Full Test Bank | Creating and Recognizing New – Chapter 3

Test Bank

Chapter 3: Creating and Recognizing New Opportunities

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. niche appeal, degree of innovation, and knowledge of market

c. affordability, simplicity, and reliability

d. potential economic value, novelty or newness, and perceived desirability

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: What Is an Opportunity?

Difficulty Level: Easy

AACSB Standard: Application of knowledge

2. According to the text, what is the most common form of value?

a. practical

b. environmental

c. social

d. economic

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: What Is an Opportunity?

Difficulty Level: Easy

AACSB Standard: Application of knowledge

3. Opportunity is defined as ______.

a. the worth of something in terms of the number 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

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: What Is an Opportunity?

Difficulty Level: Easy

AACSB Standard: Application of knowledge

4. Maci has an idea for a business. For her idea 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

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Comprehension

Answer Location: What Is an Opportunity?

Difficulty Level: Medium

AACSB Standard: Application of knowledge

5. 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

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Application

Answer Location: What Is an Opportunity?

Difficulty Level: Medium

AACSB Standard: Application of knowledge

6. 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.

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: What Is an Opportunity?

Difficulty Level: Medium

AACSB Standard: Financial theories, analysis, reporting, and markets

7. 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

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Comprehension

Answer Location: Innovation, Invention, Improvement, or Irrelevant?

Difficulty Level: Easy

AACSB Standard: Application of knowledge

8. In what area does the difference between innovation and invention lie?

a. demand

b. cost

c. originality

d. value

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Comprehension

Answer Location: Innovation, Invention, Improvement, or Irrelevant?

Difficulty Level: Hard

AACSB Standard: Application of knowledge

9. Inventions that succeed in finding a market move on to the ______ stage.

a. innovation

b. manufacturing

c. product development

d. testing

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Comprehension

Answer Location: Innovation, Invention, Improvement, or Irrelevant?

Difficulty Level: Easy

AACSB Standard: Application of knowledge

10. Juan Giraldo, Saurabh Gupta, Malinha Khalid, and Jazmine Valencia all found ways to ______.

a. identify new opportunities that addressed unmet needs

b. reach a previously unreachable market

c. combine for-profit and nonprofit ventures

d. repackage and repurpose an old idea

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: What Is an Opportunity?

Difficulty Level: Easy

AACSB Standard: Application of knowledge

11. What is the first step in creating and identifying opportunities?

a. market analysis

b. cost–benefit analysis

c. idea generation

d. product testing

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Knowledge

Answer Location: Opportunities Start with Thousands of Ideas

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

12. 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

b. search strategies

c. imagination-based strategies

d. development strategies

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Knowledge

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

13. 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

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Knowledge

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

14. 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

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Knowledge

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

15. What strategies involve 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

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Knowledge

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

16. What strategies involve consciously making links between concepts or ideas that are not normally associated with each other?

a. development strategies

b. interpersonal strategies

c. relationship-seeking strategies

d. habit-breaking strategies

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Knowledge

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

17. 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

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Knowledge

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

18. By envisioning themselves as human hairs, which type of 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

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Knowledge

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Medium

AACSB Standard: Application of knowledge

19. Thinking about the opposite of something you believe in order to explore a new perspective is one way to engage in which type of strategy?

a. development strategy

b. search strategy

c. imagination-based strategy

d. habit-breaking strategy

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Knowledge

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

20. Asking yourself “What would Napoleon do?” in order to perceive what he would do in a situation is a technique most closely related to which of the following strategies?

a. development strategy

b. search strategy

c. imagination-based strategy

d. habit-breaking strategies

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Comprehension

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Medium

AACSB Standard: Group and individual behaviors

21. Using group brainstorming to enhance existing ideas is an example of which type of idea generation strategy?

a. development strategy

b. interpersonal strategy

c. relationship-seeking strategy

d. habit-breaking strategy

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Knowledge

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

22. 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

Learning Objective: 3.3: Apply the four pathways to opportunity identification.

Cognitive Domain: Knowledge

Answer Location: Four Pathways to Opportunity Identification

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

23. What term do the authors use to describe the ability some people have to identify opportunities in their environment?

a. perception

b. alertness

c. intuition

d. instinct

Learning Objective: 3.4: Demonstrate how entrepreneurs find opportunities using alertness, prior knowledge, and pattern recognition.

