Question 1

_____ refers to the allocation of a finite quantity of resources over different possible uses.

Accepted Answer

A)  Systematic allotment 
B)  Corporate funding 
C)  Organizational appropriation 
D)  Capital rationing 
A)  Systematic allotment 
B)  Corporate funding 
C)  Organizational appropriation 
D)  Capital rationing D

Question 2

Steve was answering questions in a telephone survey and the surveyor asked him to rank how important different cell phone features were to him on a scale of 1 to 5.Apparently,_____ analysis is planned as part of the survey analysis.

Accepted Answer

A)  attribute 
B)  functional 
C)  comparative 
D)  conjoint 
A)  attribute 
B)  functional 
C)  comparative 
D)  conjoint D

Question 3

The real options approach is valuable when there is uncertainty and there is some evidence that it might work better than cash flow analysis for technology decisions.

Accepted Answer

A) True 
 B)False  True

Question 4

Data envelopment analysis (DEA)utilizes linear programming.

Accepted Answer

A) True 
 B)False

Question 5

If a firm has the option of investing in R&D,the cost of implementing the technology is the

Accepted Answer

A)  exercise price. 
B)  nature of the option. 
C)  benefit of exercising the option. 
D)  the value of the option. 
A)  exercise price. 
B)  nature of the option. 
C)  benefit of exercising the option. 
D)  the value of the option.

Question 6

Derivative projects offer fundamental improvements in the cost,quality,and performance of a technology over preceding generations.

Accepted Answer

A) True 
 B)False

Question 7

The drawback to data envelopment analysis (DEA)is that it does not allow comparisons of projects using multiple kinds of measures.

Accepted Answer

A) True 
 B)False

Question 8

Natal Technologies is developing a superior ultrasound machine for which it is required to invest $800,000.Based on the company's analysis,the product will generate $200,000 from the first year till perpetuity.According to this,the payback period is

Accepted Answer

A)  10 years. 
B)  6 years. 
C)  3 months. 
D)  4 years. 
A)  10 years. 
B)  6 years. 
C)  3 months. 
D)  4 years.

Question 9

When Susie calculated the Net Present Value (NPV)of a project,the value came out to be -$2,000,0000.If this is the only information she has,Susie should recommend

Accepted Answer

A)  the project be accepted. 
B)  the project be rejected. 
C)  the NPV be recalculated using a higher discount rate. 
D)  the NPV be recalculated using a lower discount rate. 
A)  the project be accepted. 
B)  the project be rejected. 
C)  the NPV be recalculated using a higher discount rate. 
D)  the NPV be recalculated using a lower discount rate.

Question 10

Using the real options approach,if the cost of future investments to capitalize on the R&D program is less than the returns from this investment,then

Accepted Answer

A)  the program should be abandoned. 
B)  the program should be pursued. 
C)  further calculations should be made. 
D)  the exercise price should be determined. 
A)  the program should be abandoned. 
B)  the program should be pursued. 
C)  further calculations should be made. 
D)  the exercise price should be determined.

Question 11

Discounted cash flow estimates are only accurate if

Accepted Answer

A)  calculations are made correctly. 
B)  the original estimates of profits are accurate. 
C)  management has instituted sufficient financial control systems. 
D)  they are made in a timely fashion. 
A)  calculations are made correctly. 
B)  the original estimates of profits are accurate. 
C)  management has instituted sufficient financial control systems. 
D)  they are made in a timely fashion.

Question 12

Qualitative methods of analyzing new projects usually entail converting projects into some estimate of future cash returns from a project.

Accepted Answer

A) True 
 B)False

Question 13

As per the _____method,in order to establish scales of customer preferences individuals in a group are each given a stack of cards with an object or idea on each card.

Accepted Answer

A)  derivative 
B)  conceptual 
C)  DEA 
D)  Q-sort 
A)  derivative 
B)  conceptual 
C)  DEA 
D)  Q-sort

Question 14

An efficiency frontier is the range of _____ that optimize a combination of features of a potential project.

Accepted Answer

A)  product features 
B)  attribute arrangements 
C)  hypothetical configurations 
D)  conjoint dimensions 
A)  product features 
B)  attribute arrangements 
C)  hypothetical configurations 
D)  conjoint dimensions

Question 15

According to the Net Present Value (NPV)method of evaluation of projects,if there are cash outflows for multiple periods

Accepted Answer

A)  only the cash outflows for the first five years will have to be discounted back to the current period. 
B)  the NPV of the project will definitely be positive. 
C)  the discount rate will need to be altered. 
D)  those cash outflows will have to be discounted back to the current period. 
A)  only the cash outflows for the first five years will have to be discounted back to the current period. 
B)  the NPV of the project will definitely be positive. 
C)  the discount rate will need to be altered. 
D)  those cash outflows will have to be discounted back to the current period.

Question 16

Desco Consulting was asked by a client to evaluate the attractiveness of a potential project to develop a new product line.The data provided by the client included cash flow (in dollars),ranking of marketability by the sales force,and ranking of different product attributes from a potential customer focus group.It sounds like Desco should use _____ to do this evaluation.

Accepted Answer

A)  conjoint analysis 
B)  data envelopment analysis 
C)  attribute ranking 
D)  break-even analysis 
A)  conjoint analysis 
B)  data envelopment analysis 
C)  attribute ranking 
D)  break-even analysis

Question 17

Venture capitalists are most likely to provide funding

Accepted Answer

A)  if foreign companies are involved with the project. 
B)  before a new business begins so they can have inputs. 
C)  when there is only a small return on investment projected. 
D)  after the new business has already begun operations rather than before it begins. 
A)  if foreign companies are involved with the project. 
B)  before a new business begins so they can have inputs. 
C)  when there is only a small return on investment projected. 
D)  after the new business has already begun operations rather than before it begins.

Question 18

The ratio of R&D expenditures to sales is known as R&D concentration.

Accepted Answer

A) True 
 B)False

Question 19

Mountain Home University developed a better teaching evaluation mechanism to use in its courses.This would likely be considered a(n)_____ project.

Accepted Answer

A)  derivative 
B)  platform 
C)  breakthrough 
D)  insightful 
A)  derivative 
B)  platform 
C)  breakthrough 
D)  insightful

Question 20

Ditch Witch makes backhoes for digging ditches and trenches.Recently it began a project to develop an acid which when poured on the ground digs trenches of various depths depending on how much is applied.This would probably be considered a(n)_____ project for Ditch Witch.

Accepted Answer

A)  derivative 
B)  platform 
C)  breakthrough 
D)  insightful 
A)  derivative 
B)  platform 
C)  breakthrough 
D)  insightful

_____ refers to the allocation of a finite quantity of resources over different possible uses.

Steve was answering questions in a telephone survey and the surveyor asked him to rank how important different cell phone features were to him on a scale of 1 to 5.Apparently,_____ analysis is planned as part of the survey analysis.

The real options approach is valuable when there is uncertainty and there is some evidence that it might work better than cash flow analysis for technology decisions.

Data envelopment analysis (DEA)utilizes linear programming.

If a firm has the option of investing in R&D,the cost of implementing the technology is the

Derivative projects offer fundamental improvements in the cost,quality,and performance of a technology over preceding generations.

The drawback to data envelopment analysis (DEA)is that it does not allow comparisons of projects using multiple kinds of measures.

Natal Technologies is developing a superior ultrasound machine for which it is required to invest $800,000.Based on the company's analysis,the product will generate $200,000 from the first year till perpetuity.According to this,the payback period is

When Susie calculated the Net Present Value (NPV)of a project,the value came out to be -$2,000,0000.If this is the only information she has,Susie should recommend

Using the real options approach,if the cost of future investments to capitalize on the R&D program is less than the returns from this investment,then

Discounted cash flow estimates are only accurate if

Qualitative methods of analyzing new projects usually entail converting projects into some estimate of future cash returns from a project.

As per the _____method,in order to establish scales of customer preferences individuals in a group are each given a stack of cards with an object or idea on each card.

An efficiency frontier is the range of _____ that optimize a combination of features of a potential project.

According to the Net Present Value (NPV)method of evaluation of projects,if there are cash outflows for multiple periods

Venture capitalists are most likely to provide funding

The ratio of R&D expenditures to sales is known as R&D concentration.

Mountain Home University developed a better teaching evaluation mechanism to use in its courses.This would likely be considered a(n)_____ project.

Ditch Witch makes backhoes for digging ditches and trenches.Recently it began a project to develop an acid which when poured on the ground digs trenches of various depths depending on how much is applied.This would probably be considered a(n)_____ project for Ditch Witch.

Introduction

Sources of Innovation

Types and Patterns of Innovation

Standards Battles and Design Dominance

Timing of Entry Part Two Formulating Technological Innovation Strategy

Defining the Organizations Strategic Direction

Collaboration Strategies

Protecting Innovation

Organizing for Innovation

Managing the New Product Development Process

Managing New Product Development Teams

Crafting a Deployment Strategy Index

Filters

Exam 7: Choosing Innovation Projects

_____ refers to the allocation of a finite quantity of resources over different possible uses.

Steve was answering questions in a telephone survey and the surveyor asked him to rank how important different cell phone features were to him on a scale of 1 to 5.Apparently,_____ analysis is planned as part of the survey analysis.

The real options approach is valuable when there is uncertainty and there is some evidence that it might work better than cash flow analysis for technology decisions.

Data envelopment analysis (DEA)utilizes linear programming.

If a firm has the option of investing in R&D,the cost of implementing the technology is the

Derivative projects offer fundamental improvements in the cost,quality,and performance of a technology over preceding generations.

The drawback to data envelopment analysis (DEA)is that it does not allow comparisons of projects using multiple kinds of measures.

Natal Technologies is developing a superior ultrasound machine for which it is required to invest $800,000.Based on the company's analysis,the product will generate $200,000 from the first year till perpetuity.According to this,the payback period is

When Susie calculated the Net Present Value (NPV)of a project,the value came out to be -$2,000,0000.If this is the only information she has,Susie should recommend

Using the real options approach,if the cost of future investments to capitalize on the R&D program is less than the returns from this investment,then

Discounted cash flow estimates are only accurate if

Qualitative methods of analyzing new projects usually entail converting projects into some estimate of future cash returns from a project.

As per the _____method,in order to establish scales of customer preferences individuals in a group are each given a stack of cards with an object or idea on each card.

An efficiency frontier is the range of _____ that optimize a combination of features of a potential project.

According to the Net Present Value (NPV)method of evaluation of projects,if there are cash outflows for multiple periods

Venture capitalists are most likely to provide funding

The ratio of R&D expenditures to sales is known as R&D concentration.

Mountain Home University developed a better teaching evaluation mechanism to use in its courses.This would likely be considered a(n)_____ project.

Ditch Witch makes backhoes for digging ditches and trenches.Recently it began a project to develop an acid which when poured on the ground digs trenches of various depths depending on how much is applied.This would probably be considered a(n)_____ project for Ditch Witch.

Introduction

Sources of Innovation

Types and Patterns of Innovation

Standards Battles and Design Dominance

Timing of Entry Part Two Formulating Technological Innovation Strategy

Defining the Organizations Strategic Direction

Collaboration Strategies

Protecting Innovation

Organizing for Innovation

Managing the New Product Development Process

Managing New Product Development Teams

Crafting a Deployment Strategy Index

Filters