Question 1

The vast majority of new firms are low-budget start-ups financed through

Accepted Answer

A)   an initial public offering (IPO) 
B)   bank financing
C)   venture capital
D)   personal savings and contributions of family and friendsE) B) and C)
F) None of the above

Question 2

Explain what is meant by the term "entrepreneurial orientation" or EO.

Accepted Answer

EO refers to the strategy-making practic...

Question 3

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 4

Focus strategies are often associated with small businesses because there is a natural fit between the narrow scope of the strategy and the

Accepted Answer

A)   small size of the firm.
B)   a strong spirit of entrepreneurship.
C)   a top-down approach to supporting entrepreneurial behaviour.
D)   an entrepreneurial culture.E) C) and D)
F) All of the above

Question 5

As an industry matures, there are greater opportunities for change and so innovations tend to be more radical.

Accepted Answer

A) True 
 B)False  False

Question 6

All of the following are questions that should be answered when evaluating the performance of corporate venturing efforts except

Accepted Answer

A)   Is the venture attracting external venture funding?
B)   Is the venture considered to be a market success?
C)   Does the venture add to the worth of the firm internally?
D)   Does the value proposition offered by the venture insulate it from competitive attack?E) B) and D)
F) C) and D)

Question 7

The benefits of converting innovations into successful business ventures include

Accepted Answer

A)   declining competitiveness.
B)   shutting down product lines.
C)   growth and rewards.
D)   focus groups and business incubators.E) A) and B)
F) C) and D)

Question 8

Corporate venturing that is focused permeates all parts of the organization and involves every member of the organization.

Accepted Answer

A) True 
 B)False

Question 9

Discuss the concept of venture capital as a means of funding entrepreneurial initiatives.

Accepted Answer

Venture capital is a form of private equ...

Question 10

An imitative new entry strategy is in many respects the same as pioneering.

Accepted Answer

A) True 
 B)False

Question 11

A venture opportunity may be justified regardless of whether or not it is attractive in the marketplace.

Accepted Answer

A) True 
 B)False

Question 12

Financial resources are the only kind of resource a new venture needs.

Accepted Answer

A) True 
 B)False

Question 13

Changes in the external environment spark innovative new ideas.

Accepted Answer

A) True 
 B)False  True

Question 14

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

Question 15

Pioneering involves creating new ways to solve old problems or meeting customers' needs in a unique new way.

Accepted Answer

A) True 
 B)False

Question 16

Rogers may be known as a company involved in cell phones and cable TV but it was once the leading manufacturer of radios in Canada and the U.S.

Accepted Answer

A) True 
 B)False

Question 17

All of the following statements about innovativeness are true except

Accepted Answer

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

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

For an opportunity to be viable, it must be attractive, achievable, durable, and

Accepted Answer

A)   physically located.
B)   compelling.
C)   fun.
D)   value creating.E) None of the above
F) All of the above

Question 20

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

Accepted Answer

A) True 
 B)False  True

Exam 12: Managing Innovation and Fostering Corporate Entrepreneurship

The vast majority of new firms are low-budget start-ups financed through

Correct AnswerverifiedShow Answer

Explain what is meant by the term "entrepreneurial orientation" or EO.

Correct AnswerverifiedEO refers to the strategy-making practic...View AnswerShow 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

Focus strategies are often associated with small businesses because there is a natural fit between the narrow scope of the strategy and the

Correct AnswerverifiedShow Answer

As an industry matures, there are greater opportunities for change and so innovations tend to be more radical.

Correct AnswerverifiedFalse

All of the following are questions that should be answered when evaluating the performance of corporate venturing efforts except

Correct AnswerverifiedShow Answer

The benefits of converting innovations into successful business ventures include

Correct AnswerverifiedShow Answer

Corporate venturing that is focused permeates all parts of the organization and involves every member of the organization.

Correct AnswerverifiedShow Answer

Discuss the concept of venture capital as a means of funding entrepreneurial initiatives.

Correct AnswerverifiedVenture capital is a form of private equ...View AnswerShow Answer

An imitative new entry strategy is in many respects the same as pioneering.

Correct AnswerverifiedShow Answer

A venture opportunity may be justified regardless of whether or not it is attractive in the marketplace.

Correct AnswerverifiedShow Answer

Financial resources are the only kind of resource a new venture needs.

Correct AnswerverifiedShow Answer

Changes in the external environment spark innovative new ideas.

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

Pioneering involves creating new ways to solve old problems or meeting customers' needs in a unique new way.

Correct AnswerverifiedShow Answer

Rogers may be known as a company involved in cell phones and cable TV but it was once the leading manufacturer of radios in Canada and the U.S.

Correct AnswerverifiedShow Answer

All of the following statements about innovativeness are true except

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

For an opportunity to be viable, it must be attractive, achievable, durable, and

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedTrue

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EO refers to the strategy-making practic...
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False

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Venture capital is a form of private equ...
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True

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True