Cognitive Domain: Knowledge

Answer Location: Alertness

Difficulty Level: Easy

AACSB Standard: Application of knowledge

24. Sasha makes her decisions based on preexisting 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

Learning Objective: 3.4: Demonstrate how entrepreneurs find opportunities using alertness, prior knowledge, and pattern recognition.

Cognitive Domain: Application

Answer Location: Building Opportunities: Prior Knowledge and Pattern Recognition

Difficulty Level: Medium

AACSB Standard: Application of knowledge

25. 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

Learning Objective: 3.4: Demonstrate how entrepreneurs find opportunities using alertness, prior knowledge, and pattern recognition.

Cognitive Domain: Knowledge

Answer Location: Building Opportunities: Prior Knowledge and Pattern Recognition

Difficulty Level: Medium

AACSB Standard: Group and individual behaviors

26. Idea generation is defined as the production of ideas for something ______.

a. profitable

b. new

c. useful

d. scalable

Learning Objective: 3.5: Connect idea generation to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: From Idea Generation to Opportunity Recognition

Difficulty Level: Medium

AACSB Standard: Group and individual behaviors

27. In the context of moving from idea generation to opportunity recognition, creativity is the ______.

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. results of brainstorming with friends and family

Learning Objective: 3.5: Connect idea generation to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: From Idea Generation to Opportunity Recognition

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

28. Opportunity recognition is defined as ______.

a. recognition that ideas are not only new and potentially useful, but also have the potential to generate economic value

b. production of ideas for something new

c. production of ideas for something new that is also potentially useful

d. the results of brainstorming with friends and family

Learning Objective: 3.5: Connect idea generation to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: From Idea Generation to Opportunity Recognition

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

29. 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

Learning Objective: 3.5: Connect idea generation to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: From Idea Generation to Opportunity Recognition

Difficulty Level: Easy

AACSB Standard: Application of knowledge

30. ______ strategies involve taking time to think carefully about problems by breaking them into parts.

a. Habit-breaking

b. Imagination-based

c. Analytical

d. Search

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Knowledge

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

31. Muhammed is working on a project for a new gaming console that needs a floating pivot point, something with which he has no experience. After thinking about the problem, he remembers watching his grandfather, a sign painter, use a maul stick as a pivot point for his wrist, and realizes he can use that knowledge to apply it to his console design. This is an example of what king of strategy?

a. habit-breaking

b. imagination-based

c. analytical

d. search

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Application

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Medium

AACSB Standard: Application of knowledge

32. Group brainstorming is an example of a(n) ______ strategy.

a. relationship-seeking

b. habit-breaking

c. imagination-based

d. development

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Knowledge

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

33. The ______ stage of the IDEATE method involves expanding a concept to new applications.

a. identify

b. enhance

c. discovery

d. expose

Learning Objective: 3.5: Connect idea generation to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: From Idea Generation to Opportunity Recognition

Difficulty Level: Easy

AACSB Standard: Group and individual behaviors

34. Sofia is trying to solve a problem in her design for a new type of remote car locking system and she’s stuck. To stimulate her creativity, she sits down and imagines that she herself is a car. What type of strategy is she employing?

a. development

b. imagination-based

c. relationship-seeking

d. habit-breaking

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Application

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Medium

AACSB Standard: Application of knowledge

35. Which pathway to opportunity identification is the least complicated (and probably the most common)?

a. effectuating opportunities

b. search pathway

c. finding opportunities

d. design pathway

Learning Objective: 3.3: Apply the four pathways to opportunity identification.

Cognitive Domain: Knowledge

Answer Location: Four Pathways to Opportunity Identification

Difficulty Level: Easy

AACSB Standard: Analytical thinking

36. Bentley has repeatedly identified new opportunities within his own everyday work practices and social life. Which of the following terms applies to Bentley?

a. active search

b. alertness

c. analytical strategies

d. building approach

Learning Objective: 3.4: Demonstrate how entrepreneurs find opportunities using alertness, prior knowledge, and pattern recognition.

