Test

Easymake Corp. developed a new Web design software to build Web pages for its clients. However, Easymake soon realized it could make more money by selling this software to those who wish to quickly build Web pages to sell their products. Which of the following would be the most appropriate strategy for Easymake?

It should become a licensor of the new Web design software.

Which of the following statements is true of outsourcing?

It carries a risk of proprietary technology being expropriated by the contract manufacturer.

Which of the following statements is true of contract manufacturing?

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

A firm's emphasis on a scientific discipline that is central to its core competency can make the firm less attractive to individuals from other disciplines.

TRUE

A joint venture between two companies often results in a new separate company.

TRUE

According to Porter's five-force model, the threat of potential entrants is influenced by the height of entry barriers.

TRUE

External development efforts typically lack the coordination of internal development.

TRUE

Firms can use strategic alliances to exploit their own capabilities by leveraging them in another firm's development efforts.

TRUE

Formulating a technological innovation strategy first requires an accurate appraisal of where the firm currently is.

TRUE

Some collaboration agreements include provisions for periodic auditing either by the partner organizations or by a third party.

TRUE

Technology trajectories are path dependent.

TRUE

The most common use of conjoint analysis is to assess the relative importance of different product attributes to customers.

TRUE

Trademarks must be registered before a suit can be brought in federal court against an infringement of the mark.

TRUE

A firm cannot collaborate with its competitor.

FALSE

A strategic stakeholder analysis emphasizes the stakeholder management issues a firm ought to attend to due to their ethical or moral implications.

FALSE

From a real options perspective, the value of a call stock option is zero as long as the price of the stock is more than the exercise price.

FALSE

If multiple firms benefit from a technology's success, the developer of that technology has a much greater incentive to invest in further developing the technology.

FALSE

If the knowledge underlying a particular technology is tacit, competitors will typically find it very easy to duplicate.

FALSE

Joint ventures are less appropriate than strategic alliances when a firm places great importance on access to other firms' competencies.

FALSE

Licensing a technology from another firm is typically more expensive for a licensee than developing a new technology in-house.

FALSE

Patent laws do not vary from country to country.

FALSE

Resources of a tangible nature that can be readily codified are called tacit resources.

FALSE

The ratio of R&D expenditures to sales is known as R&D trajectory.

FALSE

Felix has designed a pair of sunglasses that can be folded and put into a case that easily fits into a shirt or pant pocket. Felix wants to know if he can receive a patent on this invention. Which of the following responses would be most accurate according to U.S. patent law?

He cannot receive a patent since he is merely making the sunglasses more portable.

Which of the following statements is true of a patent?

In the United States, an inventor can publish an invention up to a year before applying for the patent.

Singing Cards Corp. has decided to make the technology behind its musical cards open. Which of the following is most likely to be one of the advantages associated with this decision?

The technology will accrue more rapid adoptions.

Which of the following is true of quantitative methods of analyzing new projects, particularly in rapidly changing environments?

They enable managers to use rigorous statistical comparisons of projects.

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?

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

Piezo Tech Solutions supplies hospitals with software to track insurance claims. As insurance regulations and policies are always changing, its software needs to have the ability to be agile and responsive to change. In other words, the software needs:

dynamic capabilities.

Mr. Crunchy Inc. is a firm experiencing severe losses. However, with large initial investment in manufacturing equipment and infrastructure, the firm is finding it difficult to abandon the industry. According to Porter's five-force model, the company is facing a(n):

exit barrier.

Allured Architecture Inc. collaborated with Maze & Matiz Corp. to form a new architecture firm called AllureAmaze Inc. Both the firms had a significant equity stake in the new entity. This collaboration would most accurately be termed a(n) _____.

joint venture

Software whose code is made freely available to others for use, augmentation, and resale is referred to as:

open source software.

If the net present value of a project is greater than zero, then the:

project generates wealth

Self-enforcing norms based on goodwill, trust, and reputation of the partners is known as _____.

relational governance

Socially complex resources are:

resources or activities that emerge through the interaction of multiple individuals

Ample Espresso Corp. is a coffeehouse located across from Tian's Kitchen, a restaurant. According to Porter's five-force model, the services and products provided by both are most accurately classified as:

substitutes.

Factors that make it difficult or expensive to change suppliers or buyers are referred to as _____.

switching costs

The difference between copyrights and trademark protection is that:

trademark is an indicator used to distinguish the source of a good.

Joe's Burgers Corp. is a famous fast-food chain that uses a picture of a cook in a red hat as its symbol. It would not be legal for you to sell hamburgers with the same identification picture as that of Joe's Burgers because that would be a(n):

trademark violation.

When technology is progressing rapidly, firms are more likely to:

use linkages with other specialized firms to access resources they do not possess.

In the United States, there are no laws to protect trade secrets.

FALSE

Titles and names can be copyrighted.

FALSE

Weekly News Inc. bought the paper mill that supplied paper for printing its magazine. This is an example of horizontal integration.

FALSE

When demand is increasing, there is less revenue to go around and firms will experience more competitive pressure.

FALSE

When Faslow Medical Center in Exeter County changed its name to Faslow Hospital, it also unveiled a plan to build a medical tower that would double its physical facilities by 100 percent within the next 10 years. It also announced that its goal was to not only serve Exeter County but also the entire region including the five contiguous counties. This is most accurately an expression of:

strategic intent.

In the context of qualitative methods for choosing projects, screening questions are used mainly to:

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

To ensure that companies do not receive patents in countries where they do not intend to set up production of the invention, some countries have a "working requirement," according to which:

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

Ceramic Customs Corp. required a specific type of ceramic to make its tiles. Since there was only one supplier for that particular ceramic, the firm was forced to source all of its supplies from it. The firm tried negotiating the price of the material but failed to get any reduction on the cost. This was because:

the supplier had more bargaining power than the firm.

_____ specifies a minimum level of copyright protection for all member countries, and it requires member countries to offer the same protection to both its own citizens and foreign nationals.

The Berne Convention

According to Michael Porter's model of a value chain, which of the following is a support activity?

Accounting activities

The Corner Shop Corp. is a leading supermarket chain in Chicago. According to Michael Porter's model of a value chain, which of the following activities of the firm is a primary activity?

An advertising campaign for a new The Corner Shop outlet

Which of the following would be an example of a tacit resource?

An oddsmaker who works for a large casino in Las Vegas and is correct 95 percent of the time

In the _____ method, in order to establish scales of customer preferences, individuals in a group are each given a stack of cards with an object or idea on each card.

Q-sort

_____ refers to the degree to which partners have compatible objectives and styles.

Strategic fit

Tacit knowledge is best defined as the knowledge that:

cannot be readily codified or transferred in written form.

The relationship between a _____ resource and the outcome it produces is poorly understood.

causally ambiguous

Dynamic capabilities enable firms to quickly adapt to emerging markets or major technological discontinuities.

TRUE

Allure Fabrics Corp. supplies cotton, linen, and silk fabrics to various designer wear boutiques in and around Florida. The firm has recently launched a boutique in Florida under its own brand name to sell women's fashion apparel. Allure Fabrics is practicing:

forward vertical integration.

LiteShoes Inc. has recently obtained architectural control for its shoe glider technology. By doing so, the company has:

improved its efficiency in controlling the rate at which the technology is upgraded or refined.

Stevenson, a U.S. citizen, wrote a book called The Ten Commandments of Leadership. He gave away copies of the book to the people who attended his workshops on leadership. The copyright protection for this book:

is in effect from the time the book was created and fixed in a copy.