus on health and wellness has resulted in a number of new business ideas including healthier foods and beverages, yoga instruction and training centers, and nutrition consulting. An increased focus on health and wellness is an important ________ that is creating opportunities in many areas for entrepreneurial firms.

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

Question 21

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

Question 22

The What Wrong feature in Chapter 2 focuses on Everpix, a company that enabled users to organize and store photos online in an innovative manner. Regrettably, Everpix failed. According to the feature, Everpix's failure resulted from that fact that it's founders ________.

A) spent too much time and energy perfecting their service at the expense of building a business
B) spent too much time and energy raising money at the expense of perfecting their service
C) spent too much time networking at the expense of building a business
D) spent too much time marketing their product at the expense of perfecting their service
E) spent too much time analyzing their market at the expense of networking

Question 23

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 _________.

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

Question 24

Describe the three separate ways that entrepreneurs identify new business, product, and service opportunities?

Question 25

Which of the following statements is incorrect regarding the personal characteristics of entrepreneurs?

A) Some people think that entrepreneurs have a "sixth sense" that allows them to see opportunities that others miss.
B) The extent and depth of an individual's social network affects opportunity recognition.
C) Several studies show that prior experience in an industry actually blinds an entrepreneur to the recognition of new opportunities in the same industry.
D) Creativity is the process of generating novel or useful ideas.
E) The corridor principle states that once an entrepreneur starts a firm, he or she begins a journey down a path where "corridors" leading to new venture opportunities become apparent.

Question 26

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 ________.

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

Question 27

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 ________.

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

Question 28

Casey Griggs is a very capable computer engineer. Recently, he noticed a problem that computer engineers have, and thought of a solution to the problem that might represent an opportunity for a new software product. Casey's idea for a new software product is an example of a(n) ________ discovery.

A) chance
B) serendipitous
C) traditional
D) conventional
E) opportune

Question 29

Many new businesses are successful by taking advantage of fads.

Question 30

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.

Question 31

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

Question 32

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

Question 33

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

Question 34

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?

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

Question 35

If a new firm was launched to help businesses comply with The Affordable Care Act, that opportunity was created by ________.

A) changes in economic forces
B) demographic changes
C) changes in social forces
D) changes in technological forces
E) political actions and regulatory changes

Question 36

The Savvy Entrepreneurial Firm feature in Chapter 2 focuses on a technique through which entrepreneurs can learn about emerging trends. The technique focused on in the chapter is ________.

A) online databases
B) newspapers and magazines
C) targeted Internet searches
D) social media
E) radio and television

Question 37

Aging of the population, the increasing diversity of the workplace, and the continual migration of people from small towns and rural areas to cities are important economic trends.

Question 38

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

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 39

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.

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

Question 40

The ability to notice things without engaging in deliberate search is referred to as ________.

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

Question 41

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

Question 42

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

Question 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

Question 44

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

Question 45

Opportunity recognition may be an innate skill or cognitive process.

Question 46

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

Question 47

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?

Question 48

Incubation is the stage of the creative process during which an idea is subjected to scrutiny and analyzed for its viability.

Question 49

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

Question 50

It is more likely that an entrepreneur will get a new business idea through a strong-tie than a weak-tie relationship.

Question 51

________ 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

Question 52

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

Question 53

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

Question 54

Evaluation is the stage of the creative process during which the idea is put into its final form.

Question 55

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

Question 56

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

Question 57

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

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

Question 58

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

Question 59

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

Question 60

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

Question 61

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

Question 62

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.

Question 63

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

Question 64

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.

Question 65

Describe how brainstorming can help facilitate the generation of ideas, and outline the four rules for conducting a brainstorming session.

Question 66

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

Question 67

Brainstorming sessions are designed to move slowly, so ideas can be presented and evaluated.

Question 68

Creativity and innovation are almost identical concepts.

Question 69

Brainstorming is used to generate a number of ideas quickly.

Question 70

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

Question 71

Focus groups typically involve a group of people who are unfamiliar with a topic and are brought together to respond to questions.

Question 72

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

Question 73

Describe how library and Internet research can be used to generate new business ideas.

Question 74

An idea bank is a physical or digital repository for storing ideas.

Question 75

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