Cognitive Domain: Application

Answer Location: Alertness

Difficulty Level: Easy

AACSB Standard: Application of knowledge

37. Janet likes to take the time to think carefully about a problem by breaking it up into pieces so that she can look at it in a more general way. This, she finds, helps her generate ideas about how certain products and services can be improved or made more innovative. Which of the following terms applies to Janet?

a. active search

b. alertness

c. analytical strategies

d. building approach

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Application

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Medium

AACSB Standard: Application of knowledge

38. Mila assumes that opportunities exist by making links between concepts or ideas that are not normally associated with each other. Mila believes in ______.

a. active search

b. alertness

c. analytical strategies

d. relationship-seeking strategies

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Application

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Medium

AACSB Standard: Application of knowledge

39. In the text’s examination of the evolution of the modern-day food truck, what stage of the IDEATE method involved the concept morphing into an entirely different concept?

a. discovery

b. identify

c. expand

d. expose

Learning Objective: 3.5: Connect idea generation to opportunity recognition.

Cognitive Domain: Application

Answer Location: From Idea Generation to Opportunity Recognition

Difficulty Level: Medium

AACSB Standard: Application of knowledge

40. Chloe’s process includes plans of action that involve enhancing and modifying existing ideas to create better alternatives and new possibilities. Her process is best described as ______.

a. challenging

b. using development strategies

c. expanding

d. exposing

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Application

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Medium

AACSB Standard: Application of knowledge

41. In which of the following stages of the IDEATE method would you think about future scenarios?

a. target

b. discovery

c. anticipate

d. enhance

Learning Objective: 3.5: Connect idea generation to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: From Idea Generation to Opportunity Recognition

Difficulty Level: Medium

AACSB Standard: Application of knowledge

42. Early adopters can play a crucial role in what stage of the IDEATE method?

a. enhance

b. discovery

c. identify

d. target

Learning Objective: 3.5: Connect idea generation to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: From Idea Generation to Opportunity Recognition

Difficulty Level: Medium

AACSB Standard: Application of knowledge

43. Maddox likes to use a variety of techniques to help shift his mind out of mental fixedness in order to bring about creative insights. Maddox uses which of the following?

a. the finding approach

b. habit-breaking strategies

c. imagination-based strategies

d. interpersonal strategies

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Application

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Medium

AACSB Standard: Application of knowledge

44. Gael is an entrepreneur. To get new ideas, she suspends disbelief and drops constraints in order to create unrealistic states or fantasies. Gael uses which of the following?

a. the finding approach

b. habit-breaking strategies

c. imagination-based strategies

d. interpersonal strategies

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Application

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Medium

AACSB Standard: Application of knowledge

45. Stefan is an entrepreneur who involves group members in stimulating each other to come up with new or improved ideas. Stefan uses which of the following?

a. the finding approach

b. habit-breaking strategies

c. imagination-based strategies

d. interpersonal strategies

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Application

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Medium

AACSB Standard: Application of knowledge

46. If you do not have a large market for your product or service, what should you do to be sure it retains its value?

a. Make sure to scale your business and its cost to the size of your market.

b. Identify other products or services that you could include alongside the original in order to increase market size.

c. Consider ways to substantially change your product or service in order to increase your market size.

d. Shelve your idea; perhaps the market will increase in future.

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Comprehension

Answer Location: What Is an Opportunity?

Difficulty Level: Medium

AACSB Standard: Application of knowledge

47. Gwen uses a process that identifies links or connections between apparently unrelated things or events to create new ideas and opportunities. What best describes what Gwen is doing?

a. alertness

b. pattern recognition

c. prior knowledge

d. development strategy

Learning Objective: 3.4: Demonstrate how entrepreneurs find opportunities using alertness, prior knowledge, and pattern recognition.

Cognitive Domain: Application

Answer Location: Building Opportunities: Prior Knowledge and Pattern Recognition

Difficulty Level: Medium

AACSB Standard: Application of knowledge

48. Zayden is a successful entrepreneur who is ready for a new venture. He’s not quite sure what he will embark on, but he is actively looking at several areas that are interesting to him to find a new opportunity. Which of the four pathways to opportunity identification is Zayden taking?

a. effectuating opportunities

b. finding opportunities

c. the search pathway

d. the design pathway

Learning Objective: 3.3: Apply the four pathways to opportunity identification.

Cognitive Domain: Application

Answer Location: Four Pathways to Opportunity Identification

Difficulty Level: Medium

AACSB Standard: Application of knowledge

49. Of the four pathways to opportunity identification, which is the most complicated but potentially the most value-creating approach?

a. effectuating opportunities

b. finding opportunities

c. the search pathway

d. the design pathway

Learning Objective: 3.3: Apply the four pathways to opportunity identification.

