Question 1

Corporate ventures accounted for what percentage of all venture capital funds invested in the U.S.?

Accepted Answer

A)  7 percent 
B)  12 percent 
C)  17 percent 
D)  22 percent

Question 2

If the corporate ventures are strategically important and operationally related to your core capabilities, then the new ventures should be part of your core business.

Accepted Answer

A) True 
 B)False

Question 3

What is an advantage associated with mechanistic structures compared to mechanistic ones?

Accepted Answer

A)  work is less structured 
B)  more efficient 
C)  permits less monitoring 
D)  makes it more difficult to evaluate employees

Question 4

What is most accurate regarding the amount of money invested in corporate venture groups since the late 1990s?

Accepted Answer

A)  they have continued to increase 
B)  they have continued to decrease 
C)  they peaked around 200 and have since declined 
D)  they peaked around 2003 and have since declined

Question 5

In 2003, approximately how many U.S. companies operated corporate venture capital units?

Accepted Answer

A)  200 
B)  350 
C)  500 
D)  750

Question 6

Corporate venture capital funds use a venture capital approach to corporate venturing, frequently coinvesting with other financial institutions.

Accepted Answer

A) True 
 B)False

Question 7

What advantage of acquisitions was SBC Communications attempting to leverage with the acquisition of AT&T allowing the combined company to reduce R&D activities, headquarters staff and other operations?

Accepted Answer

A)  gain control over proven new technical property 
B)  enhancing efficiency by combining operations and eliminating duplicative assets 
C)  manage the risk of investing in the development of new technologies 
D)  putting their capabilities to work in new markets

Question 8

What percentage of all firms are founded in the same industry as the one in which their founders were previously employed?

Accepted Answer

A)  40 % 
B)  60% 
C)  80% 
D)  90%

Question 9

Small firms tend to be more innovative than large firms in industries that are younger, less R&D intensive, less concentrated, less capital intensive, less advertising intensive, and more reliant on skilled labor.

Accepted Answer

A) True 
 B)False

Question 10

If the corporate ventures are strategically important and operationally unrelated to your core capabilities, then the new ventures should be direct spin-offs.

Accepted Answer

A) True 
 B)False

Question 11

Mechanistic structures permit greater organizational flexibility and adaptability than mechanistic ones.

Accepted Answer

A) True 
 B)False

Question 12

Although the number of corporate venture groups peaked around 2003, it is still higher than it was in 1999.

Accepted Answer

A) True 
 B)False

Question 13

Which industry would you expect a small firm to be more innovative than a large one?

Accepted Answer

A)  pharmaceutical preparations 
B)  photographic equipment 
C)  fabricated metal products 
D)  measuring and controlling devices

Question 14

The disagreement with employees about how to divide the profit from innovation between them is the most basic explanation for why people create spin-off companies.

Accepted Answer

A) True 
 B)False

Question 15

Small firms tend to be more innovative in which type of industry?

Accepted Answer

A)  less advertising intensive 
B)  older industries 
C)  more concentrated 
D)  less reliant on skilled labor

Question 16

What is a benefit associated with decentralization?

Accepted Answer

A)  reduces the cost of coordination 
B)  improves performance by giving technical personnel freedom from operations activities 
C)  encourages companies to invest in radical innovation 
D)  facilitates innovation in noncore areas

Question 17

External equity investment in technology start-ups typically comes from venture capitalist.

Accepted Answer

A) True 
 B)False

Question 18

What are organizations, generally limited partnerships, called that raise money form university endowments, pension funds, and wealthy individuals to invest in high-technology start-ups called?

Accepted Answer

A)  venture capitalist 
B)  business angels 
C)  venture capital firm 
D)  corporate venturing

Question 19

What is most likely for corporate venture capital funds?

Accepted Answer

A)  following of a corporate approach 
B)  make smaller investment alone 
C)  seek to maintain ownership of the new company 
D)  staging their investments

Question 20

If a company's core venture is of no strategic importance and the core capability is related, the new venture should be:

Accepted Answer

A)  part of the core businesses 
B)  a special unit 
C)  a contractually-based spin-off 
D)  a direct spin off

Exam 16: Organization Structure for Technology Strategy

Corporate ventures accounted for what percentage of all venture capital funds invested in the U.S.?

If the corporate ventures are strategically important and operationally related to your core capabilities, then the new ventures should be part of your core business.

What is an advantage associated with mechanistic structures compared to mechanistic ones?

What is most accurate regarding the amount of money invested in corporate venture groups since the late 1990s?

In 2003, approximately how many U.S. companies operated corporate venture capital units?

Corporate venture capital funds use a venture capital approach to corporate venturing, frequently coinvesting with other financial institutions.

What advantage of acquisitions was SBC Communications attempting to leverage with the acquisition of AT&T allowing the combined company to reduce R&D activities, headquarters staff and other operations?

What percentage of all firms are founded in the same industry as the one in which their founders were previously employed?

Small firms tend to be more innovative than large firms in industries that are younger, less R&D intensive, less concentrated, less capital intensive, less advertising intensive, and more reliant on skilled labor.

If the corporate ventures are strategically important and operationally unrelated to your core capabilities, then the new ventures should be direct spin-offs.

Mechanistic structures permit greater organizational flexibility and adaptability than mechanistic ones.

Although the number of corporate venture groups peaked around 2003, it is still higher than it was in 1999.

Which industry would you expect a small firm to be more innovative than a large one?

The disagreement with employees about how to divide the profit from innovation between them is the most basic explanation for why people create spin-off companies.

Small firms tend to be more innovative in which type of industry?

What is a benefit associated with decentralization?

External equity investment in technology start-ups typically comes from venture capitalist.

What are organizations, generally limited partnerships, called that raise money form university endowments, pension funds, and wealthy individuals to invest in high-technology start-ups called?

What is most likely for corporate venture capital funds?

If a company's core venture is of no strategic importance and the core capability is related, the new venture should be: