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INSTANT DOWNLOAD COMPLETE TEST BANK WITH ANSWERS

 

 

Entrepreneurship Theory Process And Practice 10th Edition by Donald F. Kuratko – Test Bank

 

 

Sample  Questions

 

CHAPTER 3: THE ENTREPRENEURIAL MIND-SET IN ORGANIZATIONS: CORPORATE ENTREPRENEURSHIP

 

 

True/False:

 

  1. One reason that corporate entrepreneurship has become popular is because it allows corporations to tap the innovative talents of the personnel.

 

ANS:  T

 

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

 

ANS:  T

  1. Individuals may avoid corporate entrepreneurial behavior due to the impact of traditional management techniques.

 

ANS:  T

 

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

 

ANS:  F

 

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

 

ANS:  F

 

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

 

ANS:  T

 

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

 

ANS:  F

 

  1. Researchers have identified specific factors that organizations can concentrate on in helping individuals develop more entrepreneurial behavior.

 

ANS:  T

 

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

 

ANS:  F

 

 

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

 

ANS:  T

 

 

Multiple Choice:

 

 

  1. The major thrust of corporate entrepreneurship is to
a. encourage greater risk taking.
b. raise profitability.
c. encourage innovation.
d. increase morale.

 

 

ANS:  C

 

  1. All of the following are reasons for the growth of corporate entrepreneurship except
a. a desire to dramatically increase profitability.
b. a rapidly growing number of new and sophisticated competitors.
c. a sense of distrust in the traditional methods of corporate management.
d. an exodus of some of the best people out of corporations.

 

 

ANS:  A

 

  1. 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.

 

 

ANS:  C

 

  1. 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

 

 

ANS:  C

 

  1. 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.

 

 

ANS:  C

 

 

 

 

 

 

 

  1. 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.

 

 

ANS:  C

 

 

 

  1. Groups that function outside traditional lines of authority permitting rapid turnaround of new ideas as well as instilling a high level of group loyalty are called:
a. skunk works.
b. multiple approaches.
c. champions.
d. strategic innovators.

 

 

ANS:  A

 

  1. 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

 

 

ANS:  A

 

 

  1. 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.

 

 

ANS:  B

 

  1. The second step in planning a strategy of entrepreneurship for the enterprise is
a. identifying specific objectives.
b. sharing the vision of innovation.
c. applying the exact tools of the entrepreneur.
d. developing and encouraging innovation.

 

 

ANS:  D

 

  1. 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

 

 

ANS:  B

 

  1. Which of the following terms refers the inaugural breakthroughs launched from experimentation and determined vision?
a. radical innovation
b. incremental innovation
c. collective entrepreneurship
d. strategic management

 

 

ANS:  A

 

 

 

  1. Which of the following are specific factors identified by researchers, that organizations can 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

 

 

ANS:  C

 

  1. Transformational triggers in a corporate entrepreneurial environment initiates the need for
a. laying off workers.
b. strategically adapting to change.
c. changing company location.
d. achieving higher productivity standards.

 

 

ANS:  B

 

  1. 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

 

 

ANS:  C

 

 

 

Short Answer:

 

  1. Using the Signode’s V-Teams example from the text, explain how some programs may succeed or fail using this approach.

 

ANS:

 

Signode is using an aggressive strategy to pursue new products.  Success will be tough for some products, but the stringent rules placed on the new products will help to keep the basic use of technology that Signode has and possibly develop new technologies, instead of branching out into some area that the company has never pursued, i.e., the clothing industry.  The failure may come from the fact that Signode wants to be worth $1 billion-plus by 1990.  It may not be enough time for them to accomplish this task.  If the push is big enough, the company may find itself in bad shape financially and have to rethink the primary purpose of the company.

 

 

  1. Explain some of the disadvantages that may occur in firms that are trying to incorporate entrepreneurship into their organizations.

 

ANS:

 

One disadvantage may be that there is resistance to change by some managers.  Also, if a company jumps into intrapreneuring too quickly without proper training, there may be some managers left not knowing what to do.  If the corporate climate is not right for intrapreneuring, there is almost no chance for success.

