Deck 14: Innovation and Entrepreneurship

Question 1

__________ is turning ideas into profits.

A)Improvement
B)Process development
C)Innovation
D)Invention

Answer 1

C

Question 2

CCC21 stands for:

A)Competitive Cost Competency in the 21^st century
B)Construction of Cost Competitiveness for the 21^st century
C)Cost Chain Competition for the 21^st century
D)Continuous Cost Competitiveness in the 21^st century

Answer 2

B

Question 3

_________,called kaizen in Japanese,is the process of relentlessly trying to find ways to improve and enhance a company's products and processes from design through assembly,sales and service.

A)CCC21
B)Incremental innovation
C)Continuous improvement
D)Six Sigma

Answer 3

C

Question 4

The iPod is an example of ____ innovation,while iTunes is an example of ______ innovation.

A)product,process
B)process,product
C)product,service
D)service,product

Question 5

________ is an idea factor involving actively looking for an answer to a known problem.

A)Need spotting
B)Market research
C)Random events
D)Trend following

Question 6

________ refers to simple changes or adjustments in existing products,services or processes.

A)Continuous innovation
B)Incremental innovation
C)Process innovation
D)Continuous improvement

Question 7

Which of the following is NOT a primary method of innovation?

A)Competitive innovation
B)Process innovation
C)Service innovation
D)Product innovation

Question 8

__________ is the initial commercialization of invention by producing and selling a new product,service or process.

A)Improvement
B)Process development
C)Innovation
D)Invention

Question 9

_________ are serendipitous moments when innovators stumbled on something they were not looking for but immediately recognized its significance.

A)Solution spottings
B)Trend followings
C)Market researches
D)Random events

Question 10

________ is a continuous improvement approach many companies have adopted to spur incremental innovation in their businesses.It is a very rigorous and analytical approach in quality and continuous improvement.

A)CCC21
B)Balanced scorecard
C)Strategic matrix analysis
D)Six Sigma

Question 11

The DMAIC (define,measure,analyze,improve,control)process is relevant to

A)CCC21
B)Balanced scorecard
C)Strategic matrix analysis
D)Six Sigma

Question 12

_________ is the creation of new products or processes through the development of new knowledge or from new combinations of existing knowledge.

A)Process development
B)Invention
C)Innovation
D)Improvement

Question 13

Breakthrough innovations are also called ______ innovations.

A)CCC21
B)incremental
C)sustaining
D)disruptive

Question 14

__________ is an idea factor involving things dreamed up in the head with little reference to the outside world.

A)Internal following
B)Mental inventions
C)Solution spotting
D)Random events

Question 15

A _____ technology is distinct from a "disruptive" technology.

A)CCC21
B)breakthrough
C)core
D)sustaining

Question 16

A(n)___________ is an innovation in a product,process,technology or the cost associated with it that represents a quantum leap forward in one or more of these ways.

A)Breakthrough innovation
B)Invention
C)"Home-run" innovation
D)Cost-improvement

Question 17

_________ is an idea factor involving finding a new way of using an existing technology.

A)Trend following
B)Need spotting
C)Solution spotting
D)Random events

Question 18

__________ are inherently more risky than ___________.

A)Disruptive innovations; breakthrough innovations
B)Incremental innovations; breakthrough innovations
C)Breakthrough innovations; incremental innovation
D)Functional innovations; process innovations

Question 19

A major driver of ______ innovation in many companies the last several years has come from programs aimed at continuous improvement,cost reduction,and quality management.

A)Breakthrough
B)Disruptive
C)Incremental
D)Inventive

Question 20

A recent study by Boston Consulting Group found that the executives indicated their three biggest problems with innovation.Which of the following is NOT one of those biggest problems according to the study?

A)Leveraging suppliers for new ideas
B)Appropriately balancing risks,timeframes and returns
C)Generating potentially viable ideas
D)Moving quickly from idea generation to initial sales

Question 21

The ideal ________ has strength in both creativity and management.

A)Administrator
B)Inventor
C)Promoter
D)Entrepreneur

Question 22

Good _______ develop strong management skills,specific business know-how and the ability to organize people.

A)Promoters
B)Inventors
C)Innovators
D)Administrators

Question 23

Managers ask if they can retain existing customers and improve targeted coverage of existing and similar new customers,without innovation.Which of the following points about managing risk relates to this question?

