Deck 3: The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship

Question 1

Employees shouldn't expect feedback on their entrepreneurial ideas.

Answer 1

False

Question 2

Corporate entrepreneurs should be restricted to the resources of their own divisions of the corporation.

Answer 2

False

Question 3

One advantage of developing a corporate entrepreneurial philosophy is that it will help the corporation keep its best people.

Answer 3

True

Question 4

Expecting clever bootlegging of ideas should come as a surprise.

Question 5

When an entrepreneurial environment is created, a company does not usually set aside the traditions of the company.

Question 6

I-Teams are rarely seen in corporate entrepreneurial environments.

Question 7

Corporate entrepreneurship is contingent upon individual members continuing to undertake innovative activities.

Question 8

Clever bootlegging of ideas refers to secretly working on new ideas on company time as well as on personal time.

Question 9

Corporate venturing flourishes when a vertical management system is in place.

Question 10

Some people who are unaccustomed to operating in a corporate entrepreneurship style will leave.

Question 11

Few firms today realize the need for corporate entrepreneurship.

Question 12

The Corporate Entrepreneurship Assessment Instrument (CEAI) identified six factors critical to the internal environment of an organization seeking to have its managers pursue innovative activity.

Question 13

Firms do not need to alter management techniques to encourage corporate entrepreneurship because it tends to occur naturally.

Question 14

In many ways, an I-Team is a smaller business that operates outside of the business.

Question 15

Corporate entrepreneurship and the desire for activity inside enterprises have been forces in smaller corporations, not in larger ones such as AT&T or Procter and Gamble.

Question 16

As part of creating an innovative climate, a firm should base rewards given upon results achieved.

Question 17

The contemporary thrust of entrepreneurship as the major force in global business has led to a desire for entrepreneurial activity inside enterprises.

Question 18

The first step in planning a strategy of corporate entrepreneurship is sharing the vision of innovation that executives wish to achieve.

Question 19

3M's philosophy is based on the theory that the more ideas, the better the chances for a successful innovation.

Question 20

Today's managers must foster excitement for innovation and remove obstacles for employees to engage in corporate entrepreneurship.

Question 21

Which of the following will help to foster an innovative climate?

A)encourage action from employees
B)punish mistakes
C)eliminate coffee breaks to encourage employees to work harder
D)do away with dress codes

Question 22

In order to develop an entrepreneurial environment, factors that organizations need to be aware of include all of the following except

A)management support.
B)autonomy.
C)rewards.
D)imposed time constraints.

Question 23

Understanding the entrepreneur is only part of understanding the entrepreneurial process.

Question 24

Trust from the company is one key element to successful corporate entrepreneurship.

Question 25

Organizational boundaries allow people to focus on new ideas.

Question 26

An innovative team, or I-Team, is made up of two or more people who formally create and share ownership of a new organization.

Question 27

Which of the following is not a question in the corporate entrepreneurial planning process?

A)Does the firm encourage and reward entrepreneurs?
B)Do employees frequently require permission?
C)Does the firm direct resources toward entrepreneurship?
D)Has the firm met government regulations for innovation?

Question 28

Another common name for an I-Team is an intrapreneurial team.

Question 29

The need for corporate entrepreneurship has risen in response to one problem: rapid growth.

Question 30

The success of corporate entrepreneurship depends on the entrepreneurs within the firm.

Question 31

_____ observed that "corporate entrepreneurship may be formal or informal activities aimed at creating new businesses in established companies through product and process innovations and market developments."

A)Shaker A.Zahra
B)William D.Guth
C)Ari Ginsberg
D)James Brian Quinn

Question 32

Skunk works are project groups that work within the traditional lines of authority.

Question 33

Sustaining corporate entrepreneurship requires

A)keeping up with market trends.
B)maximizing profits.
C)keeping the corporate vision strong.
D)granting equal pay raises.

Question 34

Systematic evolution of a product or service into newer or larger markets is referred to as radical innovation.

Question 35

The resources of the organization are irrelevant to the ability of the corporate entrepreneur to implement an idea.

Question 36

Radical innovations must be nurtured.

