CHAPTER 2: THE ENTREPRENEURIAL MIND-SET IN ORGANIZATIONS -

CORPORATE ENTREPRENEURSHIP

MULTIPLE CHOICES

1. Corporate entrepreneurial activity takes place the firm.

a. only with outside suppliers to c. both inside and outside
b. with anyone outside d. Inside

2. One reason why corporate entrepreneurship has done so well is that it allows organizations to
a. increase salaries. c. encourage high risk taking.
b. fire the dead wood. d. tap the innovative talents of their people.

3. Intrapreneurship is also referred to as:

a. inside entrepreneurship c. corporate entrepreneurship
b. internal entrepreneurship d. outside entrepreneurship

4. ____people thoroughly understand the concept of corporate entrepreneurship.

a. Just about all c. Many
b. Most d. Few

5. The major thrust of corporate entrepreneurship is to

a. encourage greater risk taking. c. encourage innovation.
b. raise profitability. d. increase morale.
ANS: C

6. All of the following are reasons for the growth of corporate entrepreneurship except
a. a desire to dramatically increase profitability.
b. a rapidly growing number of new and sophisticated competitors.
c. a sense of distrust in the traditional methods of corporate management.
d. an exodus of some of the best people out of corporations.

7. Which of the following helps account for the rise of interest in corporate entrepreneurship?
a. There is a decrease in the number of sophisticated competitors.
b. Government regulation of small entrepreneurs.
c. Corporations are now losing some of their best people.
d. A general increase in the number of competitors.

8. Which of the following is an obstacle to corporate entrepreneurship?

a. orientation to the market
b. a system of feedback and positive reinforcement
c. traditional management techniques
d. rewards based upon results
 9. In following the rules for innovation, a manager should do all of the following except
a. encourage action. c. punish failure.
b. use formal meetings whenever possible. d. reward performance.

10. In restructuring corporate thinking, top management should

a. identify potential entrepreneurs after an innovation program is in operation.
b. make the entrepreneur follow strict corporate guidelines.
c. promote entrepreneurship through experimentation.
d. create diversity and order in strategic activities.

11. Which of the following is not a question in the corporate entrepreneurial planning process?
a. does the firm encourage and reward entrepreneurs?
b. do employees frequently require permission?
c. Does the firm direct resources toward entrepreneurship?
d. Have you met government regulations for innovation?

12. The adverse impact of can be so destructive that individuals within the enterprise will tend to
avoid entrepreneurial behavior.
a. traditional management techniques c. specific entrepreneurial strategies
b. innovative climate rules d. informal meetings

13. Which of the following would not be considered as encouraging to an entrepreneurial environment?
a. uniform compensation
b. identifying potential entrepreneurs
c. top management sponsorship of entrepreneurship
d. promotion of entrepreneurship through experimentation

14. In an innovative climate, failure is viewed as

a. the end of the world.
b. a learning experience.
c. O.K., inevitable, since the employee is probably not capable of further innovative
thought.
d. a basis for firing.

15. One step an organization can take to make its corporate environment more innovative is to
a. gain top management support of an entrepreneuring program.
b. fire top management and hire young executives.
c. change the dress code to “casual attire.”
d. give across-the-board raises.
 16. Which of the following will help to foster an innovative climate?
a. encourage action from employees
b. punish mistakes
c. eliminate coffee breaks to encourage employees to work harder
d. do away with dress codes

17. Bureaucrats in an organization must

a. standardize procedures c. learn to give way to intrapreneurs
b. engage in horizontal management d. avoid risky moves

18. Authoritarian management is being replaced by

a. networking. c. Japanese managers.
b. independent contractors. d. Benevolent managers.

19. Corporate entrepreneurial strategy should be thought of as

a. vision directed c. restricted to one group in the firm
b. dichotomous d. management directed

20. All of the following are important characteristics for establishing an intrapreneurial climate except
a. the presence of explicit goals. c. positive reinforcement.
b. feedback. d. punishment of mistakes.

SHORT QUESTION

1. Describe the steps necessary to take an individual from a climate that is very hierarchical in nature to
an entrepreneurial setting.

2. Explain some of the disadvantages that may occur in firms that are trying to incorporate
entrepreneurship into their organizations.