Question 1

Two critical considerations in establishing corporate ventures are who funds them and who owns them.This suggests four combinations.Which of the following is not a viable combination?&#10;A)Enabling - resources and support, but no formal ownership&#10;B)Advocacy - clear ownership, but no dedicated resources&#10;C)Outbound - ownership and funding by the venture itself&#10;D)Opportunistic - no dedicated resources or formal ownership

Accepted Answer

Corporate ventures typically involve some level of investment or resources from the parent company, making the "Outbound" model, where the venture itself provides both ownership and funding, not a typical or viable combination in the context of corporate venturing.

Question 2

Which of the following roles is necessary to manage a corporate venture?&#10;A)Executive champion&#10;B)Research director&#10;C)Internal gatekeeper&#10;D)Knowledge broker

Accepted Answer

An executive champion is necessary to manage a corporate venture because they provide the necessary support and resources to ensure the venture's success.

Question 3

Direct integration of corporate ventures is the best structure under what conditions?&#10;A)Significant and immediate impact on the core business&#10;B)Strategic and competitive pressures&#10;C)To develop new technological capabilities&#10;D)Regulatory constraints on the core business

Accepted Answer

Direct integration of corporate ventures is best when there is a significant and immediate impact on the core business, as it allows for seamless alignment and resource sharing.

Question 4

Independent business units are a common choice for corporate ventures, but what is a significant drawback?&#10;A)Isolation of risk to the corporation&#10;B)Require less direct monitoring&#10;C)Allow venture to focus&#10;D)Sharing resources and personnel

Accepted Answer

Independent business units often struggle with sharing resources and personnel with the parent corporation, leading to inefficiencies and potential conflicts.

Question 5

Why is relying only on financial performance a poor measure of venture success?&#10;A)Values are very sensitive to the timing of assessment&#10;B)Corporate ventures do not need to make a profit&#10;C)Strategic factors are more important&#10;D)Growth is more important than profitability

Accepted Answer

Financial performance can be affected by external factors such as market fluctuations, economic conditions, and other unforeseen events. Therefore, relying solely on financial measures to evaluate venture success may not give a complete picture of the company's overall performance or its potential for future growth. Additionally, some ventures may prioritize long-term growth over short-term profitability, making financial metrics such as profits or revenue less relevant to measure success. Instead, other factors such as customer satisfaction, innovation, and social responsibility may be more important indicators of a venture's success.

Question 6

Which of the following is not a common motive for corporate venturing?&#10;A)Market Diversification&#10;B)Competitive threat&#10;C)Grow the business&#10;D)Develop new capabilities

Accepted Answer

Competitive threat is more often a reason for companies to defend or adjust their existing strategies rather than a motive for engaging in corporate venturing. Corporate venturing is typically pursued to diversify markets, grow the business, or develop new capabilities.

Question 7

Which of the following is a common basis of relatedness?&#10;A)Industry or sector&#10;B)Process technology&#10;C)Customer segment&#10;D)Intellectual property

Accepted Answer

The answer of Which of the following is a common...

Question 8

A corporate entrepreneur shares many characteristics with other entrepreneurs, but what is a key difference?&#10;A)Advocates of change&#10;B)Political and social skills&#10;C)Ambition and drive&#10;D)Opportunity recognition

Accepted Answer

The key difference between a corporate entrepreneur and other entrepreneurs is their political and social skills. Corporate entrepreneurs not only have to recognize opportunities and advocate for change, but they also have to navigate the complex internal politics and social dynamics within their organization to successfully implement their innovations.

Question 9

Which of the following is not a common design option for a corporate venture?&#10;A)Independent business unit&#10;B)New venture department&#10;C)Spin-off new venture&#10;D)Direct integration

Accepted Answer

The answer of Which of the following is not a...

Question 10

What is a key factor is deciding the structure of a corporate venture?&#10;A)The maturity of technology and markets&#10;B)The strategic importance of the corporate venture&#10;C)The degree and type of integration between the corporation and venture&#10;D)The level of investment required by the corporate venture

Accepted Answer

The degree and type of integration between the corporation and venture is a key factor because it determines how closely the venture will align with the parent company's operations, culture, and strategic goals, influencing its structure.

Deck 13: Developing Businesses and Talent Through Corporate Venturing