Reference no: EM131688795

Q1. Inventions and innovations are basically the same thing.
a. true
b. false

Q2. If you pay a contractor to write an article titled "The Evolution of the Domestic Dog,"
a. the contractor owns the copyright since he/she produced it, unless he/she enters into an agreement to transfer ownership to you
b. ownership has not been determined, so it is necessary to enter into an agreement defining ownership rights
c. the contractor owns the copyright, but you have free access to the copyrighted material and can use it at will
d. you own the copyright because it is a work for hire, unless you enter into an agreement with the contractor to transfer ownership to him/her

Q3. If Ajax Enterprises hold a French patent for a technology, and no other patent, then John Jones of the USA:
a. is infringing on the patent if he produces the technology in his Chicago factory
b. is not legally able to sell the technology in the USA
c. would not be able to export the technology to France legally without Ajax's authorization
d. would not be able to use the technology in the USA for his own purposes

Q4. A review of the history of business confirms that if you build a better mousetrap, the world will beat a path to your door.
a. true
b. false

Q5. With basic science:
a. scientists pursue their research effort without concern for practical results
b. scientists must justify their research budgets by demonstrating how the research can yield practical results
c. scientists must establish and test hypotheses
d. scientists doing the research must have doctoral degrees

Q6. The common heritage of mankind argument holds that:
a. all humans are biologically the same and we should not confuse cultural differences among people with biological differences
b. knowledge belongs to everyone, and should not be treated as intellectual property
c. all people are entitled to express their views
d. all humans have origins in Africa

Q7. Although they apply their knowledge to different areas, scientists and engineers basically have the same backgrounds and share the same values.
a. true
b. false

Q8. Seed funding for new ventures most commonly comes from:
a. venture capital investors
b. commercial banks
c. angel investors
d. personal savings, family and friends

Q9. Which of the following questions reflects financial risk concerns?
a. At what point will breakeven occur?
b. Do we have the capability to produce a desired technology?
c. How should we price our new product?
d. Are we prepared to deal with changing regulations?

Q10. Which of the following is a purely scientific discipline?
a. Electronics
b. Physics
c. Chemical engineering
d. Astrology

Q11. Innovation________.
a. is another word for invention
b. applies solely to engineering advances
c. requires patenting of products that are produced
d. requires inventions to be employed practically

Q12. Which of the following products established a dominant design for a product line?
a. Sanyo's most advanced flat-panel television monitor
b. Compaq's transportable computer, based on the IBM PC design
c. The internal combustion engine automobile that ran on gasoline
d. The electric pencil sharpener

Q13. Creative thinking techniques try to strengthen convergent thinking.
a. true
b. false

Q14. When looking at the histories of successful real world ventures, we come across cases where a successful venture was spun off from a larger technical effort. Examples include:
a. CraigsList
b. Firefox and Alexa Internet
c. PayPal and Flickr
d. Apple Computer

Q15. An important characteristic of inventions is that they have practical applications.
a. true
b. false

Q16. The dream of most venture capitalists is to have the companies they invest in "go public" through an IPO.
a. true
b. false

Q17. Creative destruction - where major companies are overwhelmed by innovation - is a natural consequence of capitalism.
a. true
b. false

Q18. For a society to establish strong technological capabilities, it must invest heavily in science.
a. true
b. false

Q19. Which of the following statements regarding creativity is true?
a. Extraordinarily creative people tend to have exceptionally high IQs
b. Creative people are both imaginative and rooted in reality
c. Studies on determinants of creativity have found that personal suffering has been a necessary stimulant to creativity among most highly creative people
d. Creative people tend to be kooky

Q20. What inventions did Edison's originally-patented light bulb incorporate?
a. Improved vacuum process and carbonized filament
b. Response a above, plus platinum lead-in wires
c. Response b above, plus method for securing filament in place
d. Response c above, plus method to integrate components in a glass bulb

Q21. In the maturity phase of the product life-cycle, revenues continue to grow.
a. true
b. false

Q22. Open sourcing is forcing us to rethink the meaning and rationale of intellectual property.
a. true
b. false

Q23. With business process reengineering (BPR):
a. companies should seek dramatic changes in their business processes
b. companies should seek gradual changes in their business processes
c. companies are basically changing their organizational charts
d. companies must be careful not disrupt established business operations

Q24. Piracy is concerned with:
a. unauthorized use of copyrighted material
b. unauthorized use of patented technology
c. unauthorized use of trade marks
d. unauthorized use of trade secrets

Q25. Process innovation can contribute directly to a company's profits by:
a. reducing production costs
b. identifying market niches that have not yet been exploited
c. employing state-of-the-art equipment
d. establishing the foundation for effective marketing and sales

Q26. Later stage financing of a burgeoning venture is often used for:
a. designing new products
b. establishing production capabilities
c. developing a detailed business plan
d. acquiring other companies in order to accelerate growth

Q27. Which of the following questions reflects market risk concerns?
a. At what point will breakeven occur?
b. Do we have the capability to produce a desired technology?
c. How should we price our new product?
d. Are we prepared to deal with changing regulations?

