Deck 10: Types of Ventures

Question 1

A flow-through entity might entail any of the following except:

A) Sole proprietorship
B) Taxation of corporate profits
C) S-corporation
D) LLC

Answer 1

Taxation of corporate profits

Question 2

In a ________, the continuity of business is ________.

A) Regular C-Corporation; limited
B) Sole proprietorship; very low
C) General Partnership; terminated by proprietor
D) S-Corporation; perpetual

Answer 2

S-Corporation; perpetual

Question 3

If a corporation fails and proper formalities have been followed, creditors have a claim on the owners' personal assets.

Answer 3

False

Question 4

An S-Corporation is taxed as a:

A) Flow-through entity
B) Sole proprietorship
C) Equal partnership
D) Regular taxable corporation

Question 5

A ________ generally has ________ revenue growth.

A) Small business; High
B) Nonprofit Organization; Medium
C) Corporate new venture; Above average
D) Niche; Explosive

Question 6

A ________ is a type of venture started by existing corporations for the purpose of building a new business unit.

A) Nonprofit organization
B) Corporate new venture
C) Independent venture
D) High-growth business

Question 7

The purpose of every new venture is to create financial wealth for society.

Question 8

Organizations that satisfy the conditions of section 501(c)(3) of the Internal Revenue Service Code are called ________ organizations.

A) Scientific
B) Educational
C) Donated
D) Charitable

Question 9

Which of the following is not characteristic of corporate new ventures?

A) Commitment to the entity's social cause
B) Newness of product in relation to the firm's other products
C) Unique entrepreneurial leadership capabilities
D) High potential for innovation

Question 10

A strength of corporate new ventures is:

A) Inherited brand equity
B) Multiple review levels
C) A scope defined by parent company's technologies
D) Relatively limited autonomy

Question 11

Whereas independent ventures can offer ________, corporate ventures can offer ________.

A) Company-wide scope; equity to whole team
B) Design reviews; external feedback from customers
C) Quick changes to plans; best talent at the firm
D) Equity to whole team; IPO as a financial goal

Question 12

"The enabler" corporate entrepreneurship model is marked by ________ resource authority and ________ organizational ownership.

A) Dedicated; Ad hoc
B) Dedicated; Diffused
C) Ad Hoc; Diffused
D) Focused; Ad hoc

Question 13

Cannibalization is the act of introducing products that compete with the company's existing product line.

Question 14

Corporate entrepreneurs are:

A) Employees who take responsibility for a venture outside the firm
B) Executives who decide to pivot the firm
C) New employees committed to an existing product
D) Employees who drive a venture within the firm

Question 15

Even though CNV's carry a risk of failure, many potential corporate entrepreneurs try to join them.

Question 16

Which of the following are not incentives for corporate entrepreneurs?

A) Significant degree of autonomy
B) Effective rewards like stock or bonuses
C) Slack time for exploring not-yet-approved projects
D) A culture that decries individual initiative

Question 17

Janet is faced with an opportunity that she identifies has low strategic importance to her firm but high operational relatedness. How should she proceed?

A) With a small exploratory project
B) She shouldn't
C) Establish an independent corporate new venture
D) Spin off to a new company

Question 18

Which of the following is not an establishing condition for corporate new ventures?

A) Increase sources for innovation
B) A dearth of corporate entrepreneurs with project mindsets
C) Establish a process for evaluating ideas
D) Don't let traditional executives control the budget

Question 19

A parent firm tries to ________ its ________.

A) Protect and use; rewards
B) Encourage adherence to policy for; management
C) Act decisively; assets
D) Attract; management

Question 20

A corporate new venture tries to ________ its ________.

A) Utilize rewards for; entrepreneurial employees
B) Retain; talent
C) Leverage; management
D) Be flexible with; revenue stream