PART A: MULTIPLE CHOICE QUESTIONS (1 mark each)
1. What is the main difference between creativity and innovation?
A. Creativity is idea execution, innovation is idea generation
B. Creativity is the ability to generate ideas; innovation is converting them to
useful products ✅
C. Innovation is the cause of creativity
D. Creativity and innovation mean exactly the same thing
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2. Which of the following is NOT a stage in the creative process according to
Holt?
A. Illumination
B. Verification
C. Ideation ✅
D. Incubation
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3. What does the incubation stage in the creative process involve?
A. Final production of the product
B. Ignoring the idea for a long time
C. Allowing the subconscious mind to process the idea ✅
D. Creating a prototype
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4. Which of the following encourages creativity the most?
A. Fear of failure
B. Fixed thinking
C. Rigid leadership
D. Tolerant and flexible environment ✅
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5. Which of these best describes a radical innovation?
A. Minor improvement to a product
B. Repackaging an old product
C. Complete transformation leading to new dominant designs ✅
D. Technical adjustment in one component
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6. What stage in the innovation cycle involves advertising and informing
people?
A. Develop
B. Make
C. Sell ✅
D. Investigate
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7. The term "T-shaped mind" refers to someone with:
A. No knowledge
B. Broad knowledge and deep expertise in one or two areas ✅
C. Narrow and deep knowledge only
D. Surface-level expertise
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8. Which of the following is a form of product-market innovativeness?
A. Patent filing
B. Technological testing
C. Market research and product design ✅
D. Reconfiguring organizational systems
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9. Which of these is NOT a characteristic of a creative individual?
A. Extremely objective
B. Energetic yet calm
C. Always introverted ✅
D. Passionate yet analytical
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10. The successful exploitation of new ideas is called:
A. Creativity
B. Invention
C. Innovation ✅
D. Brainstorming
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11. Which of the following is the final stage in the creative process?
A. Illumination
B. Germination
C. Incubation
D. Verification ✅
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12. A creative manager is responsible for:
A. Eliminating risky ideas
B. Managing production only
C. Overseeing idea generation and application ✅
D. Avoiding changes
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13. Which of the following is NOT a type of innovation by Moore (2004)?
A. Disruptive innovation
B. Experiential innovation
C. Cultural innovation ✅
D. Structural innovation
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14. An entrepreneur thinking of new ways to package an existing product is
displaying:
A. Modular innovation ✅
B. Radical innovation
C. Incremental innovation
D. Structural innovation
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15. Which of the following best describes “application innovation”?
A. Creation of new hardware
B. Applying known technologies to new markets ✅
C. Rebranding
D. Removing old product lines
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PART B: TRUE OR FALSE (1 mark each)
16. Innovation is only possible without creativity.
❌ False ✅
17. Entrepreneurs benefit from the illumination stage because it transforms
vague ideas into real ones.
✅ True ✅
18. The ideation process is unnecessary in the formation of startups.
❌ False ✅
19. A creative person must always follow gender role expectations.
❌ False ✅
20. The environment has no impact on creativity.
❌ False ✅
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PART C: MATCHING (Match the stage to its description) (1 mark each)
Stage Description
21. Idea Germination A. Idea surfaces as reality
22. Illumination B. Refining knowledge into useful application
23. Incubation C. Problem is left to subconscious
24. Preparation D. Conscious search for answers
25. Verification E. Interest in subject arises
Correct Matchings:
21 → E ✅
22 → A ✅
23 → C ✅
24 → D ✅
25 → B ✅
PART A CONTINUED: MULTIPLE CHOICE QUESTIONS
26. Which of the following is a key component of innovation management?
A. Copying ideas from competitors
B. Managing creativity as a financial portfolio
C. Guiding ideas through the innovation cycle ✅
D. Limiting idea generation
27. What is the first step in the innovation cycle?
A. Sell
B. Investigate
C. Ideas ✅
D. Resources
28. Which of the following forms of innovation changes the way components
link together?
A. Modular Innovation
B. Radical Innovation
C. Architectural Innovation ✅
D. Technological Innovation
29. What kind of innovation aims at better customer experience?
A. Experiential Innovation ✅
B. Modular Innovation
C. Radical Innovation
D. Process Innovation
30. The process of gaining full company acceptance of an innovation is
known as:
A. Commercialization
B. Diffusion ✅
C. Experimentation
D. Advocacy
31. What form of innovation is described as “reframing a company’s value
proposition”?
A. Structural Innovation
B. Business Model Innovation ✅
C. Product Innovation
D. Technological Innovation
32. A disruptive innovation typically results in:
A. Small modifications
B. Repackaged products
C. Creation of a new market ✅
D. Rebranding of old products
33. Which phase of innovation ensures the idea solves a real customer
problem?
