1. The initial stages of the entrepreneurial process are generating new business ideas (i.e. creativity and innovation) and recognizing opportunities that have the potential for exploitation (i.e. evaluation and selection).

1. True
2. False

2. Which of the following is a disadvantage of the ‘drafting a traditional business plan’ approach?

1. Business plans do not reflect the way in which people shape their entrepreneurial visions.
2. It can be difficult to explain your vision to other people.
3. This approach lacks rigour.
4. The process involved can help an entrepreneur to improve their own understanding of the business concept.

3. Which of the following is NOT one of the definitions of ‘business models’ as identified in the text?

1. The system of components, linkages and associated dynamics, which that make commercial advantage of the Internet.
2. A business model describes the rationale of how an organization creates, delivers and captures value.
3. Business models identify where the resources necessary to establish a venture will come from.
4. Business models describe, as a system, how the pieces fit together.

4. Which of the following are ‘drivers’ underlying the opportunity business model?

1. Strengths, Weaknesses, Opportunities, Threats
2. People, Place, Process, Profit, Proposition
3. Personal, Societal, Commercial, Legal, Technological

5. Why is the notion of ‘vision’ important in entrepreneurship?

1. Without it there is no driving force or sense of direction.
2. People need a sense of fantasy in order to create ambitious ventures.
3. Investors prefer to invest in visionaries.
4. Having a vision helps to create a paradigm shift.