Entrepreneurship and Innovation Test
Bank
Course Introduction
This course explores the fundamental principles of entrepreneurship and innovation, examining how new ventures are created, developed, and sustained in a dynamic global marketplace. Students will learn to identify opportunities, assess risks, and leverage creativity to design viable business models. Emphasizing both theory and real-world application, the course covers the entrepreneurial mindset, innovative product and service development, funding strategies, and growth management. Through case studies, collaborative projects, and presentations, participants gain practical skills necessary for launching startups or driving innovation within established organizations.
Recommended Textbook
Strategic Management Theory and Cases An Integrated Approach 12th Edition by Charles
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12 Chapters
895 Verified Questions
895 Flashcards
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Page 2
W. L.
Chapter 1: Strategic Leadership: Managing the
Strategy-Making Process for Competitive Advantage
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81 Verified Questions
81 Flashcards
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Sample Questions
Q1) Describe the steps involved in the formal strategic planning process.
Answer: The formal strategic planning process has five main steps: 1. Select the corporate mission and major corporate goals.
2. Analyze the organization's external competitive environment to identify opportunities and threats.
3. Analyze the organization's internal operating environment to identify the organization's strengths and weaknesses.
4. Select strategies that build on the organization's strengths and correct its weaknesses in order to take advantage of external opportunities and counter external threats. These strategies should be consistent with the mission and major goals of the organization. They should be congruent and constitute a viable business model.
5. Implement the strategies.
Q2) The concepts vision and mission can be used interchangeably.
A)True
B)False
Answer: False
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Page 3
Chapter 2: External Analysis: The Identification of Opportunities and Threats
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81 Verified Questions
81 Flashcards
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Sample Questions
Q1) Substitute products are not a threat if a company is the market leader.
A)True
B)False
Answer: False
Q2) A group of firms manufactures writing implements such as pens, pencils, and markers. This group should be referred to as a(n):
A) substitute.
B) market segment.
C) service provider.
D) regulator.
E) industry.
Answer: E
Q3) One of the defining characteristics of the mature stage of the industry life-cycle is that growth is low or zero.
A)True
B)False
Answer: True
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Page 4
Chapter 3: Internal Analysis: Resources and Competitive Advantage
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79 Verified Questions
79 Flashcards
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Sample Questions
Q1) Intellectual property protections, including patents, trademarks and copyrights, typically provide a barrier to imitation.
A)True
B)False
Answer: True
Q2) Distinctive competencies are firm-specific strengths that allow a company to differentiate its products and achieve substantially lower costs than its rivals.
A)True
B)False
Answer: True
Q3) The simplest measure of efficiency is:
A) the amount of money the company has to work with in the short term.
B) the ratio of revenues divided by invested capital.
C) the net profit expressed as a percentage of sales.
D) the total costs of producing products.
E) the quantity of inputs that it takes to produce a given output.
Answer: E
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Page 5
Chapter 4: Building Competitive Advantage Through Functional-Level Strategies
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75 Verified Questions
75 Flashcards
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Sample Questions
Q1) Research and development (R&D) can help a company improve quality by:
A) designing products that are easy to manufacture.
B) pursuing economies of scale.
C) developing strategies on how to market products.
D) upgrading employee skill levels.
E) creating teams whose members coordinate their own activities.
Q2) With regard to customer defection, which of the following statements is incorrect?
A) Defection rates are determined by customer loyalty.
B) The longer a company holds on to a customer, the greater is the volume of customer-generated unit sales.
C) Lowering customer defection rates creates a higher cost structure.
D) The longer a company retains a customer the higher the average unit cost of each sale.
E) There is a positive relationship between the length of time that a customer stays with the company and profit per customer.
Q3) Customer focus in a function of only the lower levels of an organization.
A)True
B)False
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Chapter 5: Business-Level Strategy
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74 Flashcards
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Sample Questions
Q1) Yankee Candle Company offers customers candles that burn for 50-60 hours, much longer than most department store candle brands. Therefore, customers are willing to pay a higher price for these candles. Which of the following strategies is Yankee Candle Company following?
A) Cost leadership
B) Rapid growth
C) Market segmentation
D) Differentiation
E) Stuck in the middle
Q2) Differentiation allows a company to:
A) respond to demands of deep price demands from powerful buyers and still make money.
B) lower its cost structure.
C) charge a premium price for its good or service.
D) charge low prices and still make profits.
E) initiate a price war in order to grow volume and drive its weaker rivals out of the industry.
Q3) Define the generic business-level strategies companies pursue.
Q4) List the features that need to be included in functional strategies to improve differentiation.
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Chapter 6: Business-Level Strategy and the Industry Environment
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82 Flashcards
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Sample Questions
Q1) Which of the following is an advantage of franchising?
A) It gives the franchisor the same level of tight control over franchisees as does chaining.
B) It allows the franchisor to earn all of the profits made by franchisees.
C) It is beneficial for franchisees because they do not have to face higher capital costs.
D) It helps the franchisees by relieving them of the responsibility of running operations.
E) It can help the franchisor expand his or her business rapidly.
Q2) ___________ is a market growth factor that refers to the degree to which the results of using and enjoying a new product can be seen and appreciated by other people.
