Chapter 5,7 entrepreneurship

Which of the following statements is true?

Both sides of the brain are important to the creative process

Which of the following statements is true?

The right brain helps people understand analogies and imagine things

The left hemisphere of the brain is responsible for logical and analytical skills.

true

.Which of the following statements is true?

Innovation is the specific function of entrepreneurship.

Perhaps the greatest advantage of buying a franchise, as compared to starting a new business or buying an existing one, is that the franchisor will usually provide both training and guidance to the franchisee.

true

Synthesis is the combining of existing concepts into a new formulation.

true

The Franchise Disclosure Document (FDD) is a legally required disclosure document that must be presented to potential franchisees during presale discussions.

true

The cognitive ability of entrepreneurs to acquire and transform information has yet to be studied.

true

The elimination of time and effort associated with starting a company is an advantage of acquiring an ongoing venture.

true

The four basic types of innovation are invention, extension, duplication, and synthesis.

true

The four phases of the creative process are knowledge accumulation, incubation, idea experience, and evaluation.

true

The prospective investor should get as much information as possible on the franchisor.

true

The terms upside gain and downside loss refer to the profits the business can make and the losses it can suffer.

true

Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach.

true

When purchasing an existing business, the prospective owner should conduct an assessment of the business's current group of employees.

true

Which of the following are sources of innovation?

unexpected occurrences and incongruities

The Federal Trade Commission does not provide information on franchise success.

false

Which of the following is not a key question a prospective buyer needs to ask in buying a business?

What is the owner's personal net worth?

An additional consideration to keep in mind when negotiating to purchase an existing business includes requesting that the seller retain __________ in the firm.

a minority interest

An advantage to buying an ongoing business is

all of these

The advantages of franchising include:

all of these

The inventory should be examined for which of the following?

all of these

When should a potential franchisee receive the FDD (Franchise Disclosure Document)?

at least ten days before signing a contract or paying any money

The four phases in the creative process in order are

background or knowledge accumulation, incubation, idea experience, and evaluation and implementation.

Which of the following is a characteristic of creative people?

bright but not necessarily brilliant

Looking for different or unorthodox relationships among elements and people is one way to develop creativity. How might a person develop this capacity?

by perceiving in a relational mode

Which of the following mental habits inhibit creativity and innovation?

either/or thinking, stereotyping

Franchisees have the option of using the logo and symbols of the franchisor.

false

A ____ is a system of distribution that enables a supplier to arrange for a dealer to handle a specific product or service under certain mutually agreed upon conditions.

franchise

The individual who buys the franchise is the

franchisee

Which of the following is an intangible asset?

goodwill

A key question to ask when buying an on-going small business is which of the following?

how many personnel are going to remain

The phase of the creative process when the idea or solution the individual is seeking is discovered is the

idea experience

Overnight package delivery is illustrative of which source of innovation?

incongruities

What are the four types of innovation?

invention, extension, synthesis, duplication

Which is not a key question to ask when buying a business?

is the building heated with gas or electricity

Logical and analytical skills are developed in the

left hemisphere of the brain.

An agreement not to compete is also known as

legal restraint bof trade

The incubation process involves which of the following?

letting the subconscious work

When one designs a unique good or service, the individual is said to have used a(n) ____approach to starting the business.

new-new

The person who sells the franchise is usually required to do all of the following except:

pay a fee

Which of the following is not one of the phases in the creative process?

preliminary investigation

The combination of existing concepts and factors into a new formulation would define which of the following terms?

synthesis

Who must negotiate a final deal to purchase a business?

the potential lawyer

Creativity, in the entrepreneurial context, is the generation of ideas that result in the improved efficiency or effectiveness of a system.

true

In negotiating a deal to purchase an existing business, it is possible to request that the seller retain a minority interest in the firm.

true

Incongruities are gaps or differences between expectations and reality.

true

Innovation is the process by which entrepreneurs convert opportunities into marketable ideas.

true

Many inventions and innovations are a result of inventors seeing new and different relationships among objects, processes, materials, technologies, and people.

true

One of the most helpful avenues for developing one's own creative talents is to be aware of the habits and mental blocks that stifle creativity.

true