127 test bank for essentials of entrepreneurship and small business management 6th edition scarborough

Test Bank for Essentials of Entrepreneurship and Small Business
Management 6th Edition Scarborough
63 Test Bank True – False Questions
11 Test Bank Free Text Questions
54 Test Bank Multiple Choice Questions

The left brain is guided by:
1.

A) kaleidoscopic, lateral thinking.

2.

B) linear, vertical thinking.

3.

C) asymmetrical thinking.

4.

D) intuitive thinking.

All of the following represent barriers to creativity that entrepreneurs
impose upon themselves except:
1.

A) focusing on being too logical.

2.

B) being too practical.

3.

C) blindly following rules.

4.

D) searching for more than one answer.

An entrepreneurial "secret" for creating value in the marketplace is:
1.

A) applying creativity and innovation to solve problems.

2.

B) creating new products and services.

3.

C) learning by doing.

4.

D) applying lessons learned from history.

The ability to apply creative solutions to problems and opportunities to
enhance or to enrich people's lives is called:
1.

A) entrepreneurship.


2.

B) innovation.

3.

C) creativity.

4.

D) creative thinking.

When developing creative solutions to modern problems, entrepreneurs
must:
1.

A) go beyond merely using whatever has worked in the past.

2.

B) limit the creative process to only profitable ventures.

3.

C) remember what has worked in the past.

4.

D) pay attention to limiting factors.

Research shows that anyone can learn to be creative. The problem is:
1.

A) many organizations fail to foster an environment that encourages creativity.

2.

B) most people never tap into their pools of innate creativity.

3.

C) most people have never been taught to be creative.

4.

D) All of the above

Entrepreneurship is a constant process that relies on:
1.

A) creativity, innovation, and profit.

2.

B) the ability to win over the consumer.

3.

C) creativity, innovation, and application in the marketplace.

4.

D) intellectual property rights.

Which hemisphere of the brain is responsible for language, logic, and
symbols?
1.

A) Right hemisphere

2.

B) Left hemisphere

3.

C) Lateral hemisphere

4.

D) Intuitive hemisphere


Harvard's Ted Levitt says that creativity is ________ new things, and
innovation is ________ new things.
1.

A) thinking; doing

2.

B) doing; thinking

3.

C) seeing; doing

4.

D) thinking; applying

________ vertical thinking is narrowly focused and systematic,
proceeding in a highly logical fashion from one point to the next.
1.

A) Left-brained

2.

B) Right-brained

3.

C) Unconventional

4.

D) Intuitive

________ is necessary for building a competitive advantage and for
business survival.
1.

A) One single idea

2.

B) A motivated owner

3.

C) Creativity

4.

D) A low-priced product

Which hemisphere of the brain is responsible for the body's emotional,
intuitive, and spatial functions?
1.

A) Right hemisphere

2.

B) Left hemisphere

3.

C) Vertical hemisphere

4.

D) Logical hemisphere


Creativity often involves creating something from nothing. However, it is
more likely to result in:
1.

A) elaborating on the present.

2.

B) putting old things together in new ways.

3.

C) taking something away to create something simpler or better.

4.

D) All of the above

Research into the operation of the human brain shows that each
hemisphere of the brain:

1.

A) develops symmetrically.

2.

B) controls similar functions.

3.

C) does not dominate the other hemisphere.

4.

D) processes information differently.

In his book A Whack on the Side of the Head, Roger von Oech views a
"playful attitude" as:
1.

A) frivolous.

2.

B) fundamental to creative thinking.

3.

C) a mental block.

4.

D) limiting individual creativity.

Hiring a diverse workforce:
1.

A) helps in enhancing organizational creativity.

2.

B) allows for different ideas and varying methods of problem solving.

3.

4.

C) brings in people from different backgrounds, with different cultural experiences,
hobbies, and interests.
D) All of the above


Which hemisphere of the brain processes information in a step-by-step
fashion?
1.

A) Right hemisphere

2.

B) Left hemisphere

3.

C) Lateral hemisphere

4.

D) Intuitive hemisphere

Which hemisphere of the brain processes information all at once and by
relying heavily on images?
1.

A) Right hemisphere

2.

B) Left hemisphere

3.

C) Vertical hemisphere

4.

D) Logical hemisphere

Joseph Schumpeter wrote that entrepreneurs perform the vital function
of:

1.

A) challenging accepted ways of doing things.

2.

B) creative destruction.

3.

C) revolutionizing current patterns of production.

4.

D) All of the above

The right brain is guided by:
1.

A) kaleidoscopic, lateral thinking.

2.

B) linear, vertical thinking.

3.

C) asymmetrical thinking.

4.

D) logical thinking.


Which of the following is not one of the ways entrepreneurs can stimulate
their own creativity and encourage it among their workers?
1.

A) Provide creativity training.

2.

B) Encourage curiosity.

3.

C) View challenges as problems.

4.

D) Develop a corporate culture that both fosters and rewards creativity.

Employees must be given the tools and resources they need to be
creative. One of the most valuable resources is:
1.

A) providing challenges.

2.

B) rules and guidelines.

3.

C) time.

4.

D) money.

Roger von Oech believes that blindly following rules leads to:
1.

A) order, which stimulates creativity.

2.

B) a clearer vision and business venture.

3.

C) new ways of doing things.

4.

D) a mental block towards creativity.

The ability to develop new ideas and to discover new ways of looking at
problems and opportunities is called:
1.

A) entrepreneurship.

2.

B) innovation.

3.

C) creativity.

4.

D) creative thinking.

Entrepreneurs can stimulate their own creativity and encourage it among
workers by:


1.

A) expecting and tolerating failure.

2.

B) avoiding problems.

3.

C) limiting rewards.

4.

D) not taking chances.

________ lateral thinking is somewhat unconventional and unstructured.
1.

A) Left-brained

2.

B) Right-brained

3.

C) Systematic

4.

D) Logical

54 Free Test Bank for Essentials of Entrepreneurship
and Small Business Management 6th Edition
Scarborough Multiple Choice Questions - Page 2
The three principles (three Rs) of rapid prototyping are:
1.

A) develop a rough model, rapidly, and for the right price.

2.

B) develop a complete model, rapidly, and for the right problem.

3.

C) develop a rough model, rapidly, and for the right problem.

4.

D) develop a right model, roughly, for the right price.

The focus of this step in the creative process is to transform the idea into
reality.
1.

A) Implementation

2.

B) Preparation

3.

C) Illumination

4.

D) Verification

Which stage of the creative process requires one to develop a solid
understanding of the problem or decision?


1.

A) Investigation

2.

B) Preparation

3.

C) Illumination

4.

D) Verification

The ability to see the similarities and the connections among various data
and events is called:
1.

A) convergent thinking.

2.

B) divergent thinking.

3.

C) transformational thinking.

4.

D) illumination.

Any distinctive word, phrase, symbol, name, or logo a firm uses to
distinguish itself or its products is called a:
1.

A) trademark.

2.

B) patent.

3.

C) copyright.

4.

D) service mark.

To which governmental office must applications for patents be
submitted?
1.

A) The U.S. Patent and Trademark Office

2.

B) The individual State Offices of Patent Development

3.

C) The Federal Trade Commission

4.

D) The Securities and Exchange Commission

Which stage of the creative process includes on-the-job training?
1.

A) Implementation

2.

B) Preparation


3.

C) Illumination

4.

D) Verification

Mind-mapping is a useful tool for jump-starting creativity. It includes all of
the following except:
1.

A) sketching a picture to symbolize the problem or area of focus in the center of a
sheet of paper.

2.

B) writing down every idea that comes into your mind, connecting each idea to the
central picture.

3.

C) allowing your mind to rest for a few minutes before integrating the ideas.

4.

D) forcing creativity when ideas start to trickle.

"Verification" refers to:
1.

A) validating the idea as accurate and useful.

2.

B) possibly conducting experiments, running simulations, test marketing a product

or service.

3.

C) possibly asking questions such as "will it work?" and "is it really a better
solution?"

4.

D) All of the above

________ is a process in which a small group of people interacts to
produce a large quantity of imaginative ideas.
1.

A) Groupthink

2.

B) Mind-mapping

3.

C) Brainstorming

4.

D) Prototyping

________ is a graphical technique that encourages thinking on both sides

of the brain, visually displays the various relationships among the ideas,
and improves the ability to view a problem from many sides.
1.

A) Brainstorming


2.

B) Mind-mapping

3.

C) Prototyping

4.

D) Groupthink

All of the following are enhancements to individual creativity except:
1.

A) keeping a journal to record thoughts and ideas.

2.

B) limiting your reading sources.

3.

C) taking time off.

4.

D) allowing yourself to be creative.

