Q22. In the start up phase of the product life-cycle: a. profits are negative b. owners usually have pre-production contracts with potential buyers c. risk is lowest d. sales grow explosively Q23. 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 Q24. According to William Abernathy's innovation life-cycle, during which stage is product innovation most prominent? a. Early stage b. Transition stage c. Maturity stage d. Post-maturity stage Q25. 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 Q26. 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 Q27. 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 Q28. Which of the following illustrates incremental innovation? a. Invention of the light bulb b. Establishing the world wide web c. Releasing Version 2.0 of the Windows operating system d. Invention of movable type by Guttenberg Q29. 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 Q30. Open sourcing is forcing us to rethink the meaning and rationale of intellectual property. a. true b. false