1.

_____ is a favorable set of circumstances that creates a need for a new

product, service, or business.

An opportunity
Your
Answer:

2. Each of the following are ways to identify an opportunity EXCEPT:

trying out alternative uses of existing products.

Your
Answer:

3. Which environmental force pertains most to a trend such as the

continual increase in the use of cell phones?

social forces
Correct
Answer:

  See p. 47 for more information.

4. Entrepreneurs can recognize problems and find ways to solve them

through each of the following EXCEPT:

identifying a currently available product or service

Correct and then building a business around a better
Answer: version.

  See p. 50 for more information.

5. All of the following are characteristics shared by those who excel at

recognizing opportunities EXCEPT: 

brainstorming.
Your
Answer:

6. _____ is the process of generating a novel or useful idea.

 Creativity
Your
Answer:

7. What is the first stage of the creativity process?

Preparation
Correct
Answer:

  See p. 57 for more information.

8. Which technique for generating ideas depends on freewheeling, the

carefree expression of ideas free of rules or restraints?

Brainstorming
Your
Answer:

9. Focus groups usually work best as a ________.

Correct follow up to brainstorming

Answer:

  See p. 60 for more information.

10 An underutilized source of information for generating business ideas is

________.
.
the library
Your
Answer:

11 An idea is a favorable set of circumstances that creates a need for a

new product, service, or business.
.
False
Your
Answer:
12 Window of opportunity relates to the time period in which a firm can
realistically enter a new market.
.
True
Your
Answer:

13 As an entrepreneur, it is important to be aware of changes in trends.

.
True
Your
Answer:

14 Major retailers that serve large groups of customers with similar needs
by competing mainly on price would be an example of finding gaps in
. the marketplace.

False
Your
Answer:

15 Often, entrepreneurs are able to pursue an opportunity even before it is

recognized as an opportunity.
.

Correct False
Answer:

16 Entrepreneurial alertness is largely a learned skill.

.

Correct True
Answer:

  See p. 56 for more information.

17 It is more likely that an entrepreneur will get a business idea through a
weak-tie relationship (infrequent interaction between casual
. acquaintances), than through a strong-tie relationship (frequent
interaction between friends and co-workers).

True
Your
Answer:

18 Studies show that less than a quarter of start-up ideas emerge from a
person's prior work experience.
.

Correct False
Answer:

  See p. 55 for more information.

19 Brainstorming sessions are structured discussions that stay focused on

one idea until an opportunity is identified.
.

Correct False
Answer:

  See p. 59 for more information.

20 Much of the effectiveness of a focus group session depends on the

careful recruiting of over 20 participants.
.
False
Your
Answer:
 What are the essential qualities of an opportunity?

21
.

-Attractive
-Durable
  -Timely
-Anchored in or relates to a product or service that creates or adds
value for its user

22 Researchers have identified several characteristics that tend to make

some people better at recognizing opportunities than others. Discuss
. them.

Your Answer:
a

-prior experience in an industry helps entrepreneurs recognize business

opportunities
-entrepreneurs may be better than others at sizing up the marketplace
  and inferring likely implications
-having extensive social and professional contacts exposes
entrepreneurs to opportunities and ideas
-creativity helps the opportunity recognition process