Innovation And Entrepreneurship MCQ Quiz Questions And Answers

Offering samples and free trials can help customers experience the product firsthand, reducing their uncertainty by allowing them to try it before making a purchase. Educating customers through demonstrations and documentation provides them with information about the product's features and benefits, addressing their concerns and increasing their confidence in the product. Launching an informational advertising campaign can help communicate the product's value and address any uncertainties customers may have. Highlighting product benefits over substitutes helps customers understand the unique advantages of the product, further reducing uncertainty. Therefore, all of these strategies can help cope with customer uncertainty concerns when launching a new product.

The question asks about good sources of new business ideas, and the answer is "All of the above." This means that all the options listed - business news, consumers' complaints, discussions with distributors, formal and informal experimentations, and challenges in life - can provide valuable insights and inspiration for new business ideas. These sources can help entrepreneurs identify market trends, understand customer needs and preferences, explore potential partnerships, test new concepts, and solve problems. By considering all of these sources, entrepreneurs can gather a wide range of information and experiences that can fuel their creativity and innovation.

The correct answer is "Only a and b" because values and purpose are key elements of an enterprise's social mission. Values refer to the principles and beliefs that guide the organization's actions, while purpose relates to its overall mission and the positive impact it aims to achieve. Strategy and policies, on the other hand, are important for the overall functioning of the enterprise but may not necessarily be directly tied to its social mission.

An entrepreneur is characterized by having high levels of both management skills and creativity and innovation. This means that they are not only able to effectively manage and organize resources, but also possess the ability to think outside the box and come up with new ideas and solutions. This combination of skills is essential for successfully starting and running a business, as it allows the entrepreneur to navigate challenges, identify opportunities, and drive innovation in their industry.

Global entrepreneurs are unique in that they think internationally from the early stages of their business development. This means that they consider the global market and potential opportunities beyond their own country. This mindset allows them to adapt their business strategies to different cultures, languages, and market conditions, giving them a competitive advantage in the global marketplace. This is different from the other options provided, which focus on their experiences traveling to different countries or being educated in a foreign country, but do not necessarily indicate a global mindset in their business approach.

The correct answer describes the difference between incremental and radical innovation as the difference between making small improvements to existing processes or products, and doing something completely new or approaching something previously done in a completely different way. This answer captures the essence of incremental innovation as continuous improvement and radical innovation as disruptive and transformative change.

The correct answer is "All except c." This means that all of the options listed constitute an event of new entry, except for offering an established product in an established market. This is because offering an established product in an established market does not involve entering a new market or introducing a new product, unlike the other options.

Overfull demand refers to a situation where the demand for products exceeds the available supply. This can occur when the demand for a particular product or service is unexpectedly high or when there is a shortage in the market. It indicates a situation where there is more demand than can be met, leading to potential issues such as backorders, delays, or price increases. Unlike full demand, which implies a balance between supply and demand, overfull demand suggests an imbalance favoring demand.

This answer correctly describes a trademark as a right given to prevent others from using a distinguishing word, name, design, symbol, or combinations of these elements to identify a certain product. Trademarks are used to protect the unique branding and identity of a product or company, ensuring that others cannot use similar marks to confuse consumers or dilute the brand's reputation.

Social entrepreneurs are individuals who identify societal needs and address them by changing the existing system, rather than relying on the government or business sectors. They believe in taking action and finding innovative solutions to solve problems that the current system has failed to address. This answer accurately describes the proactive and solution-oriented approach of social entrepreneurs towards existing systems.

The story of Mr. Ken Kutaragi exemplifies a successful intrapreneur. An intrapreneur is an individual who applies entrepreneurial skills and innovative thinking within a corporate setting. Mr. Kutaragi, as the creator of the PlayStation, demonstrated his ability to think outside the box and bring a groundbreaking product to market within Sony, where he was an employee. His entrepreneurial mindset and ability to navigate within a large organization make him a prime example of a successful intrapreneur.

Contrarian value creation refers to the process of finding value or creating value from something that may be considered worthless or undesirable by others. This can be seen in the example of bringing mobile phones to poor countries, where a technology that may be seen as unnecessary or unaffordable by some is utilized to create value and improve the lives of others. This concept involves identifying opportunities and potential in unconventional or overlooked areas, and leveraging them to generate value and benefit.

The correct answer is "Only a and b." This is because the motivations mentioned in options a and b align with the common motivations for pursuing an entrepreneurial career. Option a highlights the desire to be one's own boss, have control over one's time, and enjoy the benefits of their own hard work. Option b emphasizes the social status, respect, and appreciation that successful entrepreneurs often receive in certain countries. Options c and d do not directly relate to motivations for pursuing an entrepreneurial career, as they focus more on stable income and technical development.

