Question 1

A real estate option grants the holder the obligation to buy or sell a piece of property at an established price sometime in the future.

Accepted Answer

A) True 
 B)False

Question 2

One of the pitfalls of real options analysis is that managers may have an incentive and know-how to game the system and back-solve a formula to get a proposal approved. This can give rise to

Accepted Answer

A)  managerial conceit.
B)  the illusion of control.
C)  escalation of commitment.
D)  agency problems.E) None of the above
F) B) and C)

Question 3

Business incubators are designed to support fledgling entrepreneurial ventures until they can operate as stand-alone businesses.

Accepted Answer

A) True 
 B)False

Question 4

Financial reasons for undertaking internal corporate venturing include

Accepted Answer

A)  strengthening competitive position.
B)  obtaining above average returns.
C)  adding to the resource base of the corporation.
D)  reducing stakeholder commitment.E) None of the above
F) A) and B)

Question 5

The Dutch Boy twist and pour paint container is an example of a high tech source of innovation.

Accepted Answer

A) True 
 B)False

Question 6

Building entrepreneurial businesses within existing corporations is known as

Accepted Answer

A)  insourcing.
B)  on-shoring.
C)  intrapreneurship.
D)  entrepreneurship.E) A) and B)
F) B) and D)

Question 7

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 8

Product champions

Accepted Answer

A)  are typically senior executives.
B)  are usually inventors of some sort.
C)  scavenge for resources and encourage others to back promising new ideas.
D)  are strong supporters of the status quo.E) A) and B)
F) A) and C)

Question 9

Another way to evaluate a corporate venture is in terms of the four criteria from the balanced scorecard. Which of the following is not one of those criteria?

Accepted Answer

A)  customer perspective
B)  supplier perspective
C)  internal business perspective
D)  financial perspectiveE) B) and C)
F) A) and D)

Question 10

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) None of the above
F) B) and C)

Question 11

The failure of the Motorola Iridium global satellite telecom project was a result of its exit champion.

Accepted Answer

A) True 
 B)False

Question 12

Innovation efforts of the firm rarely benefit from partnering with non-business entities such as universities and government agencies.

Accepted Answer

A) True 
 B)False

Question 13

A manager might insist that separating a decision into multiple parts will guarantee that the decisions made will turn out well. In the case of Motorola, the final exit decision came too late to save the Iridium project in spite of the _________ made at each step in the development of the program.

Accepted Answer

A)  investment
B)  illusion of control
C)  escalation of commitment
D)  analysisE) A) and B)
F) None of the above

Question 14

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) None of the above
F) A) and B)

Question 15

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) All of the above

Question 16

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) A) and B)
F) None of the above

Question 17

Proctor & Gamble is centralizing 20 to 30 percent of its research efforts in a new corporate-level business creation and innovation unit. They believe that this will assist them only with developing incremental innovations that will help the overall bottom line.

Accepted Answer

A) True 
 B)False

Question 18

Process innovations are often associated with a low cost leadership strategy.

Accepted Answer

A) True 
 B)False

Question 19

The term strategic envelope refers to the scope of innovation efforts of a firm.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 12: Managing Innovation and Fostering Corporate Entrepreneurship

The failure of the Motorola Iridium global satellite telecom project was a result of its exit champion.

Correct AnswerverifiedShow Answer

A manager might insist that separating a decision into multiple parts will guarantee that the decisions made will turn out well. In the case of Motorola, the final exit decision came too late to save the Iridium project in spite of the _________ made at each step in the development of the program.

Correct AnswerverifiedShow Answer

Building entrepreneurial businesses within existing corporations is known as

Correct AnswerverifiedShow Answer

Another way to evaluate a corporate venture is in terms of the four criteria from the balanced scorecard. Which of the following is not one of those criteria?

Correct AnswerverifiedShow Answer

Product champions

Correct AnswerverifiedShow Answer

Process innovations are often associated with a low cost leadership strategy.

Correct AnswerverifiedShow Answer

Innovation efforts of the firm rarely benefit from partnering with non-business entities such as universities and government agencies.

Correct AnswerverifiedShow Answer

Proctor & Gamble is centralizing 20 to 30 percent of its research efforts in a new corporate-level business creation and innovation unit. They believe that this will assist them only with developing incremental innovations that will help the overall bottom line.

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

Business incubators are designed to support fledgling entrepreneurial ventures until they can operate as stand-alone businesses.

Correct AnswerverifiedShow Answer

One of the pitfalls of real options analysis is that managers may have an incentive and know-how to game the system and back-solve a formula to get a proposal approved. This can give rise to

Correct AnswerverifiedShow Answer

The Dutch Boy twist and pour paint container is an example of a high tech source of innovation.

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

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

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

Financial reasons for undertaking internal corporate venturing include

Correct AnswerverifiedShow Answer

The term strategic envelope refers to the scope of innovation efforts of a firm.

Correct AnswerverifiedShow Answer

New technology is an important source of new ideas because it

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A real estate option grants the holder the obligation to buy or sell a piece of property at an established price sometime in the future.

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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