Q28. Counterfeiting is concerned with:
a. unauthorized use of copyrighted material
b. unauthorized use of patented technology
c. unauthorized use of trade marks
d. unauthorized use of trade secrets

Q29. Sometimes companies that produce less than stellar products win the innovation battle because of network externalities. With network externalities:
a. companies that possess strong network externalities win the competition because they have superior sales capabilities
b. companies that possess strong network externalities win the competition because they have superior production capabilities
c. companies that possess strong network externalities win the competition because they are able to tap into a an old boy "network," where important luminaries in the industry support their products
d. companies that possess strong network externalities win the competition because they have a "network" of sales channels and support capabilities that make their products more attractive

Q30. Research shows that when venture capitalists attempt to determine whether a venture is worthy of their support, they focus on two things. One is the capabilities and experience of the core business team, and the other is:
a. the amount of cash the venture holds
b. whether the venture is being launched in an established market
c. the number of years since the venture was launched
d. the thoroughness and overall quality of the business plan

Q31. The Linux operating system has had an enormous impact on software development and maintenance. From the perspective of technological entrepreneurship and innovation, an especially interesting feature of the development of Linux is:
a. it is rapidly replacing Microsoft as the principal provider of operating systems for personal computers
b. its development was funded by venture capital companies that normally support pharmaceutical ventures
c. it was developed almost entirely by employing newly emerging agile and iterative software development techniques
d. it is an open sourced product

Q32. Schumpeter's concept of creative destruction holds that:
a. when entrepreneurs take over a business, they should strive to dismantle the way the business used to be run and implement new innovation-friendly processes
b. a natural feature of capitalism is that established businesses cannot keep up with economic changes and entrepreneurial forces drive them out of business
c. creative managers need to reinvent themselves constantly
d. creative processes in the arts, sciences, and social systems entail rethinking how things should work

Q33. Clayton Christensen's book, the Innovator's Dilemma, is one of the most important management books written in the past twenty years. In it, Christensen maintains that:
a. companies can go out of business by adhering closely to their important customers' demands
b. the surest way to lose business is to contradict the customer - the customer is always right
c. it is not necessary to be innovative, because companies can copy the innovative efforts of other companies without going through the hassle and expense of conducting original R&D
d. strictly speaking, there are no true innovations, because "there is nothing new under the sun."

Q34. Richard Foster's concept of the defender's paradox holds that:
a. by defending their existing successful innovations, companies are actually developing a good offensive strategy
b. companies that continue to invest heavily in their successful innovations find that at a certain point, the returns on their additional investment drop dramatically
c. when companies find their products being challenged by new market entrants, their best strategy is to strengthen their weakest products in order to throw the "attackers" off guard
d. when cornered, defenders can be stronger than their attackers

Q35. Which of the following illustrates incremental innovation?
a. Invention of the light bulb
b. Establishing the world wide web
c. Releasing Version 2.0 of the Windows operating system
d. Invention of movable type by Guttenberg

Q36. Let's say a four-legged chair is patented by Susan. John can add a fifth leg to the chair and get a patent on it.
a. true
b. false

Q37. Debt financing dilutes the equity share of entrepreneur-owners.
a. true
b. false

Q38. An innovation is approaching the end of its technology life when:
a. it is at the top portion of its S-curve
b. it is at the middle portion of its S-curve
c. it is at the bottom portion of its S-curve
d. when its S-curve shifts downward

Q39. Intrapreneurship focuses on:
a. making bureaucratic organizations function more entrepreneurially
b. identifying individuals who will promote entrepreneurship on teams
c. identifying profit targets that new ventures should strive to achieve
d. helping individuals tap into their innate entrepreneurial powers

Q40. According to William Abernathy's innovation life-cycle, during which stage is product innovation most prominent?
a. Early stage
b. Transition stage
c. Maturity stage
d. Post-maturity stage