The cash flow statement helps us understand how much money is generated or needed for working capital during a certain period of time. It provides information about the cash inflows and outflows from operating activities, investing activities, and financing activities. This statement allows us to analyze the sources and uses of cash within the business, providing insights into the company's liquidity and ability to meet its short-term obligations. The income statement shows the revenue, expenses, and net income or loss for a specific period, while the balance sheet provides a snapshot of the company's financial position at a given point in time. Tax reports and audit reports are not specifically focused on working capital.

Social enterprises are businesses that aim to generate surpluses, which are then reinvested in the business and/or community. Unlike traditional businesses, social enterprises prioritize social and environmental goals over maximizing profits for investors and owners. They operate with a dual bottom line, seeking both financial sustainability and positive social impact. This distinguishes them from organizations that are dependent on donations and grants, employ large numbers of employees on full salaries, or are established as replacements for the non-profit sector.

Bricolage refers to the way of thinking where entrepreneurs use the resources they have available to create innovative solutions. In this example, the entrepreneur is using the equipment they have (with minor adjustments) to harvest methane from the ground and use it for electricity. This demonstrates the bricolage thinking approach of making the most out of existing resources and finding creative solutions to problems.

The correct answer is "For-profit social venture." The story of Ruby Cup, presented in the social entrepreneurship lecture, exemplifies a for-profit social venture. This means that while the organization aims to address a social or environmental issue, it also operates with a profit motive. Ruby Cup, which produces and distributes menstrual cups to improve menstrual hygiene management in developing countries, generates revenue through the sale of their products. This allows them to sustain their operations and continue their social impact initiatives.

Involving employees in innovation via teams has several advantages, such as exposure to different ideas and perspectives, enhancing levels of acceptance, commitment, motivation, and sense of ownership, and enhancing group cohesion, communication, and companionship. However, one disadvantage is that groups tend to take greater risks than individuals due to shared and fuzzy responsibility allocation among members. This can lead to a diffusion of responsibility and a lack of accountability, which may result in riskier decision-making.

The correct answer is "Only a and d, but not b and c." This answer is correct because it accurately identifies the statements that represent cases of product innovation. Statement a represents the introduction of a completely new product into the market, which is a clear example of product innovation. Statement d represents the introduction of a significantly improved version of an existing product, which also qualifies as product innovation. Statements b and c do not represent cases of product innovation because they involve either introducing an existing product into a new market or introducing a new production process for a popular product's production line, which are not examples of product innovation.

The transitional stage of the innovation cycle is characterized by a product range that includes at least one stable or dominant design and/or format. This means that during this stage, the product has reached a level of stability and standardization, where there is a recognized and widely accepted design or format. This is different from the earlier stages where products frequently change and are often customized to specific customers. In the transitional stage, there is a shift towards a more efficient production process, often characterized by rigid procedures. The competitive emphasis in this stage may also be on per unit cost reduction.

The correct answer is experienced independent entrepreneurs who invest in new ventures with relative minimum intervention in daily business practice. Angel investors are typically individuals who have previous experience in starting and running their own businesses. They provide funding and guidance to new ventures, but generally have a hands-off approach when it comes to day-to-day operations. This allows the entrepreneurs to maintain control and make their own decisions while benefiting from the investor's expertise and financial support.

The difference between brainstorming (B) and reverse-brainstorming (RB) techniques, when trying to generate new ideas, is that B allows for a free flow of ideas without criticism, while RB encourages critique of ideas raised. This means that in brainstorming, participants are encouraged to generate as many ideas as possible without judgment or evaluation, fostering a creative and open environment. On the other hand, in reverse-brainstorming, the focus is on identifying potential problems or flaws in existing ideas, promoting critical thinking and problem-solving.

An organization where time, resources, and mental support are provided for those coming up with initiatives and new ideas represents a creative climate conducive to the development of innovations. This environment allows employees to have the necessary resources and support to explore and implement new ideas, fostering creativity and innovation. It encourages individuals to take risks, think outside the box, and contribute to the organization's growth and success.

The multiple bottom line perspective refers to evaluating an organization's performance based on various factors such as economic value, social value, and environmental value. This approach recognizes that financial performance alone does not provide a comprehensive assessment of an organization's success. By considering these multiple dimensions, organizations can assess their impact on society and the environment, in addition to their financial profitability. This holistic perspective allows for a more balanced evaluation of an organization's overall performance and sustainability.

Entrepreneurial orientation encompasses the mindset and behaviors that firms adopt to engage in entrepreneurial activities. The three main aspects of entrepreneurial orientation are innovativeness, pro-activity, and risk-taking proclivity. Innovativeness refers to the ability to generate and implement new ideas and solutions. Pro-activity involves taking initiative and seizing opportunities in the market. Risk-taking proclivity entails the willingness to take calculated risks and embrace uncertainty. These three aspects are crucial for firms to adapt to changing environments, pursue new opportunities, and achieve competitive advantage. Attitude, social norms, self-efficacy, opportunity exploration, opportunity recognition, opportunity exploitation, money, market, management, financial risk-taking, social risk-taking, and career risk-taking are not the main aspects of entrepreneurial orientation.

