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Exam 12: Managing Innovation and Fostering Corporate Entrepreneurship

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Question 51

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The more specific the human capital of the manager becomes, the easier it is to transfer it to other organizations.

A) True
B) False

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Question 52

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

A) True
B) False

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Question 53

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

In the 1990s, DuPont used its knowledge of plastics to develop biodegradable plastic products. This is an example of

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.

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

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.

McGrath and Keil researched the types of human resource management practices that effective firms use to capture value from their innovation efforts. Which of the following is not one of their findings?

Firms using a focused approach to corporate entrepreneurship typically separate corporate venturing activities from ongoing operations of the firm.

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

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

Innovation involves introducing or changing to something

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

According to Peter Drucker, successful entrepreneurs typically are risk takers.

Common features of a dispersed approach to corporate entrepreneurship include all of the following except

Whereas ______________ are often associated with a low cost leader strategy, ______________ are frequently an important aspect of a differentiation strategy.

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

Agency theory suggests that as managerial and ___________ interests ___________, managers will follow the path of their own self-interest.

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

The costly Motorola global satellite telecom project known as Iridium provides a useful illustration of the _________. Even though problems with the project existed during the lengthy development process, Motorola refused to pull the plug. Only after investing 5 billion USD and years of effort was the project abandoned.