1. Ken Willingham, CEO of XYZ International, stated that a major goal of the company is to optimize Entrepreneurial Intensity by adopting, promoting, and expanding entrepreneurial orientation throughout the corporation as a long-term strategy to achieve a sustainable competitive advantage and to improve business performance. Which of the following is true?

a. Although research had shown that Entrepreneurial Intensity is likely to improve business performance there is little evidence that Entrepreneurial Intensity is likely to generate innovative products, services, and processes that are a source of competitive advantage.
b. Entrepreneurial Intensity is likely to generate innovative products, services, and processes that are a source of competitive advantage. However, there is little known about Entrepreneurial Intensity and any relationship to business performance.
c. There are many external and internal variables that effect Entrepreneurial Intensity. Consequently, there is little evidence to show entreprenerial linkage to product, services, and process inovation much less improved business performance.
d. The strategy to adopt an entreprenerial oriented is a strategic error. The failure rate of adopting an entrepreneurial orientation throughout an organization is extraordinarly high. The risks outweigh any advantage of possible improved business performance.
e. Entrepreneurial Intensity is likely to generate innovative products, services, and processes that are a source of competitive advantage. In addition, research had shown that Entrepreneurial Intensity is likely to improve business performance.

2. Innovation as a corporate activity is _____.
a. abundant and cheap
b. dependent on the number of entrepreneurs
c. a popular with mangement
d. often only utlized in response to competition
e. costly and unproductive