All of the activities mentioned can be done via social network sites (SNSs). Online communities and SNSs provide a platform for businesses to monitor requests and ideas for improvement, create opportunities for product discussion, manage public relations, enhance advertising effectiveness, and identify brand evangelists. These activities help businesses engage with their audience, gather feedback, address concerns, and promote their products or services effectively.

In a firm's early stages, bootstrapping is the most likely type of financing it will tap into. Bootstrapping refers to the practice of starting and growing a business with little or no external funding. This means that the firm relies on its own resources, such as personal savings, revenue generated from sales, and reinvesting profits back into the business. Bootstrapping allows the firm to maintain control and ownership over the business, as well as minimize debt and external obligations. It is a common and practical approach for startups that may not have access to traditional financing options like bank loans or venture capital.

All of the options mentioned in the question are tools for managing internal knowledge connections within the organization. Granting all employees access to an Intranet allows for free communication and sharing of knowledge. Using a high involvement innovation system encourages employees to contribute ideas and suggestions, fostering knowledge sharing. Encouraging intrapreneurship by providing time and funding for internal entrepreneurial activities and initiatives promotes knowledge exchange. Arranging and engaging employees in communities of practice facilitates knowledge sharing and collaboration among employees. Therefore, all of the options mentioned are tools for managing internal knowledge connections within the organization.

The question asks for a factor that is not a promoter of effective teamwork. The options provided are "Results-driven structure," "Collaborative climate," "Participation in decision making," "Competent team members," "All of the above," and "None of the above." The correct answer is "None of the above," indicating that all of the options mentioned are actually promoters of effective teamwork.

The correct answer is "Only b and d, but not a and c." This means that both innovation and entrepreneurship are linked in the sense that entrepreneurs use innovative processes to gain strategic advantage in markets and create new organizations. However, it is not accurate to say that innovation and entrepreneurship are two different labels describing the same thing, or that innovation is necessarily the way by which entrepreneurs create new organizations.

The given answer states that the inability to launch perfect products from early on and needing to introduce improvements all the time is not a disadvantage of "new entry" moves. This means that it is actually an advantage of "new entry" moves. This suggests that being able to continuously improve products and make them better over time is seen as a positive aspect of entering a new market.

The correct answer is "Both b and c." This is because both the young firm only doing sales in Norway and the young firm doing sales in multiple foreign markets fit the definition of a born global firm. Born global firms are characterized by their early and rapid internationalization, meaning they start conducting business in multiple foreign markets soon after their establishment. Both options b and c mention that the firms are selling a product offered by various international players and using sub-suppliers from multiple foreign markets, which further aligns with the concept of born global firms.

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The willingness to recognize the creative power of play is not a barrier to creativity because it implies that the person is open to exploring and experimenting with different ideas and approaches, even if they may seem unconventional. This mindset encourages thinking outside the box and embracing new perspectives, which can lead to innovative and creative solutions. By recognizing the value of play and its ability to stimulate imagination and creative thinking, individuals are more likely to break free from traditional constraints and generate unique ideas.

The correct answer describes a creative process that starts with generating knowledge, followed by an incubation process where ideas are developed, then moves on to generating ideas, and finally involves evaluation and implementation of those ideas. It also mentions the importance of cycles of idea generation and evaluations, indicating that the creative process is iterative and involves continuous refinement and improvement. This path suggests a systematic approach to creativity, where knowledge and ideas are developed and evaluated in a structured manner to achieve innovative solutions.

An organizational sponsor of an intrapreneurial effort is best characterized as a powerful and influential manager who can remove organizational obstacles and make development processes smoother in the company. This implies that the sponsor has the authority and ability to provide necessary resources, support, and guidance to the intrapreneurial team. By removing obstacles, the sponsor enables the team to focus on their innovative development and ensures that they have the necessary support to succeed.

The given question asks which of the options is not a dimension of entrepreneurial tendencies. The options include "Need for achievement," "Desire for autonomy/independence," "Risk taking orientation," and "Creativity." The correct answer is "None of the above." This means that all of the options listed are dimensions of entrepreneurial tendencies.

The correct answer is "Only a and c." This means that both the conditions mentioned in option a (the product is complex and requires long training) and option c (the product is difficult to try out and sample before purchase) will prevent a speedy diffusion of a new innovative product in its target market. These conditions suggest that the product may require significant investment in terms of time and effort for potential customers to understand and use it effectively. This can create barriers to adoption and slow down the diffusion process.