Question 37

Secretly working on new ideas on company time as well as on personal time is referred to as

A)skunk works.
B)champion.
C)bootlegging.
D)interactive learning.

Question 38

In the model of sustained corporate entrepreneurship discussed in the text, a transformational trigger can be internal or external to the company.

Question 39

A champion is a person with a big ego who just gets in the way of corporate entrepreneurship.

Question 40

A corporation can encourage entrepreneurship activities if top management sponsors entrepreneurial projects.

Question 41

Intrapreneurship is also referred to as _____ entrepreneurship.

A)inside
B)internal
C)corporate
D)outside

Question 42

_____ factors are critical to the internal environment of an organization seeking to have its managers pursue innovative activity.

A)Six
B)Seven
C)Five
D)Three

Question 43

Which of the following is an advantage to developing an entrepreneurial environment?

A)a good benefits program
B)retention and motivation of the best employees
C)creation of a workforce that adheres to strict rules
D)a flexible work environment regarding time off work

Question 44

In restructuring corporate thinking, top management should

A)identify potential entrepreneurs after an innovation program is in operation.
B)make the entrepreneur follow strict corporate guidelines.
C)promote entrepreneurship through experimentation.
D)create diversity and order in strategic activities.

Question 45

Success of the corporate entrepreneurship plan depends on

A)resources provided by the firm.
B)shirking ethics to ensure entrepreneurial wins.
C)a few individuals.
D)the reaction of rivals.

Question 46

Which of the following terms refers to the inaugural breakthroughs launched from experimentation and determined vision?

A)radical innovation
B)incremental innovation
C)collective entrepreneurship
D)strategic management

Question 47

In following the rules for innovation, a manager should do all of the following except

A)encourage action.
B)use formal meetings whenever possible.
C)punish failure.
D)reward performance.

Question 48

Which of the following is not a characteristic of firms that exhibit corporate entrepreneurships?

A)being dynamic
B)being flexible
C)being prepared to take on new business opportunities
D)being stagnant

Question 49

All of the following are reasons for the growth of corporate entrepreneurship except a(n)

A)desire to dramatically increase profitability.
B)rapidly growing number of new and sophisticated competitors.
C)sense of distrust in the traditional methods of corporate management.
D)exodus of some of the best people out of corporations.

Question 50

In an innovative climate, failure is viewed as

A)the end of the world.
B)a learning experience.
C)expected and even encouraged.
D)a basis for firing.

Question 51

Which of the following individuals identified six factors found in large corporations that have exhibited successful innovations?

A)James Brian Quinn
B)Henk Volberda
C)Charles Baden-Fuller
D)Shona Brown

Question 52

Which of the following would not be considered as encouraging to an entrepreneurial environment?

A)uniform compensation
B)identifying potential entrepreneurs
C)top management sponsorship of entrepreneurship
D)promotion of entrepreneurship through experimentation

Question 53

Which of the following is an obstacle to corporate entrepreneurship?

A)orientation to the market
B)a system of feedback and positive reinforcement
C)traditional management techniques
D)rewards based upon results

Question 54

Which of the following is not a precipitating event that Zahra identifies as motivating the decision to act entrepreneurially?

A)market instability
B)competitive threat from rivals
C)new demand for a firm's products
D)a big increase in earnings

Question 55

The major thrust of corporate entrepreneurship is to

A)encourage greater risk taking.
B)raise profitability.
C)encourage innovation.
D)increase morale.

Question 56

Typically, when faced with failure, entrepreneurs

A)remain optimistic and view it as a learning experience.
B)become outraged and take a short vacation.
C)blame top management.
D)resign.

Question 57

Bureaucrats in an organization must

A)standardize procedures.
B)engage in horizontal management.
C)learn to give way to intrapreneurs.
D)avoid risky moves.

Question 58

In many ways, an I-Team is a

A)small business operating within a large business.
B)small business integrated within other parts of the firm.
C)large business operating within a large business.
D)partnership operating within a small business.

Question 59

Which of the following factors can organizations concentrate on in structuring an entrepreneurial climate?

