Deck 2: Corporate Entrepreneurship

Question 1

In an encouraging climate for corporate entrepreneurship,rewards should be based on the attainment of established performance goals. 

Answer 1

True

Question 2

In creating a culture for corporate entrepreneurship leadership is important. 

Answer 2

True

Question 3

Traditionally managed firms commitment to opportunity is revolutionary with a long duration. 

Answer 3

False

Question 4

Traditionally managed firms typically punish failure. 

Question 5

It is important for an entrepreneur to understand all aspects of the environment.Part of this ability is reflected in the individual's level of creativity,which generally increases with age and education in most individuals. 

Question 6

In corporate entrepreneurship,trial and error are encouraged. 

Question 7

Developing a spirit of entrepreneurship within the existing organization,called corporate entrepreneurship,can lower resistance to flexibility,growth,and diversification. 

Question 8

Self-renewal includes the redefinition of the business concept,reorganization,and the introduction of system-wide changes to increase innovation. 

Question 9

Entrepreneurially run firms are driven by controlled resources whereas traditionally managed firms are driven by perception of opportunity. 

Question 10

Organizations that require a rapid return on investment and a high sales volume usually encourage and support new ideas. 

Question 11

In encouraging a culture for corporate entrepreneurship,using older,proven,technology is recommended in order to increase stability in the organization. 

Question 12

Entrepreneurial endeavors consist of new business venturing,innovativeness,self-renewal,and reactiveness. 

Question 13

Corporate entrepreneurship is most strongly reflected in entrepreneurial activities as well as in top management orientations in organizations. 

Question 14

Entrepreneurs focus on how to minimize resources needed whereas traditional firms focus on accumulating resources. 

Question 15

Most managers in a corporation are capable of being successful corporate entrepreneurs with the correct training. 

Question 16

The corporate entrepreneur encourages teamwork and uses a multidisciplined approach,which violates organizational practices and structures taught in most business schools. 

Question 17

For an organization with a traditional environment,it is best to facilitate an external process to establish an entrepreneurial environment. 

Question 18

Internal corporate venturing consists of creating something new of value either by redefining the company's current products or services,developing new markets,or forming more formally autonomous or semiautonomous units or firms. 

Question 19

Entrepreneurially managed firm structure is usually flat with multiple informal networks. 

Question 20

An organization that wants to become more entrepreneurial must learn to be more productive with fewer resources. 

Question 21

An entrepreneur with loss-orientation would talk about the business-failure with a close friend or relative. 

Question 22

With regard to the differences between the entrepreneurial and administrative focuses which of the following is correct  

A) Entrepreneurs focus on slow steady growth and managers focus on rapid growth
B) Entrepreneurs rent or sporadically use resources; managers like to own resources
C) Entrepreneurs are driven by controlled resources; managers by opportunity
D) Entrepreneurs tend to use a hierarchical management structure; managers use a more fluid, flat approach

Question 23

Entrepreneurial activities tend to immediately affect the bottom line,and hence are seldom overlooked and receive extensive funding and support. 

Question 24

An entrepreneur's recovery from grief is detrimental to society. 

Question 25

Having an entrepreneurial orientation toward the control of resources means: 

A) that one focuses on accessing others' resources.
B) that one focuses on purchasing resources.
C) that one has a belief that resources are unlimited and therefore easy to obtain.
D) that one focuses on using a hierarchy management structure in allocating resources.

Question 26

________ includes initiative and risk taking,as well as competitive aggressiveness and boldness. 

A) New business venturing
B) Self-renewal
C) Innovativeness
D) Proactiveness

Question 27

The first step in establishing corporate entrepreneurship in an organization is: 

A) finding mid-level managers to champion ideas
B) developing ways to get closer to customers
C) learn to be more productive with fewer resources
D) securing commitment from top management

Question 28

Entrepreneurial activities that create something new of value either by redefining the company's current products or services,developing new markets,or forming more formally autonomous or semiautonomous units or firms best defines: 

A) new business venturing.
B) proactiveness.
C) innovativeness.
D) self-renewal.

Question 29

One study found that new ventures started within a corporation performed better than those started independently by entrepreneurs. 

Question 30

________ includes a redefinition of the business concept,reorganization,and the introduction of system-wide changes to increase innovation. 

A) Innovativeness
B) New business venturing
C) Self-renewal
D) Proactiveness

Question 31

All these are characteristics of an entrepreneurial environment except: 

A) there are short term horizons.
B) new ideas are encouraged.
C) the organization operates on frontiers of technology.
D) it uses a multidiscipline teamwork approach.

Question 32

Entrepreneurial culture and growth orientation consists of all of the following except: 

A) encouraging employees to generate ideas.
B) focusing on opportunities.
C) the desire to grow at a slow and controlled pace.
D) being creative.

