‫صنع هذا الملف على انغام تاج الأغننة الع برنة‬

‫اصالة نصري‬
‫تحذب ًذا على الحان اغننة ) فرحة وبس ( والألنوم كام ًلا ) شانفة فيك(ء‬

‫مع تحيات ف نرق اليادي الطبى الأكاديمى لمساق الرتادة والأبنكار‬

‫‪1‬‬
1) One of the most significant economic developments in recent business history relates to the:

A. growth of blue-chip corporations

B. development of Pacific Rim countries
C. entrepreneurial spirit
D. additional employment opportunities offered by government institutions

Answer: C

2) Globally, one in eight adults is actively engaged in launching a business.

Answer: TRUE

3) One study conducted by the Global Entrepreneurship Monitor (GEM) reports that nearly one ineight
people in the United States is working to start a business.

Answer: TRUE

4) An entrepreneur is one who .

A) is willing to attempt to implement a business concept and then give up if it does not meetimmediate
expectations
B) understands the process of developing an idea and does not need to understand what itmeans to
bring that idea to a viable business concept
C) knows that the concept they are about to develop will result in a profitable business
D) creates a new business concept for the purpose of achieving profit and growth byassembling
the necessary resources to capitalize on identified opportunities

Answer: D

5) All of the following are characteristics of the typical entrepreneur except .

A) confidence in his/her ability to succeed

B) value of money over achievement
C) desire for immediate feedback
D) a future orientation

Answer: B

6) Entrepreneurs are characterized by .

A) skill at organizing
B) desire for immediate feedback
C) high energy levels
D) All of the above Answer: D

2
7) Entrepreneurs who repeatedly start businesses and grow to a sustainable size before strikingout again

are known as entrepreneurs.

A) opportunistic
B) persistent
C) serial
D) classic

Answer: C

8) Entrepreneurs typically possess .

A) the ability to easily access capital

B) a set of unique skills that is usually accompanied by advanced degrees in several areas
C) a high level of commitment, have a tolerance for ambiguity, are flexible and tenacious
D) specialized technical abilities

Answer: C

9) Entrepreneurs who start businesses because they cannot find work any other way are

A) necessity entrepreneurs

B) serial entrepreneurs

C) opportunity entrepreneurs

D) corporate cast-offs

Answer: A

10) Serial entrepreneurs repeatedly start businesses and grow them to a sustainable size beforestriking out

again.

Answer: TRUE

11) Surveys show that small business owners believe that, as entrepreneurs, they work harder,earn more

money, and are happier than if they worked for a large company.

Answer: TRUE

12) The opportunity to reap impressive profits is the primary motivation for most entrepreneurs.

Answer: FALSE

3
13) What is an entrepreneur? Give a brief profile of a typical entrepreneur. What is the primarymotivation

for the typical entrepreneur?

Answer: An entrepreneur is someone who creates a new business in the face of risk and uncertainty for the

purpose of achieving profit and growth by identifying opportunities andassembling the necessary resources to

capitalize on them.

14) Which of the following is a benefit of entrepreneurship?

A) The opportunity to gain control over your own destiny.

B) The opportunity to reach your full potential.
C) The opportunity to do what you enjoy.
D) All of the above

Answer: D

15) Social entrepreneurs use their skills to create profitable businesses and also achieveeconomic,

social and environmental goals for the common good.

Answer: TRUE

16) Technology offers a significant advantage for entrepreneurs.

Answer: TRUE

17) Entrepreneurs are not willing to give up a steady paycheck.

Answer: FALSE

18) There is concern over the future of entrepreneurship because so few high school and collegestudents

want to start their own companies.

Answer: FALSE

19) Factors that feed the economic boom behind entrepreneurship include .

A) demographic and economic factors

B) technology and cloud computing
C) the shift to a service-based economy and international opportunities
D) All of the above

Answer: D

4
20) Which of the following is NOT one of the forces driving the entrepreneurial trend in ourcountry?

A) Shift away from a service economy.

B) Independent lifestyle.
C) International opportunities.
D) E-commerce and the World Wide Web.

Answer: A

21) Which of the following technological forces is driving the entrepreneurial trend in ournation?

A) Cloud computing.
B) Mobile marketing.
C) The Internet.
D) All of the above

Answer: D

22) The shift to a service economy has not had a significant impact on entrepreneurial

opportunities.

Answer: FALSE

23) Cloud computing allows businesses to use a variety of applications and has reduced costsand added

flexibility.

Answer: TRUE

24) Entrepreneurial couples who work together as co-owners of their business are referred to as:

A) dual entrepreneurs
B) corporate dropouts
C) corporate cast-offs
D) copreneurs

Answer: D

25) "Copreneurs" are defined as .

