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A gap or difference between expectations and reality defines a.process needs. c.demographic changes. b.incongruities. d.changes in perception.

b.incongruities.

What is the largest source for new business ideas among men and women?

Prior job

The two most important aspects of creativity are a.design and solution. c.process and people. b.intelligence and technical competence. d.capital and opportunity.

process and people

Which of the following as a factor contributing to new-venture failure? a. product/market problems. b. family issues. c. personality clashes. d. good management/poor product.

product/market problems.

Which of the following is critical to a product's success? a. timing b. marketing approach c. objectivity d. all of the above

timing, marketing approach, & objectivity

Which of the following is not a disadvantage of a major franchise?

track record of the franchisor

Product/market problems include which of the following?

unclear business definition

Which of the following are sources of innovation? a.unexpected occurrences and incongruities c.synthesis and technology b.duplication and processes d.industry changes and extension

unexpected. occurrences and incongruities

Which of the following questions concerning innovation is not relevant? a."What is the problem?" c."What costs are involved?" b."Whom does it affect?" d."When the product goes to market?"

"When should the product goes to market?"

Which of the following statements is true? -Innovation is the specific function of entrepreneurship. -Innovation is the process by which entrepreneurs consume marketable ideas. -Innovation does not involve change.-Innovation is the government's responsibility.

-Innovation is the specific function of entrepreneurship.

Which of the following are questions an entrepreneur can ask to gain insight into the viability of a venture? -Is it proprietary? -Are the initial production costs realistic? -Is the potential market large? -All

-Is it proprietary? -Are the initial production costs realistic? -Is the potential market large?

Which of the following is not a type of innovation? -invention -duplication -adaptation -synthesis

-adaptation

Pitfalls in selecting a new venture include: a. inadequate understanding of technical requirements b. lack of venture uniqueness c. no real insight into the market d. lack of objective evaluation

D lack of objective evaluation

Which of the following are key questions to ask when screening an idea?

Is it proprietary

In purchasing an existing business the first question should be: "Why are you selling?"

T

Most innovations result from: a.the total genius of inventors. b.a conscious and purposeful search for new opportunities. c.lucky guesses. d.the subconscious adaptation to reality.

a conscious and purposeful search for new opportunities.

Starting a business by adapting something already on the market is called __________.

a new-old approach

Which of the following mental habits inhibit creativity and innovation? a.either/or thinking, stereotyping c.security hunting, risks b.functional perspective, mindsets d.stereotyping, incubation

either/or thinking, stereotyping

Which of the following can help entrepreneurs carry out the evaluation and implementation stage? a.increasing energy level b.hide your ideas from knowledgeable people c.avoid advice from others d.ignore hunches and feelings

increasing energy level

Which of the following are keys to understanding opportunity and its development for entrepreneurs? a.creativity and capital c.background and knowledge b.innovation and creativity d.incubation and experience

innovation and creativity

What are the four types of innovation? a.invention, extension, synthesis, duplication c.synthesis, extension, retention, analysis b.extension, retention, analysis, duplication d.analysis, synthesis, duplication, retention

invention, extension, synthesis, duplication

Which of the following is not considered a principle of innovation?

invest in securities

What is a critical consideration when assessing customer availability?

length of time needed to determine who the customers are and what their buying habits are

The incubation process involves which of the following? a.working harder c.talking with friends b.letting the subconscious work d.changing jobs

letting the subconscious work

Independence and autonomy are the major driving forces behind which of the following types of ventures?

lifestyle ventures

One of the external problems new ventures face is market knowledge

market knowledge

The _____ approach indicates the importance of people's awareness of their daily lives for developing new business ideas

new-new

Which of the following costs do not add to the cost of franchising? a.insurance c.legal and professional fees b.prepaid utility bills d.opening product inventory

prepaid utility bills

Financial considerations play a major role in

smaller profitable ventures

The entrepreneurial motivations of individuals usually relate to which of the following factors? a. the environment b. the entrepreneur c. the venture d. all of the above

the environment, the entrepreneur, & the venture

Hiring and promotions on the basis of nepotism rather than qualification fall under the managerial problem of

the concept of a team approach.

Coming up with a unique good or service is a _____ approach, while adapting something that is currently on the market or extending the offering to an area where it is not presently available is a(n) _____ approach.

new-new, new-old

Which of the following costs add to the cost of franchising?

-insurance-payroll-legal and professional fees

Obtaining external _____ is considered one of the major types of problems for a new venture during its first year

financing

Evaluating franchise opportunities include finding out more about which of the following?

-the franchisor -the franchise -the franchisee

The "right questions" that a prospective owner should ask about a franchise deal with

-the franchisor -the franchise -the market

Which of the following can help speed up the idea process? a.working harder c.taking breaks while working b.seeing new movies d.intuition

taking breaks while working

What is an often overlooked asset when acquiring a new business? a.Firm's records c.Equipment b.Buildings d.None of the above

a.Firm's records

The combination of existing concepts and factors into a new formulation would define which of the following terms? a.Synthesis c.invention b.Extension d.analysis

a.Synthesis

Process needs a.exist when and entrepreneur can meet a new source of demand. b.exist to satisfy government regulations. c.exist when a venture capitalist provides money only for a project filling its needs. d.exist when the economy suffers a downturn.

a.exist when and entrepreneur can meet a new source of demand.

Name the pitfall described by the statement, "Engineers and technically trained people are particularly prone to falling in love with an idea for a product or service."

lack of objective evaluation

A common pitfall in selecting a new venture is a. poor financial understanding. b. proper objective evaluation. c. real insight into the market. d. none of the above.

poor financial understanding

Three specific phases that a new venture goes through are

prestart-up, start-up, poststart-up.

Which of the following is not one of the phases in the creative process? -background or knowledge accumulation -evaluation and implementation -the incubation process -preliminary investigation

-preliminary investigation

In the incubation process, ways of getting away from a problem include

working on something else

The phase of the creative process when the idea or solution the individual is seeking is discovered is the a.background or knowledge accumulation. c.idea experience. b.incubation process. d.evaluation and implementation.

idea experience.

Venture classifications include which of the following types of venture? a. hobby ventures b. smaller copycat ventures c. high-growth ventures d. survival ventures

c. high-growth ventures