Entrepreneurship and Innovation
Exam Practice Tests
Course Introduction
This course explores the fundamentals of entrepreneurship and innovation, equipping students with the knowledge and skills needed to identify business opportunities, develop creative solutions, and launch successful ventures. Topics include the entrepreneurial mindset, opportunity recognition, business model development, design thinking, and the role of innovation in driving organizational growth. Through case studies, group projects, and real-world applications, students gain practical experience in ideation, resource management, and fostering an innovative culture, preparing them to navigate the challenges of a dynamic and competitive business environment.
Recommended Textbook
Strategic Management and Competitive Advantage 6th Edition by Jay B. Barney
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12 Chapters
1185 Verified Questions
1185 Flashcards
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Page 2
Chapter 1: What Is Strategy and the Strategic Management Process
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) The ________ is the rate of return that a firm promises to pay its suppliers of capital to induce them to invest in the firm.
A)cost of debt
B)cost of advantage
C)cost of parity
D)cost of capital
Answer: D
Q2) Green Frog is an environmentally friendly firm in the cosmetics industry.If Green Frog were considering expanding beyond the cosmetics industry into pharmaceuticals in order to gain competitive advantages by operating in multiple markets and industries,this would be an example of which type of strategy?
A)business level strategy
B)cost leadership strategy
C)product differentiation strategy
D)corporate level strategy
Answer: D
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Page 3
Chapter 2: Evaluating a Firms External Environment
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99 Verified Questions
99 Flashcards
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Sample Questions
Q1) All of the following are elements of the general environment except A)technological trends.
B)demographic trends.
C)industrial trends.
D)cultural trends.
Answer: C
Q2) Which of the following attributes makes suppliers a stronger threat?
A)The supplier's industry is dominated by a small number of firms.
B)The product or service provided by suppliers is not highly differentiated.
C)Suppliers are threatened by substitutes.
D)Suppliers are not able to engage in forward vertical integration.
Answer: A
Q3) For BidBuy,services such as those offered by DollarDog that make BidBuy's services more valuable for customers who use the services of both companies are best described as
A)complementors.
B)substitutes.
C)rivals.
D)suppliers.
Answer: A
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Chapter 3: Evaluating a Firms Internal Capabilities
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98 Verified Questions
98 Flashcards
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Sample Questions
Q1) LaserTech's new technology appears to be
A)valuable and rare but not costly to imitate.
B)valuable and either rare or costly to imitate.
C)valuable but neither rare nor costly to imitate.
D)valuable,rare and costly to imitate.
Answer: D
Q2) Inputs whose quantity of supply is fixed and whose demand does not respond to price increases are said to be elastic in supply.
A)True
B)False
Answer: False
Q3) A firm's formal reporting structure is a description of who in an organization reports to whom and is often embedded in a firm's organizational chart.
A)True
B)False
Answer: True
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Chapter 4: Cost Leadership
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99 Flashcards
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Sample Questions
Q1) Sematech is pursuing which strategy?
A)cost-leadership business strategy
B)product-differentiation business strategy
C)cost-leadership corporate strategy
D)product-differentiation corporate strategy
Q2) Cost-leadership firms are typically characterized by very tight cost control systems; frequent and detailed cost control reports; an emphasis on quantitative cost goals and targets; and close supervision of labor,raw materials,inventory,and other costs.
A)True
B)False
Q3) When the efficient size of a firm or plant is significantly smaller than the total size of an industry,there will usually be numerous efficient firms/plants in that industry,and a cost-leadership strategy based on economies of scale will be rare.
A)True
B)False
Q4) Cost advantages based on diseconomies of scale are likely to be rare.
A)True
B)False
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6
Chapter 5: Product Differentiation
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99 Flashcards
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Sample Questions
Q1) Firms able to successfully differentiate their products and services are likely to see a decrease in their volume of sales.
A)True
B)False
Q2) What is the impact of product differentiation on each of the environmental threats identified in the five forces framework?
Q3) McDonald's is an excellent example of a firm that simultaneously employs both a product-differentiation and a cost-leadership strategy since their product differentiation based on cleanliness,consistency and fun in its fast food outlets allowed the company to become the market share leader in the industry and to reduce its costs.
A)True
B)False
Q4) The ability to use organization structure to facilitate coordination among scientific disciplines to conduct research is known as architectural competence.
A)True
B)False
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Chapter 6: Flexibility and Real Options
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Sample Questions
Q1) Gambling at a casino is a classic example of a(n)________ decision.
