Innovation And Entrepreneurship MCQ Quiz Questions And Answers

Set-up stage.

Operating stage.

Sustaining stage.

Closure/exit stage.

All of the above.

None of the above.

A coalition of two or more organizations, formed for achieving significant goals that are mutually beneficial to all members.

An arrangement when a large firm buys a small specialized technology firm, but allows it to run as autonomously, while both organizations share the small firm?s profit.

Formal and informal arrangements including joint ventures, license agreements, R&D partnerships, joint distribution agreements, etc.

Arrangements resulting from firm?s long-term strategy for improving or changing a company?s competitive position.

All of the above.

None of the above.

Creating cross-functional teams within the organization of open minded people to discuss and envisage possible innovations.

Employing a team of highly skilled and competent individuals to the firms R&D unit and allowing them full autonomy to do whatever they want as part of an innovation process.

Engaging skilled individuals, as well as committed and motivated potential users, who are external to the firm, in the firm?s product and process innovation efforts.

Holding innovation idea competitions among firm employees, where participation is open to all employees at all ranks and all types of positions.

Only a and b.

None of the above.

Monitor requests and ideas for improvement of existing competitor and own products.

Create opportunities for product discussion by encouraging word-of-mouth via online competitions, lotteries, viral campaigns, and social advertising.

Manage public relations by scanning for unresolved issues and complaints, provide solutions and publish responses and solutions.

Enhance effectiveness of advertising by creating well -targeted campaigns to specific groups, and measure their results.

Scan for and identify enthusiastic ?brand evangelists? you can recruit and reward.

All of the above.

Thanks to their position as network hubs, entrepreneurs can enjoy perfect information about the market they are operating in, by processing information from all members of their network.

Thanks to familiarity, relationship, trust and reciprocity entrepreneurs can find potential customers in and through their network.

Thanks to communications with network members entrepreneurs can gain critical knowledge and insights into potential markets and industry developments.

Thanks to communications and interactions with like-minded individuals in the network, entrepreneurs can gain support, morale boosts and encouragement for their efforts.

Only b and c.

None of the above.

Rapid technological development, requiring pooling of resources from a number of players for keeping up technological supremacy, otherwise too expensive to develop alone.

Rising ambition to enter and serve a foreign market, assumed to have large demand for the entrepreneur?s product or service, while having limited knowledge, contacts and experience in that foreign market, as well as limited resources to invest in such effort.

Following other similar firms in the same industry that rush into various strategic alliance arrangements, regardless of financial implications.

When engaging in new product development that combines technologies and elements from different suppliers, all of which critical to the success of the final product.

All of the above.

None of the above.

In a web configuration all elements are directly connected to each other.

A web configuration allows for high levels of redundancy.

A web configuration allows for high flexibility in terms of possibilities for traffic direction.

A web configuration is costly to maintain and manage.

All of the above.

None of the above.

Regardless of costs, networks are valuable because of their ability to coordinate activities between different, independent and specialized members.

Networks facilitate coordination of activities among its members, by channeling communications, controlling conflict and fostering cooperation among them.

Networks by definition always support innovation, because they facilitate knowledge and information flow from multiple sources in the network.

Networks are mostly barriers to innovation, since it facilitates communication among like-minded people, who serve as gatekeepers keeping new players and ideas out.

Networks are only naturally formed and cannot be purposefully and intentionally engineered.

Only b, c and e.

Better to develop smaller networks that include diverse individuals, who can contribute with different perspectives, insights and resources, than to develop large networks of like-minded people.

Better to develop large networks of like-minded people, who will support your initiatives and facilitate efficient processes, than investing in diverse individuals with diverse interests that will make processes more difficult facing conflicting interests.

Foster and deepen strong ties, as they will always be there for you, and don?t waste time on collecting and maintaining weak ties.

Build network outward not inward, since the whole point is to interact and connect with people you wouldn?t normally interact.

Only a and d.

Only b and c.

Income statement.

Cash flow.

Balance sheet.

Tax reports.

Audit report.

None of the above.

Relatively large investments to support a firm?s growth in periods of rapid growth.

Medium investments to support a firm?s operations in early stages.

