Question 1

What is more consistent of a small firm as compared to a large one?
A) small firms generate more slack necessary to innovate
B) small firms produce their innovations at a lower cost of R&D
C) small firms exploit economies of scale
D) small firms hire a more talented and diverse group of employees

Accepted Answer

Small firms often have lower overhead and can be more agile, allowing them to produce innovations at a lower cost of R&D compared to larger firms.

Question 2

Small firms tend to be more innovative in which type of industry?
A) less advertising intensive
B) older industries
C) more concentrated
D) less reliant on skilled labor

Accepted Answer

Small firms are often more innovative in less advertising-intensive industries because they can focus on product development and innovation rather than competing with larger firms' advertising budgets.

Question 3

Which industry would you expect a small firm to be more innovative than a large one?
A) pharmaceutical preparations
B) photographic equipment
C) fabricated metal products
D) measuring and controlling devices

Accepted Answer

The answer of Which industry would you expect a small...

Question 4

Which industry would you expect a large firm to be more innovative than a small one?
A) pharmaceutical preparations
B) photographic equipment
C) fabricated metal products
D) measuring and controlling devices

Accepted Answer

Large firms in the pharmaceutical industry often have more resources for research and development, allowing them to be more innovative compared to smaller firms.

Question 5

What percentage of all firms are founded in the same industry as the one in which their founders were previously employed?
A) 40 %
B) 60%
C) 80%
D) 90%

Accepted Answer

Research indicates that approximately 80% of all firms are founded in the same industry as the one in which their founders were previously employed, leveraging their existing expertise and networks.

Question 6

What percentage of all firm founders start companies to serve the same or similar customers as their prior employers?
A) 40%
B) 60%
C) 80%
D) 90%

Accepted Answer

The answer of What percentage of all firm founders start...

Question 7

What is a reason why so many employees leave to start their own spin-off company?
A) lack of reward sharing
B) inability to effectively bargain over profits
C) inability go agree on a source of value
D) all of the above are reasons

Accepted Answer

All the options listed are potential reasons why employees might leave to start their own spin-off company, as they relate to dissatisfaction with current organizational structures and opportunities.

Question 8

What led Robert Metcalfe to quit Xerox and start 3Com?
A) disagreement over dividing profits
B) lack of sharing rewards
C) inability to agree on a source of value
D) all of the above

Accepted Answer

The answer of What led Robert Metcalfe to quit Xerox...

Question 9

What is the most basic explanation why people spin-off companies?
A) lack of shared rewards
B) disagreement over dividing profits
C) ineffective leadership
D) inability to agree on a source of value

Accepted Answer

Lack of shared rewards is the most basic explanation why people spin-off companies. When employees feel that they are not being fairly compensated for their work, they may decide to start their own company where they can have more control over their rewards.

Question 10

What can keep an employee from exploiting innovations that were identified while working for another company?
A) noncompete agreements
B) patents
C) nondisclosure agreements
D) all of the above

Accepted Answer

Noncompete agreements can prevent employees from working in similar fields or with competitors. Patents protect the company's innovations legally. Nondisclosure agreements prevent employees from sharing confidential information. All these measures can collectively prevent exploitation of innovations.

Question 11

External equity investment in technology start-ups typically comes from which source?
A) corporations
B) business angels
C) venture capitalists
D) all of the above

Accepted Answer

External equity investment in technology start-ups can come from corporations, business angels, and venture capitalists, making all of the above options correct.

Question 12

What are private individuals who invest their own money in a new company called?
A) corporate venturing
B) venture capital firm
C) business angels
D) venture capitalist

Accepted Answer

Business angels are private individuals who invest their own money in new companies, often in exchange for equity.

Question 13

What are organizations, generally limited partnerships, called that raise money form university endowments, pension funds, and wealthy individuals to invest in high-technology start-ups called?
A) venture capitalist
B) business angels
C) venture capital firm
D) corporate venturing

Accepted Answer

Venture capital firms are organizations, often structured as limited partnerships, that raise funds from various sources like university endowments, pension funds, and wealthy individuals to invest in high-tech start-ups.

Question 14

What is the creation of new businesses by existing organizations called?
A) business angels
B) corporate angels
C) venture capitalism
D) corporate venturing

Accepted Answer

Corporate venturing refers to the process where existing organizations create new businesses or invest in startups to drive innovation and growth.

Question 15

In 2003, approximately how many U.S. companies operated corporate venture capital units?
A) 200
B) 350
C) 500
D) 750

Accepted Answer

The answer of In 2003, approximately how many U.S. companies...

Question 16

Corporate ventures accounted for what percentage of all venture capital funds invested in the U.S.?
A) 7 percent
B) 12 percent
C) 17 percent
D) 22 percent

Accepted Answer

Corporate ventures accounted for 17 percent of all venture capital funds invested in the U.S.

Question 17

What are corporate units that create new companies under the umbrella of the parent firm called?
A) business angels
B) new venture group
C) corporate venture capital funds
D) venture capitalists

Accepted Answer

A new venture group is a corporate unit that creates new companies under the umbrella of the parent firm.

Question 18

What is most likely for corporate venture capital funds?
A) following of a corporate approach
B) make smaller investment alone
C) seek to maintain ownership of the new company
D) staging their investments

Accepted Answer

Corporate venture capital funds often stage their investments, meaning they invest in rounds over time, to manage risk and monitor the startup's progress.

Question 19

What is most likely for corporate venture groups?
A) making larger investments
B) coinvesting with other financial institutions
C) seek to maintain ownership of the new companies
D) staging of investments

Accepted Answer

The answer of What is most likely for corporate venture...

Question 20

What is most accurate regarding the amount of money invested in corporate venture groups since the late 1990s?
A) they have continued to increase
B) they have continued to decrease
C) they peaked around 200 and have since declined
D) they peaked around 2003 and have since declined

Accepted Answer

The answer of What is most accurate regarding the amount...

Quiz 16: Organization Structure for Technology Strategy

What is more consistent of a small firm as compared to a large one?

Small firms tend to be more innovative in which type of industry?

Which industry would you expect a small firm to be more innovative than a large one?

Which industry would you expect a large firm to be more innovative than a small one?

What percentage of all firms are founded in the same industry as the one in which their founders were previously employed?

What percentage of all firm founders start companies to serve the same or similar customers as their prior employers?

What is a reason why so many employees leave to start their own spin-off company?

What led Robert Metcalfe to quit Xerox and start 3Com?

What is the most basic explanation why people spin-off companies?

What can keep an employee from exploiting innovations that were identified while working for another company?

External equity investment in technology start-ups typically comes from which source?

What are private individuals who invest their own money in a new company called?

What are organizations, generally limited partnerships, called that raise money form university endowments, pension funds, and wealthy individuals to invest in high-technology start-ups called?

What is the creation of new businesses by existing organizations called?

In 2003, approximately how many U.S. companies operated corporate venture capital units?

Corporate ventures accounted for what percentage of all venture capital funds invested in the U.S.?

What are corporate units that create new companies under the umbrella of the parent firm called?

What is most likely for corporate venture capital funds?

What is most likely for corporate venture groups?

What is most accurate regarding the amount of money invested in corporate venture groups since the late 1990s?