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

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

Employees shouldn't expect feedback on their entrepreneurial ideas.

Question 5

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

Question 6

Very large corporations, such as 3M, have really struggled with corporate entrepreneurship ventures.

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

The need for corporate entrepreneurship has risen in response to the rise of the global economy.

Question 13

Corporations that promote personal growth will attract the best people.

Question 14

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

Question 15

Few firms today realize the need for corporate entrepreneurship.

Question 16

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

Question 17

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

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

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

Question 20

Every business person feels comfortable operating in an entrepreneurial environment.

Question 21

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

Question 22

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

Question 23

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

Question 24

I-Teams are rarely seen in corporate entrepreneurial environments.

Question 25

Intrapreneurship is also referred to as:

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

Question 26

Which of the following was one of the factors Drucker mentions to explain the development of the entrepreneurial economy?

A) the rapid evolution of technology and knowledge
B) demographic trends
C) government regulation
D) a robust venture capital market

Question 27

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

Question 28

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

Question 29

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

Question 30

Organizational boundaries allow people to focus on new ideas.

Question 31

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

Question 32

Corporate entrepreneurs generally are power oriented or power hungry.

Question 33

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 34

The major thrust of corporate entrepreneurship is to

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

Question 35

A competitor's move to increase market share can be a precipitative event in corporate entrepreneurship.

Question 36

A healthy environment for corporate entrepreneurship exists when employees feel a sense of ownership in the company.

Question 37

____ people thoroughly understand the concept of corporate entrepreneurship.

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

Question 38

Radical innovations must be nurtured.

Question 39

Corporate entrepreneurs are people who are action oriented and self-determined.

Question 40

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 41

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 42

Innovative factors identified by James Brian Quinn that exist in large organizations experienced in successful innovation include all of the following except:

A) interactive learning.
B) uniform compensation.
C) multiple approaches.
D) skunk works.

Question 43

Authoritarian management is being replaced by

A) networking.
B) independent contractors.
C) Japanese managers.
D) benevolent managers.

Question 44

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.

Question 45

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 46

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 47

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 48

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 49

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 50

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.

Question 51

One step an organization can take to make its corporate environment more innovative is to

A) gain top management support of an entrepreneuring program.
B) fire top management and hire young executives.
C) change the dress code to "casual attire."
D) give across-the-board raises.

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

In an innovative climate, failure is viewed as

A) the end of the world.
B) a learning experience.
C) O.K., inevitable, since the employee is probably not capable of further innovative thought.
D) a basis for firing.

Question 54

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

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

Question 55

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 56

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 57

In attempting to create an entrepreneurial climate, the organization should consider that

A) the corporations that promote personal growth will attract the best people.
B) strict management rules work best.
C) third-party contractors of labor will not be used.
D) workers like independence.

Question 58

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 59

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 60

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 61

Sustaining corporate entrepreneurship requires

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

Question 62

Which 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 63

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 64

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 65

Transformational triggers in a corporate entrenpreneurial environment initiates the need for

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

Question 66

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 67

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 68

Which of the following is not a strategy for corporate entrepreneuring?

A) promote personal growth
B) use people-style management
C) decrease the use of third-party contracts
D) allow entrepreneur to develop ideas

Question 69

Entrepreneurial characteristics include

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

Question 70

Entrepreneurship within the corporate structure allows employees to develop their ideas without

A) losing their jobs to more loyal subordinates.
B) the risk associated with leaving the company.
C) making their spouses angry that they quit their jobs.
D) fear of being promoted.

Question 71

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.

Question 72

Typically, when faced with setbacks or 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 73

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 74

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 75

The person who has the opportunity to lead and "run" with an idea would be coined which of the following:

A) Department Manager
B) Manager
C) Champion
D) Visionary

Question 76

In order to develop an entrepreneurial environment, factors that organizations need to be aware of include:

A) management support and rewards
B) autonomy and time
C) business plans and inventions
D) a and b should be considered

Question 77

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

Question 78

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

Question 79

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 80

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