 

 

  1. Not all corporate entrepreneurial behavior is good for the organization. Why?

 

ANS:

The encouragement of corporate entrepreneurship can and often does result in counterproductive rogue behavior. The senior manager’s task is not simply to build an organizations whose core qualities are conducive to innovation but to design and develop innovation-facilitating and control-facilitating mechanisms that complement one another.

 

CHAPTER 5: INNOVATION: THE CREATIVE PURSUIT OF IDEAS

 

True/False:

 

 

 

  1. Innovation is the process by which entrepreneurs convert opportunities into marketable ideas.

 

ANS:  T

 

 

  1. The four basic types of innovation are invention, extension, duplication, and synthesis.

 

ANS:  T

 

 

  1. The cognitive ability of entrepreneurs to acquire and transform information has yet to be studied.

 

ANS:  T

 

  1. Creativity, in the entrepreneurial context, is the generation of ideas that result in the improved efficiency or effectiveness of a system.

 

ANS:  T

 

 

 

  1. Many inventions and innovations are a result of inventors seeing new and different relationships among objects, processes, materials, technologies, and people.

 

ANS:  T

 

 

  1. The four phases of the creative process are knowledge accumulation, incubation, idea experience, and evaluation.

 

ANS:  T

 

 

  1. The left hemisphere of the brain is responsible for logical and analytical skills.

 

ANS:  T

 

 

  1. Incongruities are gaps or differences between expectations and reality.

 

ANS:  T

 

 

  1. Synthesis is the combining of existing concepts into a new formulation.

 

ANS:  T

 

 

  1. One of the most helpful avenues for developing one’s own creative talents is to be aware of the habits and mental blocks that stifle creativity.

 

ANS:  T

 

Multiple Choice:

 

  1. Which of the following statements is true?
a. Innovation is the specific function of entrepreneurship.
b. Innovation is the process by which entrepreneurs consume marketable ideas.
c. Innovation does not involve change.
d. Innovation is the government’s responsibility.

 

 

ANS:  A

 

  1. The incubation process involves which of the following?
a. working harder
b. letting the subconscious work
c. talking with friends
d. changing jobs

 

 

ANS:  B

 

  1. Which of the following statements is true?
a. The right brain helps people analyze and verbalize.
b. The right brain helps people understand analogies and imagine things.
c. The left brain helps people understand analogies and imagine things.
d. Right and left brain concepts are meaningless.

 

 

ANS:  B

 

  1. Which of the following is a characteristic of creative people?
a. bright but not necessarily brilliant
b. poor image of themselves
c. rigid and dogmatic
d. unmotivated by challenging problems

 

 

ANS:  A

 

  1. Which of the following statements is true?
a. The right brain is more important in the creative process than the left brain.
b. The left brain is more important in the creative process than the right brain.
c. Both sides of the brain are important to the creative process.
d. Motivation, not the brain is the key to the creative process.

 

 

ANS:  C

 

  1. Which of the following mental habits inhibit creativity and innovation?
a. either/or thinking, stereotyping
b. functional perspective, mind-sets
c. security hunting, risks
d. stereotyping, incubation

 

 

ANS:  A

 

 

 

 

  1. Which of the following is not one of the phases in the creative process?
a. background or knowledge accumulation
b. evaluation and implementation
c. the incubation process
d. preliminary investigation

 

 

ANS:  D

 

  1. Logical and analytical skills are developed in the
a. left hemisphere of the brain.
b. right hemisphere of the brain.
c. central hemisphere of the brain.
d. anterior hemisphere of the brain.

 

 

ANS:  A

 

  1. Looking for different or unorthodox relationships among elements and people is one way to develop creativity. How might a person develop this capacity?
a. by perceiving in a relational mode
b. by perceiving in a restraining mode
c. by perceiving in a restructured mode
d. by perceiving in a retinal mode

 

 

ANS:  A

 

  1. The four phases in the creative process in order are
a. background or knowledge accumulation, incubation, idea experience, and evaluation and implementation.
b. idea experience, background or knowledge accumulation, incubation, and evaluation and implementation.
c. incubation, background or knowledge accumulation, idea experience, and evaluation and implementation.
d. evaluation and implementation, idea experience, incubation, and background or knowledge accumulation.

