BUS 401- Chapter 12 - TF
A firm's innovation efforts rarely benefit from partnering with non-business entities such as universities and government agencies
Fales
As an industry matures, there are greater opportunities for change and so innovations tend to be more radical.
False
Corporate business incubators often provide physical space and business services to internal ventures, but not funding.
False
Corporate venturing that is focused permeates all parts of the organization and involves every member of the organization
False
Exit champions are often reluctant to gather hard data about a venture because it might kill the project
False
First movers in an industry often capture above-average profits, but usually find it difficult to maintain early market share gains.
False
Product champions are the employees who identify new product ideas or services
False
Radical innovations are evolutionary applications of novel ideas within existing paradigms.
False
Real options analysis helps managers make investment decisions involving large irreversible commitments of financial resources
False
Real options logic is useful when corporations consider stock options as a way to finance entrepreneurial ventures.
False
The term "innovations" refers primarily to inventions that use the latest technologies.
False
The term "skunkworks" is used to refer to a type of in-house facility that corporations use to develop entrepreneurial ideas
False
According to the text, new venture ideas must pass through two critical stages to be implemented by corporations--project definition and project impetus.
True
Business incubators are designed to support fledging entrepreneurial ventures until they can operate as stand-alone bsuinesses
True
Business risk taking refers associated with entering untested markets or committing to unproven technologies.
True
Competitive aggressiveness is a response to threats whereas proactiveness is a response to opportunities
True
Corporate entrepreneurship is sometimes called "intrapreneurship."
True
Corporate ventures that use real options logic in decision making tend to keep total investment low in order to minimize the downside risk of a project.
True
Dispersed approaches to corporate entrepreneurship are often found in organizations with a strong spirit of entrepreneurship.
True
Disruptive innovations are those that overturn markets by providing an altogether new approach to meeting customer needs.
True
Firms using a focused approach to corporate entrepreneurship typically separate corporate venturing activities from on-going operations of the firm
True
For innovation team members to work enthusiastically on innovation projects, it is important to separate the performance of individual team members from the performance of the innovation itself.
True
One of the potential pitfalls of real options analysis is that managers may have the incentive and know-how to "game the system."
True
Only about 50 percent of corporate venturing efforts reach profitability within six years of their launch
True
Process innovations are often associated with a low cost leadership strategy.
True
Product champions are critical during the period after a new venture project has been defined but before it has gained momentum and achieved project impetus.
True
Radical innovation often involves open-ended experimentation which can be very time consuming.
True
The strategic goals of corporate entrepreneurship are often just as important as the financial goals.
True
The term "strategic envelope" refers to the scope of a firm's innovation efforts.
True
Strategic renewal and the pursuit of new venture opportunities are the two primary aims of corporate entrepreneurship.
True.
