MGT245Question:

Q1. At the time the electric light bulb was invented by Edison, a major challenge he faced in selling them was:

a. fighting a lawsuit by Westinghouse Corporation, claiming his light bulb patent infringed one they held

b. dealing with competition from overseas

c. handling claims by his partners that they were entitled to half the profits derived from light bulb sales

d. the absence of electric power distribution systems in American communities

Q2. An important characteristic of inventions is that they have practical applications.

a. true

b. false

Q3. When looking at the histories of successful real world ventures, we come across cases where a successful venture was spun off from a larger technical effort. Examples include:

a. CraigsList

b. Firefox and Alexa Internet

c. PayPal and Flickr

d. Apple Computer

Q4. Later stage financing of a burgeoning venture is often used for:

a. designing new products

b. establishing production capabilities

c. developing a detailed business plan

d. acquiring other companies in order to accelerate growth

Q5. Debt financing dilutes the equity share of entrepreneur-owners.

a. true

b. false

Q6. The dream of most venture capitalists is to have the companies they invest in "go public" through an IPO.

a. true

b. false

Q7. Which of the following questions reflects market risk concerns?

a. At what point will breakeven occur?

b. Do we have the capability to produce a desired technology?

c. How should we price our new product?

d. Are we prepared to deal with changing regulations?

Q8. Businesses that depend heavily on venture capital funding____.

a. find that the ownership share of the entrepreneur-owners is diluted

b. typically borrow money from the venture capitalists

c. are usually given latitude to manage their business without input from the venture capitalists

d. must structure themselves as C-corporations before they can accept venture capital investments

Q9. According to William Abernathy's perspective on corporate innovation, for a company to break the stranglehold of doing business the same old way, it should:

a. focus R&D efforts on improving its existing products in order to make them more attractive in the market

b. strive to strengthen the processes it employs to produce its products

c. increase its R&D budget

d. strive for de-maturation

Q10. Which of the following is a purely scientific discipline?

a. Electronics

b. Physics

c. Chemical engineering

d. Astrology

Q11. Process innovation can contribute directly to a company's profits by:

a. reducing production costs

b. identifying market niches that have not yet been exploited

c. employing state-of-the-art equipment

d. establishing the foundation for effective marketing and sales

Q12. A review of the history of business confirms that if you build a better mousetrap, the world will beat a path to your door.

a. true

b. false

Q13. If Ajax Enterprises hold a French patent for a technology, and no other patent, then John Jones of the USA:

a. is infringing on the patent if he produces the technology in his Chicago factory

b. is not legally able to sell the technology in the USA

c. would not be able to export the technology to France legally without Ajax's authorization

d. would not be able to use the technology in the USA for his own purposes

Q14. Research shows that when venture capitalists attempt to determine whether a venture is worthy of their support, they focus on two things. One is the capabilities and experience of the core business team, and the other is:

a. the amount of cash the venture holds

b. whether the venture is being launched in an established market

c. the number of years since the venture was launched

d. the thoroughness and overall quality of the business plan

Q15. Counterfeiting is concerned with:

a. unauthorized use of copyrighted material

b. unauthorized use of patented technology

c. unauthorized use of trade marks

d. unauthorized use of trade secrets

Q16. Clayton Christensen's book, the Innovator's Dilemma, is one of the most important management books written in the past twenty years. In it, Christensen maintains that:

a. companies can go out of business by adhering closely to their important customers' demands

b. the surest way to lose business is to contradict the customer - the customer is always right

c. it is not necessary to be innovative, because companies can copy the innovative efforts of other companies without going through the hassle and expense of conducting original R&D

d. strictly speaking, there are no true innovations, because "there is nothing new under the sun."

Q17. Intrapreneurship focuses on:

a. making bureaucratic organizations function more entrepreneurially

b. identifying individuals who will promote entrepreneurship on teams

c. identifying profit targets that new ventures should strive to achieve

d. helping individuals tap into their innate entrepreneurial powers

Q18. According to Richard Foster, market leaders often become "losers" and are supplanted by a new generation of companies because:

a. they do not invest enough money in R&D

b. their marketing strategies become "old hat" and lose their impact

c. new companies are willing to invest more in R&D than well-established companies

d. they invest primarily in existing successful technologies that are near the end of their technology life-cycle

Q19. If you pay a contractor to write an article titled "The Evolution of the Domestic Dog,"

a. the contractor owns the copyright since he/she produced it, unless he/she enters into an agreement to transfer ownership to you

b. ownership has not been determined, so it is necessary to enter into an agreement defining ownership rights

c. the contractor owns the copyright, but you have free access to the copyrighted material and can use it at will

d. you own the copyright because it is a work for hire, unless you enter into an agreement with the contractor to transfer ownership to him/her

