ELE 3010 Quiz 1 (Ch. 1-3)

Which of the following is true about corporate entrepreneurship?

A company must be willing to invest money without a guarantee of a return in the short term

A new entry includes all of the following except:

Creating a new brand name for your company

In the McMullen-Shepherd Model, the first stage is the evaluation stage

False

Newness of new entry is always an advantage

False

The McMullen-Shepherd Model helps identify the common traits of successful entrepreneurs

False

A narrow-scope strategy

Offering a small product range to a small number of customer groups is

A broad -scope strategy:

Opens the firm up to many different "fronts" of competition

Resources

The basic building blocks to a firm, or the inputs into the production process, are:

Bricolage is entrepreneurs making do by applying combinations of the resources at hand to new problems and opportunities

True

Entrepreneurial opportunities are those situations in which new goods, services, raw-materials and organizing methods can be sold at greater than their production cost

True

Entrepreneurially managed firm structure is usually flat with multiple informal networks

True

Generally, independent, venture-capital based start-ups by entrepreneurs tend to outperform corporate start-ups significantly

True

The effectuation process starts with what one has and selects among possible outcomes

True

The period of time when the environment is favorable for entrepreneurs to exploit a particular new entry is called the window of opportunity

True

The question "What is this technology all about?" is a comprehension question

True

By delaying entry, late movers:

Can learn from the actions of first movers without incurring the same costs

Which is NOT a leadership characteristic of a corporate entrepreneur according to the text?

Encourages colleagues to follow hierarchy

Corporate entrepreneurship is best described as:

Entrepreneurial action within an organization

In order to be the basis for a firm's superior performance, a bundle of resources must be valuable, rare, and imitable

False

In regards to the differences between the entrepreneurial and administrative focuses, which of the following is correct?

Entrepreneurs rent or sporadically use resources; managers like to own resources

In regards to thinking structurally, superficial similarities:

Exist when entrepreneurs engage in bricolage

A reflection task would involve thinking about what strategies should be used to solve a problem

False

Customers always embrace change in products and services

False

Entrepreneurially run firms are driven by controlled resources whereas traditionally managed firms are driven by perception of opportunity

False

In encouraging a culture for corporate entrepreneurship, using older, proven, technology is recommended in order to increase stability in the organization

False

________ includes initiative and risk taking, as well as competitive aggressiveness and boldness

Proactiveness

_______ refers to the probability, and magnitude of downside loss

Risk

The first step in establishing corporate entrepreneurship in an organization is:

Securing commitment from top management

Entrepreneurial culture and growth orientation consists of all of the following except:

The desire to grow at a slow and controlled pace

All these are characteristics of an entrepreneurial environment except:

There are short term horizions