Which of the following questions should you consider before entering a
lawsuit to protect intellectual property?
1.

A) Can you afford the loss of time, money, and privacy the lawsuit will bring?

2.

B) Can the opponent afford to pay if you win?

3.

4.

C) Do you expect to get enough from the suit to pay for the costs of hiring an
attorney?
D) All of the above

A ________ is an exclusive right that protects the creators of original
works such as literary, dramatic, musical, and artistic works.
1.

A) trademark

2.

B) patent

3.

C) copyright

4.

D) service mark

The ________ environment has an impact on the level of people's
creativity.
1.

A) physical

2.

B) sounds in the


3.

C) extermal

4.

D) internal

Effective brainstorming involves all of the following except:
1.

A) a small group of people.

2.

B) an open uninhibited environment.

3.

C) an effective method to evaluate ideas.

4.

D) very little structure.

Which of the following is not an enhancement to individual creativity?
1.

A) Listening to other people

2.

B) Recognizing the creative power of mistakes

3.

C) Keeping a toy box in your office

4.

D) Working without breaks until the project is complete or the problem is solved

________ thinking is the ability to see similarities and ________ thinking is
the ability to see differences among various data and events.
1.

A) Divergent; convergent

2.

B) Convergent; divergent

3.

C) Convergent; transformational

4.

D) None of the above

The "theory of inventive problem solving" is a left-brained, scientific,
systematic process based on innovative patents and is referred to as:
1.

A) JIT.

2.

B) RP.

3.

C) TQM.

4.

D) TRIZ.


The ability to see the differences among various data and events is called:
1.

A) convergent thinking.

2.

B) divergent thinking.

3.

C) transformational thinking.

4.

D) illumination.

During the incubation phase of the creative process, the entrepreneur

might do all of the following EXCEPT which one to let ideas "marinate" in
his mind?
1.

A) Do something totally unrelated for awhile.

2.

B) Relax and play regularly.

3.

C) Work on the problem or opportunity in a different environment.

4.

D) Don't allow one's self to daydream.

Which stage of the creative process involves viewing the similarities and
differences in the information collected?
1.

A) Transformation

2.

B) Incubation

3.

C) Illumination

4.

D) Verification

The premise behind ________ is that transforming an idea into an actual
model will lead to improvements in its design.
1.

A) rapid prototyping

2.

B) mind-mapping

3.

C) brainstorming

4.

D) inventions


More than ________ percent of those holding patents win their
infringement suits.
1.

A) 15

2.

B) 30

3.

C) 45

4.

D) 60

At which stage of the creative process does a spontaneous breakthrough
occur, allowing all of the previous stages to come together to produce the
"Eureka factor" or the "light bulb goes on"?
1.

A) Implementation

2.

B) Preparation

3.

C) Illumination

4.

D) Verification

Steps in the patent process include:
1.

A) establishing whether it is a novelty.

2.

B) documenting and verifying the date the idea was first conceived.

3.

C) searching existing patents.

4.

D) All of the above

Copyrights protect the creator of original works such as:
1.

A) software, choreography, and motion pictures.

2.

B) symbols, names, and designs.

3.

C) text and verbiage of any kind.

4.

D) slogans and designs.


To protect patent claims, an inventor should be able to verify and
document the:
1.

A) research conducted to create the invention.

2.

B) fact that the invention was created in another country.

3.

C) date on which the idea was first conceived.

4.

D) initial sales of the invention.

63 Free Test Bank for Essentials of Entrepreneurship
and Small Business Management 6th Edition
Scarborough True - False Questions - Page 1
The right brain relies on kaleidoscopic, lateral thinking.
1.

True

2.

False

While most people see what they have always seen, creative
entrepreneurs are able to see beyond preconceptions.
1.

True

2.

False

The left brain handles language, logic, and symbols.
1.

True

2.

False

The left brain is guided by linear, vertical thinking.
1.

True

2.

False


Creativity is the ability to apply creative solutions to problems and
opportunities to enhance or enrich people's lives.
1.

True

2.

False

Although creativity sometimes involves generating something from
nothing, it more likely results in elaborating on the present, putting old
things together in new ways, or taking something away to create
something simpler or better.
1.

True

2.

False

On average, new products account for two-thirds to three-fourths of
companies' sales.

1.

True

2.

False

For every 3,000 new product ideas, four make it to the development stage,
two are actually launched, and only one becomes successful in the
market.
1.