A) entrepreneurs that work part-time

B) highly successful entrepreneurs with prior company experience and background
C) those entrepreneurs that will eventually combine their business with another venture
entrepreneurial couples that work together as co-owners of their business

Answer: D

5
26) The average age of the first-time entrepreneurs in the United States is nearly .

A) 44
B) 25
C) 19
D) 31

Answer: A

27) A major advantage of launching a business part-time is the lower risk it offers in case thebusiness

fails.

Answer: TRUE

28) Most home-based businesses are simple cottage industries such as crafts or sewing.

Answer: FALSE

29) Which of the following is a characteristic of copreneurs ?

a) Mutual respect
b) Complementary business skills
c) A clear division of roles and authority
d) All of the above

Answer : D

30) Entrepreneurs tend to be overly and commonly misjudge the

requirements of going into business.

A) optimistic; personal
B) optimistic; financial
C) pessimistic; financial
D) optimistic; professional

Answer: B

31) The young, job-creating small companies are known as .

A) "assertive"
B) "antelopes"
C) "aggressive"
D) "gazelles"

Answer: D

6
31) In addition to the opportunity to create their own destiny and enjoy what they do,

entrepreneurs also benefit from the ability to .

A) earn tremendous wealth without risk and uncertainty

B) make a difference in an area important to them and be recognized for those efforts
C) create wealth without providing true value
D) exploit the opportunities that the free enterprise system offers

Answer: B

32) Entrepreneurs who repeatedly start businesses and grow to a sustainable size before strikingout again

are known as entrepreneurs.

A) opportunistic
B) persistent
C) serial
D) classic

Answer: C

33) Potential drawbacks of entrepreneurship may include .

A) uncertainty of income, risk, long hours, and high stress

B) uncertainty of income, risk, easy hours, and frequent vacations
C) uncertainty of income, risk, long hours, and the immediate accumulation of wealth
D) certainty of income, risk, long hours, and high stress

Answer: A

7
1) The recent number of job losses in large corporations compared to the jobs created by small

business has changed the perception of for launching a new business.

A) prestige
B) risk
C) financing opportunities
D) short-term potential

Answer: B

2) Current competitive conditions favor large companies over smaller ones because of their

flexibility combined with their ability to use their size to achieve efficiency and economies of

scale.

Answer: FALSE

3) Increased entrepreneurial activity is a phenomenon unique to the U.S.

Answer: FALSE

4) The profile of an entrepreneur includes .

A) a desire for responsibility and moderate risk

B) confidence in the ability to succeed and determination
C) a high level of energy, a desire for immediate feedback and a future orientation
D) All the above

Answer: D

5) entrepreneurs are business builders who seek innovative solutions to some of

society's most vexing problems.

A) Social
B) Opportunistic
C) Serial
D) Necessity

Answer: A

8
1) Entrepreneurs choose to enter their particular business fields because they have an interest inthem

and enjoy those lines of work. They have often made their hobbies their business.

Answer: TRUE

2) It is estimated that percent of new businesses fail within two years, while

percent fail within five years.

A) 21; 51
B) 51; 64
C) 35; 41
D) 51; 31

Answer: A

3) Within five years, percent of new businesses will fail.

A) 21
B) 45
C) 51
D) 65

Answer: C

4) The majority of new business owners work .

A) fewer than 40 hours per week

B) more than 40 hours per week
C) more than 70 hours per week
D) more than 80 hours per week

Answer: B

5) The majority of new business owners work fewer than 40 hours per week.

Answer: FALSE

6) The majority of new business owners devote more than 40 hours per week to their

companies.

Answer: TRUE

7) One advantage of being your own boss and owning a small business is that work hours are

very flexible and leisure time is abundant. Answer: FALSE

9
6) Nearly of entrepreneurs start their businesses between the ages of 20 and 44 andthe

number of Americans in that age range currently is .

A) one-half; 8.5 million

B) two-thirds; 85,000
C) three-fourths; 103 million
D) one-fourth; 85 million

Answer: C

7) Entrepreneurs may find benefit from the Internet due to its potential .

A) if the organization is willing to invest millions of dollars in this effort

B) only if the entrepreneur has a high level of technical abilities
C) as a relatively low-cost solution to expand its revenue-generating abilities
D) to take all pressure off other attributes of the business venture

Answer: C

8) International opportunities are .

A) clearly out of reach for entrepreneurial businesses

B) now within the reach of entrepreneurial businesses and may present significant opportunities
C) highly limited for entrepreneurs
D) risky and do not merit serious consideration by the entrepreneur

Answer: B

9) Small companies that operate globally from their inception are referred to as .

A) micromultinationals
B) intrapreneurial ventures
C) global companies
D) international companies

Answer: A

10) Small companies that have expanded successfully into foreign markets tend to rely on all but

which of the following strategies?

A) Research foreign markets thoroughly.

B) Focus on many countries initially.

10
 C) Utilize government resources designed to help small companies establish an international
presence.
D) Forge alliances with local partners.