A medium investment to support a firm?s marketing efforts at the introduction stage.

Relatively small investments to support feasibility and proof-of-concept studies.

Relatively small investments primarily for paying salaries of entrepreneurs.

None of the above.

Mostly rich friends and family members that save our business by injecting money into it before the venture collapses.

Experienced independent entrepreneurs who invest in new venture with relative minimum intervention in daily business practice.

Banks providing loans to firms at low interest rates.

The people that establish equity-based crowdfunding platforms.

All of the above.

None of the above.

Ensuring availability of sufficient working capital.

Ensuring and supporting large volumes of sales.

Ensuring periodic payment of dividends to investors early on for keeping them satisfied.

Only engaging in transactions where income from customers comes before payment to suppliers.

Only b and d.

None of the above.

Demonstrate potential value of company to investors.

Demonstrate health and value of company to credit providers.

Setting a baseline for measuring and monitoring company development.

Planning and ensuring sufficient working capital throughout the firm?s operations.

All of the above.

Debt-based bank loans.

Venture capital.

Bootstrapping

Initial public offering (IPOs).

Angel investors.

None of the above.

IPOs results in raising a substantial amount of money.

IPOs are glamorous events attracting media and investor attention.

IPOs are time and resource demanding processes.

IPOs expose the firm to risks of takeover by competitors.

All of the above.

None of the above.

Full demand.

Overfull demand.

Irregular demand.

Latent demand.

Unwholesome demand.

None of the above.

The product is under patent application and is only known to a few developers and investors under a noncompeting and non-disclosure agreements.

Little or no competition, slow sales, and limited uptake of offering by innovators and early adopters.

Growing competition, rapid sales, more demand than supply, prices rather high, and product endorsed by early majority customers.

Rapid growth, competition on price, new product endorsed by all customer groups.

Intensive competition, stagnation in growth, differentiation revolves around brand and features, product is endorsed by all customer groups.

Declining demand, customers adopting alternatives, few powerful competitors mostly competing on price in a shrinking market.

Perceptions of the social environment about the new technology influence its perceived usefulness by a potential customer.

The extent to which a new technology is relevant to the potential customer influences its perceived usefulness by that customer.

The extent to which the new technology is perceived to be easy to use influences both the potential customers? perceived usefulness of the technology and his or her intention to actually use it.

Both the extent to which the new technology is perceived to be useful and easy to use by the potential customer influences his or her intention to use it.

All of the above.

Right given to prevent others from printing, copying or publishing any original work of authorship.

Right given to prevent others from commercial and non-commercial usage of a unique visual appearance and design.

Right given to prevent others from commercial and non-commercial usage of a distinguishing word, name, design, symbol, or combinations of which, that are used to identify a certain product.

Right given to prevent others from commercial and non-commercial exploitation of an innovation.

An agreement to prevent former employees from using former employers? assets in their future entrepreneurial and non-entrepreneurial careers.

An agreement to prevent partners exposed to a trade secret to spread it onwards or use it outside the boundaries of its legally approved use.

Between the emergence of the innovation and the point innovators identify it.

Between uptake of the innovation by innovators and its uptake by early adopters.

Between uptake of the innovation by early adopters and its uptake by early majority.

Between uptake of the innovation by early majority and its uptake by late majority.

Between uptake of the innovation by late majority and its uptake by laggards.

Between the stage where consumers need to give up old products and their decision to uptake the innovative product.

The product is under patent application and is only known to a few developers and investors under a noncompeting and non-disclosure agreements.

Little or no competition, slow sales, and limited uptake of offering by innovators and early adopters.

Growing competition, rapid sales, more demand than supply, prices rather high, and product endorsed by early majority customers.

Rapid growth, competition on price, new product endorsed by all customer groups.

Intensive competition, stagnation in growth, differentiation revolves around brand and features, product is endorsed by all customer groups.

Declining demand, customers adopting alternatives, few powerful competitors mostly competing on price in a shrinking market.

The product is complex and requires long training.

The product is compatible with existing complimentary systems and products.

The product is difficult to try out and sample before purchase.

The product?s relative advantage is clear and values by the target market.

Only a and c.

Only b and d.

Early adopters have deeper understanding of technology and carry less social influence than innovators.

