Innovation And Entrepreneurship MCQ Quiz Questions And Answers

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Innovation And Entrepreneurship MCQ Quiz Questions And Answers - Quiz

Innovation and entrepreneurship are interrelated concepts. Today, we will check your knowledge on the same with this Innovation and entrepreneurship MCQ quiz that we've designed below. This quiz consists of well-researched questions and answers that will keep you engaged till the end. So, are you prepared enough to start this test? Give it a try, and we'll see how many marks you can score. We wish you good luck in advance!


Questions and Answers
  • 1. 
    Setting mechanisms for information flow and processing, decision making processes, conflict resolution, and risk sharing, are characteristics of which stage of innovation network management?
    • A. 

      Set-up stage.

    • B. 

      Operating stage.

    • C. 

      Sustaining stage.

    • D. 

      Closure/exit stage.

    • E. 

      All of the above.

    • F. 

      None of the above.

  • 2. 
    Which of the following does not describe strategic alliances?
    • A. 

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

    • B. 

      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.

    • C. 

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

    • D. 

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

    • E. 

      All of the above.

    • F. 

      None of the above.

  • 3. 
    Engaging networks in open innovation efforts means what?
    • A. 

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

    • B. 

      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.

    • C. 

      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.

    • D. 

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

    • E. 

      Only a and b.

    • F. 

      None of the above.

  • 4. 
    Online communities in general and social network sites (SNS) in particular, represent opportunities for entrepreneurial business and innovation development. Which of the following activities can be done via SNSs?
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

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

    • E. 

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

    • F. 

      All of the above.

  • 5. 
    Which of the following is not a benefit entrepreneurs can enjoy via engagement in social networks?
    • A. 

      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.

    • B. 

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

    • C. 

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

    • D. 

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

    • E. 

      Only b and c.

    • F. 

      None of the above.

  • 6. 
    Which of the following conditions is likely to encourage entrepreneurs to form strategic alliances?
    • A. 

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

    • B. 

      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.

    • C. 

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

    • D. 

      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.

    • E. 

      All of the above.

    • F. 

      None of the above.

  • 7. 
    Which of the following is an aspect of web configuration of a network?
    • A. 

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

    • B. 

      A web configuration allows for high levels of redundancy.

    • C. 

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

    • D. 

      A web configuration is costly to maintain and manage.

    • E. 

      All of the above.

    • F. 

      None of the above.

  • 8. 
    Which of the following statements about networks is correct?
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

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

    • E. 

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

    • F. 

      Only b, c and e.

  • 9. 
    Which of the following are not Hansen?s (2009) recommendations for collaborative effective networking in the work place?
    • A. 

      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.

    • B. 

      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.

    • C. 

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

    • D. 

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

    • E. 

      Only a and d.

    • F. 

      Only b and c.

  • 10. 
    Which of the following financial statements helps us to understand how much money is generated or needed for working capital during a certain period of time?
    • A. 

      Income statement.

    • B. 

      Cash flow.

    • C. 

      Balance sheet.

    • D. 

      Tax reports.

    • E. 

      Audit report.

    • F. 

      None of the above.

  • 11. 
    Seed capital can be described as ___________
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

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

    • E. 

      Relatively small investments primarily for paying salaries of entrepreneurs.

    • F. 

      None of the above.

  • 12. 
    The term Angel investors refers to ________________. 
    • A. 

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

    • B. 

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

    • C. 

      Banks providing loans to firms at low interest rates.

    • D. 

      The people that establish equity-based crowdfunding platforms.

    • E. 

      All of the above.

    • F. 

      None of the above.

  • 13. 
    The most important aspect of daily financial management of entrepreneurial firms is 
    • A. 

      Ensuring availability of sufficient working capital.

    • B. 

      Ensuring and supporting large volumes of sales.

    • C. 

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

    • D. 

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

    • E. 

      Only b and d.

    • F. 

      None of the above.

  • 14. 
    Why do we need to include a financial plan in the business plan?
    • A. 

      Demonstrate potential value of company to investors.

    • B. 

      Demonstrate health and value of company to credit providers.

    • C. 

      Setting a baseline for measuring and monitoring company development.

    • D. 

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

    • E. 

      All of the above.

  • 15. 
    In a firm?s early stages, which of the following is the most likely type of financing it will tap into?
    • A. 

      Debt-based bank loans.

    • B. 

      Venture capital.

    • C. 

      Bootstrapping

    • D. 

      Initial public offering (IPOs).

    • E. 

      Angel investors.

    • F. 

      None of the above.

  • 16. 
    Which of the following are characteristics of the average IPO (Initial Public Offering)?
    • A. 

      IPOs results in raising a substantial amount of money.

    • B. 

      IPOs are glamorous events attracting media and investor attention.

    • C. 

      IPOs are time and resource demanding processes.

    • D. 

      IPOs expose the firm to risks of takeover by competitors.

    • E. 

      All of the above.

    • F. 

      None of the above.

  • 17. 
    A situation where there is more demand than supply for the products is known as?
    • A. 

      Full demand.

    • B. 

      Overfull demand.

    • C. 

      Irregular demand.

    • D. 

      Latent demand.

    • E. 

      Unwholesome demand.

    • F. 

      None of the above.

  • 18. 
    Which of the following characterizes maturity stage of the product life cycle?
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

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

    • E. 

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

    • F. 

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

  • 19. 
    Which of the following is a correct statement according to the technology acceptance model by Legris, Ingham & Robinson (2003)?
    • A. 

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

    • B. 

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

    • C. 

      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.

    • D. 

      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.

    • E. 

      All of the above.

  • 20. 
    Which of the following describes a trademark?
    • A. 

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

    • B. 

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

    • C. 

      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.

    • D. 

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

    • E. 

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

    • F. 

      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.

  • 21. 
    The great "chasm" according to Moore (1999), representing the great efforts entrepreneurs need to take in terms of professional marketing efforts take place between which two stages of the innovation diffusion process?
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

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

    • E. 

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

    • F. 

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

  • 22. 
    Which of the following characterizes introduction stage of the product life cycle?
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

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

    • E. 

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

    • F. 

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

  • 23. 
    Which of the following is a condition that will prevent a speedy diffusion of a new innovative product in its target market?
    • A. 

      The product is complex and requires long training.

    • B. 

      The product is compatible with existing complimentary systems and products.

    • C. 

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

    • D. 

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

    • E. 

      Only a and c.

    • F. 

      Only b and d.

  • 24. 
    According to the innovation diffusion model, what is the main difference between innovators and early adopters?
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

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

    • E. 

      Only b and d.

    • F. 

      None of the above.

  • 25. 
    According to the Boston Matrix, products at the maturity stage of the product life cycle are likely to emerge under which conditions?
    • A. 

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

    • B. 

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

    • C. 

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

    • D. 

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

    • E. 

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

    • F. 

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

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