Chapter 10 Test Bank Types of Ventures

Technology Ventures (Byers), 5e

Chapter 10 Types of Ventures

1) A flow-through entity might entail any of the following except:

A) Sole proprietorship

B) Taxation of corporate profits

C) S-corporation

D) LLC

2) In a ________, the continuity of business is ________.

A) Regular C-Corporation; limited

B) Sole proprietorship; very low

C) General Partnership; terminated by proprietor

D) S-Corporation; perpetual

3) If a corporation fails and proper formalities have been followed, creditors have a claim on the owners' personal assets.

4) An S-Corporation is taxed as a:

A) Flow-through entity

B) Sole proprietorship

C) Equal partnership

D) Regular taxable corporation

5) A ________ generally has ________ revenue growth.

A) Small business; High

B) Nonprofit Organization; Medium

C) Corporate new venture; Above average

D) Niche; Explosive

6) A ________ is a type of venture started by existing corporations for the purpose of building a new business unit.

A) Nonprofit organization

B) Corporate new venture

C) Independent venture

D) High-growth business

7) The purpose of every new venture is to create financial wealth for society.

8) Organizations that satisfy the conditions of section 501(c)(3) of the Internal Revenue Service Code are called ________ organizations.

A) Scientific

B) Educational

C) Donated

D) Charitable

9) Which of the following is not characteristic of corporate new ventures?

A) Commitment to the entity's social cause

B) Newness of product in relation to the firm's other products

C) Unique entrepreneurial leadership capabilities

D) High potential for innovation

10) A strength of corporate new ventures is:

A) Inherited brand equity

B) Multiple review levels

C) A scope defined by parent company's technologies

D) Relatively limited autonomy

11) Whereas independent ventures can offer ________, corporate ventures can offer ________.

A) Company-wide scope; equity to whole team

B) Design reviews; external feedback from customers

C) Quick changes to plans; best talent at the firm

D) Equity to whole team; IPO as a financial goal

12) "The enabler" corporate entrepreneurship model is marked by ________ resource authority and ________ organizational ownership.

A) Dedicated; Ad hoc

B) Dedicated; Diffused

C) Ad Hoc; Diffused

D) Focused; Ad hoc

13) Cannibalization is the act of introducing products that compete with the company's existing product line.

14) Corporate entrepreneurs are:

A) Employees who take responsibility for a venture outside the firm

B) Executives who decide to pivot the firm

C) New employees committed to an existing product

D) Employees who drive a venture within the firm

15) Even though CNV's carry a risk of failure, many potential corporate entrepreneurs try to join them.

16) Which of the following are not incentives for corporate entrepreneurs?

A) Significant degree of autonomy

B) Effective rewards like stock or bonuses

C) Slack time for exploring not-yet-approved projects

D) A culture that decries individual initiative

17) Janet is faced with an opportunity that she identifies has low strategic importance to her firm but high operational relatedness. How should she proceed?

A) With a small exploratory project

B) She shouldn't

C) Establish an independent corporate new venture

D) Spin off to a new company

18) Which of the following is not an establishing condition for corporate new ventures?

A) Increase sources for innovation

B) A dearth of corporate entrepreneurs with project mindsets

C) Establish a process for evaluating ideas

D) Don't let traditional executives control the budget

19) A parent firm tries to ________ its ________.

A) Protect and use; rewards

B) Encourage adherence to policy for; management

C) Act decisively; assets

D) Attract; management

20) A corporate new venture tries to ________ its ________.

A) Utilize rewards for; entrepreneurial employees

B) Retain; talent

C) Leverage; management

D) Be flexible with; revenue stream