Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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) A) and D)
F) All of the above

Question 3

Options exist when the owner of the option has _____________ to engage in a transaction.

Accepted Answer

A)  the obligation but not the right
B)  the right but not the obligation
C)  the right and the obligation
D)  the neither the right nor the obligationE) All of the above
F) None of the above

Question 4

According to Exhibit 12.1, the continuum of radical and incremental innovations, frozen yogurt represents mostly _______________ innovation, because ______________.

Accepted Answer

A)  incremental; it extends sales in an existing market by enabling higher margins
B)  radical; it is a small improvement on existing products
C)  radical; it is a fundamental change that evokes a major departure from existing practices
D)  incremental; it is a small improvement on existing productsE) A) and B)
F) B) and D)

Question 5

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

Question 6

According to the text, which of the following is not one of the methods companies can use to enhance their competitive position via innovativeness?

Accepted Answer

A)  fostering creativity and experimentation
B)  investing in new technology, R & D, and continuous improvement
C)  copying the business practices or techniques of successful competitors
D)  departing from existing technologies to develop products and practices that go beyond the current state of the artE) A) and B)
F) C) and D)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

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

Accepted Answer

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

Question 10

According to the text, firms that want to enhance their entrepreneurial position by being competitively aggressive should

Accepted Answer

A)  enter markets with drastically lower prices.
B)  foster creativity and experimentation.
C)  continuously seek out new products or services.
D)  research risk factors to minimize uncertainty.E) None of the above
F) B) and C)

Question 11

Dispersed approaches to corporate entrepreneurship are often found in organizations with a strong spirit of entrepreneurship.

Accepted Answer

A) True 
 B)False

Question 12

Exit champions, different from product champions, must be willing to energetically stand up for what they believe.

Accepted Answer

A) True 
 B)False

Question 13

Radical innovation often involves open-ended experimentation which can be very time consuming.

Accepted Answer

A) True 
 B)False

Question 14

The term innovation refers primarily to an invention that uses the latest technologies.

Accepted Answer

A) True 
 B)False

Question 15

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

Question 16

In a typical corporation, which of the following factors does not determine how entrepreneurial projects will be pursued?

Accepted Answer

A)  structural features that guide and constrain action
B)  corporate culture
C)  organizational systems that foster learning and manage rewards
D)  number of innovation projects in the pipelineE) A) and B)
F) A) and C)

Question 17

Characteristics of the NVG that Taco Bell used to develop its Waffle Taco include all of the following except:

Accepted Answer

A)  They were charged to craft the next big thing in the industry.
B)  The team tried out new recipes daily and had a gym to keep the weight off.
C)  The team followed social media and tracked what rivals are doing even taking field trips.
D)  The team was independent and not loyal to the Taco Bell drive for taste, value, and speed.E) None of the above
F) B) and D)

Question 18

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

Question 19

New venture groups are formed within corporations by individuals or a division and usually have the same mandate as a typical research and development department.

Accepted Answer

A) True 
 B)False

Question 20

Exit champions deal in uncertainty and ambiguity. Product champions reduce ambiguity by gathering hard data and developing a strong case for why a project should be killed.

Accepted Answer

A) True 
 B)False

Exam 12: Managing Innovation and Fostering Corporate Entrepreneurship

According to the text, which of the following is not one of the methods companies can use to enhance their competitive position via innovativeness?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Options exist when the owner of the option has _____________ to engage in a transaction.

Correct AnswerverifiedShow Answer

New venture groups are formed within corporations by individuals or a division and usually have the same mandate as a typical research and development department.

Correct AnswerverifiedShow Answer

Dispersed approaches to corporate entrepreneurship are often found in organizations with a strong spirit of entrepreneurship.

Correct AnswerverifiedShow Answer

Exit champions deal in uncertainty and ambiguity. Product champions reduce ambiguity by gathering hard data and developing a strong case for why a project should be killed.

Correct AnswerverifiedShow Answer

Characteristics of the NVG that Taco Bell used to develop its Waffle Taco include all of the following except:

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

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

Correct AnswerverifiedShow Answer

In a typical corporation, which of the following factors does not determine how entrepreneurial projects will be pursued?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The innovation dilemma known as building capabilities versus collaborating refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The term innovation refers primarily to an invention that uses the latest technologies.

Correct AnswerverifiedShow Answer

According to Exhibit 12.1, the continuum of radical and incremental innovations, frozen yogurt represents mostly _______________ innovation, because ______________.

Correct AnswerverifiedShow Answer

Radical innovation often involves open-ended experimentation which can be very time consuming.

Correct AnswerverifiedShow Answer

The innovation dilemma known as seeds versus weeds refers to

Correct AnswerverifiedShow Answer

According to the text, firms that want to enhance their entrepreneurial position by being competitively aggressive should

Correct AnswerverifiedShow Answer

Exit champions, different from product champions, must be willing to energetically stand up for what they believe.

Correct AnswerverifiedShow Answer

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According to Exhibit 12.1, the continuum of radical and incremental innovations, frozen yogurt represents mostly _ innovation, because .

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