Choosing Innovation Projects

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Questions Bank

Introduction
Sources of Innovation
Types and Patterns of Innovation
Standards Battles and Design Dominance
Timing of Entry Part Two Formulating Technological Innovation Strategy
Defining the Organizations Strategic Direction
Choosing Innovation Projects
Collaboration Strategies
Protecting Innovation
Organizing for Innovation
Managing the New Product Development Process
Managing New Product Development Teams
Crafting a Deployment Strategy Index

All Questions

Question 1

Free

True/False

When Media Enterprises was faced with 5 different options for its research and development efforts,it looked at its budget and then ranked the projects to be funded.This is what is known as research rationing.

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True

False

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Question 2

Free

True/False

The ratio of R&D expenditures to sales is known as R&D concentration.

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True

False

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Question 3

Free

True/False

Qualitative methods of analyzing new projects usually entail converting projects into some estimate of future cash returns from a project.

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True

False

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Question 4

Free

True/False

Fred Stanley,a retired millionaire,invests in startup business projects that are under $1 million.Fred is an angel investor.

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True

False

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Question 5

Free

True/False

The Small Business Administration fosters entrepreneurship and innovation by administering grants,loans,and venture capital programs from different federal agencies.

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Question 6

True/False

The time required to break even on a project using discounted cash flows is known as period of return.

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True

False

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Question 7

True/False

The internal rate of return will always give a precise solution to whether or not to invest.

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True

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Question 8

True/False

Discounted cash flow estimates are only as accurate as the original estimates of profits,time,risk,and cost.

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True

False

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Question 9

True/False

The internal rate of return of a project is the discount rate that minimizes the net present value of the investment.

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True

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Question 10

True/False

Calculating the IRR of a project must be done by trial and error.

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True

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Question 11

True/False

The value of a call stock option is zero as long as the price of the stock is more than the exercise price.

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True

False

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Question 12

True/False

The real options approach is valuable when there is uncertainty and there is some evidence that it might work better than cash flow analysis for technology decisions.

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True

False

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Question 13

True/False

From a real options perspective,the exercise price associated with commercializing a new technology would be the costs of manufacturing,marketing,and distributing the technology.

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True

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Question 14

True/False

Many factors in the choice of development projects are quantifiable.

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Question 15

True/False

"Are there already appropriate suppliers and distribution channels?" is a screening question related to the role of capabilities.

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True

False

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Question 16

True/False

Derivative projects offer fundamental improvements in the cost,quality,and performance of a technology over preceding generations.

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True

False

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Question 17

True/False

Fredricks Technologies made the strategic decision to invest heavily in the development of derivative projects.This is likely to make its returns on R&D look good in the short run only.

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True

False

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Question 18

True/False

The most common use of conjoint analysis is to assess the relative importance of different product attributes to customers.

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Question 19

Multiple Choice

_____ refers to the allocation of a finite quantity of resources over different possible uses.

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Systematic allotment

Corporate funding

Organizational appropriation

Capital rationing

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Question 20

Multiple Choice

Using quantitative methods for choosing which R&D projects to pursue _____ in a rapidly changing environment.

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will lead to highly accurate results

could lead to questionable results

are the recommended methods

is considered politically correct

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