A)uncertain
B)deferred
C)managed
D)risky
Q2) Strategic options exist when firms have the obligation but not the ability to invest in a particular strategy.
A)True
B)False
Q3) The lower the cash flows generated by exercising a real option,the greater is the value of that real option.
A)True
B)False
Q4) Under conditions of high certainty,flexibility is often valuable because it creates real options for firms.
A)True
B)False
Q5) How is the option to defer different from the option to contract?
Q6) What are strategic options?
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Chapter 7: Collusion
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Sample Questions
Q1) It is well established in economic theory that imperfectly competitive markets are consistent with social welfare.
A)True
B)False
Q2) If Polly Kundig decides that Gamma Food Products should react by either decreasing its prices or increase its output,the company is sending out a(n)________ signal.
A)soft
B)strategic
C)operational
D)tough
Q3) When price is likely to be the basis of competition in an industry,firms should invest proactively in ________ signals.
A)soft
B)tough
C)tacit
D)explicit
Q4) How does product homogeneity facilitate tacit collusion?
Q5) How does signaling relate to collusion?
Q6) What are the two types of collusion and how are they different?
Page 9
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Chapter 8: Vertical Integration
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Sample Questions
Q1) Transaction-specific investments make parties to an exchange vulnerable to opportunism,and vertical integration solves this vulnerability problem.
A)True
B)False
Q2) According to ________ of when vertical integration creates value,vertical integration is valuable when it reduces threats from a firm's suppliers or buyers due to any transaction-specific investments a firm has made.
A)firm capability explanations
B)opportunity-based explanations
C)flexibility-based explanations
D)opportunism-based explanations
Q3) Flexibility is low when the cost of changing strategic choices is low.
A)True
B)False
Q4) Discuss the flexibility-based explanation of vertical integration.In discussing this explanation be sure to define flexibility,the role of uncertainty in this explanation,and identify when,under this explanation,firms should engage in vertical integration.
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10
Chapter 9: Corporate Diversification
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Sample Questions
Q1) A common way of thinking about strategy across different businesses within a firm is known as the firm's
A)core competency.
B)competitive advantage.
C)economy of scope.
D)dominant logic.
Q2) Most of the different types of economies of scope cannot be realized by equity holders on their own.
A)True
B)False
Q3) Define the concept of economies of scope,discuss when they are valuable and identify and differentiate between four of the eight potential economies of scope a diversified firm might try to exploit.
Q4) If Peach Computers were looking to getting into the business of making telephones,its diversification would be called
A)related-linked.
B)related-constrained.
C)related-corporate.
D)unrelated.
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Chapter 10: Organizing to Implement Corporate Diversification
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Sample Questions
Q1) The most common organizational structure for implementing a corporate diversification strategy is the ________ structure.
A)matrix
B)U-form
C)M-form
D)functional
Q2) If institutional investors are biopic,they should influence firms to invest in relatively less R&D.
A)True
B)False
Q3) The divisions of an M-form organization are true
A)profit-and-loss centers.
B)functional units.
C)matrix teams.
D)organic structures.
Q4) Which organizational structure is SpandoCorp using?
A)U-form
B)matrix
C)M-form
D)functional
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Chapter 11: Strategic Alliances
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Sample Questions
Q1) In the computer technology-based industries,over ________ alliances were created between 2001 and 2005.
A)5,700
B)1,200
C)2,200
D)3,100
Q2) In general,the less tangible the resources and capabilities that are to be brought to a strategic alliance,the less costly it will be to estimate their value before an alliance is created and the more likely it is that adverse selection will occur.
A)True
B)False
Q3) A learning race exists in a strategic alliance when both parties seek to learn from each other.
A)True
B)False
Q4) An alliance will be preferred to an acquisition when there are legal constraints on acquisitions.
A)True
B)False
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Chapter 12: Mergers and Acquisitions
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Sample Questions
Q1) Entrepreneurs must rely on capital generated from their ongoing operations or ________ and debt capital provided by banks.
A)initial public offering
B)retained earnings
C)venture capital firms
D)operating budgets
Q2) In 2015,there were over ________ acquisitions worldwide.
A)8,000
B)17,000
C)45,000
D)61,000
Q3) Describe and discuss five reasons why bidding firms might still engage in acquisitions even if,on average,they do not create value for a bidding firm's stockholders.
Q4) The difference between the unexpected value of an acquisition actually obtained by a bidder and the price the bidder paid for the acquisition is a profit for the equity holders of the target firm.
A)True
B)False
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