Question 33

New product development falls under which of the four major components of corporate entrepreneurship  

A) New business venturing
B) Self-renewal
C) Innovativeness
D) Proactiveness

Question 34

A sufficient time for top management to be committed to corporate entrepreneurship is: 

A) at least one year.
B) at least two years.
C) at least three years.
D) at least ten years.

Question 35

Which of the following is true about corporate entrepreneurship  

A) Equity in a new venture should not be used as a reward due to its uncertain value
B) A company must be willing to invest money without a guarantee of a return in the short term
C) Teams should be segmented by department
D) Top management should not be involved in the process

Question 36

A dual process model of coping with negative emotions is an approach to negative emotions based on both avoidance and a proactiveness toward secondary sources of stress arising from a major loss.

Question 37

Generally,independent,venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly. 

Question 38

Which of the following is not a leadership characteristic of a corporate entrepreneur according to the text  

A) Flexibility and vision
B) Persistence
C) Encourages teamwork
D) Encourages colleagues to follow hierarchy

Question 39

Corporate entrepreneurship is best described as: 

A) the hiring of former entrepreneurs.
B) entrepreneurial action within an established organization.
C) the process of buying, or acquiring, entrepreneurial firms.
D) the process of hiring consultants to teach a firm how to be more creative.

Question 40

Corporate ventures are totally independent units,hence the equity portion of the compensation is particularly difficult to handle. 

Question 41

Identify five of the twelve characteristics of an entrepreneurial environment.
TABLE 2.3 Characteristics of an Entrepreneurial Environment
-Organization operates on frontiers of technology
-New ideas encouraged
-Trial and error encouraged
-Failures allowed
-No opportunity parameters
-Resources available and accessible
-Multidiscipline teamwork approach
-Long time horizon
-Volunteer program
-Appropriate reward system
-Sponsors and champions available
-Support of top management 
Students can choose five of the twelve from table 2.3 above.

Question 42

Which of the following is most effective in grief-recovery  

A) Restoration-orientation
B) Loss-orientation
C) Dual process
D) Grief recovery process

Question 43

Define and explain the dual process model of coping with negative emotions. 

Question 44

When establishing corporate entrepreneurship in an organization rewards should: 

A) be tied to the department in which the idea originated
B) be tied to the parent company's stock performance
C) be tied to the performance of the entrepreneurial unit created from the idea
D) not be changed from whatever current system is being used so that risk is encouraged

Question 45

Which of the following is a practical implication of using the dual process of learning from failure  

A) Recovery from loss offers an opportunity to increase one's knowledge of entrepreneurship.
B) Distracting oneself from thinking about the failure reduces the long-term level of negative emotions.
C) Allocating attention to the events surrounding the failure provide little opportunity to learn.
D) The recovery process can be enhanced by focusing on either loss orientation or restoration orientation.

Question 46

An organization wanting to establish a more entrepreneurial firm must implement a procedure for its creation.Identify and briefly explain the first three steps of the process.

Question 47

Identify and briefly describe the four key elements of corporate entrepreneurship. 

Question 48

Which of the following statements is not true of the restoration orientation approach to negative emotions  

A) The restoration orientation approach is based on avoidance and proactiveness toward secondary sources of stress.
B) The restoration orientation approach requires oscillating between two alternate approaches to loss.
C) The restoration orientation approach involves distracting oneself from thinking about the failure.
D) The restoration orientation approach focuses one's energy on addressing problems that arise as a result of the failure.

Question 49

Which of the following statements is not true of the loss orientation approach to negative emotions  

A) Loss orientation is based on both avoidance and proactiveness.
B) Loss orientation involves working through, and processing, some aspect of the loss experience.
C) Loss orientation breaks emotional bonds to the object lost.
D) Loss orientation focuses on the loss event to create an account of the failure.

Question 50

Which of the following would not occur in the second stage of establishing corporate entrepreneurship in an organization  

A) Ideas that top management is interested in supporting are identified.
B) Identify an evaluation system for involved employees.
C) The amount of risk money available is specified.
D) Overall program expectations and target results of each corporate venture are established.

Question 51

When would an entrepreneur be pronounced to have recovered from the grief of a lost business  

A) On the availability of equally challenging entrepreneurial opportunities
B) Upon a simultaneous engagement in an analysis of the failed business
C) On having evaluated and absorbed the lessons learnt from the failed business
D) When thoughts about the events surrounding, and leading up to the loss of the business, no longer generate a negative emotional response

Question 52

Explain the benefits,or practical implications,of using the dual process model of coping with negative emotions. 

Question 53

Discuss three major ways in which managerial and entrepreneurial decision making differs. 

Question 54

Which of the following is true  

A) Independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly.
B) New ventures started within a corporation performed better than those started independently by entrepreneurs.
C) Independent entrepreneurs find difficulty in maintaining a long-term commitment.
D) Corporate ventures become profitable twice as fast as independent ventures.