Answer: B

11) Discuss the potential benefits and drawbacks of entrepreneurship.

Answer: Entrepreneurs benefit by controlling their own destiny, reaching their own potential,

making a difference, reaping impressive profits, contributing to society, and enjoying what theyare

doing. Potential drawbacks include the uncertainty of income, risk of losing their entire investment,

long hours and hard work, a somewhat lower quality of life until the business gets started, high levels

of stress, and absolute responsibility.

12) Women in business still experience as they attempt to break the "glass ceiling."

A) success
B) opportunities
C) discrimination
D) ease of navigation

Answer: C

13) The demographic attributes of successful entrepreneurs are .

A) limited to specific ages, genders, and ethnic backgrounds

B) uncertain and have not been fully studied or analyzed
C) are key predictors that determine how long the business will survive
D) highly diverse relating to age, gender, and ethnicity

Answer: D

14) Which of the following statements is not true regarding the diversity of entrepreneurs?

A) Minority-owned businesses have come a long way in the past decade, and their success rate is
climbing.
B) Minority-owned businesses now account for approximately 22 percent of all businesses in the
U.S.
C) Immigrants with more education and experience than those of the past are coming to the U.S.
and succeeding in entrepreneurial ventures.
D) The numbers of part-time and home-based entrepreneurs are rising. Answer: B

11
15) Which of the following statements about women-owned businesses is false?

A) The businesses women start tend to be smaller than those men start.
B) Women own about 28 percent of all privately-held businesses in the U.S.
C) The number of women-owned businesses is growing slower than the national average.
D) Women-owned companies are far less likely to attract equity capital investments as those that
men start.

Answer: C

16) percent of all U.S. businesses are family-owned and managed.

A) Twenty-five
B) Fifty
C) Seventy
D) Ninety

Answer: D

17) Which of the following is not a characteristic of a successful working relationship between

copreneurs?

A) A clear definition of one partner as "boss" and the other as "subordinate".

B) Compatible business and life goals.
C) Complementary business skills.
D) A clear division of roles and authority based on each partner's skills and abilities.

Answer: A

18) Which of the following is a characteristic of copreneurs?

A) Mutual respect
B) Complementary business skills
C) A clear division of roles and authority
D) All of the above

Answer: D

19) Approximately percent of corporate managers who are "cast off" as companies

downsize become entrepreneurs.

A) 5
B) 15
C) 20
D) 45
Answer: C

12
20) Melinda and John Perez, both corporate attorneys in New York City, have grown tired of their

lengthy daily commute, the stress of their jobs, and the overbearing policies of their employers.

They have decided to leave their six-figure jobs and together open a guide service inWyoming.

Melinda and John are examples of .

A) corporate castoffs and corporate dropouts

B) corporate dropouts and copreneurs
C) corporate castoffs and copreneurs
D) copreneurs and serial entrepreneurs

Answer: B

21) Women now own 30.4 percent of all privately-held businesses in the United States.

Answer: TRUE

22) Women play a minor role in the entrepreneurial arena.

Answer: FALSE

23) Starting a part-time business is a popular gateway to entrepreneurship.

Answer: TRUE

24) Increasing numbers of women are discovering that the best way to break the "glass ceiling"

that prevents them from rising to the top of many organizations is to start their own companies.

Answer: TRUE

25) Diversity may be considered a characteristic of entrepreneurs, as they don't fit any statistical

norm.

Answer: TRUE

26) Minority-owned businesses have come a long way in the past decade, and their success rate is

climbing.

Answer: TRUE

27) Not all family-owned businesses are small; in fact, approximately one-third of the Fortune

500 companies are family businesses. Answer: TRUE

13
28) Of the 27 million businesses in the U.S., about 40 percent are family owned and managed.

Answer: FALSE

29) Ninety-percent of businesses in the United States are family-owned and managed and

account for 62 percent of total U.S. employment.

Answer: TRUE

30) Family-owned and managed businesses account for 78 percent of all new jobs.

Answer: TRUE

31) Most family businesses survive to the fourth generation.

Answer: FALSE

32) Successful "copreneurs" create a division of labor based on expertise.

Answer: TRUE

33) About 20 percent of downsized corporate managers have become entrepreneurs.

Answer: TRUE

34) Corporate downsizing has spawned a generation of entrepreneurs known as "corporate

castoffs."

Answer: TRUE

35) Because they have college degrees, a working knowledge of business, and years of

management experience, both corporate castoffs and corporate dropouts who become

entrepreneurs will most likely increase the small business survival rate.

Answer: TRUE

36) Of the 28 million businesses in the United States, more than percent are

considered small.

A) 50
B) 75
C) 88
D) 99 Answer: D

14
37) According to the U.S. Small Business Administration, a common delineation of a small

business is one that employs fewer than people.

