Chapter 3- Introduction to Entrepreneurship: MindTap Assignments

Secretly working on new ideas on company time as well as on personal time is referred to as a. skunk works. b. champion. c. bootlegging. d. interactive learning.

c. bootlegging.

One reason that corporate entrepreneurship has become popular is because it allows corporations to tap the innovative talents of the personnel. a. True b. False

a. True

Groups that function outside traditional lines of authority permitting rapid turnaround of new ideas as well as instilling a high level of group loyalty are called: a. skunk works. b. multiple approaches. c. champions. d. strategic innovators.

a. skunk works.

Skunk works are project groups that work within the traditional lines of authority. a. True b. False

b. False

The second step in planning a strategy of entrepreneurship for the enterprise is a. identifying specific objectives. b. sharing the vision of innovation. c. applying the exact tools of the entrepreneur. d. developing and encouraging innovation

d. developing and encouraging innovation

Which of the following terms refers to the systematic evolution of a product or service into newer or larger markets? a. radical innovation b. incremental innovation c. collective entrepreneurship d. strategic entrepreneurship

b. incremental innovation

Collective entrepreneurship, as a concept, refers to a. the collective spirit of innovation that resides in the firm's founder. b. the joint recognition of the CEO and CFO as champions of innovation. c. entrepreneurial thinking that is diffused throughout the company. d. socialist enterprising.

c. entrepreneurial thinking that is diffused throughout the company.

Systematic evolution of a product or service into newer or larger markets is referred to as radical innovation. a. True b. False

b. False

The resources of the organization are irrelevant to the ability of the corporate entrepreneur to implement an idea. a. True b. False

b. False

The first step in planning a strategy of entrepreneurship for enterprise is a. identifying specific objectives. b. sharing the vision of innovation. c. applying the exact tools of the entrepreneur. d. developing radical innovation

b. sharing the vision of innovation.

Researchers have identified specific factors that organizations can concentrate on in helping individuals develop more entrepreneurial behavior. a. True b. False

a. True

Which of the following terms refers the inaugural breakthroughs launched from experimentation and determined vision? a. radical innovation b. incremental innovation c. collective entrepreneurship d. strategic entrepreneurship

a. radical innovation

Firms do not need to alter management techniques to encourage corporate entrepreneurship since it tends to occur naturally. a. True b. False

b. False

Transformational triggers in a corporate entrepreneurial environment initiates the need for a. laying off workers. b. strategically adapting to change. c. changing company location. d. achieving higher productivity standards.

b. strategically adapting to change.

Which of the following is true of corporate venturing? a. It is the adding of new businesses or portions of new businesses via equity investments to the corporation. b. Exhibition of large-scale or otherwise highly consequential innovations that are adopted in the firm's pursuit of competitive advantage. c. May or may not result in new businesses for the corporation. d. Innovation can be in the firm's strategy, product offerings, served markets, internal organization or business model.

a. It is the adding of new businesses or portions of new businesses via equity investments to the corporation.

Clever bootlegging of ideas refers to secretly working on new ideas on company time as well as on personal time. a. True b. False

a. True

In the model of sustained corporate entrepreneurship discussed in the text, a transformational trigger can be internal or external to the company. a. True b. False

a. True

Individuals may avoid corporate entrepreneurial behavior due to the impact of traditional management techniques. a. True b. False

a. True

The first step in planning a strategy of corporate entrepreneurship is sharing the vision of innovation that executives wish to achieve. a. True b. False

a. True

All of the following are reasons for the growth of corporate entrepreneurship except a. a desire to dramatically increase profitability. b. a rapidly growing number of new and sophisticated competitors. c. a sense of distrust in the traditional methods of corporate management. d. an exodus of some of the best people out of corporations.

a. a desire to dramatically increase profitability.

Which of the following practices is important for establishing innovation-driven organizations? a. punish failures to encourage learning b. emphasize team responsibility c. create a system of feedback and positive reinforcement d. allow innovation goals to remain broad and flexible

c. create a system of feedback and positive reinforcement

The major thrust of corporate entrepreneurship is to a. encourage greater risk taking. b. raise profitability. c. encourage innovation. d. increase morale

c. encourage innovation.

In restructuring corporate thinking, top management should a. identify potential entrepreneurs after an innovation program is in operation. b. make the entrepreneur follow strict corporate guidelines. c. promote entrepreneurship through experimentation. d. create diversity and order in strategic activities.

c. promote entrepreneurship through experimentation.

Identified by researchers, which of the following are specific factors identified by the Corporate Entrepreneurship Assessment Instrument (CEAI) that managers in organizations can concentrate on in structuring an entrepreneurial climate? a. radical innovation, incremental innovation, and vision b. skunk works, multiple approaches, and vision c. top management support, time, autonomy, rewards, and organizational boundaries d. rewards, resources, innovation, and vision

c. top management support, time, autonomy, rewards, and organizational boundaries

Which of the following is an obstacle to corporate entrepreneurship? a. orientation to the market b. a system of feedback and positive reinforcement c. traditional management techniques d. rewards based upon results

c. traditional management techniques