Chapter 2: Recognizing Opportunities and Generating Ideas (L3)

1) A(n) ________ is a favorable set of circumstances that creates a need for a new product, service, or business.

• A) idea

• B) scheme

• C) design

• D) proposal

• E) opportunity

2) An opportunity has the following four essential qualities: ________.

• A) attractive; timely; durable; and anchored in a product, service, or business that creates or adds value for its buyer or end user

• B) practical; opportune; appropriate; and anchored in a product, service, or business that is efficient and effective

• C) realistic; striking; timely; and anchored in a product, service, or business that is timely

• D) attention-getting; attractive; timely; and anchored in a product, service, or business that creates or adds value for its buyer or end user

• E) attractive, durable, resilient, and opportune

3) The term "window of opportunity," as discussed in Chapter 2, is a metaphor that describes the time period in which a firm can ________.

• A) obtain funding or financing

• B) hire new employees

• C) complete a financial analysis

• D) realistically enter a new market

• E) write a business plan

4) Which of the following is correct regarding opportunities and ideas?

• A) An opportunity and an idea are essentially the same thing.

• B) An idea almost always meets the criteria of an opportunity.

• C) An opportunity is a thought, an impression, or a notion.

• D) An idea is a favorable set of circumstances that creates a need for a new product, service, or business.

• E) It's important to discern whether a particular idea meets the criteria for an opportunity.

5) A(n) ________ is a favorable set of circumstances that creates the need for a new product, service, or business. A(n) ________ is a thought, an impression or a notion.

• A) scheme, notion

• B) opportunity, idea

• C) idea, design

• D) idea, opportunity

• E) notion, scheme

6) The three ways to identify an opportunity include ________.

• A) observing trends, solving a problem, and finding gaps in the marketplace

• B) studying industry trade journals, talking to consumers, and solving a problem

• C) observing trends, conducting brainstorming sessions, and studying industry trade journals

• D) observing trends, talking to consumers, and finding gaps in the marketplace

• E) reading books, solving a problem, and findings gaps in the marketplace

7) Tish Cirovolo realized that there were no guitars on the market made specifically for women. As a result, she started Daisy Rock Guitars, a company that makes guitars just for women. Daisy Rock Guitars are stylish and come in feminine colors, and incorporate design features that accommodate a woman's smaller hand and build. The best way to describe how Cirovolo's business idea was recognized is ________.

• A) brainstorming

• B) talking to consumers

• C) reading industry reports

• D) observing trends

• E) finding a gap in the marketplace

8) A common way that gaps in the marketplace are recognized is ________.

• A) by observing changing environmental trends

• B) by recognizing problems that need to be solved

• C) via studying industry reports

• D) when people become frustrated because they can't find a product or service that they need and recognize that other people feel the same way

• E) via combined focus groups and brainstorming sessions

9) A network entrepreneur is an individual who identifies his or her business idea ________.

• A) on their own

• B) through the assistance of a paid consultant

• C) through social contacts

• D) with one or more partners

• E) through a business incubator program

10) According to research in this area, it is more likely that an entrepreneur will get a new business idea through a ________ -tie relationship than the alternatives.

• A) weak

• B) moderate

• C) vertical

• D) lateral

• E) strong