Question 1

Explicit knowledge is generally known to everyone in the firm and is not a critical concern of management.

Accepted Answer

Explicit knowledge refers to knowledge that is codified and can be easily expressed, transmitted, and shared among individuals. It includes information such as policies, procedures, rules, and facts. This type of knowledge is often considered important for the smooth functioning of a firm and may be a critical concern for management.

Question 2

Developing social capital is risky for an organization because social capital is specific to individuals and remains with the employee, if he or she leaves the organization.

Accepted Answer

Social capital development (the friendships and working relationships among talented individuals) gains importance when key players are free agents because it helps tie knowledge workers to a given firm.

Question 3

Technology can be used successfully to leverage human capital and knowledge within organizations as well as with customers and suppliers beyond their boundaries.

Accepted Answer

Technology has enabled organizations to share knowledge and leverage human capital within their boundaries, as well as collaborate with customers and suppliers beyond their boundaries through various digital platforms and tools. This has led to increased productivity, innovation, and competitiveness for businesses.

Question 4

The importance of human capital has decreased in recent years. For this reason, many firms have placed greater attention on attracting talent but not on developing or retaining it.

Accepted Answer

This statement is incorrect. Human capital remains a critical asset for firms, and they continue to invest in developing and retaining talent to remain competitive in the market.

Question 5

One potential downside of building social capital in an organization is groupthink. This means everyone in the group thinks on his or her own and comes up with new ideas.

Accepted Answer

The statement is incorrect. Groupthink refers to the tendency of a group to conform to the opinions or decisions of the majority, rather than engaging in critical thinking or considering alternative viewpoints. Building social capital can actually help prevent groupthink by promoting open communication, trust, and diversity of perspectives within the group.

Question 6

Technology can also enable much more sophisticated forms of communication in addition to knowledge sharing.

Accepted Answer

With technology, people can communicate through video conferencing, instant messaging, and social media platforms, allowing for more personal and interactive forms of communication beyond just sharing information.

Question 7

Sharing knowledge and information throughout the organization is important for conserving resources, developing products and services, and thwarting new opportunity creation.

Accepted Answer

Sharing knowledge and information throughout the organization can be a means of conserving resources, developing products and services, and creating new opportunities.

Question 8

Technical skills are a necessary and sufficient condition for hiring an employee.

Accepted Answer

While technical skills are important, they are not the only factor to consider when hiring an employee. Soft skills, such as communication and teamwork, as well as cultural fit and work ethic, are also important factors in the hiring decision.

Question 9

Since electronic teams (e-teams) seldom meet face-to-face, it is not important for them to be concerned with how to combine individual contributions effectively.

Accepted Answer

Even if e-teams seldom meet face-to-face, it is still important for them to find ways to combine their individual contributions effectively in order to achieve their goals and work as a cohesive unit. Effective communication and collaboration are critical for the success of any team, including e-teams.

Question 10

The more reliance a firm has on intellectual capital, the closer its book value will be to its market value.

Accepted Answer

The gap between the market value and book value of a firm is far greater for knowledge-intensive corporations than for firms with strategies based primarily on tangible assets.

Question 11

A hiring agent offers a scientist approximately the same salary, facilities, equipment, and shared laboratory with 10 highly skilled and enthusiastic scientists. Part of the job is to collaborate with these peers and jointly develop promising drug compounds. This structure will create greater firm loyalty than one in which the hiring agent offers only monetary compensation.

Accepted Answer

The opportunity to collaborate with highly skilled and enthusiastic peers and jointly develop promising drug compounds can create a sense of shared purpose and firm loyalty beyond just monetary compensation.

Question 12

Once a knowledge asset (e.g., a software code) is developed and paid for, it can be used many times at very low cost as long as it does not have to be substantially modified each time.

Accepted Answer

Once a knowledge asset is developed and paid for, it can be used many times at low cost as long as it doesn't require substantial modifications each time. This is one of the advantages of knowledge assets over physical assets.

Question 13

The development of intellectual capital (that is, the friendships and working relationships among talented individuals) gains importance because it helps tie knowledge workers to a given firm.

Accepted Answer

The development of social capital (that is, the friendships and working relationships among talented individuals) gains importance because it helps tie knowledge workers to a given firm.

Question 14

Knowledge workers are more loyal to their companies than traditional workers.

Accepted Answer

It is not necessarily true that knowledge workers are more loyal to their companies than traditional workers. Loyalty can vary based on individual values, company culture, job satisfaction, and other factors unrelated to being a knowledge worker or not.

Question 15

Intellectual property rights are the tangible property owned by a firm.

Accepted Answer

Intellectual property rights are intangible property owned by a firm, such as patents, copyrights, and trademarks. They are not physical objects that can be touched or handled, making them different from tangible property.

Question 16

Intellectual property rights are easier to define and protect than property rights for physical assets (e.g., plant and equipment).

Accepted Answer

Intellectual property rights can be more complex and difficult to protect compared to physical assets, as they often involve intangible concepts such as ideas, inventions, and creative works that may be subject to interpretation and disputes over ownership. Physical assets, on the other hand, can often be easily identified and protected using tangible means such as locks and security systems.

Question 17

Social network analysis can be used to help identify groups or clusters of individuals that comprise the network, individuals who link the clusters, and other network members.

Accepted Answer

This statement is true. Social network analysis helps identify groups or clusters within a network and also the individuals who link these clusters together, alongside other members within the network.

Question 18

The difference between the market value and book value of a firm is its social capital.

Accepted Answer

The difference between the market value and book value of a firm is not its social capital. Social capital refers to the networks, relationships, and social norms that facilitate cooperative relationships between individuals and groups.

Question 19

One of the most important elements in a good employee is his or her attitude. Firms should follow the adage: hire for attitude, train for skill.

Accepted Answer

Attitude is an essential characteristic that impacts an individual's performance and behavior in the workplace. While skills can be taught, a positive attitude cannot be trained, which is why it is important to hire employees who possess the right attitude towards work, colleagues, and customers.

Question 20

Developing and protecting social capital requires independence, in which individuals must spend most of their time working individually.

Accepted Answer

Developing and protecting social capital requires interpersonal relationships and collaboration, not independence. It is important for individuals to work together and contribute to the community in order to build social capital.

Quiz 4: Recognizing a Firm's Intellectual Assets Moving beyond a Firm's Tangible Resources