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Chapter 14 - Innovation and Entrepreneurship
38. (p. 418) _________ accrues to good entrepreneurs, but their focus is on opportunities,
customers, markets and competition. They do not often seek ________ for its/their own sake.
39. (p. 418) _________ is money provided to a business venture that entitles the provider to
rights or ownership in the venture and which is not expected to be repaid.
40. (p. 418) Most new ventures find _________ hard to get, so gradually nurturing a relationship
with a commercial lender is a wise approach for the new entrepreneur.
41. (p. 418) Entrepreneurs benefit when using __________ because they retain ownership and
increase the return on their investment if things go as planned.
42. (p.419) ________ is generally obtained from a commercial bank to pay for property,
equipment and maybe provide working capital.
43. (p.419) _________ is money provided to the venture that must be repaid at some point in
time.
44. (p. 419) _________ are available for a very select few new ventures that have usually gone
through the other three sources of equity capital first.
45. (p. 419) __________ seek investment in the truly high-growth potential ventures. They have
particularly stringent criteria.
46. (p. 419) __________ are usually wealthy individuals, also called "angel" investors and they
are increasingly active and accessible as possible equity investors.
47. (p. 419) __________ are prevalent early in many new ventures.
48. (p. 419) __________ is usually obtained from one or more of three sources: friendly sources,
informal venture investors or professional venture capitalists.
49. (p. 419) _________ is the process of attempting to identify, encourage, enable and assist
entrepreneurship within a large, well established company so as to create new products,
processes or services that become major new revenue streams and sources of cost savings for
the company.
50. (p. 419) ________ are ten characteristics identified by Dr. Gordon Pinchot and elaborated on
by others that need to be present in large companies seeking to encourage and increase
innovation.
51. (p. 420) ____________ is a key characteristic of entrepreneurs. Likewise, time is the most
critical resource, used in tandem to virtually "will" a new venture's success at numerous
junctures early in its development.
52. (p. 420) Companies should:
53. (p. 420) To encourage intrapreneurship, the company should eliminate _________ after ideas
are generated.
54. (p. 420) Giving the originator of an idea some freedom to make decisions about its further
development and implementation:
55. (p. 420) Firms that ___________ facilitate innovation.
56. (p. 420) Some company cultures foster an interest in innovation only when the ideas
represent major breakthroughs. In this type of culture:
57. (p. 420) Innovation inherently involves _______, so some failures should be tolerated and
chalked up to experience.
58. (p. 420) In any organization, there are boundaries—territoriality--that stifle intrapreneurship.
____________ is often central to innovation and successful entrepreneurial teams.
59. (p. 420) Organizations inhibit __________ by insisting that communication flow upward.
60. (p. 420) The pressure for quarterly profits in many U.S. companies stifles innovative
behavior. However, investment in intrapreneurial activity requires:
61. (p. 420) When an individual with an idea has only one person to consult or one channel to
inquire into for developing the idea, innovation can be stifled. Intrapreneurship is:
Difficulty: Medium
Learning Objective: 5
Essay Questions
62. How is innovation different from invention?
Learning Objective: 1
63. Describe incremental innovation and give an example of continuous improvement.
64. What is CCC21? How does it help Toyota?
Learning Objective: 1
65. What is the Six Sigma approach to fostering innovation?
Learning Objective: 1
66. What is breakthrough innovation? How is it different from incremental innovation?
Learning Objective: 1
67. What are the characteristics of successful innovations?
Learning Objective: 3
68. Define and briefly describe an example of a disruptive innovation. Is this the same as a
breakthrough innovation?
69. What is the role of ideogoras in fostering innovation?
Learning Objective: 3
70. Define entrepreneurship and differentiate entrepreneurs from inventors.
Learning Objective: 4
71. How does a would-be entrepreneur assess whether an opportunity is a good business idea?
Learning Objective: 4
72. What skills, other than technical competence and business management ability are
important in entrepreneurial teams?
Learning Objective: 4
73. With respect to entrepreneurship, what are resources and why are they important?
74. Compare and contrast entrepreneurship with intrapreneurship.
Please refer to the discussions in the text titled "Entrepreneurship" and "Intrapreneurship," on
Learning Objective: 4
75. Describe the “freedom factors” identified by Gordon Pinchot that need to be present in
large companies seeking to encourage intrapreneurship.