True

2.

False

Innovation must be a constant process because most ideas do not work
and most innovations fail.
1.

True

2.

False

The right brain is guided by linear, vertical thinking.

1.

True

2.

False


Innovation is the ability to apply creative solutions to problems and
opportunities to enhance or enrich people's lives.
1.

True

2.

False

Creativity is not only an important source for building a competitive
advantage, but it also is necessary for survival.
1.

True

2.

False

Successful entrepreneurs come up with ideas and then find ways to make

them work to solve a problem or fill a need.
1.

True

2.

False

Successful entrepreneurship requires left-brain thinking.
1.

True

2.

False

The right brain takes care of the body's emotional, intuitive, and spatial
functions.
1.

True

2.

False

History is always a reliable predictor of the future of business.
1.

True

2.

False

Creative thinking involves research into the operation of the human brain
and the roles each hemisphere of the brain plays.
1.

True


2.

False

Creativity and innovation are the signature of large, entrepreneurial
businesses.
1.

True

2.

False

The right brain processes information intuitivelyall at once, relying
heavily on images.

1.

True

2.

False

Creativity is the ability to develop new ideas and to discover new ways of
looking at problems and opportunities.
1.

True

2.

False

Right-brain thinking draws on the power of divergent reasoning, which is
the ability to create a multitude of original, diverse ideas, while left-brain
thinking counts on convergent reasoning, the ability to evaluate multiple
ideas and choose the best solution to a given problem.
1.

True

2.

False

Creativity and innovation are the signature of small, entrepreneurial
businesses.
1.

True

2.

False

Innovation is the ability to develop new ideas and to discover new ways of
looking at problems and opportunities.
1.

True


2.

False

The left brain relies on kaleidoscopic, lateral thinking.
1.

True

2.

False

Entrepreneurs must embrace traditional assumptions and perspectives
about how things ought to be because they support creativity.
1.

True

2.

False

Research shows that each hemisphere of the human brain processes
information differently and that one side of the brain tends to be dominant
over the other.
1.

True

2.

False

63 Free Test Bank for Essentials of Entrepreneurship
and Small Business Management 6th Edition
Scarborough True - False Questions - Page 2
"Divergent thinking" is the ability to see similarities and connections
among various data and events.
1.

True

2.

False

A patent gives the inventor the exclusive right to make, use, or sell an
invention for 50 years.
1.

True

2.

False


The illumination stage of the creative process is often called the "Eureka
factor" and is characterized by a spontaneous breakthrough.
1.

True

2.

False

A patent protects the creator of original works of authorship such as for
software.
1.

True

2.

False

Trademarks are distinctive words, symbols, designs, names, or logos
used for company identification.
1.

True

2.

False

The left brain processes information in a step-by-step fashion.
1.

True

2.

False

The U.S. Copyright Office does not require registering the creative work
because registering it does not give creators greater protection over their
work.
1.

True

2.

False

Mind-mapping is a graphical technique that encourages thinking on both
sides of the brain, visually displays the various relationships among
ideas, and improves the ability to view a problem from many sides.
1.

True

2.

False


Left-brained individuals realize that there may be more than one right
answer.
1.

True

2.

False

Rapid prototyping, transforming an idea into an actual model, typically
does not lead to improvements in design.
1.

True

2.

False

Successful entrepreneurs push technological and economic boundaries
forward and sometimes make unconventional decisions.
1.

True

2.

False

During a brainstorming session, company rank and department affiliation
are irrelevant.
1.

True

2.

False

Viewing play as frivolous is a mental block that stifles creativity.
1.

True

2.

False

The left brain processes information intuitivelyall at once, relying
heavily on images.
1.

True

2.

False


The creative process involves seven distinct steps including preparation,
investigation, transformation, incubation, illumination, verification, and
implementation.
1.

True

2.

False

Businesses typically foster an environment that encourages creativity.
1.

True

2.

False

"Convergent thinking" is the ability to see the differences among data and
events.
1.

True

2.

False

TRIZ is an acronym for a systematic approach to help solve technical
problems based on the study of hundreds of the most innovative patents.
1.

True

2.

False

Enhancing individual creativity may be cultivated through such activities
as modeling, encouragement, recognition, allowing failure, listening,
talking to children, and taking time off.

1.

True

2.

False

Entrepreneurs need to rely on left-brain thinking to generate innovative
product, service, or business ideas and use right-brain thinking to judge
the market potential of the ideas they generate.
1.

