Question 1

1 points

Save

Businesses that depend heavily on venture capital funding____.

	find that the ownership share of the entrepreneur-owners is diluted
	typically borrow money from the venture capitalists
	are usually given latitude to manage their business without input from the venture capitalists
	must structure themselves as C-corporations before they can accept venture capital investments

Question 2

1 points

Save

Debt financing dilutes the equity share of entrepreneur-owners.

	True
	False

Question 3

1 points

Save

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:

	the amount of cash the venture holds
	whether the venture is being launched in an established market
	the number of years since the venture was launched
	the thoroughness and overall quality of the business plan

Question 4

1 points

Save

Which of the following statements expresses a general truth about innovation?

	If I come up with new ways of doing things, I am sure to beat my competitors
	If it aint broke, dont fix it (no need to innovate)
	If you have a great invention, dont expect the world to beat a path to your door
	The best innovative solutions are those that outperform competitor products

Question 5

1 points

Save

Process innovation does not focus on:

	reducing production costs
	speeding production
	establishing new products to penetrate new markets
	improving production quality

Question 6

1 points

Save

An important way that large, well-established companies can take advantage of disruptive technologies is:

	to purchase smaller companies that have pioneered disruptive technologies and are now earning a decent living from them
	to invest heavily in disruptive technologies
	to invest only in disruptive technologies that are guaranteed to be winners
	to invest primarily in sustaining technologies

Question 7

1 points

Save

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

	True
	False

Question 8

1 points

Save

The creative problem-solving technique called attribute analysis tries to force people to think divergently by requiring them to assign unusual attributes to objects that are not normally associated with them.

	True
	False

Question 9

1 points

Save

For an invention to qualify to be patented, it must pass three tests of patentability. Which of the following is not one of the three tests?

	The invention must be useful
	The invention must have scientific roots
	The invention must be novel
	The invention must not be obvious

Question 10

1 points

Save

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

	is infringing on the patent if he produces the technology in his Chicago factory
	is not legally able to sell the technology in the USA
	would not be able to export the technology to France legally without Ajaxs authorization
	would not be able to use the technology in the USA for his own purposes

Question 11

1 points

Save

Intrapreneurship focuses on:

	making bureaucratic organizations function more entrepreneurially
	identifying individuals who will promote entrepreneurship on teams
	identifying profit targets that new ventures should strive to achieve
	helping individuals tap into their innate entrepreneurial powers

Question 12

1 points

Save

Counterfeiting is concerned with:

	unauthorized use of copyrighted material
	unauthorized use of patented technology
	unauthorized use of trade marks
	unauthorized use of trade secrets

Question 13

1 points

Save

Which of the following statements regarding creativity is true?

	Extraordinarily creative people tend to have exceptionally high IQs
	Creative people are both imaginative and rooted in reality
	Studies on determinants of creativity have found that personal suffering has been a necessary stimulant to creativity among most highly creative people
	Creative people tend to be kooky

Question 14

1 points

Save

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

	True
	False

Question 15

1 points

Save

Which of the following questions reflects market risk concerns?

	At what point will breakeven occur?
	Do we have the capability to produce a desired technology?
	How should we price our new product?
	Are we prepared to deal with changing regulations?

Question 16

1 points

Save

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:

	it is rapidly replacing Microsoft as the principal provider of operating systems for personal computers
	its development was funded by venture capital companies that normally support pharmaceutical ventures
	it was developed almost entirely by employing newly emerging agile and iterative software development techniques
	it is an open sourced product

Question 17

1 points

Save

All innovations are rooted in science.

	True
	False

Question 18

1 points

Save

An example of a trademark that became generic is:

	iPod
	Cadillac
	Xerox
	Aspirin

Question 19

1 points

Save

The common heritage of mankind argument holds that:

	all humans are biologically the same and we should not confuse cultural differences among people with biological differences
	knowledge belongs to everyone, and should not be treated as intellectual property
	all people are entitled to express their views
	all humans have origins in Africa

Question 20

1 points

Save

Which of the following illustrates incremental innovation?

