Small Business Its Opportunities and Rewards (Answer Key) Part 9

  57. Rejecting existing ideas, and presenting a way to do things differently refers to the _____ strategy.  (p.90) A.imitative B.prototyping radical innovation D.integrative Radical innovation strategy involves rejecting existing ideas, and presenting a way to do things differently.   58. (p.90) Which of the following is the idea trigger for the magnify cue of the SCAMPER tool?  A.The opportunities that come as a result of replacing things that already exist B. The separate products, services, or whole businesses that can be put together to create another distinct business C.The products or services that can be imitated from other industries or fields  The factor that can be used to make a product different from that of competitors' products The idea trigger for the modify or magnify cue is how entrepreneurs can make their products or services more noticeable or dramatic, or different in some way from their competitors? It need not be in the product itself, but it could be the way the entrepreneurs advertise or treat the customer during the transaction that becomes memorable.   59. (p.90) If entrepreneurs realize that all the traditional applications for their products have disappeared and that they have surplus products, which of the following elements of the SCAMPER tool are they most likely to employ?  A.Sectionalize Put to other uses C.Eliminate D.Restitute According to the SCAMPER tool, if entrepreneurs realize that all the traditional uses for their products have disappeared and that they have trailer truckloads out back with tons of products, they are most likely to put their products to other uses.   60. In the SCAMPER tool, "M" stands for:  (p.90) A.manage. B.match. C.market. modify. Taking an existing product and changing its appearance or adding more features or making its advertising more dramatic are some ways of magnifying or modifying an idea.   61. (p.90) Born and raised in India, Rashmi has always enjoyed Indian cooking. As a matter of fact, cooking was her passion and she always enjoyed reading, learning, and experimenting with different ethnic cuisines. Ever since Rashmi's family moved to the United States, her cousins, friends, and other people at dinner gatherings have always commented that Rashmi should start a catering business. Realizing that her American friends may not be able to handle or like the Indian food because of its spiciness, Rashmi decided to make changes to the recipes to suit the local taste. Rashmi is seriously contemplating whether she should start a catering business—Tastes of India. Rashmi appears to be applying which element of the SCAMPER tool in her entrepreneurship ideas?  Modify B.Substitute C.Restitute D.Eliminate Taking an existing product and changing its appearance or adding more features or increasing the hours a store is open or making its advertising more dramatic are some ways a prospective entrepreneur can magnify or modify his or her idea.   62. (p.90) There is much a small business can do to create memorable images and advertising for itself, and it does not need expensive television ads to do it. Which element of SCAMPER is being referred to here?  Magnify B.Saturate C.Correlate D.Put to other use According to the magnify cue of the SCAMPER tool, there is much a small business can do to create memorable images and advertising for itself, and it does not need expensive television ads to do it.   63. In the SCAMPER tool, "E" stands for: (p.90)  A.entertain. B.eliminate. C.engineer. extrapolate. In the SCAMPER tool, "E" stands for eliminate.   64. In the SCAMPER tool, "R" stands for:  (p.90) A.restitution. B.resolution. C.reverse. result. In the SCAMPER tool, "R" stands for reverse or rearrange.   65. (p.91) Using paradoxes such as using stimulants to calm hyperactive children, to challenge old ways of thinking, refers to which of the following cues of the SCAMPER tool?  A.Minimize B.Saturate C.Restitute Rearrange In the SCAMPER tool, rearranging involves using paradox to challenge old ways of thinking such as using stimulants to calm hyperactive children.   66. (p.91) Which of the following aspects of the SCAMPER tools involves searching for opportunities that arise when a person gets rid of something or stops doing something?  A.Adapt Eliminate C.Rearrange D.Modify Elimination involves searching for opportunities that arise when a person gets rid of something or stops doing something.   67. Which of the following is an advantage of the SCAMPER tool?  (p.91) It helps entrepreneurs to come up with alternative solutions. B.It helps entrepreneurs to generate more royalty than any other method. C.It gives IP protection to products and services. D.It helps entrepreneurs to avoid governmental taxes and liabilities. SCAMPER is a very effective method for helping business owners and their employees come up with alternative solutions and opportunities.   68. Which of the following is true of creative business owners? (p.91)  A.They implement an imitative strategy to their business. B.They do not ask many questions. They question and challenge the way things appear. D. They give more importance to the problems they face rather than identifying opportunities. Creative business owners question and challenge the way things appear, to see if they can find a new way of doing things.   69. Which of the following is most likely to be true of people with highly innovative businesses?  (p.91) A.They implement an imitative strategy to their business. They are persistent about asking questions. C. They give more importance to the problems they face rather than identifying opportunities. D.They typically are people with political connections. It is more likely that in a highly innovative business the person or team behind the business is simply persistent about asking questions.   70. (p.91) According to Graham Wallas' description of the creative process, a creative thought includes a(n) _____ stage.  A.industry survey B.elimination C.combination incubation The incubation stage of a creative though involves thinking about the problem or opportunity in a "not-conscious" way.   71. According to Graham Wallas' description of the creative process, the _____ stage of a creative thought involves exploring the problem or opportunity in all directions.  (p.91) A.illumination B.incubation preparation D.verification The preparation stage involves exploring the problem or opportunity in all directions.   72.According to Graham Wallas' description of the creative process, which of the following is true of the incubation stage of a creative thought?  (p.91) A.It involves exploring the problem or opportunity in all directions. B.It involves the flow of ideas. C.It involves the testing of the idea. It involves putting the problem on the back burner. Incubation involves thinking about the problem or opportunity in a "not-conscious" way, putting it on the back burner, so to speak.   73.According to Graham Wallas' description of the creative process, ideas begin to flow in which of the following stages? (p.91)  A.Preparation Illumination C.Incubation D.Verification According to Graham Wallas' description of the creative process, ideas begin to flow in the illumination stage of the creative process.   