All of the aspects mentioned in the options are common for both social and commercial enterprises. Both types of ventures are influenced by their external environments and institutions, require investment of limited resources with the expectation of future returns, rely on networks of stakeholders for resources and distribution, depend on financial and human capital, and are driven by identified opportunities linked to market needs.

A social enterprise is an organization that applies business strategies to achieve social, cultural, or environmental goals. It must use business approaches to manage the enterprise, as indicated in option a. Additionally, a social enterprise must create and distribute an offering that represents a public good, as mentioned in option b. However, it is not necessary for a social enterprise to be a non-profit generating organization, as stated in option c. Similarly, being in the form of an independent new venture outside existing organizations is not a requirement for a social enterprise, as mentioned in option d. Therefore, the correct answer is only a and b, but not c and d.

The correct answer is "Only b and c." This means that the organizational culture and structure constellations that represent strengths in both innovation and implementation capacities are a homogenous culture and complex structure, as well as a heterogeneous culture and centralized structure. These combinations allow for a balance between creativity and efficiency, as a homogenous culture promotes shared values and a common understanding, while a complex structure allows for flexibility and adaptability. Similarly, a heterogeneous culture brings diverse perspectives and ideas, while a centralized structure ensures coordination and control.

The situation described in the question is when two or more companies come together to form a new company. This is known as joint venturing, as it involves a collaboration between multiple companies to create a separate entity. Acquisition refers to one company purchasing another, while a merger involves the combination of two or more companies into one. A strategic alliance is a partnership between companies for a specific purpose, and a leveraged buyout involves acquiring a company using a significant amount of borrowed money. None of these options accurately describe the situation provided in the question.

The introduction stage of the product life cycle is characterized by little or no competition, slow sales, and limited uptake of the offering by innovators and early adopters. During this stage, the product is new to the market and may still be under patent application, meaning it is only known to a few developers and investors under noncompeting and non-disclosure agreements. The product has not yet gained widespread recognition or acceptance, resulting in slow sales and limited demand.

According to Amabile, the components of creativity include technological, procedural, and intellectual knowledge, flexible and imaginative thinking skills, and passion and intrinsic motivation to derive solutions from problems. The ability to balance pragmatism and dreaming is not mentioned as a component of creativity in the given options. Therefore, the correct answer is "Only a, b, and c."

All of the given options accurately characterize an intrapreneur. An intrapreneur is an entrepreneur who operates within a large company rather than starting their own business. They are typically middle-level employees who take the initiative to create and introduce new products or processes to improve the organization's quality, efficiency, effectiveness, and performance. Intrapreneurs often face obstacles within the organization but still take creative actions during work-time to develop and improve products, services, and processes. They may also disregard formal routines and bureaucratic procedures to pursue and develop innovative solutions for their organization. Therefore, all of the given options correctly describe the characteristics of an intrapreneur.

The explanation for the given correct answer is that an opportunity assessment plan (OAP) is shorter than a business plan (BP) and focuses on the concept of the venture rather than the entire venture itself. The OAP does not include financial estimations and analysis, and it only analyzes the concept and market conditions. On the other hand, a BP covers more issues such as team, competitor analysis, and execution time plan. Unlike the BP, the OAP does not provide a clear idea of whether the opportunity should be pursued or not. Additionally, the OAP is specifically made for investors, while the BP is intended for all stakeholders.

All of the options listed in the question can be potential cognitive pitfalls when assessing risks. The tendency to oversimplify complex problems can lead to overlooking important details and underestimating potential risks. Insisting on one solution despite contradictory evidence can result in ignoring warning signs and making poor decisions. Assuming that events can be fully controlled and predicted with proper planning can lead to a false sense of security and failure to adequately prepare for unexpected risks. Overemphasizing the negative aspects of alternatives can result in a biased assessment of risks and missed opportunities. Therefore, all of these cognitive pitfalls should be considered when assessing risks.

Creativity is defined as the ability or quality displayed when solving previously unsolved problems, developing original and novel solutions to problems that others have solved differently, or creating original and novel products. This definition emphasizes the innovative and unique aspects of creativity, highlighting the importance of thinking outside the box and coming up with new ideas and solutions.

Creativity helps identify opportunities for innovation because it involves generating new and unique ideas, perspectives, and solutions. By thinking creatively, individuals can identify problems or areas for improvement and come up with innovative ways to address them. Creativity is the starting point for innovation, as it allows individuals to think outside the box and explore new possibilities. It sets the foundation for the development of innovative products, services, processes, or business models. Therefore, creativity plays a crucial role in identifying opportunities for innovation.

Intrapreneurship is best characterized as a process that occurs within an existing firm, regardless of its size, and results in the development of new business ventures and other innovative activities. This means that individuals within the organization are encouraged to pursue opportunities and take risks to create new ventures, products, or services. This approach allows for entrepreneurial thinking and action within the framework of an established company, fostering innovation and growth from within.