A)Get the most out of minimum innovation
B)The point of innovation is growth
C)Incremental product innovations can be particularly good at locking in existing customers
D)Incremental innovations can generate more revenue gain or cost savings with less risk than radical ones

Question 24

_______ usually take pride in overseeing the smooth,efficient functioning of operations largely as they are.

A)Promoters
B)Inventors
C)Innovators
D)Administrators

Question 25

___________ is an idea factor involving following demographic and other broad trends and trying to develop ideas that may be relevant and useful.

A)Mental invention
B)Trend following
C)Market research
D)Solution spotting

Question 26

Most new ventures find _________ hard to get,so gradually nurturing a relationship with a commercial lender is a wise approach for the new entrepreneur.

A)Patient money
B)Friendly sources
C)Equity financing
D)Debt capital

Question 27

While ________ may under perform established products in mainstream markets,they often offer features or capabilities appreciated by some fringe customer group.

A)Throughput technologies
B)Acquired innovations
C)Disruptive innovations
D)Lagging innovations

Question 28

__________ are clever at devising schemes or programs to push a product or service,but aimed more at a quick payoff than a profitable,business building endeavor for the longer term.

A)Administrators
B)Promoters
C)Inventors
D)Entrepreneurs

Question 29

Incremental business process innovations can:

A)Generate less revenue gain,but higher cost savings than radical ones
B)Generate more revenue gain or cost savings with less risk than radical ones
C)Generate more risk but higher revenue gains than radical ones
D)Generate more revenue gain and higher cost savings but with more risk than radical ones

Question 30

_______ is an idea factor involving traditional research techniques to find ideas.

A)Need spotting
B)Mental invention
C)Solution spotting
D)Market research

Question 31

____________ is the process of bringing together creative and innovative ideas and actions with the management and organizational skills necessary to mobilize the appropriate people,money and operating resources to meet an identifiable need and create wealth in the process.

A)Entrepreneurship
B)Market speculation
C)Venture capitalism
D)Franchising

Question 32

When entrepreneurs can sell their product or service at gross margins in the ________ range,there is an attractive cushion built in that covers the mistakes they are likely to make while developing a new enterprise.

A)10-15 percent
B)15-30 percent
C)50+ percent
D)80-100 percent

Question 33

____________ are also referred to as "crowdsourcing" or "open innovation."

A)Ideagoras
B)Disruptors
C)Sustainers
D)Golddiggers

Question 34

_________ is money provided to a business venture that entitles the provider to rights or ownership in the venture and which is not expected to be repaid.

A)Restricted stock
B)Debt financing
C)External financing
D)Equity financing

Question 35

Because certain ideal strengths rarely coexist in one individual,__________ is increasingly found to involve teams of people that combine their strengths.

A)Administration
B)Entrepreneurship
C)Invention
D)Promotion

Question 36

Tweaking a business process does not incur much:

A)Technology risk
B)Sales risk
C)Cost
D)Uncertainty

Question 37

_________ accrues to good entrepreneurs,but their focus is on opportunities,customers,markets and competition.They do not often seek ________ for its/their own sake.

A)Money; status
B)Financial stability; profits
C)Equity financing; equity
D)Power; status

Question 38

The entrepreneur or team must possess the knowledge and skill necessary to create the products or services the new venture will provide.This refers most directly to the entrepreneur's:

A)Social skills
B)Marketing competence
C)Technical competence
D)Vision and capacity to inspire

Question 39

__________ are exceptional for their technical talents,insights and creativity,but their creations are often unsuccessful in becoming commercial realities.

A)Marketers
B)Innovators
C)Intrapreneurs
D)Inventors

Question 40

__________ with other firms that have an interest in a possible innovation share the costs and risks associated with the effort.

A)Acquisitions
B)Joint strategy
C)Joint ventures
D)Mergers

Question 41

__________ are usually wealthy individuals,also called "angel" investors and they are increasingly active and accessible as possible equity investors.

A)Informal venture investors
B)Formal venture investors
C)Professional venture capitalists
D)Friendly sources

Question 42

_________ is the process of attempting to identify,encourage,enable and assist entrepreneurship within a large,well established company so as to create new products,processes or services that become major new revenue streams and sources of cost savings for the company.

