1. 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

2. 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

3. 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

4. Well-established successful companies are generally more interested in supporting sustaining technologies than disruptive technologies.

   a. true

   b. false

5. Good science requires that members of the scientific community continually question the outcomes of scientific research efforts – no effort is so worthy that it cannot be challenged. Which of Robert Merton's norms of science captures this principle?

    a. Communalism

    b. Universalism

    c. Disinterestedness

    d. Organized skepticism

6. Gap analysis helps business planners:

    a. identify gaps between revenues and profits

    b. identify product gaps that can be filled by means of new product development

    c. determine which departments contribute to business operations effectively and which do not

    d. estimate the time between the conceiving a new product and actually delivering it

7. 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

8. 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

9. An example of a trademark that became generic is:

    a. iPod

    b. Cadillac

    c. Xerox

    d. Aspirin

10. 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

11. 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

12. You can publish a book titled The Godfather without violating copyright law.

    a. true

    b. false

13. Creative thinking techniques try to strengthen convergent thinking.

   a. true

   b. false

13. 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

14. In order to maintain control over your copyrighted material, you need to put a copyright notice mark (e.g., © 2012 Jones Corp.) onto works you write and publish.

    a. true

    b. false

15. The primary goal of quality control charts is:

   a. to show graphically the rate at which production quality improves

    b. to anticipate changes in the cost of production

    c. to determine whether goods produced lie within the range of tolerable variation

    d. to document the number of products produced that conform to specifications

16. 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

17. A significant consequence to technological innovation and entrepreneurship arising from the financial meltdown of 2008 is:

    a. intellectual property protection decreased

    b. investment capital dried up

    c. support for entrepreneurship education decreased

   d. the currency exchange rates for all countries decreased

18. Which of the following situations characterizes a high level of transilience?

    a. Working with an innovation that has major impact on how the organization approaches production in an environment of stable markets

    b. Working with an innovation that has major impact on how the organization approaches production and addresses changing markets

    c. Moving quickly from R&D efforts to production efforts

    d. Moving quickly from R&D and production into the market introduction of a new product

19. 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

20. 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

21. 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

22. Debt financing dilutes the equity share of entrepreneur-owners.

   a. true

   b. false

23. The dream of most venture capitalists is to have the companies they invest in "go public" through an IPO.

   a. true

   b. false

24. 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?

25. Businesses that depend heavily on venture capital funding____.

  a. find that the ownership share of the entrepreneur-owners is diluted

  b. typically borrow money from the venture capitalists

   c. are usually given latitude to manage their business without input from the venture capitalists

   d. must structure themselves as C-corporations before they can accept venture capital investments