EBD 280 Chapter 3

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.

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

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

Individuals may avoid corporate entrepreneurial behavior due to the impact of traditional management techniques.

a. True

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

a. True

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

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

All of the following are reasons for the growth of corporate entrepreneurship except

a. a desire to dramatically increase profitability.

Which of the following terms refers the inaugural breakthroughs launched from experimentation and determined vision?

a. radical innovation

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.

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

b. False

Skunk works are project groups that work within the traditional lines of authority.

b. False

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

b. False

The resources of the organization are irrelevant to the ability of the corporate entrepreneur to implement an idea.

b. False

Which of the following terms refers to the systematic evolution of a product or service into newer or larger markets?

b. incremental innovation

The first step in planning a strategy of entrepreneurship for enterprise is

b. sharing the vision of innovation.

Transformational triggers in a corporate entrepreneurial environment initiates the need for

b. strategically adapting to change.

Secretly working on new ideas on company time as well as on personal time is referred to as

c. bootlegging.

Which of the following practices is important for establishing innovation-driven organizations?

c. create a system of feedback and positive reinforcement

The major thrust of corporate entrepreneurship is to

c. encourage innovation.

Collective entrepreneurship, as a concept, refers to

c. entrepreneurial thinking that is diffused throughout the company.

In restructuring corporate thinking, top management should

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?

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

Which of the following is an obstacle to corporate entrepreneurship?

c. traditional management techniques

The second step in planning a strategy of entrepreneurship for the enterprise is

d. developing and encouraging innovation.