Chapter 4

Search and capture of new ideas that lead to business opportunities is called opportunity recognition.

true

The SCAMPER tool is effective for solving problems in a creative way.

true

Gabriel has a product idea of a device which he believes will help people manage their daily chores, hence making their lives easier. He is unsure if the device is actually a feasible product but shares the idea with his boss and coworkers anyway. Gabriel is positive his device will get a fair review. He has offered other ideas in the past and one was now a viable product for the company. Which of the four ideas for making a creative business culture best describes Gabriel's company? Positively reinforce ideas. Get a room with a view. Never rest on your laurels. Look to unlikely sources of opportunities. All of the above None of the above

All of the above

Correlation is one of the four steps in the process for organizing creative thinking developed by Graham Wallas.

False

In entrepreneurship, every good idea is a viable business opportunity.

False

There are only a few good business models available for the new entrepreneur. True/False

False

According to the Panel Study of Entrepreneurial Dynamics, the business idea and the decision to start a business were simultaneous for a majority of entrepreneurs.

Flase

Which of the following is true of entrepreneurial alertness?

It allows entrepreneurs to notice things that have been overlooked.

_____ is a payment to a licensor based on the number or value of licensed items sold.

Royalty

During a feasibility study, the examination of customers you wish to serve and those who would show interest in your product is helpful. This step defines your _______.

Target Market

A license is a legal agreement that grants rights to use a particular piece of intellectual property.

True

An online pilot test is low-cost, low-risk approach for testing feasibility when preparing the business model canvas.

True

At times of great change, people become more willing to try extreme new ideas. True/False

True

One of the pitfalls small business owners fall into is to fail to build a company culture that encourages new ideas and embraces change. True/False

True

Josh, an electronics retailer, noticed that the e-commerce business was booming. He started an online shopping website to take advantage of this surge in business. As a result, his business attracted more customers from all across the country. This reflects Josh's:

entrepreneurial alertness

A business model is a preliminary run of a business with the goal of assessing how well the overall approach works and what problems it might have.

false

The feasibility of an idea is the extent to which it is viable and innovative.

false

Joe is planning a new mobile restaurant business. He wants to convert an antique bus into a sit-down restaurant with a service window allowing him to serve people within the bus and walk-ups who want to get their food and take it home. Joe is performing some research into his project and is looking at the overall business idea, the product/service, the industry and market, financial projections (profitability), and the plan for the future action. Joe is performing a(n) ___________.

feasibility study

It can take 3000 ideas to yield one commercially viable product. To increase the odds of finding a good idea, the screening process takes all the thoughts from the ______ step of the entrepreneurial process, and puts them through a ______.

"Feel"; "Check"

The text outlines five major pitfalls that business owners can become victim to when trying to become more innovative; obeying nonexistent rules is one of those pitfalls. True/False

True

When it comes to building an idea-prone culture, remember that ___________ is the fuel that fans the fires of creativity and helps your business reach potentials that you may never have anticipated.

recognition

Adam owns a software development company. He and his team developed and licensed new software that could help many organizations strengthen their web security. Any organization that wishes to use Adam's licensed software would most likely have to pay him in the form of a _____.

royalty