A) 50
B) 100
C) 250
D) 500

Answer: B

38) The nation's small businesses .

A) employ more than 49 percent of the nation's private sector workforce

B) create more jobs than do big businesses
C) account for 47 percent of business sales
D) All of the above

Answer: D

39) Small companies .

A) created fewer jobs than big companies in the last decade

B) are concentrated in the manufacturing and retail sectors
C) are the leaders in offering training and advancement opportunities to workers
D) account for approximately 10 percent of the nation's GDP and 25 percent of business sales

Answer: C

40) The majority of small companies are concentrated in the and industries.

A) manufacturing; retail
B) manufacturing; service
C) retail; service
D) wholesale; retail

Answer: C

41) Research shows that the top-performing percent of small companies create 67

percent of the net new jobs in the economy.

A) 90
B) 80
C) 5
D) 10 Answer: C

15
42) Small companies are incubators of new sales ideas, products and services and create

times more patents per employee than large companies.

A) 3
B) 5
C) 10
D) 16

Answer: D

43) "Gazelles" are those businesses that grow at 20 percent or more per year for four years and

gross at least $100,000 in annual sales.

Answer: TRUE

44) Small companies have created at least two-thirds of the net new jobs in the U.S. economy.

Answer: TRUE

45) Small businesses actually create more jobs than the number of jobs big businesses create.

Answer: TRUE

46) Large companies create significantly more patents and other forms of innovations per

research and development dollars spent than small firms.

Answer: FALSE

47) Because of their size and limited resources, small businesses rarely create innovations thatare

important to the U.S. economy.

Answer: FALSE

48) About 75 percent of the businesses in the U.S. can be considered "small" businesses.

Answer: FALSE

49) The primary cause of small business failure is lack of capital.

Answer: FALSE

50) Entrepreneurs realize that failure is a possibility, but are not paralyzed by that fear.

Answer: TRUE

16
1) Discuss the impact of small businesses on the U.S. economy, including sales, GDP, job

creation, and innovation.

Answer: The resurgence of the entrepreneurial spirit is the most significant economic development

in recent business history. Small businesses have introduced innovative products and services,

pushed back technological frontiers, created new jobs, opened foreign markets, andin the process,

sparked the U.S. economy into regaining its competitive advantage in the world. Approximately 99

percent of all businesses in the U.S. are small businesses. They employ 49.2 percent of the nation's

private sector workforce, created 64 percent of new jobs in the U.S. between 1993 and 2011,

produce 46 percent of the country's private GDP, and account for 47 percent of business sales.

2) One hallmark of successful entrepreneurs is the ability to .

A) be willing to gamble
B) fail intelligently
C) overlook past successes
D) repeat the same mistake

Answer: B

3) About 51 percent of new businesses fail within five years.

Answer: TRUE

4) John has come to you for advice on starting a business venture. He wants to know the best

way to gain the experience he'll need. You suggest that he .

A) read a small business book

B) seek knowledge and experience in the field he wishes to enter
C) determine his weaknesses and return to school for a term or two
D) just jump in and learn as he goes

Answer: B

5) Most startup companies can expect to need capital than they anticipate.

A) less

17
 A) the same
B) more
C) within 10% of the

Answer: C

51) The primary cause of small business failures is .

A) the lack of capital

B) management mistakes
C) poor location
D) improper inventory control

Answer: B

52) The only people who are those who never do anything or never attempt anything

new.

A) succeed
B) prosper
C) profit
D) fail

Answer: D

53) Which of the following was not identified as one of the suggestions for small business

success?

A) Develop a business plan as you grow your business.

B) Manage your financial resources and understand financial statements.
C) Know your business in depth.
D) Learn to manage people successfully.

Answer: A

54) Which of the following is/are true regarding business plans?

A) Provide a pathway to success.

B) Allow entrepreneurs to replace faulty assumptions with facts before making the decision to go
into business.
C) Create a benchmark against which entrepreneurs can measure actual company performance.
D) All of the above

Answer: D

18
1) Most entrepreneurs believe that is what matters most, but is the most

important financial resource for a small business owner.

A) cash; profit
B) profit; cash
C) profit; inventory
D) inventory; cash

Answer: B

2) Entrepreneurs can increase their chances for success if they .

A) know their business in depth and develop a solid business plan

B) manage their financial resources and understand financial statements
C) learn to manage people and keep in touch with how they react to stress and balance their
health needs with the needs of the business
D) All of the above

Answer: D

3) Most entrepreneurs have invested the time to develop a sound business plan.

Answer: FALSE

4) Too many entrepreneurs start their business undercapitalized.

Answer: TRUE

5) The faster a small company grows, the greater its appetite for cash.

Answer: TRUE

6) To boost sales, small businesses, especially start-ups, should grant credit to anyone who

wants to buy their products or services.

Answer: FALSE

7) As an entrepreneur, you are always working for someone else - your customers.