74. (p.92) Which of the following is an entrepreneur most likely to implement to introduce changeability into a core business?  Redesign the work environment B.Increase the IP protection on the products or services C.Simply sell the products or services D.Read journals related to the area of expertise To build changeability into a core business, entrepreneurs can redesign the work environment.   75.In an attempt to become more innovative, a major pitfall that business owners are most likely to become victim to is:  (p.92) A.judging ideas slowly. B.asking for support after failing the first time. C.obeying all the rules to get investors. using the first good idea as a business opportunity. The first good idea is rarely the best. Stopping with the first good idea is one of the five major pitfalls that business owners become victim to when trying to become more innovative.   76. (p.93) If a business owner assumes that he or she needs to do all the work, make all the sales calls, and solve everybody's problems, which major pitfall is the business owner becoming a victim to while trying to become more innovative?  Obeying rules that do not exist B.Judging ideas too quickly C.Identifying the wrong problem D.Failing to ask for support Obeying rules that do not exist is a major pitfall that a business owner can be victim to if he or she tries to do everything while trying to become more innovative.   77. An overall strategic approach in which the entrepreneur does more or less what others are already doing refers to a(n):  (p.93) imitative strategy. B.innovative strategy. C.incremental strategy. D.radical innovation strategy. An imitative strategy is an overall strategic approach in which the entrepreneur does more or less what others are already doing.   78. _____ requires an entrepreneur to assess whether the situation faced is one that is the same as it has been traditionally or if it is changing. (p.93)  A.Business process modeling Opportunity identification process C.Pilot test D.Radical innovation strategy Gaglio and Katz offer a model for thinking about the business implications of opportunities. Called the opportunity identification process, it has the entrepreneur assess whether the situation faced is one that is the same as it has been traditionally or if it is changing.   79. (p.93) Taking an idea and offering a way to do something slightly better than it is done presently refers to a(n):  A.imitative strategy. incremental strategy. C.status quo strategy. D.innovative strategy. An incremental strategy involves taking an idea and offering a way to do something slightly better than it is done presently.   80._____ means the extent to which an idea is viable and realistic, and the extent to which you are aware of internal and external forces that could affect your business.  (p.94) A.Flexibility B.Consistency Feasibility D.Innovation Feasibility is extent to which an idea is viable and realistic and the extent to which you are aware of internal (to your business) and external (industry, market, and regulatory environment) forces that could affect your business.   81. According the study of what matters most to entrepreneurs and their businesses, startup entrepreneurs feel most confident about which of the following aspects?  (p.94) Complying with local/state/federal regulations B.Obtaining start-up capital C.Obtaining a bank's help D.Attracting employees According the study of what matters most to entrepreneurs and their businesses, startup entrepreneurs feel most confident about complying with local/state/federal regulations.   82. The goal of a feasibility study is: (p.94)  A.to create additional value for customers through great products or services. B.to create outlets for employees to bring out new ideas. to assess if a business idea can be profitably brought to market. D. to assess how well a preliminary run of a business works and what problems it might have. In crafting a feasibility study, the goal is to assess if a business idea can be profitably brought to market.   83. Which of the following is a traditional problem facing new ideas? (p.94)  A.The product or service appeals to a market larger then the entrepreneur expected. The idea cannot be economically made into a product or service. C.There are too many people involved in making the idea into a business. D.The local/state federal regulations are too strict to follow. One of the traditional problems facing new ideas is that an idea cannot be economically made into a product or service.   84. (p.95) The business idea component of the feasibility study includes which of the following aspects?  A.Stage of development B.Competition C.Market penetration Description of the entrepreneurs Unique features of the business idea component of the feasibility study include the description of the entrepreneurs, their firm, and their fit.   85. (p.95) The product/service component of the feasibility study typically includes which of the following aspects?  Stage of development B.Competition C.Market penetration D.Cost forecast The product/service component of the feasibility study includes: benefits and limitations of the unique features, stage of development, and legal restrictions and rights.   86. The industry and market component of the feasibility study typically includes which of (p.96) the following components?  A.Sales revenue forecast The competition C.Writing a business plan D.Writing a mission statement The industry and market component of the feasibility study typically includes current industry, market potential for this industry, the competition, and your customers.   87.The future action plan component of the feasibility study includes which of the following elements?  (p.98) A.Profitability B.The competition C.Legal restrictions and rights Writing a business plan The feasibility analysis helps entrepreneurs get started with writing their business plan. They will have the information they need to address the competitive advantages and disadvantages of their business and the strategies they will use to meet their goals.   88. _____ refers to a preliminary run of a business, sales effort, program, or Web site with the goal of assessing how well the overall approach works and what problems it might have.  (p.98) A.Conversion rate Pilot test C.Incubation period D.Commercialization Pilot test is a preliminary run of a business, sales effort, program, or Web site with the goal of assessing how well the overall approach works and what problems it might have.   89. (p.98) The measure of how many visitors to a Web site actually make a purchase is known as:  A.illumination rate. B.frame rate. conversion rate. D.pilot test. Conversion rate is the measure of how many visitors to a Web site (or people who click on an online advertisement) actually make a purchase.   90. (p.99) The strategy for using the pilot test approach is:  to show potential partners that the idea can generate sales. B.to generate IP protection for the idea. C.to check the number of visitors to the Web site. D.to circumvent government regulations. The strategy for using the pilot test approach is to show potential partners, investors, or bankers that the idea can generate sales.