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ELE 3010 Midterm Exam Hope Parnell
Clemson University. Exam Questions With
Verified Answers
Which is NOT a leadership characteristic of a corporate entrepreneur according to the text? -
Answers✔Encourages colleagues to follow hierarchy
T/F: Generally, independent, venture-capital based start-ups by entrepreneurs tend to outperform
corporate start-ups significantly - Answers✔True
The first step in establishing corporate entrepreneurship in an organization is: -
Answers✔securing commitment from top management
T/F: Customers always embrace change in products and services. - Answers✔False
By delaying entry, late movers: - Answers✔can learn from the action of first movers without
incurring the same costs
T/F: Entrepreneurially managed firm structure is usually flat with multiple informal networks -
Answers✔True
T/F: In the McMullen-Shepherd Model the first stage is the evaluation stage - Answers✔False
Which of the following is true about corporate entrepreneurship? - Answers✔A company must
be willing to invest money without a guarantee of a return
T/F: Entrepreneurial opportunities are those situations in which new goods, services, raw
materials and organizing methods can be sold at greater than their production cost. -
Answers✔True
______ refers to the probability, and magnitude, of downside loss. - Answers✔Risk
A new entry includes all of the following except: - Answers✔Creating a new product
development process for your company
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T/F: The question "What is this technology all about?" is a comprehension question. -
Answers✔True
The basic building blocks to a firm, or the inputs into the production process , are: -
Answers✔resources
T/F: Entrepreneurially run firms are driven by controlled resources whereas traditionally
managed firms are driven by perception of opportunity - Answers✔False
Corporate entrepreneurship is best described as: - Answers✔entrepreneurial action within an
organization
T/F: In order to be the basis for a firm's superior performance, a bundle of resources must be
valuable, rare, and imitable. - Answers✔False
In regards to thinking structurally, superficial similarities: - Answers✔exist when the basic
(relatively easy to observe) elements of the technology resemble the basic elements of the market
T/F: Newness of a new entry is always an advantage - Answers✔False
T/F: In encouraging a culture for corporate entrepreneurship, using older, proven, technology is
recommended in order to increase stability in the organization - Answers✔False
T/F: A reflection task would involve thinking about what strategies should be used to solve a
problem - Answers✔False
Offering a small product range to a small number of customer groups is: - Answers✔a narrow-
scope strategy
In regards to the differences between the entrepreneurial and administrative focuses which of the
following is correct? - Answers✔Entrepreneurs rent or sporadically use resources; managers like
to own resources
T/F: Bricolage is entrepreneurs making do by applying combinations of the resources at hand to
new problems and opportunities - Answers✔True
Entrepreneurial culture and growth orientation consists of all of the following except: -
Answers✔the desire to grow at a slow and controlled pace
A broad-scope strategy: - Answers✔opens the firm to make different "fronts" of competition
T/F: The McMullen-Shepherd Model helps identify the common traits of successful
entrepreneurs - Answers✔True
________ includes initiative and risk taking, as well as competitive aggressiveness and boldness
- Answers✔Proactiveness
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