A. Commercialization ✅
B. Diffusion
C. Screening
D. Incubation
34. Creativity is linked to:
A. Rigid thinking
B. Fixed intelligence
C. Flexibility and tolerance for ambiguity ✅
D. Physical strength
35. According to the course, creativity can lead to:
A. Reduced productivity
B. New employment taxes
C. Socio-economic growth ✅
D. Market saturation
PART B CONTINUED: TRUE OR FALSE
36. Creative thinking allows redefining challenges to create new products.
✅ True ✅
37. Innovation cannot happen without large financial investments.
❌ False ✅
38. Administrative innovation focuses on new marketing strategies only.
❌ False ✅
39. Process innovation is mainly about improving internal business
procedures.
✅ True ✅
40. Environmental factors have no effect on creativity in individuals.
❌ False ✅
✅ OBJECTIVE QUESTIONS: MULTIPLE CHOICE
41. Which of the following is a component of individual creativity as proposed
by Adams (2005)?
A. Team collaboration
B. Physical exercise
C. Environment conducive to idea recombination ✅
D. Daily task repetition
42. What stage of the creative process involves seeking information and
researching a problem?
A. Incubation
B. Illumination
C. Preparation ✅
D. Verification
43. Who defines innovation as the specific instrument of entrepreneurs to
exploit change?
A. Luecke and Katz
B. Shaw et al.
C. Zimmerer, Scarborough, and Wilson ✅
D. Desouza and Jha
44. A mindset that challenges the status quo is best described as:
A. Passive
B. Conservative
C. Innovative ✅
D. Analytical
45. Which of the following best explains “synergistic thinking”?
A. Following step-by-step routines
B. Combining unrelated ideas to form new concepts ✅
C. Copying competitor’s strategy
D. Rigid reasoning process
46. The phase in the innovation process that deals with evaluating an idea’s
cost and benefit is:
A. Mobilization
B. Advocacy and Screening ✅
C. Diffusion
D. Service
47. What does “market segmentation” involve?
A. Setting prices
B. Breaking the market into smaller customer groups ✅
C. Ignoring customer differences
D. Increasing product prices
48. Which innovation form focuses on new ways of doing business, like
Apple’s shift into retailing?
A. Structural Innovation
B. Marketing Innovation
C. Business Model Innovation ✅
D. Application Innovation
49. A firm that adopts a “boundary-less brainstorming” culture is
encouraging:
A. Competition
B. Risk avoidance
C. Innovation ✅
D. Monotony
50. What does the “make” stage in the innovation cycle involve?
A. Brainstorming
B. Product testing
C. Beginning production ✅
D. Advertising
51. Incremental innovation involves:
A. Starting a new market from scratch
B. Completely changing core technologies
C. Minor improvements to existing designs ✅
D. Applying one technology to another field
52. Which of the following is a characteristic of a creative personality?
A. Dislikes ambiguity
B. Fixed mindset
C. High tolerance for uncertainty ✅
D. Unwilling to try new ideas
53. What innovation type focuses on making internal operations more
efficient?
A. Experiential Innovation
B. Structural Innovation
C. Process Innovation ✅
D. Product Innovation
54. According to the outline, one purpose of ideation is to:
A. Close down failing businesses
B. Copy from competitors
C. Generate value-driven ideas ✅
D. Repeat what others have done
55. What does the verification stage in the creative process do?
A. Ignites curiosity
B. Assesses real-life usefulness ✅
C. Adds entertainment
D. Encourages illusions
56. What is the function of the “resources” stage in the innovation cycle?
A. Conduct customer interviews
B. Organize tools, people, and funds ✅
C. Begin marketing
D. Design prototypes
57. According to the course, a “creative manager” is one who:
A. Works only with routine procedures
B. Resists change in the business
C. Guides and harnesses creative efforts ✅
D. Avoids innovation
58. Application innovation involves:
A. Using existing technology in a new way ✅
B. Scrapping old technologies
C. Creating brand-new software
D. Repeating previous ideas
59. What is the final phase in successful innovation according to Desouza et
al.?
A. Idea Generation
B. Experimentation
C. Diffusion and Implementation ✅
D. Commercialization
60. Why is creativity said to be a prerequisite for innovation?
A. It requires zero effort
B. It provides the raw ideas used in innovation ✅
C. It follows innovation
D. It copies existing methods
✅ OBJECTIVE QUESTIONS (61–100)
61. Which of the following is considered a barrier to creativity?
A. Freedom to explore
B. Fear of making mistakes ✅
C. Flexibility
D. Curiosity
62. The creative process where the idea is put aside to allow subconscious
work is called:
