ENTR CH 3

a. skunk works.

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. champions. c. strategic innovators. d. multiple approaches.

F

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

b. strategically adapting to change.

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

c. traditional management techniques

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

T

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

F

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

c. entrepreneurial thinking that is diffused throughout the company.

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

F

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Develop a well-defined hierarchical structure, and stick to it. a. True b. False

T

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

T

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

c. bootlegging.

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

c. An increase in corporations losing some of their best people.

Which of the following helps account for the rise of interest in corporate entrepreneurship? a. An increase government regulation of small entrepreneurs. b. A decrease in the number of sophisticated competitors. c. An increase in corporations losing some of their best people. d. A general increase in the number of competitors.

c. incremental innovation

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

d. uniform compensatio

Which of the following would not be considered as encouraging to an entrepreneurial environment? a. top management sponsorship of entrepreneurship b. promotion of entrepreneurship through experimentation c. identifying potential entrepreneurs d. uniform compensatio

F

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

b. promote entrepreneurship through experimentation.

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

T

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

F

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

T

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

c. sharing the vision of innovation.

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

b. top management support, time, resources, rewards, and organizational boundaries

Which of the following are specific factors identified by researchers, that organizations can concentrate on in structuring an entrepreneurial climate. a. skunk works, multiple approaches, and vision b. top management support, time, resources, rewards, and organizational boundaries c. rewards, resources, innovation, and vision d. radical innovation, incremental innovation, and vision

c. radical innovation

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

T

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Allow bootlegging of ideas. a. True b. False

c. a desire to dramatically increase profitability.

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

b. developing and encouraging innovation.

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

F

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Discourage joint projects and ventures among different departments. a. True b. False

T

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Encourage a bias for action. a. True b. False

T

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Encourage brainstorming. a. True b. False

F

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Encourage structured activity. a. True b. False

F

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Fire those who make mistakes as a way of creating a good example for others. a. True b. False

F

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Make extensive use of formal meetings. a. True b. False

T

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Provide feedback on performance. a. True b. False

F

Many ways of developing corporate entrepreneurship exist. Decide if the following action would help develop corporate entrepreneurship (True) or not (False). Set implicit goals. a. True b. False

T

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

c. encourage innovation.

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