TEST BANK
All Chapters Included
Copyright © 2009 Pearson Education, Inc. 1
Publishing as Prentice Hall
,TECHNOLOGY STRATEGY FOR MANAGERS AND
ENTREPRENEURS SCOTT ASHANE
CHAPTER 1
INTRODUCTION
TRUE/FALSE QUESTIONS
1. The reduction of costs and the improvement in quality of products made in lower wage
countries have led to enhanced markets for firms in developed countries
(False; Medium; p. 3; AACSB: Ethical understanding and reasoning ability; LO1)
2. On average, product life cycles have been shortened because more companies are offering
differentiated products.
(True; Medium; p. 3; AACSB: LO1)
3. Microsoft’s Xbox 360 provides an excellent example of a company’s efforts to develop an
innovative new product as part of its overall technology strategy.
(True; Medium; p. 2; AACSB: Reflective thinking skills; LO2)
4. Technology can be effectively defined as the use of zeros and ones in digital form on
computers.
(False; Medium; p. 4; LO1)
5. Invention is the process of using knowledge to solve a problem.
(False; Medium; p. 5; LO1)
6. Technological innovation is the use of knowledge to apply tools, materials, processes and
techniques to come up with new solutions to problems.
(True; Medium; p. 6; LO2)
7. Michael Dell’s approach to selling personal computers assembled from standard components
direct to customers is an example of technology innovation.
(False; Medium; p. 6; AACSB: Reflective thinking skills; LO2)
8. Technology innovation almost always comes from the knowledge of computer science.
(False; Medium; p. 6; AACSB: Reflective thinking skills; LO2)
9. Economists have shown that much of the growth in gross domestic product comes from the
use of technology to make more productive use of labor and capital.
(True; Medium; p. 7; AACSB: Reflective thinking skills; LO2)
10. The impact from almost all technology innovation is positive.
(False; Medium; p. 7; AACSB: Reflective thinking skills; LO2)
11. Process development is the anticipation and resolution of problems that arise in the
production of a product
(True; Medium; p. 8; LO3)
Copyright © 2009 Pearson Education, Inc. 1
Publishing as Prentice Hall
,https://browsegrades.net/singlePaper/416738/test-bankinstructor-manual-fortechnology-strategy-
12. A technology strategy is the approach that a firm takes to obtain and use technology to
achieve a new competitive advantage, or to defend an existing technology-oriented
competitive advantage against erosion.
(True; Medium; p. 9; LO3)
13. Technology strategy is different form overall business strategy in that business strategy
involves the use of intellectual property management to capture financial returns to a much
greater degree than technology.
(False; Medium; p. 9; LO4)
14. Technology strategy is different form overall business strategy in that technology strategy has
to deal much more with issues of uncertainty than general business strategy.
(True; Medium; p. 9; LO4)
15. The study of technology innovation is largely centered in general strategy principles.
(False; Medium; p. 10; LO4)
16. In the U.S., services now account for more than half the total gross domestic product.
(True; Medium; p. 11; LO5)
17. Technology strategy is basically the same for both large established firms and small new
companies.
(False; Medium; p. 11; LO5)
18. Research and development intensity is much higher for small firms than for large ones.
(True; Medium; p. 12; AACSB: Reflective thinking skills; LO5)
19. Developing an effective technology strategy includes making decisions about how to
organize a company for innovation.
(True; Medium; p. 15; LO2)
MULTIPLE CHOICE
20. Technology innovation has become a crucial part of most firms strategy because:
a. technology innovation generates competitive advantage
b. most firms produce only a few related products
c. companies have been taking longer to introduce new products
d. sales and profits from new products has been decreasing
(a; Medium; p. 3 LO1)
21. Which of the following would not be considered one of the reasons why companies have
recently increased their level of technology innovation?
a. to produce a greater variety of new products
b. to introduce new products to market faster
c. increase profit from established products
d. generate competitive advantage
(c; Medium; p. 3; LO1)
2
, 22. Why are more companies in developed countries introducing new products at a faster pace
and using technological innovation to reduce production costs?
a. the licensing of technology to other companies has become an important revenue
stream at many companies
b. there has been significant growth in the formation of high technology startups
c. more companies that once produced commodity products are now seeking to
differentiate their offerings
d. reduced costs and improved quality of products made in lower wage countries have
posed a major challenge for firms in developing countries
(d; Medium; p. 3; LO1)
23. Why has the demand for individual entrepreneurs who create spin-off companies using
technology developed at major corporations or universities been increasing?
a. the leasing of technology to other companies has become an important revenue
stream at many companies
b. there has been significant growth in the formation of high technology startups
c. more companies that once produced commodity products are now seeking to
differentiate their offerings
d. reduced costs and improved quality of products made in lower wage countries have
posed a major challenge for firms in developed countries
(b; Medium; p. 3; AACSB: Reflective thinking skills; LO1)
24. When developing the Xbox 360, Microsoft faced all of the following strategic issues, except:
a. the relationship between game and console makers
b. the lack of significant economies of scale
c. needs to develop the capabilities different from those needed in the software business
d. development of a new supply chain
(b; Medium; p. 2; AACSB: Reflective thinking skills; LO1)
25. Which of the following strategic issues that Microsoft encountered when developing the
Xbox 360 is best explained as benefiting from a reduction in cost per unit as production
volume increases?