Answer: TRUE

8) Establishing prices that will generate the necessary profits means that business owners must

understand how much it costs to make, market, and deliver their products and services.

Answer: TRUE

19
1) If an entrepreneur has a good enough product or service to sell, a business plan is not really

necessary since the product or service will sell itself.

Answer: FALSE

2) Successful entrepreneurs recognize that their most valuable asset is their time, and they learn

to manage it effectively to make themselves and their companies more productive; havingpassion

about their businesses, products, and customers enables them to stay motivated.

Answer: TRUE

3) Expanding a business usually requires no significant changes in structure or business

practices.

Answer: FALSE

20
34) The ability to develop new ideas and to discover new ways of looking at problems and

opportunities is called .

A) entrepreneurship
B) innovation
C) creativity
D) creative thinking

Answer: C

35) An entrepreneurial "secret" for creating value in the marketplace is _.

A) applying creativity and innovation to solve problems

B) creating new products and services
C) learning by doing
D) applying lessons learned from history

Answer: A

36) The ability to apply creative solutions to problems and opportunities to enhance or to enrichpeople's

lives is called .

A) entrepreneurship
B) innovation
C) creativity
D) creative thinking

Answer: B

37) Harvard's Ted Levitt says that creativity is new things, and innovation is new

things.

A) thinking; doing
B) doing; thinking
C) seeing; doing
D) thinking; applying

Answer: A

38) Entrepreneurship is a constant process that relies on .

A) creativity, innovation, and profit

B) the ability to win over the consumer

21
 C) creativity, innovation, and application in the marketplace
D) intellectual property rights
Answer: C

39) is necessary for building a competitive advantage and for business survival.

A) One single idea

B) A motivated owner

C) Creativity

D) A low-priced product

Answer: C

40) Creativity is the ability to apply creative solutions to problems and opportunities to enhance orenrich

people's lives.

Answer: FALSE

41) Innovation is the ability to develop new ideas and to discover new ways of looking atproblems

and opportunities.

Answer: FALSE

42) Creativity is the ability to develop new ideas and to discover new ways of looking at problemsand

opportunities.

Answer: TRUE

43) Innovation is the ability to apply creative solutions to problems and opportunities to enhanceor enrich

people's lives.

Answer: TRUE

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

Answer: FALSE

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

Answer: TRUE

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

Answer: TRUE

22
47) For every 5,000 to 10,000 new drug discoveries, only about five make it to clinical trials andonly one

typically gets to the market.

Answer: TRUE

48) When developing creative solutions to modern problems, entrepreneurs must .

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

B) limit the creative process to only profitable ventures
C) remember what has worked in the past
D) pay attention to limiting factors

Answer: A

49) Although creativity sometimes involves generating something from nothing, it more likelyresults in

elaborating on the present, putting old things together in new ways, or taking something away to create

something simpler or better.

Answer: TRUE

50) Creativity is not only an important source for building a competitive advantage, but it also isnecessary

for survival.

Answer: TRUE

51) History is always a reliable predictor of the future of business.

Answer: FALSE

52) Entrepreneurs must embrace traditional assumptions and perspectives about how thingsought to be

because they support creativity.

Answer: FALSE

53) Research into the operation of the human brain shows that each hemisphere of the brain

A) develops symmetrically
B) controls similar functions
C) does not dominate the other hemisphere
D) processes information differently

Answer: D

23
54) The left brain is guided by .

A) kaleidoscopic, lateral thinking

B) linear, vertical thinking
C) asymmetrical thinking
D) intuitive thinking

Answer: B

55) The right brain is guided by .

A) kaleidoscopic, lateral thinking

B) linear, vertical thinking
C) asymmetrical thinking
D) logical thinking

Answer: A

56) Which hemisphere of the brain is responsible for language, logic, and symbols?

A) Right hemisphere
B) Left hemisphere
C) Lateral hemisphere
D) Intuitive hemisphere

Answer: B

57) Which hemisphere of the brain is responsible for the body's emotional, intuitive, and spatialfunctions?

A) Right hemisphere
B) Left hemisphere
C) Vertical hemisphere
D) Logical hemisphere

Answer: A

58) Which hemisphere of the brain processes information in a step-by-step fashion?

A) Right hemisphere
B) Left hemisphere
C) Lateral hemisphere
D) Intuitive hemisphere

Answer: B

24
59) Which hemisphere of the brain processes information all at once and by relying heavily onimages?

A) Right hemisphere
B) Left hemisphere
C) Vertical hemisphere
D) Logical hemisphere

Answer: A

60) vertical thinking is narrowly focused and systematic, proceeding in a highlylogical

fashion from one point to the next.

A) Left-brained
B) Right-brained
C) Unconventional
D) Intuitive

Answer: A

61) lateral thinking is somewhat unconventional and unstructured.