A. Germination
B. Verification
C. Incubation ✅
D. Application
63. Innovation that changes core design but not product architecture is:
A. Radical
B. Modular ✅
C. Incremental
D. Architectural
64. A creative person is often:
A. Rigid and always right
B. Passive and inactive
C. Energetic and imaginative ✅
D. Structured and uninterested
65. Creative thinking helps in:
A. Following the norm
B. Increasing risk in business
C. Generating unique solutions ✅
D. Copying strategies
66. The main goal of innovation is to:
A. Imitate other products
B. Avoid risks
C. Create value through new ideas ✅
D. Decrease profits
67. What is the aim of product development?
A. To improve marketing only
B. To replace old products entirely
C. To introduce new or improved products/services ✅
D. To increase employee size
68. An example of architectural innovation is:
A. Adding color to packaging
B. Changing hard drive size without new tech ✅
C. Building a new brand
D. Eliminating competition
69. The term “ideation” refers to:
A. Building a prototype
B. Generating and refining ideas ✅
C. Customer service
D. Advertising campaigns
70. Radical innovation is known for:
A. Slight product changes
B. Market repetition
C. Complete shift in technology and concept ✅
D. Cost-cutting only
71. What makes creativity essential in entrepreneurship?
A. It delays business processes
B. It encourages copying
C. It leads to innovative solutions and growth ✅
D. It discourages experimentation
72. A disruptive innovation often:
A. Maintains market balance
B. Destroys innovation culture
C. Creates entirely new markets ✅
D. Slows down development
73. A person who is quiet but very energetic is likely:
A. Disinterested
B. Creative ✅
C. Inactive
D. Overworked
74. An innovation that improves the customer’s experience is:
A. Experiential innovation ✅
B. Radical innovation
C. Modular innovation
D. Disruptive innovation
75. The process of creating a product for the first time involves which phase?
A. Sell
B. Develop ✅
C. Patent
D. Service
76. The best environment for creative thinking is one that:
A. Encourages conformity
B. Promotes fear
C. Supports freedom and exploration ✅
D. Limits curiosity
77. What is “market niche”?
A. A type of raw material
B. A randomly selected market
C. A specialized segment of the market ✅
D. A list of competitors
78. The customer loyalty process involves:
A. Changing product names
B. Gaining and retaining customers ✅
C. Lowering quality
D. Avoiding market segmentation
79. What is the purpose of business registration in enterprise creation?
A. To waste resources
B. To avoid taxes
C. To operate legally and gain customer trust ✅
D. To increase risk
80. Which of the following is NOT a phase of innovation?
A. Illumination ✅
B. Experimentation
C. Commercialization
D. Diffusion
81. One major reason for studying creativity is to:
A. Ignore innovation
B. Produce copycat businesses
C. Recognize opportunity in problems ✅
D. Promote resistance to change
82. One key skill of an innovative person is:
A. Consistency in tradition
B. Inflexibility
C. Ability to challenge assumptions ✅
D. Avoiding risks
83. Market segmentation is important because it:
A. Increases confusion
B. Helps target specific customers ✅
C. Reduces product options
D. Simplifies advertising
84. In the creative process, illumination represents:
A. Doubt
B. Giving up
C. The “Aha!” moment of clarity ✅
D. Endless confusion
85. Which of these is a myth about innovation?
A. Innovation involves change
B. Innovation requires creativity
C. Innovation is only for tech companies ✅
D. Innovation can bring profit
86. Which type of innovation involves rethinking existing consumer
touchpoints?
A. Marketing innovation ✅
B. Structural innovation
C. Radical innovation
D. Architectural innovation
87. Which of these is not a characteristic of creative individuals?
A. Fixed mindset ✅
B. Imagination
C. Playfulness
D. Curiosity
88. Innovation is most useful when it:
A. Is kept in private
B. Is not implemented
C. Adds value to customer experience ✅
D. Is copied from competitors
89. A firm with high innovativeness is likely to:
A. Stick to old systems
B. Avoid competition
C. Continuously explore new ideas ✅
D. Minimize creativity
90. The first stage of the creative process is:
A. Illumination
B. Verification
C. Idea germination ✅
D. Commercialization
91. Which of the following is a good example of disruptive innovation?
A. Moving a shop to a new street
B. Launch of smartphones disrupting regular phones ✅
C. Changing an office layout
D. Introducing customer service
92. Personal motivation in creativity involves:
A. Bribery
B. Passion and internal drive ✅
C. Imitation
D. Stubbornness
93. What is the best way to promote creativity in a team?
A. Control ideas tightly
B. Allow only senior ideas
C. Encourage brainstorming ✅
D. Stick to routine
94. Which of the following is an example of application innovation?
A. Using drones in agriculture ✅
B. Creating a new app store
C. Running ads on radio
D. Fixing hardware
95. A company protecting its innovation legally is at which stage?
A. Sell
B. Patent ✅
C. Develop
D. Design
96. Creative thinking encourages:
A. Mindless repetition
B. Following fixed rules
C. Challenging current assumptions ✅
D. Avoiding problems
97. The skill acquisition requirement in the course helps students to:
A. Waste time
B. Learn theory only
C. Gain practical entrepreneurial experience ✅
D. Memorize definitions
98. Creative individuals often combine:
A. Inflexibility and discipline
B. Naivety and smartness ✅
C. Arrogance and laziness
D. Passivity and isolation
99. What stage in the innovation cycle is responsible for interacting with
customers?
A. Investigate
B. Service ✅
C. Design
D. Patent
100. The essence of innovation in business is to:
A. Maintain the status quo
B. Encourage tradition
C. Create competitive advantage ✅
D. Eliminate uniqueness