Question 1

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) None of the above
F) All of the above

Question 2

Escalation of commitment is the tendency for managers to irrationally stick with an investment,even one that is broken down into a sequential series of decisions,when investment criteria are not being met.

Accepted Answer

A) True 
 B)False

Question 3

According to the text,new venture ideas must pass through two critical stages to be implemented by corporations: project definition and project impetus.

Accepted Answer

A) True 
 B)False

Question 4

Individuals with highly innovative DNA traits have the ability to connect seemingly unrelated questions,problems,and ideas from different fields that allows them the opportunity to creatively see opportunities others miss.This is referred to as

Accepted Answer

A)   associating.
B)   integrating.
C)   visioning.
D)   allocating.E) C) and D)
F) B) and C)

Question 5

Managerial conceit occurs when decision makers who have made successful choices in the past come to believe that they possess superior expertise for managing uncertainty.

Accepted Answer

A) True 
 B)False

Question 6

______________ refers to efforts to create designs and applications of technology to develop new products,while ______________ refers to efforts to improve the efficiency of organizational systems such as manufacturing and operations.

Accepted Answer

A)   Radical innovation; incremental innovation
B)   Breakthrough innovation; instrumental innovation
C)   Product innovation; process innovation
D)   Product innovation; service innovationE) All of the above
F) A) and B)

Question 7

Which of the following do corporate business incubators typically not provide?

Accepted Answer

A)   physical space
B)   mentoring
C)   funding
D)   student internsE) None of the above
F) B) and C)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)   proactiveness
B)   risk taking
C)   autonomy
D)   opportunismE) C) and D)
F) All of the above

Question 10

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

Question 11

Corporate entrepreneurship is sometimes called intrapreneurship.

Accepted Answer

A) True 
 B)False

Question 12

Whereas _________ often emerge as heroes,_________ run the risk of losing status by opposing popular projects.

Accepted Answer

A)   managers; employees
B)   product champions; exit champions
C)   exit champions; product champions
D)   shareholders; managersE) None of the above
F) B) and C)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Product champions are the employees who identify new product ideas or services.

Accepted Answer

A) True 
 B)False

Question 15

Options exist when the owner of the option has the obligation to engage in certain types of transactions.The most common are stock options.

Accepted Answer

A) True 
 B)False

Question 16

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) A) and D)

Question 17

One of the following is not a type of risks that executives must address.Which is it?

Accepted Answer

A)   business risk taking
B)   financial risk taking
C)   personal risk taking
D)   product-market risk takingE) B) and C)
F) All of the above

Question 18

Real options analysis is most appropriate when

Accepted Answer

A)   the total investment required is small, but the environment is uncertain.
B)   the investment required can be justified by Discounted Cash Flow (DCF)  techniques.
C)   a small investment up front can be followed by a series of subsequent investments.
D)   there is no prospect of obtaining additional knowledge before making subsequent investments.E) A) and C)
F) B) and C)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Disruptive innovations are those that overturn markets by providing an altogether new approach to meeting customer needs.

Accepted Answer

A) True 
 B)False

Exam 12: Managing Innovation and Fostering Corporate Entrepreneurship

Options exist when the owner of the option has the obligation to engage in certain types of transactions.The most common are stock options.

Correct AnswerverifiedShow Answer

Corporate entrepreneurship is sometimes called intrapreneurship.

Correct AnswerverifiedShow Answer

Individuals with highly innovative DNA traits have the ability to connect seemingly unrelated questions,problems,and ideas from different fields that allows them the opportunity to creatively see opportunities others miss.This is referred to as

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

Which of the following do corporate business incubators typically not provide?

Correct AnswerverifiedShow Answer

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

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

Whereas _________ often emerge as heroes,_________ run the risk of losing status by opposing popular projects.

Correct AnswerverifiedShow Answer

Product champions are the employees who identify new product ideas or services.

Correct AnswerverifiedShow Answer

Managerial conceit occurs when decision makers who have made successful choices in the past come to believe that they possess superior expertise for managing uncertainty.

Correct AnswerverifiedShow Answer

Escalation of commitment is the tendency for managers to irrationally stick with an investment,even one that is broken down into a sequential series of decisions,when investment criteria are not being met.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to the text,new venture ideas must pass through two critical stages to be implemented by corporations: project definition and project impetus.

Correct AnswerverifiedShow Answer

Real options analysis is most appropriate when

Correct AnswerverifiedShow Answer

Disruptive innovations are those that overturn markets by providing an altogether new approach to meeting customer needs.

Correct AnswerverifiedShow Answer

One of the following is not a type of risks that executives must address.Which is it?

Correct AnswerverifiedShow Answer

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

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

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

Correct AnswerverifiedShow Answer

______________ refers to efforts to create designs and applications of technology to develop new products,while ______________ refers to efforts to improve the efficiency of organizational systems such as manufacturing and operations.

Correct AnswerverifiedShow Answer

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Whereas _ often emerge as heroes,_ run the risk of losing status by opposing popular projects.

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refers to efforts to create designs and applications of technology to develop new products,while refers to efforts to improve the efficiency of organizational systems such as manufacturing and operations.

Correct Answer
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