A) Left-brained
B) Right-brained
C) Systematic
D) Logical

Answer: B

62) Creative thinking involves research into the operation of the human brain and the roles eachhemisphere

of the brain plays.

Answer: TRUE

63) Successful entrepreneurship requires left-brain thinking.

Answer: FALSE

64) The left brain is guided by linear, vertical thinking.

Answer: TRUE

65) The left brain relies on kaleidoscopic, lateral thinking.

Answer: FALSE

25
66) The right brain is guided by linear, vertical thinking. Answer: FALSE

67) The right brain relies on kaleidoscopic, lateral thinking.

Answer: TRUE

68) The left brain handles language, logic, and symbols.

Answer: TRUE

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

Answer: TRUE

70) The right brain processes information intuitively - all at once, relying heavily on images.

Answer: TRUE

71) Right-brain thinking draws on the power of divergent reasoning, which is the ability to createa 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.

Answer: TRUE

72) Entrepreneurship requires both left- and right-brained thinking.

Answer: TRUE

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

Answer: TRUE

74) Right-brain thinking is much like the image of a kaleidoscope.

Answer: TRUE

75) The left brain processes information intuitively - all at once, relying heavily on images.

Answer: FALSE

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

Answer: FALSE

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

Answer: TRUE

26
78) Left-brained individuals realize that there may be more than one right answer.

Answer: FALSE

79) The rapidly accelerating rate of change has created an environment in which staying in aleadership

position requires constant creativity, innovation, and entrepreneurship.

Answer: TRUE

80) All of the following represent barriers to creativity that entrepreneurs impose uponthemselves

except .

A) focusing on being too logical

B) being too practical
C) blindly following rules
D) searching for more than one answer

Answer: D

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

Answer: TRUE

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

Answer: TRUE

83) Businesses typically foster an environment that encourages creativity.

Answer: FALSE

84) Failure is an important part of the creative process, as it provides a chance to learn how tosucceed.

Answer: TRUE

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

A) expecting and tolerating failure

B) avoiding problems
C) limiting rewards
D) not taking chances

Answer: A

27
86) Which of the following is not one of the ways entrepreneurs can stimulate their owncreativity

and encourage it among their workers?

A) Provide creativity training.

B) Encourage curiosity.
C) View challenges as problems.
D) Develop a corporate culture that both fosters and rewards creativity.

Answer: C

87) Employees must be given the tools and resources they need to be creative. One of the mostvaluable set

of resources is .

A) setting limits and providing challenges

B) establishing rules and guidelines
C) time, support and encouragement
D) reinforce traditional problem solving methods

Answer: C

88) The environment has an impact on the level of people's creativity.

A) physical
B) sounds in the
C) external
D) internal

Answer: A

89) All of the following are enhancements to individual creativity except .

A) keeping a journal to record thoughts and ideas

B) limiting your reading sources
C) taking time off
D) allowing yourself to be creative

Answer: B

90) Which of the following is not an enhancement to individual creativity?

A) Listening to other people.

B) Recognizing the creative power of mistakes.
C) Keeping a toy box in your office.
D) Working without breaks until the project is complete or the problem is solved.

Answer: D

28
91) Which of the following sets of experiences may enhance individual creativity?

A) Travel and recognize the creative power of mistakes and accidents.

B) Notice what is missing.
C) Journal and listen to people and customers.
D) All the above

Answer: D

92) Entrepreneurs can encourage creative thinking in their employees by setting examples ofcreative

behavior and rewarding creative behavior when exhibited by their employees.

Answer: TRUE

93) Enhancing individual creativity may be cultivated through such activities as modeling,

encouragement, recognition, allowing failure, listening, talking to children, and taking time off.

Answer: TRUE

94) List five ways entrepreneurs can stimulate their own creativity and encourage it among workers.

Answer: The five ways entrepreneurs can stimulate their own creativity and encourage it is a :

• subset of the following list:

• Include creativity as a core company value.
• Hire for creativity.
• Expect creativity.
• Expect and tolerate failure.
• Encourage curiosity.

95) List five ways individuals can enhance their own creativity.

Answer: The five ways individual creativity can be enhanced should come from the followinglist:

• Allow yourself to be creative.

• Forget the rules.
• Observe products of other companies, especially in completely different markets.
• Keep a journal handy to record your thoughts and ideas.
Listen to other people.

29
96) Which stage of the creative process includes on-the-job training?

A) Implementation
B) Preparation
C) Illumination
D) Verification

Answer: B

97) Which stage of the creative process requires one to develop a solid understanding of theproblem or

decision?

A) Investigation
B) Preparation
C) Illumination
D) Verification

Answer: A

98) Which stage of the creative process involves viewing the similarities and differences in the

information collected?

