Question 1

Which of the following statements about skunkworks is false?

Accepted Answer

A)   They are independent work groups.
B)   They are autonomous.
C)   They refer to a specialized type of outside contractor that corporations use to develop entrepreneurial ideas.
D)   They are used to leverage existing strengths in new arenas to identify new opportunities.E) B) and D)
F) B) and C)

Question 2

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 B)
F) A) and C)

Question 3

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) All of the above

Question 4

According to the characterization of innovations by Professor Clayton Christensen,the rise of the smartphone was ________ innovation rather than ________ innovation.

Accepted Answer

A)   a radical; an incremental
B)   an incremental; a sustaining
C)   a disruptive; a sustaining
D)   a sustaining; a disruptiveE) B) and D)
F) All of the above

Question 5

Creative intelligence involves the ability to see patterns in data,integrating data,and making insights.Which of the following are the four patterns of action managers should to develop more creative and higher potential innovations?

Accepted Answer

A)   observing, experimenting, cataloging, and networking
B)   questioning, observing, integrating, and networking
C)   questioning, observing, experimenting, and networking
D)   observing, experimenting, cataloging, and integratingE) None of the above
F) A) and C)

Question 6

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)   typically waste the CEOs attention.
C)   create efficiencies through duplication of effort.
D)   never duplicate efforts of the rest of the firm.E) All of the above
F) A) and D)

Question 7

In corporations with a strong entrepreneurial culture,the willingness and ability to change

Accepted Answer

A)   is imposed from the top-down.
B)   is considered a core capability.
C)   often leads to instability.
D)   often worries stakeholders such as suppliers and creditors.E) B) and D)
F) B) and C)

Question 8

One of the following statements about innovativeness is false.Which is it?

Accepted Answer

A)   Innovativeness refers to making decisions and taking risks without certain knowledge of probable outcomes.
B)   Innovativeness refers to efforts of a firm to find new opportunities and novel solutions.
C)   Innovativeness involves creativity and experimentation.
D)   Innovativeness is aimed at developing new products, services, and processes.E) A) and D)
F) A) and B)

Question 9

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 10

Walmart has an aggressive pricing structure that has forced smaller,local retailers out of business in many markets.Local cities responded with regulations that make it difficult for Walmart to move into or expand operations in these areas.This is an example of

Accepted Answer

A)   competitive aggressiveness not always leading to competitive advantages.
B)   community regulations not leading to competitive advantages.
C)   competitive aggressiveness always leading to competitive advantages.
D)   community regulations diminishing small business choices.E) A) and C)
F) None of the above

Question 11

The innovation dilemma known as "seeds versus weeds" refers to

Accepted Answer

A)   choosing to pursue radical rather than incremental innovations.
B)   choosing to pursue product rather than process innovations.
C)   promoting organizational stars onto innovation teams rather than involving all employees in innovation efforts.
D)   choosing to pursue investment in one innovative idea over another.E) All of the above
F) A) and D)

Question 12

Explain why the seeds versus weeds dilemma is important.

Accepted Answer

Most companies have an abundance of inno...

Question 13

New technology is an important source of new ideas because it

Accepted Answer

A)   is seen by the customer as being important.
B)   provides the manpower that firms need to make new products and services.
C)   automatically reduces organizational waste.
D)   provides the raw material that firms use to make innovative products and services.E) A) and B)
F) A) and C)

Question 14

The innovation dilemma known as "building capabilities versus collaborating" refers to

Accepted Answer

A)   developing innovation skills internally versus partnering with qualified outsiders.
B)   building innovative products in-house versus outsourcing.
C)   building credibility by launching products ahead of potential collaboration partners.
D)   incrementally launching a product.E) A) and C)
F) B) and C)

Question 15

On average,approximately what percentage of corporate ventures reaches profitability within six years?

Accepted Answer

A)   80 percent
B)   65 percent
C)   50 percent
D)   35 percentE) C) and D)
F) B) and D)

Question 16

Real options analysis (ROA) is an investment analysis tool from the field of finance.When applied to entrepreneurship,it suggests a path that companies can use to manage the ________ associated with launching ________ ventures.

Accepted Answer

A)   certainty; large
B)   risk; stable
C)   uncertainty; new
D)   interests; newE) A) and C)
F) All of the above

Question 17

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)   A select staff are assigned to be attuned to new opportunities to create business.E) None of the above
F) B) and D)

Question 18

Financial risk taking involves the risk an executive assumes in taking a stand in favor of a strategic course of action.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not an advantage of collaborating with strategic partners in order to innovate?

Accepted Answer

A)   obtaining skills and new knowledge from outside sources
B)   making firms identify their own strengths and weaknesses
C)   managers clarifying what an innovation project requires to be successful and who will accomplish it
D)   decreasing economies of scaleE) B) and C)
F) A) and B)

Question 20

Which of the following dimensions of entrepreneurial orientation is described as an independent action by an individual or team aimed at bringing forth a business concept or vision and carrying it through to completion?

Accepted Answer

A)   autonomy
B)   innovativeness
C)   competitive aggressiveness
D)   risk takingE) None of the above
F) A) and D)

Exam 12: Managing Innovation and Fostering Corporate Entrepreneurship

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

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

Real options analysis (ROA) is an investment analysis tool from the field of finance.When applied to entrepreneurship,it suggests a path that companies can use to manage the ________ associated with launching ________ ventures.

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

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

Correct AnswerverifiedShow Answer

Which of the following dimensions of entrepreneurial orientation is described as an independent action by an individual or team aimed at bringing forth a business concept or vision and carrying it through to completion?

Correct AnswerverifiedShow Answer

New technology is an important source of new ideas because it

Correct AnswerverifiedShow Answer

Financial risk taking involves the risk an executive assumes in taking a stand in favor of a strategic course of action.

Correct AnswerverifiedShow Answer

The innovation dilemma known as "seeds versus weeds" refers to

Correct AnswerverifiedShow Answer

According to the characterization of innovations by Professor Clayton Christensen,the rise of the smartphone was ________ innovation rather than ________ innovation.

Correct AnswerverifiedShow Answer

Creative intelligence involves the ability to see patterns in data,integrating data,and making insights.Which of the following are the four patterns of action managers should to develop more creative and higher potential innovations?

Correct AnswerverifiedShow Answer

Explain why the seeds versus weeds dilemma is important.

Correct AnswerverifiedMost companies have an abundance of inno...View AnswerShow Answer

Walmart has an aggressive pricing structure that has forced smaller,local retailers out of business in many markets.Local cities responded with regulations that make it difficult for Walmart to move into or expand operations in these areas.This is an example of

Correct AnswerverifiedShow Answer

Which of the following is not an advantage of collaborating with strategic partners in order to innovate?

Correct AnswerverifiedShow Answer

In corporations with a strong entrepreneurial culture,the willingness and ability to change

Correct AnswerverifiedShow Answer

On average,approximately what percentage of corporate ventures reaches profitability within six years?

Correct AnswerverifiedShow Answer

One of the following statements about innovativeness is false.Which is it?

Correct AnswerverifiedShow Answer

The innovation dilemma known as "building capabilities versus collaborating" refers to

Correct AnswerverifiedShow Answer

Which of the following statements about skunkworks is false?

Correct AnswerverifiedShow Answer

Correct Answer
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Real options analysis (ROA) is an investment analysis tool from the field of finance.When applied to entrepreneurship,it suggests a path that companies can use to manage the associated with launching ventures.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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According to the characterization of innovations by Professor Clayton Christensen,the rise of the smartphone was innovation rather than innovation.

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Correct Answer
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Most companies have an abundance of inno...
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