Early adopters hold traditional values and are more resistant to change than innovators.

Innovators have deeper understand of technology and carry less social influence than early adopters.

Early adopters are part of the larger crowd that adopts innovation once innovators promote it in the social system.

Only b and d.

None of the above.

Market is large, growing and profitable, while the firm?s market share is large and its reputation strong.

Market is large, growing and profitable, while the firm?s market share is small and its reputation dubious.

Market is large, growing and profitable, and the firm is bought out by a larger competitor.

Market is small, shrinking and characterized by marginal feature modifications, while the firm?s market share is small and its reputation dubious.

Market is small, shrinking and characterized by marginal feature modifications, while the firm?s market share is large and its reputation strong.

Market is small, shrinking and characterized by marginal feature modifications, and the firm is bought out by a larger competitor.

Marketers don?t control all components of the product.

It is a fixed offering, experienced in same way by all consumers.

Price doesn?t necessarily reflect quality of actual experience.

Its consumption requires interconnection between supplier and receiver.

All of the above.

None of the above.

When evaluating different sources of innovation it is important to balance push sources of new possibilities and pull sources reflecting actual needs.

Most innovation is radicle, and rarely in between dramatic changes do we see incremental and gradual developments.

Mature industries are likely to focus on pull innovation (need-based) while emerging industries focus on push innovation (possibility creation).

Only lead users and early adopters are customer groups relevant for innovation development.

A and c.

B and d.

Be as detailed as possible.

Use proper professional and technological language to describe features.

Be as clear, simple and to-the-point as possible.

Be linked to a concrete need.

Only a and b.

Only c and d.

Every employee has a price tag in terms of his or her salary which needs to be included in the financial analysis.

Some funding agencies, like public agencies, want to see that this business also creates jobs, even when losing money in the long term.

Exhibit to investors that the team behind the plan is a competent, experienced and suitable team of professionals, as a way to enhance concept and plan credibility.

Present to investors gaps in critical competencies for justifying requests of large investments.

Only a and c.

Only b and d.

OAP is shorter than BP and focuses on concept rather than venture.

OAP does not include financial estimations and analysis.

OAP only analyzes concept and market conditions, while BP covers more issues such as team, competitor analysis, and execution time plan.

Unlike the BP, the OAP does not give us a clear idea whether we should pursue an opportunity or not.

OAP is only made for investors while BP is for all stakeholders.

None of the above.

Refine, fine-tune and narrow down concept definitions and boundaries.

Identifying challenges and risks along the venture creation process, and suggesting strategies for dealing with them when they emerge.

A document for investors? evaluations, which highlights the strengths and benefits of the opportunity, while avoiding details of weaknesses and potential problems.

Setting goals along the venture creation process and a roadmap for reaching them.

All of the above except b.

All of the above except c.

Defining the market broadly so as to capture maximum sales potential.

Defining the market as a single narrow niche for extreme specialization.

Presenting attractive profitability and return on investment, even if calculations are based on highly speculative assumptions.

Assuming no sales and complete devotion to research and development in the first three years in the financial plan.

All of the above.

None of the above.

We don?t need a positioning analysis when we have a competitor analysis, which clearly shows differences between our product and competitors? solutions.

We need a positioning analysis to complement the competitor analysis, because the aspects we may be better at vis-à-vis our competitors, are not necessarily important aspects to the end customers.

We need both a positioning analysis and a competitor analysis, because the former represents a clear graphical description of the latter.

We don?t positioning and competitor analysis when presenting a completely new product or service into a market.

Only a and c.

Tendency to oversimplify complex problems.

Insistence on one solution even when contradictory evidence is available.

Assumption that events can be controllable and predictable with proper planning.

Overemphasizing negative aspects of alternatives.

All of the above.

None of the above.

Dividend allocation policy to investors.

Human resource recruiting policy for the new venture.

Detailed distribution plan and list of potential partners.

Strategic scenarios of reaction to competitor moves after market entry.

All of the above.

None of the above.

Granting all employees access to an Intranet, for free communication with each other.

Use of high involvement innovation system encouraging employees to contribute ideas and suggestions.

