Professional Documents
Culture Documents
TRUE/FALSE
1. Peter Drucker has stated that successful innovators must look, ask, and listen.
ANS: T PTS: 1 KEY: pg 141
2. Innovation is the process by which entrepreneurs convert opportunities into marketable ideas.
ANS: T PTS: 1 KEY: pg 140
4. The 4 basic types of innovation are invention, extension, duplication, and synthesis.
ANS: T PTS: 1 KEY: pg 141
5. Entrepreneurs are always looking for unique opportunities to fill needs or wants.
ANS: T PTS: 1 KEY: pg 130
6. Creativity is the generation of ideas that result in the improved efficiency or effectiveness of a system.
ANS: T PTS: 1 KEY: pg 130
11. Many inventions and innovations are a result of the inventors seeing new and different relationships
among objects, processes, materials, technologies, and people.
ANS: T PTS: 1 KEY: pg 133
12. The innovation process allows creative people to subconsciously mull over the information they have
gathered.
ANS: T PTS: 1 KEY: pg 132
13. Creative people always exhibit a strong need for group approval.
ANS: F PTS: 1 KEY: pg 132
14. The four phases of the creative process are knowledge accumulation, incubation, idea experience, and
evaluation.
ANS: T PTS: 1 KEY: pg 133
15. The easiest step in the creative endeavor is the implementation and evaluation phase.
ANS: F PTS: 1 KEY: pg 132
16. The left hemisphere of the brain produces logical and analytical skills.
ANS: T PTS: 1 KEY: pg 136
17. The creative climate rejects the ambiguity common in work and life.
ANS: F PTS: 1 KEY: pg 140
1
18. Background or knowledge accumulation is the second phase of the creative process.
ANS: F PTS: 1 KEY: pg 132
19. Incubation in the creative process often occurs when the individual is doing something completely
unrelated to the subject.
ANS: T PTS: 1 KEY: pg 132
20. The idea experience phase of the creative process is often the least interesting part of the process.
ANS: F PTS: 1 KEY: pg 132
21. Only new patterns of thinking will lead to new ideas and innovation.
ANS: T PTS: 1 KEY: pg 139
23. Most innovations result from a conscious, purposeful search for new opportunities.
ANS: T PTS: 1 KEY: pg 141
26. Innovators must always search for new ideas, opportunities, or sources of innovation.
ANS: T PTS: 1 KEY: pg 142
27. Extension is the combination of existing concepts and factors into a new formulation.
ANS: F PTS: 1 KEY: pg 141
28. Synthesis is the combining of two existing concepts into a new formulation.
ANS: T PTS: 1 KEY: pg 141
32. It is really genius and not hard work that creates success for the entrepreneur.
ANS: F PTS: 1 KEY: pg 143
2
MULTIPLE CHOICE
3. Which of the following are keys to understanding opportunity and its development for entrepreneurs?
a. creativity and capital c. background and knowledge
b. innovation and creativity d. incubation and experience
ANS: B PTS: 1 KEY: pg 127
3
10. Which of the following can help speed up the idea process?
a. working harder c. taking breaks while working
b. seeing new movies d. intuition
ANS: C PTS: 1 KEY: pg 132
11. Which of the following can help carry out the evaluation and implementation stage?
a. increasing energy level
b. hide your ideas from knowledgeable people
c. avoid advice from others
d. ignore hunches and feelings
ANS: A PTS: 1 KEY: pg 132
15. Which of the following mental habits inhibit creativity and innovation?
a. either/or thinking, stereotyping c. security hunting, risks
b. functional perspective, mindsets d. stereotyping, incubation
ANS: A PTS: 1 KEY: pg 138
16. Security hunting means
a. using probability and stereotypes to minimize risk
b. finding a permanent source of venture capital
c. sticking firmly to decisions
d. installing a security system
ANS: A PTS: 1 KEY: pg 138
18. Which one is not one of the phases in the creative process?
a. background or knowledge accumulation c. the incubation process
b. evaluation and implementation d. preliminary investigation
ANS: D PTS: 1 KEY: pg 131 & 132
4
19. In the incubation process, ways of getting away from a problem include
a. working harder c. going to parties.
b. working on something else. d. visiting the library.
