Question 1

Agency theory suggests that as managerial and ___________ interests ___________,managers will follow the path of their own self-interest.

Accepted Answer

A)   employee; coordinate
B)   shareholder; expand
C)   stakeholder; increase
D)   owner; divergeE) A) and D)
F) C) and D)

Question 2

Companies such as Zimbra,Inc.and Best Practices LLC enhanced their entrepreneurial positions by using competitive aggressiveness techniques such as entering the marketplace with drastically lower prices and by copying successful business models.

Accepted Answer

A) True 
 B)False

Question 3

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) B) and C)
F) A) and B)

Question 4

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 D)
F) B) and C)

Question 5

For innovation team members to work enthusiastically on innovation projects,it is important to separate the performance of individual team members from the performance of the innovation itself.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not characteristic of a disruptive innovation?

Accepted Answer

A)   It is usually more sophisticated technologically.
B)   It appeals to less demanding customers.
C)   It is typically a less expensive solution for meeting a need.
D)   It usually takes root in a new market or the low-end of an existing market.E) B) and C)
F) A) and D)

Question 7

According to Peter Drucker,successful entrepreneurs typically are risk takers.

Accepted Answer

A) True 
 B)False

Question 8

Corporate ventures that use real options logic in decision making tend to keep total investment low in order to minimize the downside risk of a project.

Accepted Answer

A) True 
 B)False

Question 9

The benefits gained by firms that are the first to enter new markets,establish brand identity,and/or adopt new technologies are known as

Accepted Answer

A)   competitive aggressiveness.
B)   technological capabilities.
C)   first mover advantages.
D)   breakthrough innovations.E) A) and B)
F) B) and D)

Question 10

Business risk taking refers to the risk associated with entering untested markets or committing to unproven technologies.

Accepted Answer

A) True 
 B)False

Question 11

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) A) and B)
F) A) and C)

Question 12

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 13

Which of the following is not a dilemma faced by corporations trying to manage the innovation process?

Accepted Answer

A)   launching incremental rather than preemptive innovations
B)   emphasizing marketing over management innovations
C)   preferring experience over initiative
D)   choosing internal rather than external staffingE) None of the above
F) All of the above

Question 14

According to the text,_____________,which support fledgling startups are often used to pursue specific entrepreneurial ventures developed by _____________.

Accepted Answer

A)   collaboration partners; strategic partners
B)   business incubators; new venture groups
C)   product champions; corporate venture capitalists
D)   lower-level managers; upper-level managersE) None of the above
F) B) and C)

Question 15

Radical innovations

Accepted Answer

A)   often result in quick profits.
B)   often represent technological breakthroughs.
C)   usually apply simultaneously to products and processes.
D)   usually cannot be patented.E) B) and C)
F) A) and D)

Question 16

In the 1990s,DuPont used its knowledge of plastics to develop biodegradable plastic products.This is an example of

Accepted Answer

A)   focusing on process rather than product innovation.
B)   defining its innovation efforts within the context of its strategic envelope.
C)   radical innovation.
D)   public relations, since plastics are not biodegradable.E) None of the above
F) A) and C)

Question 17

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 take in order 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) A) and C)
F) A) and B)

Question 18

A disruptive innovation appeals to less demanding customers who are seeking more convenient,less expensive solutions.

Accepted Answer

A) True 
 B)False

Question 19

Radical innovations are evolutionary applications of novel ideas within existing paradigms.

Accepted Answer

A) True 
 B)False

Question 20

Firms using a focused approach to corporate entrepreneurship typically separate corporate venturing activities from ongoing operations of the firm.

Accepted Answer

A) True 
 B)False

Exam 12: Managing Innovation and Fostering Corporate Entrepreneurship

A disruptive innovation appeals to less demanding customers who are seeking more convenient,less expensive solutions.

Correct AnswerverifiedShow Answer

Corporate ventures that use real options logic in decision making tend to keep total investment low in order to minimize the downside risk of a project.

Correct AnswerverifiedShow Answer

Radical innovations are evolutionary applications of novel ideas within existing paradigms.

Correct AnswerverifiedShow Answer

Which of the following is not a dilemma faced by corporations trying to manage the innovation process?

Correct AnswerverifiedShow Answer

The benefits gained by firms that are the first to enter new markets,establish brand identity,and/or adopt new technologies are known as

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

Firms using a focused approach to corporate entrepreneurship typically separate corporate venturing activities from ongoing operations of the firm.

Correct AnswerverifiedShow Answer

Strategic reasons for undertaking a corporate venture do not include

Correct AnswerverifiedShow Answer

Radical innovations

Correct AnswerverifiedShow Answer

According to the text,_____________,which support fledgling startups are often used to pursue specific entrepreneurial ventures developed by _____________.

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 take in order to develop more creative and higher potential innovations?

Correct AnswerverifiedShow Answer

Agency theory suggests that as managerial and ___________ interests ___________,managers will follow the path of their own self-interest.

Correct AnswerverifiedShow Answer

Companies such as Zimbra,Inc.and Best Practices LLC enhanced their entrepreneurial positions by using competitive aggressiveness techniques such as entering the marketplace with drastically lower prices and by copying successful business models.

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

According to Peter Drucker,successful entrepreneurs typically are risk takers.

Correct AnswerverifiedShow Answer

In the 1990s,DuPont used its knowledge of plastics to develop biodegradable plastic products.This is an example of

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

Business risk taking refers to the risk associated with entering untested markets or committing to unproven technologies.

Correct AnswerverifiedShow Answer

For innovation team members to work enthusiastically on innovation projects,it is important to separate the performance of individual team members from the performance of the innovation itself.

Correct AnswerverifiedShow Answer

Which of the following is not characteristic of a disruptive innovation?

Correct AnswerverifiedShow Answer

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According to the text,_,which support fledgling startups are often used to pursue specific entrepreneurial ventures developed by _.

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Agency theory suggests that as managerial and _ interests _,managers will follow the path of their own self-interest.

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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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