Encouraging intrapreneurship by providing time and funding for internal entrepreneurial activities and initiatives.

Arranging and engaging employees in communities of practice.

None of the above.

All of the above.

Moderately overestimating costs and underestimating income.

Depending on 100% external financing with no self-investment of the entrepreneur.

Showing profit only after 2-3 years instead of right from year 1.

Using multiple scenarios of income generation, which are too confusing for investors.

Only a and c.

Only b and d.

New scientific discoveries.

Suggestions from consumers and users of product/service.

Unexpected and surprising events.

Moments and bursts of inspiration.

Exploration of alternative future scenarios.

All of the above.

The ability or quality displayed when solving hitherto unsolved problems, when developing original and novel solutions to problems others have solved differently, or when developing original and novel products.

The multi stage process whereby organizations transform ideas into new/improved products, service or processes, in order to advance, compete and differentiate themselves successfully in their marketplace.

An activity that involves the discovery, evaluation and exploitation of opportunities to introduce new goods and services, ways of organizing, markets, processes and raw materials through organizing efforts that previously had not existed.

The motivational factors that influence individuals to pursue entrepreneurial outcomes.

All of the above.

None of the above.

B starts with problem and RB starts with solutions.

B allows free flow of ideas without criticism, while RB encourages critique of ideas raised.

B is a pleasant process while RB is an inherently unpleasant and hostile process.

B uses an impartial facilitator while RB uses a biased facilitator.

All of the above.

None of the above.

Business news about market trends, successes and failures.

Consumers? complaints.

Discussions with distributors of similar products.

Formal and informal experimentations with new concepts.

Challenges, difficulties and frustrations in life.

All of the above.

An organization where employees are faced with extreme challenges all the time.

An organization where everybody is suspicious of everybody else.

An organization where time, resources and mental support are provided for those coming up with initiatives and new ideas.

An organization where conflicts are frequent and debates are long and inconclusive.

An organization where people have complete autonomy to manage their workload, plans and resource allocations.

None of the above.

The assumption that logic is important in creativity.

The tendency to follow established rules unquestioningly.

The tendency to avoid ambiguity in viewing a situation.

The willingness to recognize the creative power of play.

The tendency to assign blame for failure.

The tendency to avoid unconventional thinking for not appearing foolish.

Generating knowledge ? incubation process ?generating ideas ? evaluation and implementation ? cycles of idea generation and evaluations.

Generating ideas ? incubation process ?generating knowledge ? evaluation and implementation.

Think about problem?talk about problem?learn about problem---suggest ideas.

Generating ideas?evaluation and evaluation ?incubation process.

None of the above.

All of the above.

Following authority and rules unquestioningly.

Able to use reasoning that is not immediately obvious when thinking about things.

Produces atypical, unique and unexpected responses to problems.

Intolerance of ideas of others as a way to think differently.

Only a and d.

Only b and c.

Creativity helps identify opportunities for innovation.

Creativity sets innovation in the context of an enterprise.

Creativity is what makes innovations profitable.

Creativity is what makes innovations popular in the market.

Creativity is what separates an invention from a business idea.

All of the above.

Technological, procedural and intellectual knowledge.

Flexible and imaginative thinking skills.

Passion and intrinsic motivation to derive solutions from problems.

Ability to balance pragmatism and dreaming.

Only a, c and d.

Only a, b and c.

An organization?s performance can be evaluated via multiple bottom lines in terms of pre-tax profits, after tax-profits, and post dividend allocation profits.

An organization?s performance can be evaluated via multiple bottom lines in terms of economic value, social value, environmental value, etc.

An organization?s performance can be evaluated via multiple bottom lines in terms of how much money it generated, how many people did it employ, how many customers it served, etc.

An organization?s performance can be evaluated via multiple bottom lines in terms of financial performance in different foreign markets it is operating in.

Only a and c.

Only c and d.

Wealth for owners may be created by efficiently solving social problems.

Wealth is a mean for achieving a positive social impact and creating social value.

Wealth creation is a way to measure value creation.

Wealth is unnecessary to ensure financial sustainability of social ventures.

All of the above.

None of the above.

Values.

Purpose.

Strategy.

Policies.

Only a and b.

Only c and d.