A)radical innovation, incremental innovation, and vision
B)skunk works, multiple approaches, and vision
C)top management support, time, resources, rewards, and organizational boundaries
D)rewards, resources, innovation, and vision

Question 60

Transformational triggers in a corporate entrepreneurial environment initiate the need for

A)laying off workers.
B)strategically adapting to change.
C)changing company location.
D)achieving higher productivity standards.

Question 61

One reason why corporate entrepreneurship has done so well is that it allows organizations to

A)increase salaries.
B)fire the dead wood.
C)encourage high risk taking.
D)tap the innovative talents of their people.

Question 62

In attempting to create an entrepreneurial climate, the organization should create a work environment where

A)each employee has the opportunity to "step up to the plate."
B)employee ideas are adopted after careful scrutiny.
C)rewards are given to only the most committed.
D)problem-solving time is limited.

Question 63

Rewards should be based upon _____ to encourage the desired behavior.

A)seniority
B)results
C)attitude
D)morale

Question 64

Which of the following individuals has the opportunity to lead and "run" with an idea?

A)department manager
B)manager
C)champion
D)visionary

Question 65

The adverse impact of _____ can be so destructive that individuals within the enterprise will tend to avoid entrepreneurial behavior.

A)traditional management techniques
B)innovative climate rules
C)specific entrepreneurial strategies
D)informal meetings

Question 66

Collective entrepreneurship, as a concept, refers to

A)the collective spirit of innovation that resides in the firm's founder.
B)the joint recognition of the CEO and CFO as champions of innovation.
C)entrepreneurial thinking that is diffused throughout the company.
D)socialist enterprising.

Question 67

Large-scale or otherwise highly consequential innovations are adopted in pursuit of a firm's competitive advantage in a(n) _____ approach.

A)corporate venturing
B)strategic entrepreneurship
C)multiple venture
D)interactive learning

Question 68

The first step in planning a strategy of entrepreneurship for enterprise is

A)identifying specific objectives.
B)sharing the vision of innovation.
C)applying the exact tools of the entrepreneur.
D)developing radical innovation.

Question 69

Corporate entrepreneurial activity takes place _____ the firm.

A)only with outside suppliers to
B)with anyone outside
C)both inside and outside
D)inside

Question 70

Corporate entrepreneurial strategy should be thought of as

A)vision directed.
B)dichotomous.
C)restricted to one group in the firm.
D)management directed.

Question 71

Which of the following helps account for the rise of interest in corporate entrepreneurship?

A)a decrease in the number of sophisticated competitors
B)an increase government regulation of small entrepreneurs
C)an increase in corporations losing some of their best people
D)a general increase in the number of competitors

Question 72

Employee perception of _____ is critical for the success of corporate entrepreneurship.

A)equality
B)a good benefits program
C)interactive learning
D)an innovative environment

Question 73

Which of the following terms refers to the systematic evolution of a product or service into newer or larger markets?

A)radical innovation
B)incremental innovation
C)collective entrepreneurship
D)strategic management

Question 74

All of the following are important characteristics for establishing an intrapreneurial climate except

A)the presence of explicit goals.
B)feedback.
C)positive reinforcement.
D)punishment of mistakes.

Question 75

Developing corporate entrepreneurial managers involves teaching them to

A)conduct business as usual
B)break out of the box.
C)give across-the-board raises.
D)think of new ad campaigns.

Question 76

Which of the following is not one of the Corporate Innovation Training Program modules?

A)the entrepreneurial experience
B)innovative thinking
C)sustaining innovation teams
D)social media training and awareness

Question 77

Key features in the success of any innovative program include all of the following except

A)confidence.
B)trust.
C)accountability.
D)high profitability.

Question 78

Internal venture capital that is set aside for special entrepreneurial projects is termed

A)intracapital.
B)project capital.
C)intrapreneurial seed money.
D)collective capital.

Question 79

_____ people thoroughly understand the concept of corporate entrepreneurship.

A)Just about all
B)Most
C)Many
D)Few

Question 80

Which of the following is an entrepreneurial characteristic?

A)a strong drive to succeed
B)superior intelligence
C)high risk taking
D)low morals