Q20. For a society to establish strong technological capabilities, it must invest heavily in science.

a. true

b. false

Q21. Schumpeter's concept of creative destruction holds that:

a. when entrepreneurs take over a business, they should strive to dismantle the way the business used to be run and implement new innovation-friendly processes

b. a natural feature of capitalism is that established businesses cannot keep up with economic changes and entrepreneurial forces drive them out of business

c. creative managers need to reinvent themselves constantly

d. creative processes in the arts, sciences, and social systems entail rethinking how things should work

Q22. Piracy is concerned with:

a. unauthorized use of copyrighted material

b. unauthorized use of patented technology

c. unauthorized use of trade marks

d. unauthorized use of trade secrets

Q23. The Linux operating system has had an enormous impact on software development and maintenance. From the perspective of technological entrepreneurship and innovation, an especially interesting feature of the development of Linux is:

a. it is rapidly replacing Microsoft as the principal provider of operating systems for personal computers

b. its development was funded by venture capital companies that normally support pharmaceutical ventures

c. it was developed almost entirely by employing newly emerging agile and iterative software development techniques

d. it is an open sourced product

Q24. Well-established successful companies are generally more interested in supporting sustaining technologies than disruptive technologies.

a. true

b. false

Q25. Good science requires that members of the scientific community continually question the outcomes of scientific research efforts - no effort is so worthy that it cannot be challenged. Which of Robert Merton's norms of science captures this principle?

a. Communalism

b. Universalism

c. Disinterestedness

d. Organized skepticism

Q26. Gap analysis helps business planners:

a. identify gaps between revenues and profits

b. identify product gaps that can be filled by means of new product development

c. determine which departments contribute to business operations effectively and which do not

d. estimate the time between the conceiving a new product and actually delivering it

Q27. With business process reengineering (BPR):

a. companies should seek dramatic changes in their business processes

b. companies should seek gradual changes in their business processes

c. companies are basically changing their organizational charts

d. companies must be careful not disrupt established business operations

Q28. Richard Foster's concept of the defender's paradox holds that:

a. by defending their existing successful innovations, companies are actually developing a good offensive strategy

b. companies that continue to invest heavily in their successful innovations find that at a certain point, the returns on their additional investment drop dramatically

c. when companies find their products being challenged by new market entrants, their best strategy is to strengthen their weakest products in order to throw the "attackers" off guard

d. when cornered, defenders can be stronger than their attackers

Q29. An example of a trademark that became generic is:

a. iPod

b. Cadillac

c. Xerox

d. Aspirin

Q30. Which of the following statements regarding creativity is true?

a. Extraordinarily creative people tend to have exceptionally high IQs

b. Creative people are both imaginative and rooted in reality

c. Studies on determinants of creativity have found that personal suffering has been a necessary stimulant to creativity among most highly creative people

d. Creative people tend to be kooky

Q31. Innovation________.

a. is another word for invention

b. applies solely to engineering advances

c. requires patenting of products that are produced

d. requires inventions to be employed practically

Q32. You can publish a book titled The Godfather without violating copyright law.

a. true

b. false

Q33. Creative thinking techniques try to strengthen convergent thinking.

a. true

b. false

Q34. With basic science:

a. scientists pursue their research effort without concern for practical results

b. scientists must justify their research budgets by demonstrating how the research can yield practical results

c. scientists must establish and test hypotheses

d. scientists doing the research must have doctoral degrees

Q35. In order to maintain control over your copyrighted material, you need to put a copyright notice mark (e.g., 2012 Jones Corp.) onto works you write and publish.

a. true

b. false

Q36. The primary goal of quality control charts is:

a. to show graphically the rate at which production quality improves

b. to anticipate changes in the cost of production

c. to determine whether goods produced lie within the range of tolerable variation

d. to document the number of products produced that conform to specifications

Q37. The common heritage of mankind argument holds that:

a. all humans are biologically the same and we should not confuse cultural differences among people with biological differences

b. knowledge belongs to everyone, and should not be treated as intellectual property

c. all people are entitled to express their views

d. all humans have origins in Africa

Q38. A significant consequence to technological innovation and entrepreneurship arising from the financial meltdown of 2008 is:

a. intellectual property protection decreased

b. investment capital dried up

c. support for entrepreneurship education decreased

d. the currency exchange rates for all countries decreased

Q39. Which of the following situations characterizes a high level of transilience?

a. Working with an innovation that has major impact on how the organization approaches production in an environment of stable markets

b. Working with an innovation that has major impact on how the organization approaches production and addresses changing markets

c. Moving quickly from R&D efforts to production efforts

d. Moving quickly from R&D and production into the market introduction of a new product

Q40. Although they apply their knowledge to different areas, scientists and engineers basically have the same backgrounds and share the same values.

a. true

b. false