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(p. 113)-According to Porter's five-force model, the degree to which a firm relies on one
or a few suppliers will influence its ability to negotiate good terms.
(p. 102)-Many start-up firms demise because new innovations tend to be adopted very
slowly at first.
(p. 82)-When an industry has network externalities, the value of a good to a user is
more likely to go up linearly rather than increase in an s-shape.
(p. 304)-Firms often find it is difficult to make the transition between successfully
selling to early adopters versus the early majority.
(p. 163)-It is unusual for a company to lack certain complementary assets required to
transform a body of technological knowledge into a commercial product.
(p. 275)-A contract book is an important mechanism for establishing team commitment
to a project and a sense of ownership over the project.
(p. 194)-Trademarks must be registered before a suit can be brought in federal court
against an infringement of the mark.
(p. 177)-Some collaboration agreements include provisions for periodic auditing either
by the partner organizations or by a third party.
(p. 4)-The majority of effort and money invested in technological innovation comes
from nonindustrial firms.
(p. 115)-A strategic stakeholder analysis emphasizes the stakeholder management issues
a firm ought to attend to due to their ethical or moral implications.
(p. 4)-Most innovative ideas do not become successful new products.
(p. 220)-As a firm grows, it becomes more difficult to exercise direct managerial
oversight.
(p. 114)-Ample Espresso Corp. is a coffeehouse located across from Tian's Kitchen, a
restaurant. According to Porter's five-force model, the services and products provided
by both are most accurately classified as:
A. complements.
B. competitors.
C. substitutes.
D. intermediates.
(p. 121)-Piezo Tech Solutions supplies hospitals with software to track insurance
claims. As insurance regulations and policies are always changing, its software needs to
have the ability to be agile and responsive to change. In other words, the software
needs:
A. dynamic capabilities.
B. tacit resources.
C. rigid competencies.
D. to be path dependent.
(p. 73)-Arica Software Inc. is trying to estimate the installed base for its software. It is
trying to assess the number of:
A. substitutes available for its software.
B. developers working on its software.
C. areas in which its software can be applied.
D. users of its software.
(p. 148)-The drawback to data envelopment analysis (DEA) is that it does not allow
comparisons of projects using multiple kinds of measures.
(p. 251)-According to the stage-gate process developed by Robert G. Cooper, _____ are
the results of the previous stage and are the inputs for the gate review.
A. criteria
B. outputs
C. deliverables
D. beta versions
(p. 224)-Which of the following statements is true of loosely coupled organizational
structures?
A. In loosely coupled structures, development and production activities achieve
coordination through their adherence to shared objectives.
B. The possibility of achieving synergies is very high in loosely coupled structures.
C. They are most useful in organizations characterized by activities that require the
frequent exchange of complex or tacit knowledge.
D. They provide mechanisms for resolving conflict that are more effective or less
expensive than those available in the market.
(p. 256)-Jupiter Tech Inc. has conducted a failure modes and effects analysis of a digital
identification system that it developed. The scores are as follows:
Severity = 4
Likelihood of occurrence = 2
Inability of controls to detect it = 3
What is the risk priority number of the digital identification system?
A. 24
B. 6
C. 2.67
D. 9
(p. 272)-Which of the following is a defining characteristic of autonomous teams?
A. Autonomous teams are not held accountable for the success of a project.
B. Autonomous teams do not have a project manager, which leads to constant problems
with coordination of activities.
C. The degree of cross-functional integration is low in autonomous teams.
D. Autonomous teams often do not conform to the operating procedures of the rest of
the organization.
(p. 113)-Ceramic Customs Corp. required a specific type of ceramic to make its tiles.
Since there was only one supplier for that particular ceramic, the firm was forced to
source all of its supplies from it. The firm tried negotiating the price of the material but
failed to get any reduction on the cost. This was because:
A. the supplier had more bargaining power than the firm.
B. the supply was unlimited.
C. the supply exceeded the demand.
D. the industry had barriers to entry.
(p. 62)-Alpha Information Inc. is a firm that manufactures desktop computers and
wireless network hardware components. The company is spending heavily on R&D to
experiment with new designs for wireless networks instead of trying to refine how well
they make their current wireless network hardware components. The firm is going
through a period of ambiguity and anxiety. Alpha Information Inc. is in the:
A. dominant design phase.
B. era of incremental change.
C. era of ferment.
D. specific phase.
(p. 133)-Which of the following is true of quantitative methods of analyzing new
projects, particularly in rapidly changing environments?
A. They enable managers to use rigorous statistical comparisons of projects.
B. Their accuracy is unquestionable.
C. Discounted cash flow methods are the least commonly used quantitative methods.
D. -They are particularly accurate in highly uncertain or rapidly changing
environments.
(p. 247)-A _____ of a product is an early working prototype of the product released to
users for testing and feedback.
A. beta version
B. substitute
C. spiral model
D. sigma model
(p. 73)-The value of an electronic reader is related to the availability of books, journals,
magazines, etc., in a format that can be read by the electronic reader. For an electronic
reader, these are _____ goods.
A. complementary
B. substitute
C. Giffen
D. intermediate
(p. 29)-Regional districts, typically set up by government, to foster R&D collaboration
between government, universities, and private firms are called _____.
A. technological trajectories
B. free trade areas
C. complementors
D. science parks
(p. 3)-If a business builds a park in a community, it creates a(n) _____ for the
community members.
A. social cost
B. positive externality
C. opportunity cost
D. negative variance
(p. 62)-According to Anderson and Tushman, in the era of incremental change, firms:
A. attempt to achieve lower market segmentation by offering different models and price
points.
B. undergo a period of turbulence and uncertainty.
C. focus on efficiency and market penetration.
D. focus on altering the architecture rather than improving components.
(p. 242)-Which of the following statements is true about a firm with a long
development cycle time?
