Question 1

Product champions are critical during the period after a new venture project has been defined but before it has gained momentum and achieved project impetus.

Accepted Answer

A) True 
 B)False

Question 2

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.

Question 3

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 4

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 pipeline

Question 5

For innovation projects,people from inside the company may have greater social capital and know the organizational culture,but this may inhibit them from thinking creatively.

Accepted Answer

A) True 
 B)False

Question 6

A manager whose role is to question the viability of corporate venture projects is known as a(n)

Accepted Answer

A)   product champion.
B)   exit champion.
C)   rising star.
D)   mentor.

Question 7

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. A

Question 8

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 9

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 percent C

Question 10

Most CE programs have strategic goals.The reasons for undertaking a corporate venture include maintaining the corporation base of resources and experience.

Accepted Answer

A) True 
 B)False

Question 11

Real options analysis (ROA) is an investment analysis tool from the field of finance.When applied to entrepreneurship,it suggests a path that companies can use to manage the _____ associated with launching ______ ventures.

Accepted Answer

A)   certainty; large
B)   risk; stable
C)   uncertainty; new
D)   interests; new

Question 12

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.

Question 13

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 products

Question 14

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. C

Question 15

Building entrepreneurial businesses within existing corporations is known as

Accepted Answer

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

Question 16

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 art

Question 17

Strategic renewal and the pursuit of new venture opportunities are the two primary aims of corporate entrepreneurship.

Accepted Answer

A) True 
 B)False

Question 18

Amazon was able to define the online bookselling market by entering the market early and defining the user experience.This is an example of

Accepted Answer

A)   innovativeness.
B)   proactiveness.
C)   competitive aggressiveness.
D)   autonomy.

Question 19

Stock options offer the prospect of high gains with relatively small up-front investments that represent limited losses.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 12: Managing Innovation and Fostering Corporate Entrepreneurship

Product champions are critical during the period after a new venture project has been defined but before it has gained momentum and achieved project impetus.

Correct AnswerverifiedShow Answer

Financial reasons for undertaking internal corporate venturing include

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

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

Correct AnswerverifiedShow Answer

For innovation projects,people from inside the company may have greater social capital and know the organizational culture,but this may inhibit them from thinking creatively.

Correct AnswerverifiedShow Answer

A manager whose role is to question the viability of corporate venture projects is known as a(n)

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

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

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

Correct AnswerverifiedC

Most CE programs have strategic goals.The reasons for undertaking a corporate venture include maintaining the corporation base of resources and experience.

Correct AnswerverifiedShow Answer

Real options analysis (ROA) is an investment analysis tool from the field of finance.When applied to entrepreneurship,it suggests a path that companies can use to manage the _____ associated with launching ______ ventures.

Correct AnswerverifiedShow Answer

The innovation dilemma known as building capabilities versus collaborating refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Product champions

Correct AnswerverifiedC

Building entrepreneurial businesses within existing corporations is known as

Correct AnswerverifiedShow Answer

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

Strategic renewal and the pursuit of new venture opportunities are the two primary aims of corporate entrepreneurship.

Correct AnswerverifiedShow Answer

Amazon was able to define the online bookselling market by entering the market early and defining the user experience.This is an example of

Correct AnswerverifiedShow Answer

Stock options offer the prospect of high gains with relatively small up-front investments that represent limited losses.

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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A

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C

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Real options analysis (ROA) is an investment analysis tool from the field of finance.When applied to entrepreneurship,it suggests a path that companies can use to manage the _ associated with launching __ ventures.

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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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C

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