MGMT 340 Chapter 5

In terms of opportunity trends, what is cocooning?

the desire to shelter oneself from harsh realities

Which of the following are sources of innovation?

unexpected occurrences and incongruities

Security hunting means

using probability and stereotypes to minimize risk

Entrepreneurs sense potential in business problems by asking

what if and why not?

It takes _____ to innovate successfully.

work, not genius,

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

working on something else.

Which of the following is not an example of recognizing relationships in creativity?

Introducing Sierra Mist to the market to compete with Sprite

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

Invest in securities.

One way to develop a creative mind is to

observe other entrepreneurs.

The two most important aspects of creativity are

process and people.

All of the following are characteristics of a creative climate except

restricted communication with outsiders

A person can develop their own creativity by

seeing new and different relationships in people, objects, and places around them.

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

synthesis

Which of the following can help speed up the idea process?

taking breaks while working

Innovators must always search for new ideas, opportunities, or sources of innovation.

True

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

True

Most innovations result from a conscious and purposeful search for new opportunities.

True

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

True

Incongruities are gaps or differences between expectations and reality.

True

Incubation in the creative process often occurs when the individual is doing something completely unrelated to the subject.

True

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

True

Innovation should follow a milestone schedule.

True

Innovative activity should be rewarded.

True

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?

People can learn to be creative.

Truly creative people are always geniuses.

False

Which of the following statements is true?

Innovation is the specific function of entrepreneurship.

Which of the following statements is true?

Innovators rarely work in more than one field.

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

Retirement centers for older people reflect which source of innovation?

demographic changes

Creative people always exhibit a strong need for group approval.

False

Creativity cannot be developed or improved.

False

Which of the following statements is true with regards to creativity?

People's process will remain the same, but their approach will change.

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

idea experience.

Which of the following can help entrepreneurs carry out the evaluation and implementation stage?

increasing energy level

A potential entrepreneur needs to realize that

principles of innovation can be learned.

People with muddling mind-sets exhibit all of the following habits except

process thinking

Successful entrepreneurs are able to identify and implement

those ideas that are workable and that they have the skills to implement.

Security hunting is

trying to make the right decision or take the correct action.

Overnight package delivery is illustrative of which source of innovation?

incongruities

Logical and analytical skills are developed in the

left hemisphere of the brain.

Most successful innovations are

simple and focused.

Which of the following questions concerning innovation is not relevant?

"When should the product goes to market?"

People practice the creative search for background knowledge in which of the following ways:

a and b (the eureka factor and the big bang theory)

Which of the following mental habits inhibit creativity and innovation?

either/or thinking, stereotyping

Process needs

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

Ray Kroc's development of McDonald's would be a good illustration of which form of innovation?

extension

Which of the following statements is not true?

Creative ideas never come out of the blue.

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

True

Most innovations result from

a conscious and purposeful search for new opportunities.

Which of the following terms would be associated with the left hemisphere of the brain?

abstract

Which of the following is not a type of innovation?

adaptation

Which of the following are causes of industry and market changes?

advancements in technology

The idea experience phase of the creative process is often the least interesting part of the process.

False

The innovation process involves only the development of a good idea.

False

Which of the following are keys to understanding opportunity and its development for entrepreneurs?

innovation and creativity

The idea experience phase of creativity is also referred to as

the eureka factor

Which of the following is considered a myth of innovation?

Creativity relies on blue sky ideas.

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 statements is true?

The right brain helps people understand analogies and imagine things.

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

True

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

True

The innovation process allows creative people to subconsciously mull over the information they have gathered.

True

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

True

Entrepreneurs are always looking for unique opportunities to fill needs or wants.

True

Peter Drucker has stated that successful innovators must look, ask, and listen.

True

Structured and focused chaos is necessary for creativity to occur.

True

Creativity is most likely to occur when the "climate" is right. What is a characteristic of that climate in the workplace?

trustful management that does not exert strict control over employees

Extension is the combination of existing concepts and factors into a new formulation.

False

Innovation is planned and predictable.

False

It is really genius and not hard work that creates success for the entrepreneur.

False

Most successful innovations are complex and focused.

False

Successful creations do not require investigation and information gathering.

False

A gap or difference between expectations and reality defines

incongruities.

Relying on abstractions can

left hemisphere of the brain.limit one's perception of reality.

The incubation process involves which of the following?

letting the subconscious work

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

preliminary investigation

In innovation through duplication, a product is simply copied.

False

The creative climate rejects the ambiguity common in work and life.

False

Which of the following statements is true?

Successful innovations are clear and focused.

What are the four types of innovation?

invention, extension, synthesis, duplication

Shifts in consumer tastes and attitudes are an example of

industry and market changes.

Which of the following terms would not be associated with the right hemisphere of the brain?

linear

Researchers uniformly agree that the easiest step in the creative endeavor is the implementation and evaluation phase.

False

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

False

Only new patterns of thinking lead to new ideas and innovation.

True

The principles of innovation are largely focused on profit maximization.

False

Background or knowledge accumulation is the second phase of the creative process.

False