 

 

ANS:  A

 

  1. What are the four types of innovation?
a. invention, extension, synthesis, duplication
b. extension, retention, analysis, duplication
c. synthesis, extension, retention, analysis
d. analysis, synthesis, duplication, retention

 

 

ANS:  A

 

 

  1. Which of the following are sources of innovation?
a. unexpected occurrences and incongruities
b. duplication and processes
c. synthesis and technology
d. industry changes and extension

 

 

ANS:  A

 

 

  1. The combination of existing concepts and factors into a new formulation would define which of the following terms?
a. synthesis
b. extension
c. invention
d. analysis

 

 

ANS:  A

 

 

  1. The phase of the creative process when the idea or solution the individual is seeking is discovered is the
a. background or knowledge accumulation.
b. incubation process.
c. idea experience.
d. evaluation and implementation.

 

 

ANS:  C

 

  1. Overnight package delivery is illustrative of which source of innovation?
a. incongruities
b. unexpected occurrences
c. process needs
d. change in perception

 

 

ANS:  A

 

 

 

Short Answer:

 

  1. List and briefly explain each of the phases in the creative process.

 

ANS:

 

The first phase is known as background or knowledge accumulation.  This is the process of reading, conversations with others working in the field, and general absorption of information relative to the problem or issue under study.  The second phase is the incubation process.  This involves the subconscious, which processes information gathered previously.  The third phase is idea experience.  This is when the idea being sought is discovered.  Sometimes the idea comes while performing unrelated tasks.  The final phase is known as evaluation and implementation.  This phase requires courage, self-discipline, and perseverance.  Ideas are often reworked to obtain a final form.  Most importantly, the entrepreneur doesn’t give up.

 

 

 

 

 

 

 

  1. Creative talents can be improved through practice and awareness of habits that can cause problems.  However, there are ways to increase creativity; one area is to recognize relationships.  Explain what is meant by this.

 

ANS:

 

Many inventions and innovations are a result of the inventor seeing new and different relationships between objects, processes, materials, technologies, and people.

 

 

 

  1. Creativity is most likely to occur when the “climate” is right.  The text listed several important characteristics of this climate.  What is the right climate?

 

ANS:

 

It is a climate where communication flows between a variety of people and fear of management is rare or nonexistent.  This environment displays a willingness to change and rewards innovation.

 

 

 

  1. Describe the innovation process.

 

ANS:

 

The process begins with a conscious, purposeful search for new opportunities, followed by an analysis of the sources of new opportunities.

 

 

 

  1. Identity and describe two arenas of creativity.

 

ANS:

 

Student answers will vary, depending on which arenas chosen; but any of the following can be mentioned:

 

Idea creativity: thinking up a new idea or concept, such as an idea for a new product or service or a way to solve a problem.

Material creativity: inventing and building a tangible object such as a product, an advertisement, a report, or a photograph.

Organization creativity: organizing people or projects and coming up with a new organizational form or approach to structuring things. Examples could include organizing a project, starting a new type of venture, putting together or reorganizing a work group, and changing the policies and rules of a group.

Relationship creativity: an innovative approach to achieving collaboration, cooperation, and win-win relationships with others. The person who handles a difficult situation well or deals with a particular person in an especially effective manner is being creative in a relationship or one-on-one context.

Event creativity: producing an event such as an awards ceremony, team outing, or annual meeting. The creativity here also encompasses decor, ways in which people are involved, sequence of happenings, setting, and so forth.

Inner creativity: changing one’s inner self; being open to new approaches to how one does things; achieving a change of heart.

Spontaneous creativity: acting in a spontaneous or spur-of-the-moment manner, such as coming up with a witty response in a meeting, an off-the-cuff speech, a quick and simple way to settle a dispute, or an innovative appeal when trying to close a sale.