Title: Competency Assessment: (CU1 M3) Answer Key
Course: SkillsCom BA 260 15.0

This will not be used, refer to rubric instead.

Answer Key: The potential for success of the idea should not be judged. It is important that the student name the four phases and that the student uses the phases as a framework for answering the question

First phase: background or knowledge accumulation.  (This is the process of reading, conversations with others working in the field, and general absorption of information relative to the problem or issue under study)

The second phase is the incubation process.  (This involves the subconscious, which processes information gathered previously.)

The third phase is idea experience.  (This is when the idea being sought is discovered.  Sometimes the idea comes while performing unrelated tasks.)  This doesn't match up with the description for phase 4 requirements

The final phase is known as evaluation and implementation.  (This phase requires courage, self-discipline, and perseverance.  Ideas are often reworked to obtain a final form.  Most importantly, the entrepreneur doesn't give up.)

The innovation process can be applied to any of the phases above. What is important is if the student references the innovation process in terms of

a. a conscious, purposeful search for new opportunities,

b. followed by an analysis of the sources of new opportunities.

There are many ways to increase creativity;

recognize relationships. (objects, processes, materials, technologies, and people)

when the “climate” is right.   (It is a climate where communication flows between a variety of people and fear of management is rare or nonexistent.  This environment displays a willingness to change and rewards innovation.)

3. Give 3 examples of the dilemmas entrepreneurs face with ethics and laws. This was not included in the instructions as a required component of the assignment, cannot be used to assess the student.

Managerial rationalization.

questionable conduct.

believing that the activity is not “really” illegal or immoral,

the act is in the company’s best interest,

the behavior will not be found out, and the company will condone the act.

The questionable act may seem all right to the manager using these rationalizations, yet is against the laws of the business world and society.

Morality.

LaRue Hosmer’s conclusions concerning legal requirements and moral judgments might overlap but not duplicate the moral standards of society.  First, this results from laws not having any moral content, laws being morally unjust, and moral standards having no legal basis.  Second, legal requirements tend to be negative whereas morality tends to be positive.  Third, legal requirements can lag behind the acceptable moral standards of society.

Economic trade-offs: Economic Trade Offs  occur when

innovations, risk taking, or venture creation are used to stimulate the economic system to create new jobs and new growth.  These qualities produce the trade-off between economic and social welfare.  Some examples are, advertising for cigarettes with death as a possible result; toxic waste dumps invading lakes, streams, and eventually drinking water; minorities being laid off only because they were the last to be hired, and capital gains realized through the advance information of mergers.