Question 1

In the knowledge economy, if a large portion of a firm's value is in intellectual and human assets, the difference between the company's market value and book value should ___________ a company with mostly physical and financial assets.

Accepted Answer

A)   be equal to
B)   be smaller than
C)   be larger than
D)   not be correlated withE) None of the above
F) A) and B)

Question 2

Rather than focus solely on financial considerations, many firms offer attractive benefits to entice employees to stay. These may include on-site stores, ATMs and athletic facilities.

Accepted Answer

A) True 
 B)False

Question 3

New knowledge involves the continual interaction between ___________ and ___________ knowledge.

Accepted Answer

A)   intellectual; pragmatic
B)   theoretical; practical
C)   tacit; explicit
D)   detailed; tacitE) A) and B)
F) A) and C)

Question 4

Which barrier to collaboration occurs when people are unable to work with the people they don't know well?

Accepted Answer

A)   The not-invented-here barrier
B)   The hoarding barrier
C)   The search barrier
D)   The transfer barrierE) B) and C)
F) A) and B)

Question 5

BC Biomedical Laboratories, which has been named one of Canada's 'Best Employers' attributes their success to having a

Accepted Answer

A)   pyramid organization.
B)   flat organization.
C)   top-down organization.
D)   bottom-up organization.E) A) and B)
F) B) and D)

Question 6

BC Biomedical Laboratory was named one of Canada's "Best Employers" for the third year running.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following answer accurately summarizes the downsides of social capital?

Accepted Answer

A)   high social capital may breed "groupthink," i.e., a tendency not to question shared beliefs.
B)   socialization processes whereby individuals are socialized into the norms and values of the organization may become expensive.
C)   individuals may become less willing to collaborate on joint projects.
D)   high social capital may breed "groupthink," i.e., a tendency not to question shared beliefs and socialization processes whereby individuals are socialized into the norms and values of the organization may become expensive.E) B) and D)
F) All of the above

Question 8

Developing social capital is risky for an organization because social capital is specific to individuals and remains with the employee if he or she leaves the organization.

Accepted Answer

A) True 
 B)False

Question 9

Patents typically provide long-term protection for a firm since they do not expire.

Accepted Answer

A) True 
 B)False

Question 10

Attracting and retaining human capital is a challenge for many firms today. Firms experiencing high turnover should

Accepted Answer

A)   focus on increased recruiting.
B)   decrease money spent on human capital.
C)   make their work environment less stimulating.
D)   adopt effective retention strategies.E) A) and B)
F) B) and C)

Question 11

Recent research by McKinsey Global Institute suggests that by 2020, the worldwide shortage of highly skilled, college-educated workers will no longer be a problem in North America.

Accepted Answer

A) True 
 B)False

Question 12

What is intellectual capital and what is its effect on the ratio of a firm's market value to book value?

Accepted Answer

Intellectual capital...

Question 13

Intellectual capital is the difference between the market value and the book value of a firm. Intellectual capital can be increased by

Accepted Answer

A)   increasing retention of below average workers.
B)   attracting and retaining knowledgeable workers.
C)   decreasing labour costs.
D)   increasing the turnover of employees.E) None of the above
F) A) and B)

Question 14

Attracting top talent is a challenge for many organizations. In today's economy, knowledge workers typically have multiple possible employment opportunities.

Accepted Answer

A) True 
 B)False

Question 15

In terms of retaining human capital, Magna's strategy is to

Accepted Answer

A)   allocate 10 percent of pre-tax profits to employees
B)   cultivate the creative potential of its workforce
C)   distribute 6 percent of profits to senior managers
D)   all of the choices are correctE) None of the above
F) A) and B)

Question 16

Protecting a firm's intellectual capital requires a concerted effort.

Accepted Answer

A) True 
 B)False

Question 17

Human capital includes

Accepted Answer

A)   an individual's capabilities, knowledge, and skills.
B)   the relationships between people.
C)   the output from assembly line employees.
D)   an improved product.E) A) and C)
F) A) and B)

Question 18

Many firms attempt to codify the tacit knowledge of employees in an effort to retain that knowledge after the employee leaves the firm.

Accepted Answer

A) True 
 B)False

Question 19

Social capital is based on the network of relationships within a firm, not in the skills and abilities of an individual employee.

Accepted Answer

A) True 
 B)False

Question 20

Structural holes can be described by:

Accepted Answer

A)   the social gap between two groups
B)   the sharing of information through an informal communication network called the grapevine
C)   creating value through collaboration
D)   the downsides of groupthinkE) A) and C)
F) A) and B)

Exam 4: Assessing the Intellectual Assets of the Firm

Developing social capital is risky for an organization because social capital is specific to individuals and remains with the employee if he or she leaves the organization.

Correct AnswerverifiedShow Answer

Protecting a firm's intellectual capital requires a concerted effort.

Correct AnswerverifiedShow Answer

Rather than focus solely on financial considerations, many firms offer attractive benefits to entice employees to stay. These may include on-site stores, ATMs and athletic facilities.

Correct AnswerverifiedShow Answer

Attracting top talent is a challenge for many organizations. In today's economy, knowledge workers typically have multiple possible employment opportunities.

Correct AnswerverifiedShow Answer

In the knowledge economy, if a large portion of a firm's value is in intellectual and human assets, the difference between the company's market value and book value should ___________ a company with mostly physical and financial assets.

Correct AnswerverifiedShow Answer

Social capital is based on the network of relationships within a firm, not in the skills and abilities of an individual employee.

Correct AnswerverifiedShow Answer

Which barrier to collaboration occurs when people are unable to work with the people they don't know well?

Correct AnswerverifiedShow Answer

Human capital includes

Correct AnswerverifiedShow Answer

New knowledge involves the continual interaction between ___________ and ___________ knowledge.

Correct AnswerverifiedShow Answer

Recent research by McKinsey Global Institute suggests that by 2020, the worldwide shortage of highly skilled, college-educated workers will no longer be a problem in North America.

Correct AnswerverifiedShow Answer

Intellectual capital is the difference between the market value and the book value of a firm. Intellectual capital can be increased by

Correct AnswerverifiedShow Answer

BC Biomedical Laboratory was named one of Canada's "Best Employers" for the third year running.

Correct AnswerverifiedShow Answer

BC Biomedical Laboratories, which has been named one of Canada's 'Best Employers' attributes their success to having a

Correct AnswerverifiedShow Answer

Structural holes can be described by:

Correct AnswerverifiedShow Answer

Many firms attempt to codify the tacit knowledge of employees in an effort to retain that knowledge after the employee leaves the firm.

Correct AnswerverifiedShow Answer

Patents typically provide long-term protection for a firm since they do not expire.

Correct AnswerverifiedShow Answer

In terms of retaining human capital, Magna's strategy is to

Correct AnswerverifiedShow Answer

Which of the following answer accurately summarizes the downsides of social capital?

Correct AnswerverifiedShow Answer

Attracting and retaining human capital is a challenge for many firms today. Firms experiencing high turnover should

Correct AnswerverifiedShow Answer

What is intellectual capital and what is its effect on the ratio of a firm's market value to book value?

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New knowledge involves the continual interaction between _ and _ knowledge.

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Intellectual capital...
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