Module 3: Chapters 7, 8, and 9 Quiz

Sally has come up with a unique recipe for cookies and is selling them through exclusive outlets all across Atlanta. As the sales skyrocket, her friends tell her to patent the recipe. However, she is so protective of her recipe that she does not even want to reveal her secret ingredients to a government agency. Is there anything she can do to keep the recipe legally protected? a) No, the recipe is not a tangible product and therefore cannot be protected. b) No, she cannot protect her recipe unless she is willing to get her recipe patented. c) Yes, she can declare her recipe to be a trade secret and register it with the U.S. Trade Secret Agency. d) Yes, her recipe can be considered a trade secret and she can legally prevent others from benefiting from her recipe without her permission.

d) Yes, her recipe can be considered a trade secret and she can legally prevent others from benefiting from her recipe without her permission.

Jack took part in a survey in which he was asked to rank the importance of certain features of the smart television he had recently purchased. The result was then used by the surveying firm to assess the different attributes of the ranking. This survey would most accurately be termed a _____. a) program analysis b) transactional analysis c) cognitive analysis d) conjoint analysis

d) conjoint analysis

Greyer Corp. has developed a special drug that kills cancer cells. While the scientists at Greyer have the knowledge, they are short on equipment, money, and marketing know-how. In this situation, the most appropriate step for Greyer would be to: a) come up with a completely new drug. b) forge forward and develop the drug on its own. c) give up the idea of selling the drug altogether. d) find a partner to collaborate with to sell the drug.

d) find a partner to collaborate with to sell the drug.

Joe's Burgers Corp. is a famous fast-food chain that uses a picture of a cook in a red hat as its logo. It would not be legal for a firm to sell hamburgers with the same identification picture as that of Joe's Burgers because that would be a(n): a) patent violation. b) embargo violation. c) trade secret violation. d) trademark violation.

d) trademark violation.

Which of the following is true of quantitative methods of analyzing new projects, particularly in rapidly changing environments? a) Discounted cash flow methods are the least commonly used quantitative methods. b) Their accuracy is unquestionable. c) They are particularly accurate in highly uncertain or rapidly changing environments. d) They enable managers to use rigorous statistical comparisons of projects.

d) They enable managers to use rigorous statistical comparisons of projects.

Which of the following statements is true of resource fit? a) It encourages collaborations based on the combination of complementary resources to access resources a firm does not possess. b) It refers to the degree to which partners have compatible objectives and styles. c) It excludes resources that are supplementary. d) It seldom enables partners to achieve economies of scale by pooling of supplementary resources.

a) It encourages collaborations based on the combination of complementary resources to access resources a firm does not possess.

To ensure that companies do not receive patents in countries where they do not intend to set up production of an invention, some countries have a "working requirement," according to which: a) the invention must be manufactured in the country where the patent was granted within a specified period of time. b) if the product is not profitable, it will not be granted a patent. c) the workers who manufacture the product must be from the country where the patent was granted. d) patents in a country will only be granted to people who have been working in the country for at least one year.

a) the invention must be manufactured in the country where the patent was granted within a specified period of time.

Which of the following can be protected by a copyright? a) An improvisational speech that has not been recorded b) A novel c) Names of people d) Familiar symbols

b) A novel

Wholly proprietary systems differ from wholly open systems in those wholly proprietary systems _____. a) comprise technology, which is based on available standards, or it may be new technology that is openly diffused to other producers b) provide their developers with the opportunity to appropriate rents from the technology c) comprise technologies that may be freely accessed, augmented, and distributed by anyone d) are typically compatible with the products offered by other manufacturers

b) provide their developers with the opportunity to appropriate rents from the technology

Self-enforcing norms based on goodwill, trust, and reputation of partners are known as _____. a) alliance contracts b) relational governance c) equity ownership d) capability complementors

b) relational governance

In the context of qualitative methods for choosing projects, screening questions are used mainly to: a) increase employee turnover rates. b) structure the discussion about project details like potential costs and benefits. c) choose the best consulting firm to analyze a potential project. d) increase the rate of employee attrition.

b) structure the discussion about project details like potential costs and benefits.

A firm that invests heavily in derivative projects that may be immediately commercialized with little risk: a) will have poor returns on its R&D investment in the short run. b) will likely be unable to compete when the market shifts to a newer technology. c) will have greater long-term strategic momentum. d) will be on the leading edge of technology.

b) will likely be unable to compete when the market shifts to a newer technology.

Which of the following statements is true of contract manufacturing? a) It decreases organizational responsiveness to the environment. b) It requires firms to meet the scale of market demand by committing to long-term capital investments. c) It enables a firm to tap the greater economies of scale. d) It requires companies to increase its labor force to meet the scale of market demand.

c) It enables a firm to tap the greater economies of scale.

Which of the following is a feature of a joint venture that differentiates it from other forms of alliances? a) It increases cycle time of a technology. b) It usually does not result in the creation of a new business entity. c) It involves a significant equity stake by the partners. d) It increases asset commitment to products that will become rapidly obsolete.

c) It involves a significant equity stake by the partners.

In the context of a research and development (R&D) program, which of the following can be considered the exercise price? a) The cost of the R&D program b) The returns to the R&D investment minus the cost of the R&D program c) The cost of future investment required to capitalize on the R&D program d) The returns to the R&D investment

c) The cost of future investment required to capitalize on the R&D program