Question 1

When evaluating the effectiveness of the venturing initiatives of a corporation, an assessment needs to be made of the external competencies of the firm in order to determine if goals such as leveraging existing assets, building new knowledge, and enhancing company capabilities are likely to be met.

Accepted Answer

A) True 
 B)False

Question 2

One of the important questions the corporation must address in assessing the effectiveness of its venturing initiatives is that of the sustainability of its basis of competitive advantage.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not part of a culture of entrepreneurship?

Accepted Answer

A)  The search for venture opportunities permeates every part of the organization.
B)  Every value chain activity is viewed as a source of entrepreneurial value creation.
C)  Employees at every level are attuned to opportunities to help create new businesses.
D)  Only those directly involved in the innovation effort are attuned to new opportunities to create business.E) B) and C)
F) All of the above

Question 4

Which kind of risk taking requires that a company borrow heavily or commit a large portion of its resources in order to grow?

Accepted Answer

A)  business risk taking
B)  financial risk taking
C)  personal risk taking
D)  technological risk takingE) A) and B)
F) None of the above

Question 5

Innovations that extend sales in an existing market, usually by enabling new products or services to be sold at higher margins are known as _____________ innovations.

Accepted Answer

A)  radical
B)  disruptive
C)  technology
D)  sustainingE) A) and C)
F) C) and D)

Question 6

One of the potential pitfalls of real options analysis is that managers may have the incentive and know-how to game the system.

Accepted Answer

A) True 
 B)False

Question 7

Strategic renewal and the pursuit of new venture opportunities are the two primary aims of corporate entrepreneurship.

Accepted Answer

A) True 
 B)False

Question 8

There are two major avenues through which companies can expand or improve their business. One is innovation and the other is strategic renewal.

Accepted Answer

A) True 
 B)False

Question 9

Research indicates that leaders of innovative firms spend 50 percent more time on discovery activities than the leaders of less innovative firms.

Accepted Answer

A) True 
 B)False

Question 10

Incremental innovations

Accepted Answer

A)  are usually highly disruptive.
B)  usually represent technological breakthroughs.
C)  are usually small improvements in products and processes.
D)  nearly always can be patented.E) C) and D)
F) None of the above

Question 11

After 15 teams created 128 different phones, Chris Galvin, former CEO of Motorola, eliminated the autonomous teams being used to develop new wireless phones. This was necessary because such teams

Accepted Answer

A)  often lack coordination.
B)  never waste resources on projects with questionable feasibility.
C)  always create inefficiencies through duplication of effort.
D)  never duplicate efforts of the rest of the firm.E) B) and C)
F) All of the above

Question 12

The term skunkworks is used to refer to a type of in-house facility that corporations use to develop entrepreneurial ideas.

Accepted Answer

A) True 
 B)False

Question 13

Firms can act proactively by introducing new products or technological capabilities after the competition has entered the market. Amazon and its online bookselling market is a good example of this.

Accepted Answer

A) True 
 B)False

Question 14

Risk taking can lead to competitive advantage, but it needs to be managed carefully.

Accepted Answer

A) True 
 B)False

Question 15

Whereas ______________ are willing to violate procedures and operate outside normal channels, ______________ gather hard data and develop a strong case for why a project should be killed.

Accepted Answer

A)  senior managers; entrepreneurial leaders
B)  strategic managers; financial managers
C)  exit champions; product champions
D)  product champions; exit championsE) A) and B)
F) B) and C)

Question 16

First movers in an industry often capture above-average profits, but usually find it difficult to maintain early market share gains.

Accepted Answer

A) True 
 B)False

Question 17

The strategic goals of corporate entrepreneurship are often just as important as the financial goals.

Accepted Answer

A) True 
 B)False

Question 18

Strategic reasons for undertaking a corporate venture do not include

Accepted Answer

A)  entering into new markets.
B)  expanding capabilities by acquiring new knowledge.
C)  building the base of corporation resources.
D)  reducing stakeholder commitment.E) A) and B)
F) C) and D)

Question 19

Which of the following dimensions of entrepreneurial orientation is described as a forward-looking perspective characteristic of a marketplace leader that has the foresight to seize opportunities?

Accepted Answer

A)  proactiveness
B)  risk taking
C)  autonomy
D)  competitive aggressivenessE) None of the above
F) A) and C)

Question 20

Which of the following is not one of the dimensions of entrepreneurial orientation?

Accepted Answer

A)  proactiveness
B)  risk taking
C)  autonomy
D)  opportunismE) None of the above
F) A) and C)

Exam 12: Managing Innovation and Fostering Corporate Entrepreneurship

Strategic renewal and the pursuit of new venture opportunities are the two primary aims of corporate entrepreneurship.

Correct AnswerverifiedShow Answer

Strategic reasons for undertaking a corporate venture do not include

Correct AnswerverifiedShow Answer

Risk taking can lead to competitive advantage, but it needs to be managed carefully.

Correct AnswerverifiedShow Answer

Whereas ______________ are willing to violate procedures and operate outside normal channels, ______________ gather hard data and develop a strong case for why a project should be killed.

Correct AnswerverifiedShow Answer

Which of the following dimensions of entrepreneurial orientation is described as a forward-looking perspective characteristic of a marketplace leader that has the foresight to seize opportunities?

Correct AnswerverifiedShow Answer

The strategic goals of corporate entrepreneurship are often just as important as the financial goals.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Firms can act proactively by introducing new products or technological capabilities after the competition has entered the market. Amazon and its online bookselling market is a good example of this.

Correct AnswerverifiedShow Answer

Which of the following is not one of the dimensions of entrepreneurial orientation?

Correct AnswerverifiedShow Answer

After 15 teams created 128 different phones, Chris Galvin, former CEO of Motorola, eliminated the autonomous teams being used to develop new wireless phones. This was necessary because such teams

Correct AnswerverifiedShow Answer

There are two major avenues through which companies can expand or improve their business. One is innovation and the other is strategic renewal.

Correct AnswerverifiedShow Answer

The term skunkworks is used to refer to a type of in-house facility that corporations use to develop entrepreneurial ideas.

Correct AnswerverifiedShow Answer

Innovations that extend sales in an existing market, usually by enabling new products or services to be sold at higher margins are known as _____________ innovations.

Correct AnswerverifiedShow Answer

Research indicates that leaders of innovative firms spend 50 percent more time on discovery activities than the leaders of less innovative firms.

Correct AnswerverifiedShow Answer

One of the potential pitfalls of real options analysis is that managers may have the incentive and know-how to game the system.

Correct AnswerverifiedShow Answer

Which kind of risk taking requires that a company borrow heavily or commit a large portion of its resources in order to grow?

Correct AnswerverifiedShow Answer

Incremental innovations

Correct AnswerverifiedShow Answer

Which of the following is not part of a culture of entrepreneurship?

Correct AnswerverifiedShow Answer

One of the important questions the corporation must address in assessing the effectiveness of its venturing initiatives is that of the sustainability of its basis of competitive advantage.

Correct AnswerverifiedShow Answer

First movers in an industry often capture above-average profits, but usually find it difficult to maintain early market share gains.

Correct AnswerverifiedShow Answer

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Whereas are willing to violate procedures and operate outside normal channels, gather hard data and develop a strong case for why a project should be killed.

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