A) Transformation
B) Incubation
C) Illumination
D) Verification

Answer: A

99) The ability to see the similarities and the connections among various data and events is called

A) convergent thinking
B) divergent thinking
C) transformational thinking
D) illumination

Answer: A

100) The ability to see the connections among various data and events is called .

A) convergent thinking
B) divergent thinking
C) transformational thinking
D) illumination
Answer: A

30
101) thinking is the ability to see similarities and thinking is the ability to seedifferences

among various data and events.

A) Divergent; convergent
B) Convergent; divergent
C) Convergent; transformational
D) None of the above

Answer: B

102) At which stage of the creative process does a spontaneous breakthrough occur, allowing allof the

previous stages to come together to produce the "Eureka factor" or the "light bulb goes on"?

A) Implementation
B) Preparation
C) Illumination
D) Verification

Answer: C

103) "Verification" refers to .

A) validating the idea as accurate and useful

B) possibly conducting experiments, running simulations, and test marketing a product or service
C) possibly asking questions such as "will it work?" and "is it really a better solution?"
D) All of the above

Answer: D

104) The focus of which of the following step in the creative process is to transform the idea intoreality?

A) Implementation
B) Preparation
C) Illumination
D) Verification

Answer: A

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

Answer: TRUE

31
106) "Convergent thinking" is the ability to see the differences among data and events.

Answer: FALSE

107) "Divergent thinking" is the ability to see similarities and connections among various data andevents.

Answer: FALSE

108) The illumination stage of the creative process is often called the "Eureka factor" and is

characterized by a spontaneous breakthrough.

Answer: TRUE

109) List and briefly explain the seven steps in the creative process and discuss the step that youconsider to

be the most critical.

Answer:

1. Preparation

Get your mind ready for creative thinking through formal education, OJT, work experience, etc.This helps to

build creativity and innovation.

2. Investigation

Develop a solid understanding of the problem or decision.

3. Transformation

View the similarities and differences in the information collected.

4. Incubation

Take time to reflect on the information collected.

5. Illumination

A spontaneous breakthrough occurs, causing the "light bulb to go on." All of the previous stagescome

together to produce the "Eureka factor."

6. Verification

Validate the idea as accurate and useful. May include conducting experiments, running

32
simulations, test marketing a product or service, etc. to verify that the new idea will work and ispractical.

7. Implementation

Transform the idea into reality.

110) is a process in which a small group of people interacts to produce a large quantityof

imaginative ideas.

A) Groupthink
B) Mind-mapping
C) Brainstorming
D) Prototyping

Answer: C

111) Effective brainstorming involves all of the following except .

A) a small group of people

B) an open, uninhibited environment
C) an effective method to evaluate ideas
D) very little structure

Answer: C

112)Creativity often involves creating something from nothing. However, it is more likely to

result in .

A) elaborating on the present

B) putting old things together in new ways
C) taking something away to create something simpler or better
D) All of the above

Answer: D

113) Which of the following question(s) should you consider before entering a lawsuit to protectintellectual

property?

A) Can you afford the loss of time, money, and privacy the lawsuit will bring?
B) Can the opponent afford to pay if you win?
C) Do you expect to get enough from the suit to pay for the costs of hiring an attorney?
D) All of the above

Answer: D

33
114) To protect patent claims, an inventor should be able to verify and document the .

A) research conducted to create the invention

B) fact that the invention was created in another country
C) date on which the idea was first conceived
D) initial sales of the invention

Answer: C

115) A is an exclusive right that protects the creators of original works such asliterary,

dramatic, musical, and artistic works.

A) trademark
B) patent
C) copyright
D) service mark

Answer: C

116) "Verification" refers to .

A) validating the idea as accurate and useful

B) possibly conducting experiments, running simulations, and test marketing a product or service
C) possibly asking questions such as "will it work?" and "is it really a better solution?"
D) All of the above

Answer: D

117)Hiring a diverse workforce .

A) helps in cultivating organizational creativity

B) allows for different ideas and varying methods of problem solving
C) brings in people from different backgrounds, with different cultural experiences, hobbies, and
A) interests
D) All of the above

Answer: D

118) Any distinctive word, phrase, symbol, name, or logo a firm uses to distinguish itself or itsproducts is

called a .

A) trademark
B) patent
C) copyright
D) service mark Answer: A

34
78) The ability to apply creative solutions to problems and opportunities to enhance or to enrich

people's lives is called .

A) entrepreneurship
B) innovation
C) creativity
D) creative thinking

Answer: B

79) What is the entrepreneurial "secret" for creating value in the marketplace?

Answer: Creativity and innovation should be used in combination to allow the entrepreneur to

solve real-world problems and to exploit opportunities and the profits that come with them.

Creativity should always be directed and complement the business plan. Creativity is the abilityto

develop new ideas and to discover new ways of looking at problems and to exploit opportunities

that people face every day. Innovation is the ability to apply creative solutions tothose problems

and opportunities to enhance and enrich people's lives.