A)Entrepreneurship
B)Corporate "slack"
C)Market innovation
D)Intrapreneurship

Question 43

________ is generally obtained from a commercial bank to pay for property,equipment and maybe provide working capital.

A)Equity financing
B)Debt financing
C)Bond financing
D)Stock financing

Question 44

Some company cultures foster an interest in innovation only when the ideas represent major breakthroughs.In this type of culture:

A)Intrapreneurship is very efficient
B)Intrapreneurship is predicated on the tolerance of failure
C)Intrapreneurship is very restricted
D)Intrapreneurship cannot happen

Question 45

Entrepreneurs benefit when using __________ because they retain ownership and increase the return on their investment if things go as planned.

A)Equity capital
B)Debt capital
C)Stock financing
D)Loans against accounts payable

Question 46

_________ is money provided to the venture that must be repaid at some point in time.

A)Bond financing
B)Debt financing
C)Equity financing
D)Distributive financing

Question 47

To encourage intrapreneurship,the company should eliminate _________ after ideas are generated.

A)Corporate "slack"
B)"Home runs"
C)"Hand-offs"
D)"Patient money"

Question 48

__________ is usually obtained from one or more of three sources: friendly sources,informal venture investors or professional venture capitalists.

A)Debt financing
B)Resource financing
C)Equity financing
D)Loan financing

Question 49

__________ seek investment in the truly high-growth potential ventures.They have particularly stringent criteria.

A)Public stock offerings
B)Friendly sources
C)Informal venture investors
D)Professional venture capitalists

Question 50

________ are ten characteristics identified by Dr.Gordon Pinchot and elaborated on by others that need to be present in large companies seeking to encourage and increase innovation.

A)Intrapreneurship freedom factors
B)Cash-based freedom factors
C)"Slack" factors
D)The entrepreneurship factors

Question 51

Giving the originator of an idea some freedom to make decisions about its further development and implementation:

A)Rather than relying on multiple levels of approval,enhances intrapreneurship
B)Can increase the downside risk to executives
C)Can actually discourage intrapreneurship
D)Can help limit the downside risk

Question 52

In any organization,there are boundaries-territoriality--that stifle intrapreneurship.____________ is often central to innovation and successful entrepreneurial teams.

A)Turf-building
B)"Cross-fertilization"
C)Corporate slack
D)Self-selection

Question 53

Innovation inherently involves _______,so some failures should be tolerated and chalked up to experience.

A)"Home runs"
B)Risk
C)"Turfness"
D)Multiple options

Question 54

The pressure for quarterly profits in many U.S.companies stifles innovative behavior.However,investment in intrapreneurial activity requires:

A)No hand-offs
B)Self-selection
C)Patient money
D)Corporate slack

Question 55

__________ are prevalent early in many new ventures.

A)Friendly sources
B)Professional venture capitalists
C)Informal venture investors
D)Angel investors

Question 56

Firms that ___________ facilitate innovation.

A)Use the "home run" philosophy
B)Vastly limit corporate "slack"
C)Eliminate corporate "slack"
D)Set aside corporate "slack"

Question 57

____________ is a key characteristic of entrepreneurs.Likewise,time is the most critical resource,used in tandem to virtually "will" a new venture's success at numerous junctures early in its development.

A)Conservativeness
B)Freedom
C)Diligence
D)Determination

Question 58

Organizations inhibit __________ by insisting that communication flow upward.

A)Corporate slack
B)Cross-functional interaction
C)Freedom from turfness
D)Cross-fertilization

Question 59

_________ are available for a very select few new ventures that have usually gone through the other three sources of equity capital first.

A)Stock options
B)Public stock offerings
C)Venture capitalists
D)Friendly sources

Question 60

Companies should:

A)Designate the responsibility for innovation to a few individuals or groups
B)Not tolerate risk,failure and mistakes in intrapreneurship
C)Give innovators the chance to bring for their ideas
D)Encourage turf-building within the organization,to facilitate innovation

Question 61

When an individual with an idea has only one person to consult or one channel to inquire into for developing the idea,innovation can be stifled.Intrapreneurship is:

A)Better than entrepreneurship,especially when there are many options for pursuing ideas
B)Inhibited when people have too many options for discussing or pursuing innovative ideas
C)Encouraged when people have many options for discussing or pursuing innovative ideas
D)Easily achieved with only one or two options