The longer the focus of managerial incentive compensation, the greater the top-level
managers.
a. earnings potential for
b. risks borne by
c. incentives for
d. potential tax burden for
It can be difficult for investors to actually observe the value created by a firm (such as
Walt Disney) as it shares activities and transfers core competencies.
a. True
b. False
Both the size and the nature of a country’s domestic demand for a particular industry’s
good or service are important in Porter’s determinants of national advantage.
a. True
b. False
The main risk in a strategic alliance is that
a. the alliance will not result in a successful innovation.
b. critical employees will be hired away by the strategic partner.
c. one partner will use the other partner’s knowledge and use it to enhance its own
competitive abilities.
d. the partners will lose control over their internal processes.
Joseph Schumpeter suggested that firms engage in three types of innovative activity
when managing the innovation process: imitation, invention, and innovation.
a. True
b. False
The degree to which the firm is dependent on a stakeholder group gives that stakeholder
less influence.
a. True
b. False
Panera Bread develops and produces its own dough-based products, but it works with
manufacturing partners to create new soups. Panera Bread is therefore
a. increasing its costs and reducing its potential to succeed.
b. engaged in internal corporate venturing.
c. pursuing innovation through both internal and cooperative strategies.
d. not an innovative company.
Cross-functional teams are useful in developing and commercializing new products
because each team member brings his or her special competencies to the project. Each
team member brings his/her point of view from his/his experience and background. On
the other hand, these _______ may cause barriers to effective communication
among team members.a. independent frames of reference
b. entrepreneurial mind-sets
c. professional rivalries
d. politicized points of view
The risks of international entrepreneurship include all the following EXCEPT
a. unstable foreign currencies.
b. problems with market efficiencies.
c. limitations on market size.
d. strong “buy-domestic” programs.
The separation of ownership and control is the most effective means used by firms to
prevent managerial opportunism.
a. True
b. False