ENTR 321 Test #1 Ch. 3

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

developing and encouraging innovation

_____ people thoroughly understand the concept of corporate entrepreneurship.

Few

The need for corporate entrepreneurship has risen in response to the rise of the global economy.

True

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

incremental innovation

Typically, when faced with setbacks or failure, entrepreneurs

remain optimistic and view it as a learning experience

Success of the corporate entrepreneurship plan depends on

resources provided by the firm

Rewards should be based upon _____ to encourage the desired behavior.

results

Entrepreneurship within the corporate structure allows employees to develop their ideas without

the risk associated with leaving the company

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

True

Radical innovations must be nurtured.

True

Understanding the entrepreneur is only part of understanding the entrepreneurial process.

True

The major thrust of corporate entrepreneurship is to

encourage innovation

Internal venture capital that is set aside for special entrepreneurial projects is termed:

intracapital

In attempting to create an entrepreneurial climate, the organization should consider that

the corporations that promote personal growth will attract the best people

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

False

Corporate entrepreneurs are people who are action oriented and self-determined.

True

Which of the following is NOT a question in the corporate entrepreneurial planning process?

has the firm met government regulations for innovation?

All of the following are important characteristics for establishing an intrapreneurial climate except

punishment of mistakes

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

radical innovation

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

False

Which of the following was one of the factors Drucker mentions to explain the development of the entrepreneurial economy?

the rapid evolution of technology and knowledge

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

bootlegging

Which of the following will help to foster an innovative climate?

encourage action from employees

Collective entrepreneurship, as a concept, refers to

entrepreneurial thinking that is diffused throughout the company

Sustaining corporate entrepreneurship requires

keeping the corporate vision strong

Transformational triggers in a corporate entrepreneurial environment initiates the need for

strategically adapting to change

In the model of sustained corporate entrepreneurship discussed in the text, a transformational trigger can be internal or external to the company.

True

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

True

Trust from the company is one key element to successful corporate entrepreneurship.

True

Which of the following is not a strategy for corporate entrepreneuring?

decrease the use of third-party contracts

Corporate entrepreneurial activity takes place _____ the firm.

inside

In restructuring corporate thinking, top management should

promote entrepreneurship through experimentation

In following the rules for innovation, a manager should do all of the following except

punish failure

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

False

Corporations that promote personal growth will attract the best people.

True

The first step in planning a strategy of corporate entrepreneurship is sharing the vision of innovation that executives wish to achieve.

True

Which of the following is an advantage to developing an entrepreneurial environment?

retention and motivation of the best employees

The success of corporate entrepreneurship depends on the entrepreneurs within the firm.

True

When an entrepreneurial environment is created, a company does not usually set aside the traditions of the company.

False

Organizational boundaries allow people to focus on new ideas.

False

Which of the following would not be considered as encouraging to an entrepreneurial environment?

uniform compensation

Which of the following helps account for the rise of interest in corporate entrepreneurship?

An increase in corporations losing some of their best people

The person who has the opportunity to lead and "run" with an idea would be coined which of the following:

Champion

A "champion" is a person with a big ego and just gets in the way of corporate entrepreneurship.

False

Another common name for an I-Team is an intrapreneurial team.

False

Corporate entrepreneurs generally are power oriented or power hungry.

False

Corporate entrepreneurs should be restricted to the resources of their own divisions of the corporation.

False

Corporate venturing flourishes when a vertical management system is in place.

False

A competitor's move to increase market share can be a precipitative event in corporate entrepreneurship.

True

A corporation can encourage entrepreneurship activities if top management sponsors entrepreneurial projects.

True

A healthy environment for corporate entrepreneurship exists when employees feel a sense of ownership in the company.

True

As part of creating an innovative climate, a firm should base rewards given upon results achieved.

True

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

True

In order to develop an entrepreneurial environment, factors that organizations need to be aware of include:

a and b should be considered - management support and rewards - autonomy and time

Which is NOT a precipitating event that Zahra identifies as motivating the decision to act entrepreneurially?

a big increase in earnings

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

a desire to dramatically increase profitability

In an innovative climate, failure is viewed as

a learning experience

In many ways, I-Team is

a small business operating within a large business

Entrepreneurial characteristics include

a strong drive to succeed

Employee perception of _____ is critical for the success of corporate entrepreneurship.

an innovative environment

Intrapreneurship is also referred to as:

corporate entrepreneurship

One step an organization can take to make its corporate environment more innovative is to

gain top management support of an entrepreneuring program

Key features in the success of any innovative program include all of the following except

high profitability

Bureaucrats in an organization must

learn to give way to intrapreneurs

Authoritarian management is being replaced by

networking

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

sharing the vision of 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:

skunk works

One reason why corporate entrepreneurship has done so well is that it allows organizations to

tap the innovative talents of their people

Which of the following are specific factors identified by researchers, that organizations can concentrate on in structuring an entrepreneurial climate.

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

The adverse impact of ______ can be so destructive that individuals within the enterprise will tend to avoid entrepreneurial behavior.

traditional management techniques

Which of the following is an obstacle to corporate entrepreneurship?

traditional management techniques

Innovative factors identified by James Brian Quinn that exist in large organizations experienced in successful innovation include all of the following except:

uniform compensation

Corporate entrepreneurial strategy should be thought of as

vision directed

Developing corporate entrepreneurial managers involves teaching them to

Break out of the box

I-Teams are rarely seen in corporate entrepreneurial environments.

False

Employees shouldn't expect feedback on their entrepreneurial ideas.

False

Every business person feels comfortable operating in an entrepreneurial environment.

False

Few firms today realize the need for corporate entrepreneurship.

False

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

False

Very large corporations, such as 3M, have really struggled with corporate entrepreneurship ventures.

False

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

True

Today's managers must foster excitement for innovation and remove obstacles for employees to engage in corporate entrepreneurship.

True