Question 1

If the firm's current employees are well-trained in their jobs, but also have other knowledge, skills, and abilities, these employees have

Accepted Answer

High absorptive capacity means that employees are able to learn and assimilate new knowledge quickly. This would be indicative of employees who not only have technical skills but also possess other skills and abilities that make them more versatile and able to adapt to new challenges. Social capital refers to the value that individuals and organizations derive from their social networks, while entrepreneurial capabilities refer to the ability to identify and exploit business opportunities. Intellectual slack refers to the excess resources that a firm has available, which may be invested in new opportunities, projects or initiatives. None of these terms describe the situation depicted in the question.

Question 2

____ are individuals, acting independently or as part of an organization, who see an opportunity and then take risks to develop an innovation to exploit it.

Accepted Answer

Entrepreneurs are individuals who see an opportunity and then take risks to develop an innovation to exploit it. Leaders may have a vision and inspire others to follow, but they don't necessarily take the risks associated with entrepreneurship. Innovators may come up with new ideas, but they may not be interested in starting a business or taking on the risks of entrepreneurship. Transformative leaders may be focused on bringing about significant changes within an organization or society, but they may not necessarily be entrepreneurs.

Question 3

Entrepreneurs tend to have all the following characteristics EXCEPT

Accepted Answer

Entrepreneurs typically thrive on uncertainty and take risks, so they do not necessarily prefer certainty about projects. A, B, and D are all common characteristics of successful entrepreneurs.

Question 4

The risks of international entrepreneurship include all the following EXCEPT

Accepted Answer

The risks of international entrepreneurship include unstable foreign currencies, problems with market efficiencies, and limitations on market size. However, strong "buy-domestic" programs refer to protectionist policies that aim to promote domestic products over foreign ones and are not a risk faced by international entrepreneurs.

Question 5

The level of entrepreneurial activity in a nation is ____ the nation's level of economic development.

Accepted Answer

Studies have shown that there is a positive relationship between the level of entrepreneurial activity and a nation's level of economic development. This is because entrepreneurship leads to job creation, innovation, and new industries, which can all contribute to economic growth.

Question 6

Research shows that internationally diversified firms tend to be ____ than domestic-only firms.

Accepted Answer

Research suggests that internationally diversified firms tend to have more exposure to different markets, cultures and technologies. This exposure often leads to greater innovation and creativity, which can result in higher levels of competitiveness and profitability. Therefore, the answer is B) more innovative.

Question 7

Commercialization of ideas is more difficult than idea creation as suggested by the fact that ____ percent of R&D occurs in large firms, yet the same firms produce fewer than ____ percent of patents.

Accepted Answer

The fact that 80% of R&D occurs in large firms suggests that these firms have the resources to create ideas, but the fact that they produce fewer than 50% of patents suggests that they struggle with commercializing those ideas. This indicates that commercialization of ideas is more difficult than idea creation.

Question 8

According to Peter Drucker,the primary goal of innovation is to

Accepted Answer

According to Peter Drucker, the primary goal of innovation is to create wealth. This means that innovation should lead to the creation of new products, services or processes that generate economic value and increase wealth for individuals, companies and even entire economies. While innovation can have other positive effects such as promoting social well-being or creating jobs, these are typically seen as secondary benefits rather than the primary goal.

Question 9

Knowledge must be transferred to others in the firm to enhance the entrepreneurial competence of the firm. This requires that

Accepted Answer

Adequate absorptive capacity of the receiving party is a key factor in successful knowledge transfer, as the receiving party must have the ability to learn and apply the knowledge effectively. While intensive communication and breaking knowledge into small units can be helpful, they alone are not sufficient for successful knowledge transfer. Involvement of training consultants may also be helpful but is not necessary for all cases.

Question 10

Products developed through ____ are often offered at lower prices without as many features than products developed through ____.

Accepted Answer

Imitation refers to copying or reproducing existing products or ideas, while innovation refers to creating or introducing new ideas or products. Products developed through imitation are often cheaper to produce because the technology or design already exists, whereas products developed through innovation require more investment in research and development, and may have more features or be more unique. Therefore, products developed through imitation are often offered at lower prices without as many features than products developed through innovation.

Question 11

GreenBox, a company that recycles paper products to make cardboard cartons, has introduced a new product that resists damage by moisture. GreenBox can expect that

Accepted Answer

The answer of GreenBox, a company that recycles paper products...

Question 12

Entrepreneurial opportunities

Accepted Answer

Entrepreneurial opportunities refer to conditions in the market where new goods or services can satisfy a need that is not currently being addressed. These opportunities provide a chance for the firm to introduce innovation and differentiate themselves from competitors. It involves taking calculated risks and exploring new markets and customer segments. Therefore, option D is the best choice. Option A is incorrect because it refers to expanding into existing markets or using existing products, which is not the same as finding new opportunities. Option B is incorrect because not all opportunities are inherently risky, and risk is an inherent part of entrepreneurship. Option C is incorrect because opportunities can arise in any segment or strategy, and entrepreneurs should be willing to adapt to changing conditions.

Question 13

The number of patents held by an organization is a rough guide to the

Accepted Answer

The answer of The number of patents held by an...

Question 14

Innovation by imitation usually leads to _________ and products based on imitation are usually offered at ________.

Accepted Answer

The answer of Innovation by imitation usually leads to _________...

Question 15

The three types of innovative activity include all of the following EXCEPT

Accepted Answer

The answer of The three types of innovative activity include...

Question 16

Entrepreneurship is the process by which individuals or groups identify and pursue ____ without being immediately constrained by the ____ they currently control.

Accepted Answer

Entrepreneurship involves seeking out new opportunities, which may require resources that the individual or group does not currently possess. Therefore, entrepreneurship is often defined as pursuing opportunities without being immediately constrained by the resources currently at hand. Core competencies and threats are not necessarily central to the definition of entrepreneurship.

Question 17

____ exist(s) when there is a need in the market that can be satisfied by new goods or services.

Accepted Answer

Entrepreneurial opportunities exist when there is a need in the market that can be satisfied by new goods or services. It is the identification of these needs or gaps in the market that leads to the creation of new businesses and the development of innovative products and services. The other options do not relate directly to the definition of entrepreneurial opportunities.

Question 18

Roland has developed and patented an inexpensive and organic way to enhance the fertility of clay soils without the addition of chemical fertilizers. But established agricultural chemical companies have rejected his proposals. After six months of promoting his invention during his time off from his regular job, Roland has decided to set his dream aside. Roland lacks a key characteristic of successful entrepreneurs, which is

Accepted Answer

The answer of Roland has developed and patented an inexpensive...

Question 19

Since it replaces existing products and methods of production, entrepreneurship is a process of

Accepted Answer

Entrepreneurship entails the introduction of new products, services, and methods of production, which may render existing ones redundant. This process is known as creative destruction, where new businesses emerge by replacing older ones, leading to long-term economic growth.

Question 20

Innovation creates a(an)

Accepted Answer

The answer of Innovation creates a(an)
...

Quiz 13: Entrepreneurial Implications for Strategy