Cognitive Domain: Knowledge

Answer Location: Four Pathways to Opportunity Identification

Difficulty Level: Medium

AACSB Standard: Application of knowledge

50. Lyla likes to focus on a clear problem and develop a solution. She uses which of the following approaches?

a. relationship-seeking strategies

b. search strategies

c. finding

d. prior knowledge

Learning Objective: 3.5: Connect idea generation to opportunity recognition.

Cognitive Domain: Application

Answer Location: From Idea Generation to Opportunity Recognition

Difficulty Level: Medium

AACSB Standard: Application of knowledge

51. How do “irrelevant” products, like New Coke or Crystal Pepsi, score on Neck’s Idea Classification Matrix?

a. They score high on novelty and low on usefulness.

b. They score high on novelty and low on value.

c. They score low on both novelty and usefulness.

d. They score low on novelty and high on value.

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Comprehension

Answer Location: Innovation, Invention, Improvement, or Irrelevant?

Difficulty Level: Medium

AACSB Standard: Application of knowledge

52. According to the text, what conclusion can be drawn from Eli Whitney’s cotton gin and Thomas Edison’s light bulb?

a. Inventors are often lone wolves whose inventions come to fruition through a process of trial and error.

b. Inventions often spring fully formed into an inventor’s mind.

c. Inventions are often a result of the work of a group of different people who made improvements over a long period of time.

d. Products are often attributed to individuals who had little or nothing to do with their invention.

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Comprehension

Answer Location: The Myth of the Isolated Inventor

Difficulty Level: Medium

AACSB Standard: Application of knowledge

53. The text uses the example of the inventor of Post-its and the innovator who revolutionized the football to illustrate what entrepreneurial trait?

a. alertness

b. risk avoidance

c. pattern recognition

d. cognitive strategies

Learning Objective: 3.4: Demonstrate how entrepreneurs find opportunities using alertness, prior knowledge, and pattern recognition.

Cognitive Domain: Knowledge

Answer Location: Alertness

Difficulty Level: Easy

AACSB Standard: Application of knowledge

54. Cognitive styles attributed to successful entrepreneurs and that are thought to influence opportunity recognition include ______.

a. attention to detail, adaptability, and wariness

b. persistence and skepticism

c. selflessness and self-motivation

d. intelligence, creativity, and self-efficacy

Learning Objective: 3.4: Demonstrate how entrepreneurs find opportunities using alertness, prior knowledge, and pattern recognition.

Cognitive Domain: Knowledge

Answer Location: Alertness

Difficulty Level: Easy

AACSB Standard: Application of knowledge

55. Of the four pathways to opportunity identification, which one can uncover high-value opportunities because of the entrepreneur’s focus on meeting an unmet need?

a. design

b. effectuating

c. searching

d. finding

Learning Objective: 3.3: Apply the four pathways to opportunity identification.

Cognitive Domain: Knowledge

Answer Location: Four Pathways to Opportunity Identification

Difficulty Level: Medium

AACSB Standard: Group and individual behaviors

True/False

1. An entrepreneurial mindset positions entrepreneurs to identify opportunities and take action.

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: The Entrepreneurial Mindset and Opportunity Recognition

Difficulty Level: Easy

AACSB Standard: Application of knowledge

2. A large market is required for a product or service to have value.

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Comprehension

Answer Location: What Is an Opportunity?

Difficulty Level: Medium

AACSB Standard: Analytical thinking

3. If an invention does not reach the market or appeal to consumers, then it will be rendered useless.

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: Innovation, Invention, Improvement, or Irrelevant?

Difficulty Level: Easy

AACSB Standard: Application of knowledge

4. Ideas need to be unique or novel to appeal to customers.

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: Innovation, Invention, Improvement, or Irrelevant?

Answer Location: The Entrepreneurial Mindset and Opportunity Recognition

Difficulty Level: Easy

AACSB Standard: Application of knowledge

5. Researchers have defined many formal methods of idea generation that are effective for entrepreneurs.

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Knowledge

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Easy

AACSB Standard: Application of knowledge

6. During the idea generation process, it’s best not to consider ideas that are impractical, overly obvious, wild, or even silly.

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Knowledge

Answer Location: Opportunities Start With Thousands of Ideas

Difficulty Level: Medium

AACSB Standard: Application of knowledge

7. History shows that inventions are often created by more than one individual over a long period of time and are often improvements on existing products.

