Question 1

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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

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Debt financing dilutes the equity share of entrepreneur-owners.

	True
	False

Question 3

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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

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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

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Process innovation does not focus on:

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

Question 6

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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

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

	True
	False

Question 8

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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

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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

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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

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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

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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

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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

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

	True
	False

Question 15

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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

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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

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All innovations are rooted in science.

	True
	False

Question 18

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An example of a trademark that became generic is:

		iPod
		Cadillac
		Xerox
		Aspirin

Question 19

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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

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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