80) Research shows that anyone can learn to be creative. The problem is .

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

B) most people never tap into their pools of innate creativity
C) most people have never been taught to be creative
D) All of the above

Answer: D

81) While most people see what they have always seen, creative entrepreneurs are able to see

beyond preconceptions.

Answer: TRUE

82) 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. Answer: TRUE

35
83) The left brain handles language, logic, and symbols.

Answer: TRUE

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

Answer: TRUE

85) The right brain processes information intuitively - all at once, relying heavily on images.

Answer: TRUE

86) 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.

Answer: FALSE

87) Successful entrepreneurs push technological and economic boundaries forward in creative

ways and sometimes make unconventional decisions.

Answer: TRUE

88) Ambiguity tends to destroy creativity.

Answer: FALSE

89) Employees tend to rise or fall to the level of expectations entrepreneurs have of them.

Answer: TRUE

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

Answer: FALSE

91) Entrepreneurs can encourage creative thinking in their employees by setting examples of

creative behavior and rewarding creative behavior when exhibited by their employees.

Answer: TRUE

92) During the incubation phase of the creative process, the entrepreneur might do all of the

following except which of the following to let ideas "marinate" in his mind?

A) Do something totally unrelated for a while.

B) Relax and play regularly.

36
 C) Work on the problem or opportunity in a different environment.
D) Don't allow one's self to daydream.

Answer: D

93) 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.

Answer: TRUE

94) The typical entrepreneurial philosophy for implementation is "Ready, aim, aim, aim..."

Answer: FALSE

95) 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.

A) Brainstorming
B) Mind mapping
C) Prototyping
D) Groupthink

Answer: B

96) Mind mapping is a useful tool for jump-starting creativity. It includes all of the following

except .

A) sketching a picture to symbolize the problem or area of focus in the center of a sheet of paper
B) writing down every idea that comes into your mind, connecting each idea to the central picture
C) allowing your mind to rest for a few minutes before integrating the ideas
D) forcing creativity when ideas start to trickle

Answer: D

97) The technique of uses three columns that allow the entrepreneur to weigh both the

advantages and the disadvantages of a particular decision and work to maximize the variables that

support it while minimizing those that work against it.

A) force-field analysis
B) TRIZ

37
 C) brainstorming
D) mind mapping

Answer: A

98) The "theory of inventive problem solving" is a left-brained, scientific, systematic process

based on innovative patents and is referred to as .

A) JIT
B) RP
C) TQM
D) TRIZ

Answer: D

99) The premise behind is that transforming an idea into an actual model will lead to

improvements in its design.

A) rapid prototyping
B) mind-mapping
C) brainstorming
D) inventions

Answer: A

100) The three principles (three Rs) of rapid prototyping are .

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

B) develop a complete model, rapidly, and for the right problem
C) develop a rough model, rapidly, and for the right problem
D) develop a right model, roughly, and for the right price

Answer: C

101) When "brainstorming," individuals should be encouraged to use "idea hitchhiking," or

building new ideas on those already suggested.

Answer: TRUE

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

Answer: TRUE

38
78) 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.

Answer: TRUE

79) Steps in the patent process include .

A) establishing whether it is a novelty

B) documenting and verifying the date the idea was first conceived
C) searching existing patents
D) All of the above

Answer: D

80) To which governmental office must applications for patents be submitted?

A) The U.S. Patent and Trademark Office

B) The individual State Offices of Patent Development
C) The Federal Trade Commission
D) The Securities and Exchange Commission

Answer: A

81) More than percent of those holding patents win their infringement suits.

A) 15
B) 30
C) 45
D) 66

Answer: D

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

Answer: FALSE

83) A patent gives the inventor the exclusive right to make, use, or sell an invention for 50

years.

Answer: FALSE

84) Trademarks are distinctive words, symbols, designs, names, or logos used for company

identification. Answer: TRUE

39
103) A service mark offers a different kind of protection but distinguishes the source of a product

rather than a service.

Answer: FALSE

104) Trade dress is the unique combination of elements that a company uses to create a product's

image and to promote it.

Answer: TRUE

105) The major problem with relying on the legal system to enforce ownership rights is the costof

infringement lawsuits, which can quickly exceed the budget of most small businesses.

Answer: TRUE

106) The U.S. Copyright Office does not require registering the creative work because

registering it does not give creators greater protection over their work.

Answer: FALSE

107) List the steps an entrepreneur should follow to enhance his/her chances of receiving a

patent.

Answer: An entrepreneur should follow these six steps to enhance his/her success in receiving apatent:

1. Establish the invention's novelty.

2. Document the device.
3. Search existing patents.
4. Study search results.
5. Submit the patent application.
6. Prosecute the patent application.

Done & collected by :

Bader Alqadi
Edited by :
Najeeb Juwaied & Sumaya Ayman
k

40