Sample Exam (Innovation, Organization, and
Entrepreneurship)
1. Which of the following best defines "innovation"?
o a) Any change within an organization.
o b) A change that is new to the context of a firm, industry, or
the world.
o c) A process improvement.
o d) A new way of organizing employees.
2. What is the key difference between incremental and radical
innovations?
o a) Incremental focuses on long-term goals, radical on short-
term gains.
o b) Incremental involves minor improvements, radical involves
fundamental changes.
o c) Radical innovations build on existing knowledge;
incremental does not.
o d) Incremental innovations are focused on product
development, radical on services.
3. Which type of innovation is characterized by recombining
existing knowledge across different domains?
o a) Technological innovation
o b) Product innovation
o c) Radical innovation
o d) Incremental innovation
4. What is the "inverted U-shape" relationship in the context of
slack resources and innovation?
o a) Innovation increases with more slack resources indefinitely.
o b) Both too little and too much slack harm innovation.
o c) More slack leads to less experimentation.
o d) There is no relationship between slack and innovation.
5. In the context of professional service firms, which form of
legitimacy is most critical for radical innovations to succeed?
o a) Internal cognitive legitimacy
o b) External cognitive legitimacy
o c) Internal socio-political legitimacy
o d) External socio-political legitimacy
6. In Nohria and Gulati’s (1996) study, what does a high
amount of slack resources tend to lead to?
o a) More bureaucracy
o b) A decrease in innovation
o c) Increased opportunity for experimentation
o d) More radical innovation
7. According to Chesbrough (2003), which of the following is a
core principle of open innovation?
o a) Relying only on internal ideas for technological
advancement.
o b) Using external ideas and paths to market along with internal
resources.
Entrepreneurship)
1. Which of the following best defines "innovation"?
o a) Any change within an organization.
o b) A change that is new to the context of a firm, industry, or
the world.
o c) A process improvement.
o d) A new way of organizing employees.
2. What is the key difference between incremental and radical
innovations?
o a) Incremental focuses on long-term goals, radical on short-
term gains.
o b) Incremental involves minor improvements, radical involves
fundamental changes.
o c) Radical innovations build on existing knowledge;
incremental does not.
o d) Incremental innovations are focused on product
development, radical on services.
3. Which type of innovation is characterized by recombining
existing knowledge across different domains?
o a) Technological innovation
o b) Product innovation
o c) Radical innovation
o d) Incremental innovation
4. What is the "inverted U-shape" relationship in the context of
slack resources and innovation?
o a) Innovation increases with more slack resources indefinitely.
o b) Both too little and too much slack harm innovation.
o c) More slack leads to less experimentation.
o d) There is no relationship between slack and innovation.
5. In the context of professional service firms, which form of
legitimacy is most critical for radical innovations to succeed?
o a) Internal cognitive legitimacy
o b) External cognitive legitimacy
o c) Internal socio-political legitimacy
o d) External socio-political legitimacy
6. In Nohria and Gulati’s (1996) study, what does a high
amount of slack resources tend to lead to?
o a) More bureaucracy
o b) A decrease in innovation
o c) Increased opportunity for experimentation
o d) More radical innovation
7. According to Chesbrough (2003), which of the following is a
core principle of open innovation?
o a) Relying only on internal ideas for technological
advancement.
o b) Using external ideas and paths to market along with internal
resources.
