MGMT 3850 CHAPTER 2
HOMEWORK QUESTION AND
ANSWERS
Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough)
Chapter 2 Inside the Entrepreneurial Mind: From Ideas to Reality
1) 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
Diff: 1 Page Ref: 40
AACSB: Reflective Thinking
Learning Obj.: 1
2) 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
Diff: 2 Page Ref: 40-41
AACSB: Analytic Skills
Learning Obj.: 1
3) 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
Diff: 1 Page Ref: 40
AACSB: Reflective Thinking
Learning Obj.: 1
4) Harvard's Ted Levitt says that creativity is ________ new things, and innovation is ________
new things.
A) thinking; doing
B) doing; thinking
C) seeing; doing
1
,D) thinking; applying
Answer: A
Diff: 2 Page Ref: 40
AACSB: Reflective Thinking
Learning Obj.: 1
2
, 5) Entrepreneurship is a constant process that relies on:
A) creativity, innovation, and profit.
B) the ability to win over the consumer.
C) creativity, innovation, and application in the marketplace.
D) intellectual property rights.
Answer: C
Diff: 3 Page Ref: 40-41
AACSB: Reflective Thinking
Learning Obj.: 1
6) ________ 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
Diff: 1 Page Ref: 42
AACSB: Reflective Thinking
Learning Obj.: 2
7) 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
Diff: 3 Page Ref: 42
AACSB: Reflective Thinking
Learning Obj.: 2
8) 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
Diff: 2 Page Ref: 40-41
AACSB: Reflective Thinking
Learning Obj.: 2
3
HOMEWORK QUESTION AND
ANSWERS
Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough)
Chapter 2 Inside the Entrepreneurial Mind: From Ideas to Reality
1) 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
Diff: 1 Page Ref: 40
AACSB: Reflective Thinking
Learning Obj.: 1
2) 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
Diff: 2 Page Ref: 40-41
AACSB: Analytic Skills
Learning Obj.: 1
3) 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
Diff: 1 Page Ref: 40
AACSB: Reflective Thinking
Learning Obj.: 1
4) Harvard's Ted Levitt says that creativity is ________ new things, and innovation is ________
new things.
A) thinking; doing
B) doing; thinking
C) seeing; doing
1
,D) thinking; applying
Answer: A
Diff: 2 Page Ref: 40
AACSB: Reflective Thinking
Learning Obj.: 1
2
, 5) Entrepreneurship is a constant process that relies on:
A) creativity, innovation, and profit.
B) the ability to win over the consumer.
C) creativity, innovation, and application in the marketplace.
D) intellectual property rights.
Answer: C
Diff: 3 Page Ref: 40-41
AACSB: Reflective Thinking
Learning Obj.: 1
6) ________ 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
Diff: 1 Page Ref: 42
AACSB: Reflective Thinking
Learning Obj.: 2
7) 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
Diff: 3 Page Ref: 42
AACSB: Reflective Thinking
Learning Obj.: 2
8) 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
Diff: 2 Page Ref: 40-41
AACSB: Reflective Thinking
Learning Obj.: 2
3
