Final Exam MCQs ALL ANSWERS 100% CORRECT FALL-2021/2022 EDITION GUARANTEED GRADE A+

(TCO A) The relationship between speed of innovation and product obsolescence is direct (as innovation speed increases, products become obsolete more quickly). inverse (as innovation speed increases, products become obsolete more slowly). indirect (there is an effect, but it cannot be directly determined). nonexistent (there is no relationship at all). (TCO A) While rapid innovation often benefits society, it often makes success for companies more complicated as they strive to keep up with the latest innovations. profitable as long as they do not innovate themselves, but rather use innovations of others to their advantage. easier since innovation always makes things simpler. less likely because customers will not be willing to pay as much for goods and services. (TCO B) In the 1970s, Church & Dwight developed Arm & Hammer Baking Soda Deodorants. Within 6 months, the product was very successful and another company released Arm & Hamer Deodorant to try to capture some of the market created by Church & Dwight. Can Church & Dwight prevent the maker of Arm & Hamer from selling their product? Probably, because the other company's brand name is very similar to the trademark of Church & Dwight. No, the other company's brand is different enough to withstand any challenge. No, you cannot protect a brand name legally, only the product itself. It is impossible to say using the information provided. (TCO B) The scientists at Gerusa are former award-winning Soviet scientists who have all focused their attention on a cancer treatment. Working together, they have come up with remarkable solutions. The knowledge base they have is explicit. is easily imitable. is socially complex. has a low degree of appropriability.(TCO C) For several years, Mountain Home University had used IBM computers. Recently, Apple Computers offered them a better machine at lower a price for one of the University's labs; however Mountain Home did not buy them because the costs were too high. transactional opportunity marginal switching (TCO C) Natal Technologies is developing a superior ultrasound machine for which it is required to invest $800,000. Based on the company's analysis, the product will generate $200,000 from the first year till perpetuity. According to this, the payback period is . 10 years 6 years 3 months 4 years (TCO C) Sheila Kessler is a retired millionaire who still likes to invest in new businesses and help other people get started in business. She would be called a(n) loan shark. angel investor. first generation mentor. venture investor. (TCO D) Schumpeter said that large firms are likely to have a more difficult time raising funds. lower returns with lower sales volumes because fixed costs of R&D are high. better-developed complementary activities that enable them to be more innovative. poorer global reach due to bureaucracy. (TCO E) An antichampion isa person who is out to sabotage a new project. one who plays the role of the devil's advocate. a person who uses subjective criteria. a person in a competing firm who sabotages market tests by promoting his company's products more heavily than normal. (TCO E) Your boss does not favor the use of cross-functional teams. How would you respond to this? The use of cross functional teams can result in products that do not satisfy customers' needs. A cross-functional interface can help better ensure a product's quality and price. Cross-functional teams usually result in products that cannot be engineered. Cross-functional teams necessitate the need for back and forth iterations between different stages in the product development process leading to longer cycle times. (TCO F) Which of the following is an advantage of making a new generation of technology backward compatible? Consumers will have to buy completely new complements. Consumer switching costs may be lower because they anticipate using their existing complements. Competitors will be unable to imitate the company's strategy of making the technology backward compatible. It is typically less expensive to make a new generation of technology backward compatible than to not make it backward compatible. (TCO F) Mallard Prosthetics was a leader in the prosthetic arm market and profits from its prosthetics were very high. When Mallard developed a computerized prosthetic that would render its previous prosthetics obsolete, it decided to withhold it from the market probably so that competitors would have time to catch up. it could further develop the product and increase its leadership position. it would not cannibalize the sales of its current prosthetics. people could get used to the idea of a computerized prosthetic.Question 1.1. (TCO A) The relationship between speed of innovation and product obsolescence is direct (as innovation speed increases, products become obsolete more quickly). Question 2.2. (TCO A) While rapid innovation often benefits society, it often makes success for companies more complicated as they strive to keep up with the latest innovations. Question 3.3. (TCO B) The scientists at Gerusa are former award-winning Soviet scientists who have all focused their attention on a cancer treatment. Working together, they have come up with remarkable solutions. The knowledge base they have is socially complex. Question 4.4. (TCO B) Absorptive capacity increases a firm's future ability to assimilate information. Question 5.5. (TCO C) Natal Technologies is developing a superior ultrasound machine for which it is required to invest $800,000. Based on the company's analysis, the product will generate $200,000 from the first year till perpetuity. According to this, the payback period is 4 years Question 6.6. (TCO C) For several years, Mountain Home University had used IBM computers. Recently, Apple Computers offered them a better machine at lower a price for one of the University's labs; however Mountain Home did not buy them because the switching costs were too high. (Points : 5) Question 7.7. (TCO C) Sheila Kessler is a retired millionaire who still likes to invest in new businesses and help other people get started in business. She would be called a(n) (Points : 5) angel investor. Question 8.8. (TCO D) Gerusa has developed a technology called Photodynamic Therapy (PDT) for cancer treatment. The scientists who started the company want to learn how to set up clinics and actually treat patients with this technology; hence they want to begin opening clinics quickly. To meet this objective Gerusa should (Points : 5) collaborate with a company who has gone through a similar process to learn from them. Question 9.9. (TCO E) Bob King is a Senior Vice President at Associated Grocers, and has been assigned to be the project champion for the development and implementation of a software pricing program. Both the buying department and thepricing department have determined that the new software pricing program is worthless, but they do not tell Bob. This is probably because (Points : 5) of Bob's seniority. Question 10.10. (TCO E) Kate's supervisor called her to talk about her participation in a new product development team. The supervisor told Kate she had been engaging in social loafing. This meant that Kate (Points : 5) would not put much effort into the team's work because it was a large team and she figured her effort would not be needed or recognized. Question 11.11. (TCO F) When eBay developed its online auction service, a need arose for making online payments, and PayPal was born. This is an example of how moving commerce online (Points : 5) can create additional intermediaries. Question 12.12. (TCO F) If a firm invests in continuous innovation and willingly cannibalizes its existing products with more advanced products, the firm can (Points : 5) prevent competitors from achieving a significant technological gap. Intel pioneered microprocessor development in the 1970s and introduced its microprocessor well ahead of competitors. According to the classification s