	Invention of the light bulb
	Establishing the world wide web
	Releasing Version 2.0 of the Windows operating system
	Invention of movable type by Guttenberg

Question 21

1 points

Save

In the start up phase of the product life-cycle:

	profits are negative
	owners usually have pre-production contracts with potential buyers
	risk is lowest
	sales grow explosively

Question 22

1 points

Save

Which of the following legal business forms is easiest to establish?

	Sole proprietorship
	General partnership
	Limited liability company
	Corporation

Question 23

1 points

Save

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

	they do not invest enough money in R&D
	their marketing strategies become old hat and lose their impact
	new companies are willing to invest more in R&D than well-established companies
	they invest primarily in existing successful technologies that are near the end of their technology life-cycle

Question 24

1 points

Save

Innovation________.

	is another word for invention
	applies solely to engineering advances
	requires patenting of products that are produced
	requires inventions to be employed practically

Question 25

1 points

Save

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

	True
	False

Question 26

1 points

Save

Creative destruction where major companies are overwhelmed by innovation is a natural consequence of capitalism.

	True
	False

Question 27

1 points

Save

The primary goal of quality control charts is:

	to show graphically the rate at which production quality improves
	to anticipate changes in the cost of production
	to determine whether goods produced lie within the range of tolerable variation
	to document the number of products produced that conform to specifications

Question 28

1 points

Save

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

	designing new products
	establishing production capabilities
	developing a detailed business plan
	acquiring other companies in order to accelerate growth

Question 29

1 points

Save

Piracy is concerned with:

	unauthorized use of copyrighted material
	unauthorized use of patented technology
	unauthorized use of trade marks
	unauthorized use of trade secrets

Question 30

1 points

Save

Richard Fosters concept of the defenders paradox holds that:

	by defending their existing successful innovations, companies are actually developing a good offensive strategy
	companies that continue to invest heavily in their successful innovations find that at a certain point, the returns on their additional investment drop dramatically
	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
	when cornered, defenders can be stronger than their attackers

Question 31

1 points

Save

Contrary to popular opinion, access to venture capital is not crucial to starting up a high tech business. Only one of the following high-impact ventures relied heavily on venture capital during its start-up stage. Which one?

	Apple Computer
	FireFox
	PayPal
	Flickr

Question 32

1 points

Save

Gap analysis helps business planners:

	identify gaps between revenues and profits
	identify product gaps that can be filled by means of new product development
	determine which departments contribute to business operations effectively and which do not
	estimate the time between the conceiving a new product and actually delivering it

Question 33

1 points

Save

Seed funding for new ventures most commonly comes from:

	venture capital investors
	commercial banks
	angel investors
	personal savings, family and friends

Question 34

1 points

Save

Sometimes companies that produce less than stellar products win the innovation battle because of network externalities. With network externalities:

	companies that possess strong network externalities win the competition because they have superior sales capabilities
	companies that possess strong network externalities win the competition because they have superior production capabilities
	companies that possess strong network externalities win the competition because they are able to tap into a an old boy network, where important luminaries in the industry support their products
	companies that possess strong network externalities win the competition because they have a network of sales channels and support capabilities that make their products more attractive

Question 35

1 points

Save

Open sourcing is forcing us to rethink the meaning and rationale of intellectual property.

	True
	False

Question 36

1 points

Save

What inventions did Edisons originally-patented light bulb incorporate?

	Improved vacuum process and carbonized filament
	Response a above, plus platinum lead-in wires
	Response b above, plus method for securing filament in place
	Response c above, plus method to integrate components in a glass bulb

Question 37

1 points

Save

In his studies of highly creative people, Mihaly Czikszentmihalyi found for highly creative people to have an impact, it is not enough for them to be gifted. For creativity to take root and thrive, there must also be a well-defined domain of knowledge and ____.

	underlying process of creative destruction
	a high need-to-achieve (n-ACH)
	field of accomplishment
	need for affiliation (n-AFF)

Question 38

1 points

Save

Flickr and CraigsList are examples of accidental ventures they did not start out with a view of producing the products that ultimately made them big.

	True
	False

Question 39

1 points

Save

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

	True
	False

Question 40

1 points

Save

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

	intellectual property protection decreased
	investment capital dried up
	support for entrepreneurship education decreased
	the currency exchange rates for all countries decreased

Question 41

1 points

Save

Creative thinking techniques try to strengthen convergent thinking.