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Comprehension

Answer Location: The Myth of the Isolated Inventor

Difficulty Level: Easy

AACSB Standard: Application of knowledge

8. The search approach is the most common form of identifying new opportunities.

Learning Objective: 3.3: Apply the four pathways to opportunity identification.

Cognitive Domain: Knowledge

Answer Location: Four Pathways to Opportunity Identification

Difficulty Level: Easy

AACSB Standard: Application of knowledge

9. The finding approach to idea generation assumes that opportunities already exist independent of an entrepreneur.

Learning Objective: 3.3: Apply the four pathways to opportunity identification.

Cognitive Domain: Knowledge

Answer Location: Four Pathways to Opportunity Identification

Difficulty Level: Easy

AACSB Standard: Application of knowledge

10. Effectuating opportunities is focused on creating opportunities.

Learning Objective: 3.3: Apply the four pathways to opportunity identification.

Cognitive Domain: Knowledge

Answer Location: Four Pathways to Opportunity Identification

Difficulty Level: Easy

AACSB Standard: Application of knowledge

11. The design pathway is the least complex yet most value-creating of the four pathways.

Learning Objective: 3.3: Apply the four pathways to opportunity identification.

Cognitive Domain: Knowledge

Answer Location: Four Pathways to Opportunity Identification

Difficulty Level: Easy

AACSB Standard: Application of knowledge

12. Entrepreneurs who have alertness rationally and systematically search their environment or their particular information sets for opportunities.

Learning Objective: 3.4: Demonstrate how entrepreneurs find opportunities using alertness, prior knowledge, and pattern recognition.

Cognitive Domain: Knowledge

Answer Location: Alertness

Difficulty Level: Medium

AACSB Standard: Application of knowledge

13. Research shows that entrepreneurs with prior knowledge of an industry or market are more likely to recognize opportunities than entrepreneurs who do not have such knowledge.

Learning Objective: 3.4: Demonstrate how entrepreneurs find opportunities using alertness, prior knowledge, and pattern recognition.

Cognitive Domain: Knowledge

Answer Location: Building Opportunities: Prior Knowledge and Pattern Recognition

Difficulty Level: Medium

AACSB Standard: Application of knowledge

14. Typically, entrepreneurs go through three processes before they are able to identify an opportunity for a new business venture: idea generation, creativity, and opportunity recognition.

Learning Objective: 3.5: Connect idea generation to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: From Idea Generation to Opportunity Recognition

Difficulty Level: Medium

AACSB Standard: Group and individual behaviors

15. Every idea is an opportunity.

Learning Objective: 3.5: Connect idea generation to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: From Idea Generation to Opportunity Recognition

Difficulty Level: Easy

AACSB Standard: Application of knowledge

16. There are no distinct approaches to thinking creatively, so creative inspiration must be left to chance.

Learning Objective: 3.5: Connect idea generation to opportunity recognition.

Cognitive Domain: Comprehension

Answer Location: From Idea Generation to Opportunity Recognition

Difficulty Level: Medium

AACSB Standard: Application of knowledge

17. Entrepreneurs address unmet needs in the marketplace.

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: The Entrepreneurial Mindset and Opportunity Recognition

Difficulty Level: Easy

AACSB Standard: Application of knowledge

18. The most common form of value is social value.

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: What is an Opportunity?

Difficulty Level: Medium

AACSB Standard: Application of knowledge

19. Most inventions are a result of an isolated inventor.

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Knowledge

Answer Location: The Myth of the Isolated Inventor

Difficulty Level: Medium

AACSB Standard: Application of knowledge

20. Habit-breaking strategies involve consciously making links between concepts or ideas not normally associated with each other.

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Knowledge

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Medium

AACSB Standard: Application of knowledge

21. Finding solutions to problems and meeting customer needs are at the heart of opportunity recognition.

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Knowledge

Answer Location: What Is an Opportunity?

Difficulty Level: Easy

AACSB Standard: Application of knowledge

22. The effectuating approach involves using what you know, whom you know, and who you are.

Learning Objective: 3.3 Apply the four pathways to opportunity identification.

Cognitive Domain: Knowledge

Answer Location: Four Pathways to Opportunity Identification

Difficulty Level: Easy

AACSB Standard: Application of knowledge

23. Jason Craparo, who founded an online platform that enables users to connect and share information with each other, thereby bypassing the use of paper-based business cards, is an example of an entrepreneur who took the search pathway.

Learning Objective: 3.3 Apply the four pathways to opportunity identification.

Cognitive Domain: Knowledge

Answer Location: Four Pathways to Opportunity Identification

Difficulty Level: Medium

AACSB Standard: Application of knowledge

24. Latent needs are those which everyone can identify but no one seems able to fill.

Learning Objective: 3.3 Apply the four pathways to opportunity identification.

Cognitive Domain: Knowledge

Answer Location: Four Pathways to Opportunity Identification

Difficulty Level: Easy

AACSB Standard: Application of knowledge

25. The founders of Knock Knock City, which allows travelers to store their luggage while they explore a city they are visiting, used pattern recognition to spot a viable entrepreneurial opportunity.

Learning Objective: 3.4 Demonstrate how entrepreneurs find opportunities using alertness, prior knowledge, and pattern recognition.

Cognitive Domain: Knowledge

Answer Location: Building Opportunities: Prior Knowledge and Pattern Recognition

Difficulty Level: Medium

AACSB Standard: Application of knowledge

Essay

1. Identify a newly launched product (you can use new television commercials as your source) and evaluate whether it involves innovation, invention, or improvement of a product.

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Analysis

Answer Location: Innovation, Invention, Improvement, or Irrelevant?

Difficulty Level: Hard

AACSB Standard: Analytical thinking

2. List the seven main strategies for idea generation and give an example of each.

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Analysis

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Medium

AACSB Standard: Analytical thinking

3. Describe habit-breaking strategies for idea generation and how you would use this type of strategy as a technique for your employer or business venture.

Learning Objective: 3.2: Employ strategies for generating new ideas from which opportunities are born.

Cognitive Domain: Comprehension

Answer Location: Seven Strategies for Idea Generation

Difficulty Level: Medium

AACSB Standard: Group and individual behaviors

4. You are an entrepreneur. Describe how you would use the finding approach to create opportunities. Be specific.

Learning Objective: 3.3: Apply the four pathways to opportunity identification.

Cognitive Domain: Application

Answer Location: Four Pathways to Opportunity Identification

Difficulty Level: Medium

AACSB Standard: Reflective thinking

5. You are an entrepreneur. Describe how you would use the effectuating approach to create opportunities. Be specific.

Learning Objective: 3.3: Apply the four pathways to opportunity identification.

Cognitive Domain: Application

Answer Location: Four Pathways to Opportunity Identification

Difficulty Level: Medium

AACSB Standard: Reflective thinking

6. Discuss the strategies of prior knowledge and pattern recognition. How would you use these strategies in your own entrepreneurial endeavors?

Learning Objective: 3.4: Demonstrate how entrepreneurs find opportunities using alertness, prior knowledge, and pattern recognition.

Cognitive Domain: Application

Answer Location: Building Opportunities: Prior Knowledge and Pattern Recognition

Difficulty Level: Medium

AACSB Standard: Application of knowledge

7. Define pattern recognition and describe how you would apply this to opportunities generated for your entrepreneurship.

Learning Objective: 3.4: Demonstrate how entrepreneurs find opportunities using alertness, prior knowledge, and pattern recognition.

Cognitive Domain: Application

Answer Location: Building Opportunities: Prior Knowledge and Pattern Recognition

Difficulty Level: Medium

AACSB Standard: Application of knowledge

8. Compare economic value, social value, and environmental value. As an entrepreneur, explain which of these forms of value will be most important when you are identifying opportunities and why you made that decision.

Learning Objective: 3.1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Cognitive Domain: Analysis

Answer Location: What Is an Opportunity?

Difficulty Level: Hard

AACSB Standard: Reflective thinking

9. Define alertness and describe how you would apply this to opportunities in your entrepreneurship.

Learning Objective: 3.4: Demonstrate how entrepreneurs find opportunities using alertness, prior knowledge, and pattern recognition.

Cognitive Domain: Application

Answer Location: Building Opportunities: Prior Knowledge and Pattern Recognition

Difficulty Level: Medium

AACSB Standard: Application of knowledge

10. Describe the three processes that entrepreneurs go through before they are able to identify an opportunity for a new business venture (those that connect idea generation to opportunity recognition). What is the most crucial aspect of each step if you want to maximize the process?

Learning Objective: 3.5: Connect idea generation to opportunity recognition.

Cognitive Domain: Comprehension

Answer Location: From Idea Generation to Opportunity Recognition

Difficulty Level: Medium

AACSB Standard: Application of knowledge