True

2.

False


The typical entrepreneurial philosophy is "Ready, aim, aim, aim…"
1.

True

2.

False

The major problem with relying on the legal system to enforce ownership

rights is the cost of infringement lawsuits, which can quickly exceed the
budget of most small businesses.
1.

True

2.

False

Intuition is based on the accumulated knowledge and experiences a
person encounters over the course of a lifetime and resides in the
subconscious.
1.

True

2.

False

Entrepreneurs can encourage creative thinking in their employees by
setting examples of creative behavior and rewarding creative behavior
when exhibited by their employees.
1.

True

2.

False

A paradigm is a preconceived idea of what the world is, what it should be
like, and how it should operate and this can influence creativity.
1.

True

2.

False

The rapidly accelerating rate of change has created an environment in
which staying in a leadership position requires constant creativity,
innovation, and entrepreneurship.
1.

True


2.

False

"Constantly being practical" is a mental block that can stifle creativity.
1.

True

2.

False

Right-brained individuals tend to challenge tradition, custom, and routine.
1.

True

2.

False

The right brain processes information in a step-by-step fashion.
1.

True

2.

False

When "brainstorming," individuals should be encouraged to use "idea
hitchhiking," or building new ideas on those already suggested.
1.

True

2.

False

Ambiguity tends to destroy creativity.
1.

True

2.

False

Failure is an important part of the creative process, as it provides a
chance to learn how to succeed.
1.

True

2.

False


It may appear in the incubation stage of the creative process that the
entrepreneur is loafing, as he is taking time to reflect on the information
collected.
1.

True

2.

False

Hiring a diverse workforce makes it more difficult to achieve creativity in
the workplace.
1.

True

2.

False

Employees tend to riseor fallto the level of expectations entrepreneurs
have of them.
1.

True

2.

False

Entrepreneurship requires both left- and right-brained thinking.
1.

True

2.

False

Research shows that not everyone can be creative.
1.

True

2.

False

11 Free Test Bank for Essentials of Entrepreneurship
and Small Business Management 6th Edition
Scarborough Free Text Questions
Why is it important for an entrepreneur to use techniques like mindmapping, which use both sides of the brain?
Answer Given


Mind-mapping, a graphical technique that encourages thinking on both sides of
the brain, visually displays the various relationships among ideas, and improves
the ability to view a problem from many sides. Since entrepreneurs themselves
tend to be left- or right-brained thinkers, techniques like mind-mapping encourage
them to look at problems and opportunities in a different way. Mind-mapping is
also a useful tool that includes: sketching a picture symbolizing the problem,
connecting each idea to the central picture or words with a line, and allowing your
mind to rest for a few minutes before beginning to integrate the ideas.

List five of the barriers that limit creativity.
Answer Given

The five barriers are a subset of the following list: ∙ Search for the one "right"

answer; ∙ Focus on "being logical"; ∙ Blindly follow the rules; ∙ Constantly be
practical; ∙ View play as frivolous; ∙ Become overly specialized; ∙ Avoid ambiguity; ∙
Fear looking foolish; ∙ Fear mistakes and failure; ∙ Believe that "I'm not creative"

Should they consider protecting or registering their company name?
Which intellectual property would cover this concern? Could they use the
name without registering it?
Answer Given

Entrepreneurs do not have to register trademarks to establish their rights to use
those marks; however, registering a mark with the (PTO) does give entrepreneurs
greater power in protecting their marks.

Explain "brainstorming" and list at least five of the guidelines for a
successful brainstorming session.
Answer Given

Brainstorming is a process in which a small group of people interact with very little
structure with the goal of producing a large quantity of novel and imaginative
ideas. The goal is to create an open, uninhibited atmosphere that allows member
of the group to "freewheel" ideas. Five guidelines should come from the following
list: ∙ Keep the group smallfive to eight members; ∙ Have a well-defined problem
for the group to address, but do not reveal it ahead of time; ∙ Limit the session to
40-60 minutes; ∙ Appoint someone to be the recorder and write every idea on a flip
chart; ∙ Use a seating pattern that encourages communication and interaction; ∙
Encourage all ideas from the team, even wild and extreme ones; ∙ Establish a goal
of quantity of ideas rather than quality; ∙ Forbid evaluation or criticism of any idea
during the session; ∙ Encourage participants to use "idea hitchhiking" or to
"piggyback"/build new ideas on those already suggested.