MGMT 310 Exam 1 - Chapter 2

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

A) Changes in interest rates

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

The number one rule for a brainstorming session is ________.

A) no criticism is allowed

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

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.

B) opportunity, idea

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

C) Creativity

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?

C) Economic forces

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?

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

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

C) Several studies show that prior experience in an industry actually blinds an entrepreneur to the recognition of new opportunities in the same industry.

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 _________.

C) entrepreneurial alertness

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.

C) strong-tie

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

D) entrepreneurial alertness

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.

D) social

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.

D) weak-tie

________ is (are) used to generate a number of ideas quickly.

E) Brainstorming

________ relationships are characterized by frequent interactions that form between coworkers, friends, and spouses.

E) Strong-tie

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 ________.

E) finding a gap in the marketplace

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.

E) social force

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.

false

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

false

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

false

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

false

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

false

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

true

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.

true

Brainstorming is used to generate a number of ideas quickly.

true

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

true

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

true

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

true

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

true