A) Complexity
B) Relative advantage
C) Compatibility
D) Trialability
E) Observability
Q3) Horizontal mergers often lead to industry fragmentation.
A)True
B)False
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Chapter 7: Strategy and Technology
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73 Verified Questions
73 Flashcards
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Sample Questions
Q1) Technological disruption:
A) is typically a temporary phase lasting a few months.
B) occurs when the manufacturing plants of a company fail.
C) mostly affects the new entrants.
D) compels firms to adopt new business models.
E) is a problem primarily in embryonic industries.
Q2) Technical standards in high-technology industries are:
A) specifications developed by each producing company for its own products and product components.
B) specifications that producers adhere to when making a product or a component.
C) product specifications imposed by the federal government.
D) product features desired by consumers.
E) general guidelines proposed by industry leaders.
Q3) Consumers will bear the costs of switching technologies if:
A) the benefits of adopting the new technology outweigh the costs of switching.
B) switching costs are substantial.
C) the new products are packaged attractively.
D) there is a lack of complementary products.
E) the new technology is advertised subtly.
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Page 9
Chapter 8: Strategy in the Global Environment
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67 Flashcards
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Sample Questions
Q1) What are the potential benefits and risks of global strategic alliances? What actions can a firm take to minimize the risks and maximize the benefits?
Q2) Which of the following has occurred in international trade over the past half-century?
A) There has been a dramatic increase in the barriers to international trade.
B) Tariff rates on manufactured goods traded by advanced nations have fallen.
C) Regulations prohibiting foreign companies from entering domestic markets and establishing production facilities have increased.
D) The volume of world trade has decreased dramatically.
E) There has been a decline in the value of foreign direct investment.
Q3) Global economies of scale can be realized by:
A) restricting the expansion of overseas sales.
B) limiting the utilization of production facilities.
C) curbing bargaining power with suppliers.
D) decreasing cost savings through learning effects.
E) spreading the fixed costs associated with developing.
Q4) What is meant by the term national competitive advantage, and what are the attributes of a nation that affect the global competitiveness of companies located within that nation?
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Chapter 9: Corporate-Level Strategy: Horizontal Integration,
Vertical Integration, and Strategic Outsourcing
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71 Verified Questions
71 Flashcards
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Sample Questions
Q1) Horizontal integration may be thought of as:
A) moving into a new unrelated industry.
B) giving control to suppliers.
C) gaining control of distributors.
D) staying inside the industry in which the company currently operates.
E) combining functional units within the company.
Q2) GM typically solicits bids from global suppliers to produce a particular component and awards a 1-year contract to the supplier that submits the lowest bid. At the end of the year, a contract is once again put out for bid, and once again the lowest cost supplier is most likely to win the bid. Which of the following is GM using?
A) Strategic outsourcing
B) Competitive bidding
C) Strategic bidding
D) Long-term alliance
E) Hostage taking
Q3) In a strategic alliance, one company in the agreement benefits more than the other.
A)True
B)False
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Chapter 10: Corporate-Level Strategy: Related and Unrelated
Diversification
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73 Verified Questions
73 Flashcards
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Sample Questions
Q1) Company leaders that base their diversification strategy on transferring competencies tend to acquire new businesses that are ____ to their existing business activities.
A) unrelated
B) not comparable
C) opposed
D) related
E) identical
Q2) Differentiate between joint venture and acquisition as a method to enter new industries. Discuss the advantages and disadvantages associated with each.
Q3) Which diversification strategy is based on the idea that the company creates value by applying the distinctive competencies it developed in one line of business to another business activity?
A) A technology acquisition strategy
B) Related diversification
C) A restructuring strategy
D) Total diversification
E) A taper diversification strategy
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Chapter 11: Corporate Performance, Governance, and Business Ethics
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68 Verified Questions
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Sample Questions
Q1) When corporate CEOs and top managers use their power and control over funds to satisfy their personal desires for wealth or status, it is called:
A) on-the-job consumption.
B) greenmail.
C) information asymmetry.
D) self-dealing.
E) risk capital.
Q2) Attaining future profit growth may require investments that reduce the current rate of profitability.
A)True
B)False
Q3) Strike price is the price at which the stock was trading when the option was originally granted.
A)True
B)False
Q4) Business ethics are concerned with accepted principles of right or wrong governing the conduct of businesspeople. Identify and discuss the common examples of unethical decisions that businesspeople have made.
Page 13
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Chapter 12: Implementing Strategy Through Organization
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Sample Questions
Q1) The term used to describe how people learn an organization's culture and way of behaving in the organization is:
A) organizational structure.
B) organizational development.
C) organizational design.
D) organizational behavior.
E) organizational socialization.
Q2) A typical matrix organizational structure:
A) groups employees in two ways simultaneously to maximize the rate at which different kinds of products can be developed.
B) breaks up a company's growing product line into a number of smaller, more manageable subunits.
C) groups people on the basis of their common expertise and experience or because they use the same resources.
D) is a way of grouping employees into separate customer groups so that each group can focus on satisfying the needs of a particular customer group.
E) is a way of grouping employees to best satisfy the needs of customers within different regions.
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