	True
	False

Question 42

1 points

Save

Inventions and innovations are basically the same thing.

	True
	False

Question 43

1 points

Save

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

	the contractor owns the copyright since he/she produced it, unless he/she enters into an agreement to transfer ownership to you
	ownership has not been determined, so it is necessary to enter into an agreement defining ownership rights
	the contractor owns the copyright, but you have free access to the copyrighted material and can use it at will
	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

Question 44

1 points

Save

Which of the following products established a dominant design for a product line?

	Sanyos most advanced flat-panel television monitor
	Compaqs transportable computer, based on the IBM PC design
	The internal combustion engine automobile that ran on gasoline
	The electric pencil sharpener

Question 45

1 points

Save

Which of the following is a purely scientific discipline?

	Electronics
	Physics
	Chemical engineering
	Astrology

Question 46

1 points

Save

With business process reengineering (BPR):

	companies should seek dramatic changes in their business processes
	companies should seek gradual changes in their business processes
	companies are basically changing their organizational charts
	companies must be careful not disrupt established business operations

Question 47

1 points

Save

When thinking about the traits of entrepreneurs, the prevailing feeling among experts is that great entrepreneurs are born, not made.

	True
	False

Question 48

1 points

Save

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

	companies can go out of business by adhering closely to their important customers demands
	the surest way to lose business is to contradict the customer the customer is always right
	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
	strictly speaking, there are no true innovations, because there is nothing new under the sun.

Question 49

1 points

Save

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

	True
	False

Question 50

1 points

Save

Which of the following schools of entrepreneurship would most likely support the view that studying for the MBA is helpful (though not absolutely necessary) to promote entrepreneurship?

	Psychological school of entrepreneurship
	Classical school of entrepreneurship
	Managerial school of entrepreneurship
	Great person school of entrepreneurship

Question 51

1 points

Save

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

	True
	False

Question 52

1 points

Save

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

	fighting a lawsuit by Westinghouse Corporation, claiming his light bulb patent infringed one they held
	dealing with competition from overseas
	handling claims by his partners that they were entitled to half the profits derived from light bulb sales
	the absence of electric power distribution systems in American communities

Question 53

1 points

Save

Lets say a four-legged chair is patented by Susan. John can add a fifth leg to the chair and get a patent on it.

	True
	False

Question 54

1 points

Save

Schumpeters concept of creative destruction holds that:

	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
	a natural feature of capitalism is that established businesses cannot keep up with economic changes and entrepreneurial forces drive them out of business
	creative managers need to reinvent themselves constantly
	creative processes in the arts, sciences, and social systems entail rethinking how things should work

Question 55

1 points

Save

According to William Abernathys perspective on corporate innovation, for a company to break the stranglehold of doing business the same old way, it should:

	focus R&D efforts on improving its existing products in order to make them more attractive in the market
	strive to strengthen the processes it employs to produce its products
	increase its R&D budget
	strive for de-maturation

Question 56

1 points

Save

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:

	CraigsList
	Firefox and Alexa Internet
	PayPal and Flickr
	Apple Computer

Question 57

1 points

Save

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

	Working with an innovation that has major impact on how the organization approaches production in an environment of stable markets
	Working with an innovation that has major impact on how the organization approaches production and addresses changing markets
	Moving quickly from R&D efforts to production efforts
	Moving quickly from R&D and production into the market introduction of a new product

Question 58

1 points

Save

Which of the following questions reflects financial risk concerns?

	At what point will breakeven occur?
	Do we have the capability to produce a desired technology?
	How should we price our new product?
	Are we prepared to deal with changing regulations?

Question 59

1 points

Save

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

	True
	False

Question 60

1 points

Save

New high tech ventures come in many shapes and sizes. There are not many generalizations that can be made about them because there are so many routes entrepreneurs and technologies can follow. One exception is:

	they usually are funded by venture capital
	they usually emerge from university initiatives
	they often entail collaboration between a technical champion and a business champion
	they are usually based on carefully devised plans

Question 61

1 points

Save

Process innovation can contribute directly to a companys profits by:

	reducing production costs
	identifying market niches that have not yet been exploited
	employing state-of-the-art equipment
	establishing the foundation for effective marketing and sales

Question 62	1 points	Save
	An innovation is approaching the end of its technology life when: