1. 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

2. In the start up phase of the product life-cycle:

a. profits are negative

b. owners usually have pre-production contracts with potential buyers

c. risk is lowest

d. sales grow explosively

3. According to Richard Foster, market leaders often become "losers" and are supplanted by a new generation of companies because:

a. they do not invest enough money in R&D

b. their marketing strategies become "old hat" and lose their impact

c. new companies are willing to invest more in R&D than well-established companies

d. they invest primarily in existing successful technologies that are near the end of their technology life-cycle

4. 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?

5. In his studies of highly creative people, MihalyCzikszentmihalyi found for highly creative people to have an impact, it is not enough for them to be gifted. For creativity to take root and thrive, there must also be a well-defined domain of knowledge and

a. underlying process of creative destruction

b. a high need-to-achieve (n-ACH)

c. field of accomplishment

d. need for affiliation (n-AFF)

6. Which of the following is a purely scientific discipline?

a. Electronics

b. Physics

c. Chemical engineering

d. Astrology

7. 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

8. 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

9. 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

10. 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

11. Which of the following is not a feature of a LLC?

a. Company income is treated as personal income for tax purposes

b. Outside investors can assume ownership shares of the company

c. The company experiences limited liability protection

d. The company must register with the Security Exchange Commission

12. 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

13. 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

14. 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

15. At the time the electric light bulb was invented by Edison, a major challenge he faced in selling them was:

a. fighting a lawsuit by Westinghouse Corporation, claiming his light bulb patent infringed one they held

b. dealing with competition from overseas

c. handling claims by his partners that they were entitled to half the profits derived from light bulb sales

d. the absence of electric power distribution systems in American communities