ANS: B PTS: 1 KEY: pg 132
22. Creativity is most likely to occur when the climate is right. What is a characteristic of that climate?
a. willingness to avoid change
b. employees with similar work habits
c. trustful management that does not exert strict control over employees
d. strict management rules
ANS: C PTS: 1 KEY: pg 140
26. Which of the following terms would be associated with the left hemisphere of the brain?
a. Nonrational c. abstract
b. Nonverbal d. imagining
ANS: C PTS: 1 KEY: pg 136
5
28. The four phases in the creative process in order are
a. background or knowledge accumulation, incubation, idea experience, and evaluation and implementation.
b. idea experience, background or knowledge accumulation, incubation, and evaluation and implementation.
c. incubation, background or knowledge accumulation, idea experience, and evaluation and implementation.
d. evaluation and implementation, idea experience, incubation, and background or knowledge accumulation.
ANS: A PTS: 1 KEY: pg 133
30. People practice the creative search for background knowledge in which of the following ways:
a. join professional groups and organizations c. a and b
b. attend seminars or professional meetings d. socializing at parties
ANS: C PTS: 1 KEY: pg 132
39. The combination of existing concepts and factors into a new formulation would define which of the
following terms?
a. Synthesis c. invention
b. Extension d. analysis
ANS: A PTS: 1 KEY: pg 141
40. Ray Krocs development of McDonalds would be a good illustration of which form of innovation?
a. Invention c. duplication
b. Extension d. synthesis
ANS: B PTS: 1 KEY: pg 141
46. The phase of the creative process when the idea or solution the individual is seeking is discovered is the
a. background or knowledge accumulation. c. idea experience.
b. incubation process. d. evaluation and implementation.
ANS: C PTS: 1 KEY: pg 132
7
47. Shifts in consumer tastes and attitudes are an example of
a. a marketing opportunity. c. the fickle consumer.
b. industry and market changes. d. problems for the entrepreneur.
ANS: B PTS: 1 KEY: pg 128
48. Overnight package delivery can be an illustration for which source of innovation?
a. Incongruities c. process needs
b. unexpected occurrences d. change in perception
ANS: A PTS: 1 KEY: pg 127
49. Retirement centers for older people reflect which source of innovation?
a. industry changes c. perception changes
b. demographic changes d. unexpected occurrences
ANS: B PTS: 1 KEY: pg 128
8
SHORT ANSWER
1. List and briefly explain each of the phases in the creative process.
ANS:
The first phase is known as background or knowledge accumulation. This is the process of
reading, conversations with others working in the field, and general absorption of information relative
to the problem or issue under study. The second phase is the incubation process. This involves the
subconscious, which processes information gathered previously. The third phase is idea experience.
This is when the idea being sought is discovered. Sometimes the idea comes while performing
unrelated tasks. The final phase is known as evaluation and implementation. This phase requires
courage, self-discipline, and perseverance. Ideas are often reworked to obtain a final form. Most
importantly, the entrepreneur doesnt give up.
2. Creative talents can be improved through practice and awareness of habits that can cause problems.
However, there are ways to increase creativity; one area is to recognize relationships. Explain what is
meant by this.
ANS:
Many inventions and innovations are a result of the inventor seeing new and different relationships
between objects, processes, materials, technologies, and people.
3. Creativity is most likely to occur when the climate is right. The text listed several important
characteristics of this climate. What is the right climate?
ANS:
It is a climate where communication flows between a variety of people and fear of management is
rare or nonexistent. This environment displays a willingness to change and rewards innovation.
ANS:
The process begins with a conscious, purposeful search for new opportunities, followed by an
analysis of the sources of new opportunities.
5. The Small Business Innovation Development Act directs that small firms get at least a fixed minimum
percentage of research and development awards made by federal agencies with sizable R&D budgets.
What are the implications of this act?
ANS:
This means that small high-technology firms will receive more federal R&D awards than before.
This will help small businesses remain competitive with larger companies. Under this Act, the SBIR
(Small Business Innovation Research) program was established. Proposals are solicited from small
high technology firms by eleven federal agencies. There are three phases of an R&D award in the
SBIR programs. In Phase I awards are made for research projects intended to evaluate the scientific
and technical merit and feasibility of an idea. These awards generally are $100,000 or less and the
phase lasts about six months. Funding for those projects with the most potential are continued. In
Phase 2 awards of $750,000 or less are made for further development of the innovation. This phase
usually lasts about two years. Phase 3 is characterized by private-sector investment and support that
will bring the innovation to the marketplace.