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Commerce and BusinessbackBusinessbackStrategic ManagementbackStrategic ManagementbackPractice Set 2476back

Business Strategy: Innovation And Entrepreneurship

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Question 1
Free
Multiple Choice

How was Netflix able to outperform both Hulu and Amazon?

Choose correct answer/s
A

by focusing its resources on buying classic blockbusters movies

B

by expanding its content streaming to include foreign markets

C

by expanding from content streaming to theatrical releases and cable content

D

by focusing its resources on producing high-quality content for content streaming

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Question 2
Free
Multiple Choice

Which of the following accurately describes how Netflix used innovation to gain a competitive advantage?

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A

Netflix moved from content development to upgrading its data analytics to provide faster online streaming.

B

Netflix applied big data analytics to its user preferences to provide highly personalized viewing recommendations.

C

Netflix moved from online streaming to online DVD rentals via the Internet.

D

Netflix applied first mover advantages to lock up talent needed to produce original content for DVD rentals and online streaming.

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Question 3
Free
Multiple Choice

The typical four-step innovation process begins with

Choose correct answer/s
A

the modification and recombination of an existing product or process.

B

the presentation of an idea as findings derived from basic research.

C

the commercialization of an invention by entrepreneurs.

D

a competitor's attempt to imitate an innovation.

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Question 4
Free
Multiple Choice

A _____ is best described as a form of intellectual property that gives the inventor exclusive rights to benefit from commercializing a technology for a specified time period in exchange for public disclosure of the underlying idea.

Choose correct answer/s
A

patent

B

promissory note

C

franchise

D

royalty

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Question 5
Free
Multiple Choice

When TrueHeal Pharma Inc.released a new drug to treat insomnia,its chemical composition was disclosed at the back of the drug's cover.However,any attempts by competitors to copy the chemical composition would result in infringement of TrueHeal Pharma's intellectual property rights.Thus,the drug is protected by a

Choose correct answer/s
A

promissory bill.

B

patent.

C

franchise.

D

royalty.

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Question 6
Multiple Choice

In the United States,the time period for the right to exclude others from the use of a patented technology is _____ from the filing date of a patent application.

Choose correct answer/s
A
20 years
B
25 months
C
15 months
D
25 years
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Question 7
Multiple Choice

_____ is best described as the commercialization of any new product,process,or the modification and recombination of existing ones.

Choose correct answer/s
A
Direct imitation
B
Mass customization
C
Innovation
D
Headhunting
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Question 8
Multiple Choice

As a research scholar,Ricardo had built a helicam as part of his project.The helicam could capture aerial images.Realizing the potential use of this product in movie production and military and rescue operations,he started a new venture where he could customize these helicams to fit the specific needs of the buyers and sell them.Ricardo can be best described as a(n)

Choose correct answer/s
A
entrepreneur.
B
category captain.
C
franchisor.
D
early adopter.
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Question 9
Multiple Choice

An intrapreneur is described as a person who

Choose correct answer/s
A
restricts changes within an organization.
B
innovates within existing companies.
C
introduces new products or services by starting his or her own ventures.
D
invests funds in the ideas of another person in the same organization.
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Question 10
Multiple Choice

Which of the following statements is not true about innovation?

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A
Innovation as a competitive weapon can simultaneously create and destroy value.
B
Successful innovation allows a firm to extract temporary monopoly profits.
C
Innovation has to be high-tech in order to be a potent competitive weapon.
D
Process innovations are made possible through advances such as the Internet.
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Question 11
Multiple Choice

How has Apple been able to sustain its competitive advantage in the smartphone industry?

Choose correct answer/s
A
by reducing its network effects
B
by targeting its new products and services toward laggards
C
by driving the price for the end user to zero
D
by regularly introducing incremental improvements in its products
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Question 12
Multiple Choice

Which of the following is a competitive benefit experienced by the first mover firm in an industry?

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A
The first mover will be able to achieve a less steep learning curve.
B
The first mover will be able to reduce the switching costs.
C
The first mover will not have to patent its products or technology.
D
The first mover will be able to reduce costs through economies of scale.
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Question 13
Multiple Choice

The four-step innovation process ends with

Choose correct answer/s
A
idea generation.
B
invention.
C
idea testing.
D
imitation.
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Question 14
Multiple Choice

As the inventor of hypertension medication,OneSure Pharmaceuticals (OSP)Inc.was able to reap the benefits of economies of scale due to a large consumer demand for the drug.Even when competitors later developed similar drugs after the expiry of OSP's patents,regular users did not want to switch because they were concerned about possible side effects.Which of the following benefits does this scenario best illustrate?

Choose correct answer/s
A
first-mover advantages
B
social benefits
C
network externalities
D
fringe benefits
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Question 15
Multiple Choice

Which of the following statements accurately describes social entrepreneurs?

Choose correct answer/s
A
Social entrepreneurs are individuals who invest in start-up businesses in order to earn huge returns.
B
Social entrepreneurs are individuals who rely primarily on social networking sites to generate revenues.
C
Social entrepreneurs are employees within organizations who are responsible for carrying out lean production.
D
Social entrepreneurs are those who consider financial, ecological, and social metrics to evaluate their firm's performance.
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Question 16
Multiple Choice

Georgia Ray is the founder of the departmental stores chain,Ether Inc.She ensures that the products in her stores are ethically and responsibly sourced.Most products are therefore 100 percent organic and manufactured from recycled material.Also,her company purchases handicrafts from nonprofit organizations supporting the aged.Georgia's belief is that her company should be able to support the community at large.Which of the following terms best describes Georgia Ray?

Choose correct answer/s
A
headhunter
B
category captain
C
social entrepreneur
D
trade creditor
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Question 17
Multiple Choice

After Jeff Bezos read about how the Internet was growing by 2,000 percent a month,he set out to use the Internet as a new distribution channel and founded Amazon,which is now the world's largest online retailer.This is clearly an example of a(n)

Choose correct answer/s
A
firm that uses closed innovation.
B
entrepreneur who commercialized invention into an innovation.
C
business that entered the industry during its maturity stage.
D
exception to the long tail business model.
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Question 18
Multiple Choice

The market for 3-D televisions is in the introduction stage of the industry life cycle.What does this imply?

Choose correct answer/s
A
There are only a few competitors in the 3-D television market.
B
The number of buyers in the market is high.
C
The prices of 3-D televisions will be lowest during this stage.
D
The barriers to entry are low in the industry.
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Question 19
Multiple Choice

The strategic objective of a first mover during the introduction stage of the industry life cycle is to

Choose correct answer/s
A
pursue a harvest strategy.
B
survive by drawing on deep pockets.
C
achieve market acceptance.
D
lower entry barriers.
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Question 20
Multiple Choice

NextDoor is an instant messaging application for smartphones.New smartphone users find it easier to connect with friends and relatives through this mobile app when compared to other similar instant messaging applications.Hence,it has the largest user base in the industry.Thus,NextDoor app's value has increased primarily due to its

Choose correct answer/s
A
learning curve effects.
B
economies of scale.
C
economies of scope.
D
network effects.
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