A. It can quickly revise or upgrade its product offering.
B. It is more likely to have a high cost of capital.
C. It can take advantage of both first-mover and second-mover advantages.
D. It is more likely to be able to fully amortize the fixed costs of development before
that generation becomes obsolete.
(p. 116)-According to Michael Porter's model of a value chain, which of the following
is a support activity?
A. Accounting activities
B. Outbound logistics
C. Marketing
D. Inbound logistics
(p. 188)-The scientists at Brainstorm Inc., a private medical research firm, have come
up with a remarkable method for curing cancer. This cancer treatment technology is
well protected and cannot be easily duplicated. Based on this information, it would be
most accurate to say that this technology:
A. cannot be patented.
B. is easily imitable.
C. is not socially complex.
D. has a high degree of appropriability.
(p. 76)-Increasing returns to adoption imply that technology trajectories are
characterized by _____, meaning that relatively small historical events may have a great
impact on the final outcome.
A. the ratchet effect
B. the funnel effect
C. corrugated anomalies
D. path dependency
(p. 268)-A cross-functional team is one that has members of different ethnic
backgrounds in a single functional area.
(p. 58)-Ron is highly skeptical about new ideas and products. He has not yet bought a
satellite television subscription for his home because he is still unsure of its benefits.
Ron is also concerned about the expense of getting such a connection. According to this
description, Ron:
A. is an innovator.
B. belongs to the early majority.
C. is a laggard.
D. is an early adopter.
(p. 71)-Neon Electronics Inc. is an electronics manufacturing company. It has adopted a
dominant design for its television audio speakers. Which of the following statements is
most likely to be true in this scenario?
A. Neon Electronics will have to invest heavily in R&D to come up with new designs
for the audio speakers.
B. Neon Electronics will face decreasing returns to its adoption of the dominant design.
C. Neon Electronics will have increased opportunities to develop complementary
assets.
D. The design adopted by Neon Electronics will be unpopular among most of the other
manufacturers.
(p. 189)-After much research, Angela has designed a new automobile tire with a unique
polycarbonate exterior that cannot be punctured. In the context of U.S. patent law,
which of the following statements would be true for this invention?
A. It can be patented as it is useful, novel, and not obvious.
B. It can only receive a plant patent.
C. It cannot be patented because tires are intangible products.
D. It cannot be patented as it is only eligible for a copyright protection.
(p. 29)-Which of the following statements is true about the Bayh-Dole Act of 1980?
A. It made university technology transfer activities illegal and unethical.
B. It allowed universities to collect royalties on inventions funded with taxpayer
dollars.
C. It restricted provision of patents for inventions developed at universities.
D. It made investment in research and technology mandatory for public companies.
(p. 163)-Greyer Corp. has developed a special drug that kills cancer cells. While the
scientists at Greyer have the knowledge, they are short on equipment, money, and
marketing know-how. In this situation, the most appropriate step for Greyer would be
to:
A. give up the idea of selling the drugs altogether.
B. find a partner to collaborate with to sell the drug.
C. forge forward and develop the drug on its own.
D. come up with a completely new drug.
(p. 1)-Which of the following is an advantage of flexible manufacturing technologies?
A. They have made shorter production runs economical.
B. They have increased the importance of production economies of scale.
C. They eliminate the need for differentiation from competitors.
D. They have reduced the importance of technological innovation in industries.
(p. 167-168)-Allured Cosmetics Corp. enters into a contractual agreement with Pure
Cosmetics Inc., a manufacturing firm in the West Coast. According to the contract, Pure
Cosmetics can use the manufacturing processes of Allured Cosmetics to produce
cosmetics in return for a specific fee. Pure Cosmetics is bound to use the manufacturing
process only to make complementary products for the cosmetics manufactured by
Allured Cosmetics. This collaborative arrangement is most accurately classified as
_____.
A. licensing
B. outsourcing
C. a joint venture
D. capability complementation
(p. 114)-Allure Fabrics Corp. supplies cotton, linen, and silk fabrics to various designer
wear boutiques in and around Florida. The firm has recently launched a boutique in
Florida under its own brand name to sell women's fashion apparel. Allure Fabrics is
practicing:
A. forward vertical integration.
B. backward vertical integration.
C. horizontal integration.
D. substitution.
(p. 272)-Which of the following is a disadvantage associated with autonomous teams?
A. The project manager of an autonomous team does not have any control over
resources contributed from different functional departments.
B. The autonomous team structure does not accommodate cross-functional integration.
C. It is hard for autonomous teams to fold back into the parent organization when a
project is completed.
D. Autonomous teams do not have project managers, because of which they face a lot
of coordination problems.
(p. 167)-Greyer Corp. manufactures surgical instruments. Systems Medico Inc. enters
into a contractual arrangement with Greyer that allows it to use Greyer manufacturing
methods and management structure to produce and sell surgical instruments. Systems
Medico must pay a yearly fee to Greyer for the use of its manufacturing processes. In
this scenario, Systems Medico is the _____.
A. licensor
B. contract manufacturer
C. licensee
D. intrapreneur
(p. 242)-The time elapsed from project initiation to product launch, usually measured in
months or years, is referred to as _____.
A. diffusion of innovation time
B. technology trajectory
C. development cycle time
D. the Six Sigma period
(p. 137)-Which of the following is a disadvantage of using internal rate of return for
assessing a project?
A. It fails to take into account the time value of money and risk.
B. It cannot be calculated by trial and error.
C. It discriminates heavily against long-term and risky projects.
D. -It fails to provide concrete financial estimates.
(p. 3)-Electronic waste results from the disposal of technological goods. This is an
example of:
A. the Solow Residual.
B. a negative externality.
C. a negative variance.
D. the innovation funnel.
