Test Exam

1ZSUC0 NAME:

Organizing Entrepreneurship
Monday, March 31st 8h45-10h30
ID NUMBER:

PLEASE BRING YOUR CLICKERS

TO THIS LECTURE!

Including this cover sheet, the exam consists of 7 pages. This test exam consists of
20 multiple choice questions.

• Please verify that your copy of the exam is complete.

• Please write your name and ID number on this page and on the pages
containing open questions.
• Please use the multiple choice answer sheet for answering the multiple choice
questions.

• You are allowed to use a dictionary (in book form) and a simple calculator.
• You are not allowed to use any books or readers other than a dictionary.
• You cannot take this exam home. Please make sure you hand in all pages of
this exam.

Good luck!

[EXAM: 50 Multiple choice questions (38 points)

You are not punished for wrong answers. You will receive one point for every
additional correctly answered question over 12 correct answers (13 correct is 1 point,
25 correct is 13 points, 50 correct is 38 points). Thus, make sure that you have
answered every question.]

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1. Which of the following is a difference between coporate and independent
entrepreneurship?

A. Corporate entrepreneurship involves no risk; independent

entrepreneurship involves high risk.
B. Corporate entrepreneurship requires a champion; independent
entrepreneurship requires a sponsor.
C. Corporate entrepreneurship has shorter window of opportunity than
independent entrepreneurship.
D. Corporate entrepreneurship provides job security; independent
entrepreneurship provides no saftey net.

2. “[…] is the process whereby an individual or a group of individuals, in

association with an existing organization, create a new organization or
instigate renewal or innovation within that organization.” Please complete this
definition stated in the article of Sharma and Chrisman (1999).

A. Strategic renewal.
B. Corporate entrepreneurship.
C. Independent entrepreneurship.
D. Corporate venturing.

3. Which of the following is the correct order of options considering

innovativeness as it applies to products and services – from low incremental
innovation to high radical innovation?

A. Additions to product/service lines – product improvements/revisions –

new to the market products/services
B. Repositioning of products/services – additions to product/service lines
– new products/service lines in a company.
C. Repositioning of existing products/services – cost reductions for
existing products/services – new to the world products/services.
D. Additions to product/service lines – new applications for existing
products/services – new to the market products/services

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4. Open innovation - promoted by Henry Chesbrough - means that…

A. …firms are open to innovations and open to new markets.

B. …firms use internal and external ideas, as well as internal and external
paths to the market.
C. …individuals and teams are open to ideas from the market.
D. …firms use ideas and concepts from other firms.

5. How can pseudo-entrepreneurial firms become effective entrepreneurial firms

through managerial or structural change?

A. Change the organization’s structure from mechanistic to organic.

B. Change the organization’s structure from organic to mechanistic.
C. Change the management from conservative to entrepreneurial.
D. Change the management from entrepreneurial to conservative.

6. In his article in the Harvard Business Review in 1996, Michael Porter argues
for two views that organizations must take for superior performance and
sustained competitive advantage. All companies must focus on:

A. Effective Management and cost-efficient production.

B. Strategy and Entrepreneurship.
C. Strategy and Operational effectiveness.
D. Top Management and Strategy.

7. D. Hambrick and R. Mason (1984) initiated the foundation of the Upper

Echelon Theory in their paper in the Academy of Management Journal by
suggesting that…

A. …every organization is the reflection of its top managers.

B. …organizational structure should follow a firm’s strategy.
C. …corporate entrepreneurship is reflected by every organization’s top
management.
D. …strategic management and organizational structure is designed by
the top management.

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8. What type of innovation is Hue for Philips?

A. Core.
B. Incremental.
C. Adjacent.
D. Break-through.

9. What is a possible antidote to avoid competitive arousal?

A. Be more rational and think careful.

B. Smart people have no risk for competitive arousal.
C. Work experience reduced the risk of competitive arousal.
D. Anticipate and avoid collective biddings in auctions.

10. What is a component of a deal process when applying for Venture Capital (at
Stech company)?

A. Term sheet.
B. Business plan.
C. Operations.
D. Business case.

11. A typical cognitive bias describes “the reversals of preference when the same
problem is presented in different ways.” What is it called?

A. The framing effect.

B. The availability heuristic.
C. The anchoring effect.
D. The neglect of preferences.

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12. How is the following phenomenon called? An organization that serves existing
markets, but also generates new opportunities for growth.

A. Corporate Entrepreneurship.
B. Strategic renewal.
C. Ambidextrous organization.
D. Corporate Venturing.

13. Assess the following statements:

I. The entrepreneurial message must flow from the top management.
II. Corporate Entrepreneurs are high risk-takers.

Regarding the above statements

A. Both statements are true.

B. Statement I is true, statement II is false.
C. Statement I is false, statement II is true.
D. Both statements are false.

14. Which of the following is NOT a component for the patent definition by the
World Intellectual Property Organization (WIPO)?

A. Patent needs to be new.

B. Patent needs to involve an inventive step.
C. Patent needs to meet customer needs.
D. Patents needs to be capable of industrial application.

15. Developing intercultural competence in negotiation is about:

A. Reconciling opposing values.

B. Reconciling business dilemmas.
C. Finding best practices in business.
D. All of the above.

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16. In a negotiation you have:

A. Two or more parties involved.

B. Divergent interests only.
C. Clear information.
D. Good relationships.

17. Which of the following behaviors is NOT exemplary for the Performing phase
in a team’s life cycle?

A. Sharing leadership based on members’ knowledge and skills.

B. Members contribute and are motivated by the results.
C. Norms and culture are well understood.
D. Development of trust and common interests.

18. The phenomenon that people withhold to put effort into a team’s task because
others will make up for it, is called:

A. Free-riding.
B. Sucker Effect.
C. Easy-rider Effect.
D. Social loafing Effect.

19. A team leader of a diverse entrepreneurial team wants to show his

appreciation for the hard work some members have put in. He is
contemplating to install a reward system based on individual excellence. What
is the best advice you can give this team leader?

A. Great idea: team members will be more focused on differences among

them which will elicit new information.
B. Don’t do it: team members will act more competitively and information
elaboration will decline.
C. Don’t do it: team members will be less focused on the differences
between them and are less likely to recognize the value thereof.
D. Great idea: team members will become more cooperative and
information exchange will increase accordingly.

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20. Someone who employs an avoiding conflict management style:

A. shows a great concern for the relationship with the conflicting party and
hardly considers his/her own concerns.
B. shows hardly concern for the relationship with the conflicting party and
mostly considers his/her own concerns.
C. moderately considers both the concerns for the relationship with the
conflict party and own concerns.
D. shows hardly concern for both the relationship with the conflicting party
and own concerns.

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