a. economies of scale
b. significant investment in research and development
c. developing new supply channels
d. managing contractual relationships with other companies
(a; Medium; p. 2; LO1)
26. Which of the following is an example of an important technology?
a. information technology
b. biologically-based technology
c. mechanically-based technology
d. all of the above are important
(d; Medium; p. 4; LO2)
Copyright © 2009 Pearson Education, Inc. 3
Publishing as Prentice Hall
All Chapters Included
Copyright © 2009 Pearson Education, Inc. 1
Publishing as Prentice Hall
,TECHNOLOGY STRATEGY FOR MANAGERS AND
ENTREPRENEURS SCOTT ASHANE
CHAPTER 1
INTRODUCTION
TRUE/FALSE QUESTIONS
1. The reduction of costs and the improvement in quality of products made in lower wage
countries have led to enhanced markets for firms in developed countries
(False; Medium; p. 3; AACSB: Ethical understanding and reasoning ability; LO1)
2. On average, product life cycles have been shortened because more companies are offering
differentiated products.
(True; Medium; p. 3; AACSB: LO1)
3. Microsoft’s Xbox 360 provides an excellent example of a company’s efforts to develop an
innovative new product as part of its overall technology strategy.
(True; Medium; p. 2; AACSB: Reflective thinking skills; LO2)
4. Technology can be effectively defined as the use of zeros and ones in digital form on
computers.
(False; Medium; p. 4; LO1)
5. Invention is the process of using knowledge to solve a problem.
(False; Medium; p. 5; LO1)
6. Technological innovation is the use of knowledge to apply tools, materials, processes and
techniques to come up with new solutions to problems.
(True; Medium; p. 6; LO2)
7. Michael Dell’s approach to selling personal computers assembled from standard components
direct to customers is an example of technology innovation.
(False; Medium; p. 6; AACSB: Reflective thinking skills; LO2)
8. Technology innovation almost always comes from the knowledge of computer science.
(False; Medium; p. 6; AACSB: Reflective thinking skills; LO2)
9. Economists have shown that much of the growth in gross domestic product comes from the
use of technology to make more productive use of labor and capital.
(True; Medium; p. 7; AACSB: Reflective thinking skills; LO2)
10. The impact from almost all technology innovation is positive.
(False; Medium; p. 7; AACSB: Reflective thinking skills; LO2)
11. Process development is the anticipation and resolution of problems that arise in the
production of a product
(True; Medium; p. 8; LO3)
Copyright © 2009 Pearson Education, Inc. 1
Publishing as Prentice Hall
,https://browsegrades.net/singlePaper/416738/test-bankinstructor-manual-fortechnology-strategy-
12. A technology strategy is the approach that a firm takes to obtain and use technology to
achieve a new competitive advantage, or to defend an existing technology-oriented
competitive advantage against erosion.
(True; Medium; p. 9; LO3)
13. Technology strategy is different form overall business strategy in that business strategy
involves the use of intellectual property management to capture financial returns to a much
greater degree than technology.
(False; Medium; p. 9; LO4)
14. Technology strategy is different form overall business strategy in that technology strategy has
to deal much more with issues of uncertainty than general business strategy.
(True; Medium; p. 9; LO4)
15. The study of technology innovation is largely centered in general strategy principles.
(False; Medium; p. 10; LO4)
16. In the U.S., services now account for more than half the total gross domestic product.
(True; Medium; p. 11; LO5)
17. Technology strategy is basically the same for both large established firms and small new
companies.
(False; Medium; p. 11; LO5)
18. Research and development intensity is much higher for small firms than for large ones.
(True; Medium; p. 12; AACSB: Reflective thinking skills; LO5)
19. Developing an effective technology strategy includes making decisions about how to
organize a company for innovation.
(True; Medium; p. 15; LO2)
MULTIPLE CHOICE
20. Technology innovation has become a crucial part of most firms strategy because:
a. technology innovation generates competitive advantage
b. most firms produce only a few related products
c. companies have been taking longer to introduce new products
d. sales and profits from new products has been decreasing
(a; Medium; p. 3 LO1)
21. Which of the following would not be considered one of the reasons why companies have
recently increased their level of technology innovation?
a. to produce a greater variety of new products
b. to introduce new products to market faster
c. increase profit from established products
d. generate competitive advantage
(c; Medium; p. 3; LO1)
2
, 22. Why are more companies in developed countries introducing new products at a faster pace
and using technological innovation to reduce production costs?
a. the licensing of technology to other companies has become an important revenue
stream at many companies
b. there has been significant growth in the formation of high technology startups
c. more companies that once produced commodity products are now seeking to
differentiate their offerings
d. reduced costs and improved quality of products made in lower wage countries have
posed a major challenge for firms in developing countries
(d; Medium; p. 3; LO1)
23. Why has the demand for individual entrepreneurs who create spin-off companies using
technology developed at major corporations or universities been increasing?
a. the leasing of technology to other companies has become an important revenue
stream at many companies
b. there has been significant growth in the formation of high technology startups
c. more companies that once produced commodity products are now seeking to
differentiate their offerings
d. reduced costs and improved quality of products made in lower wage countries have
posed a major challenge for firms in developed countries
(b; Medium; p. 3; AACSB: Reflective thinking skills; LO1)
24. When developing the Xbox 360, Microsoft faced all of the following strategic issues, except:
a. the relationship between game and console makers
b. the lack of significant economies of scale
c. needs to develop the capabilities different from those needed in the software business
d. development of a new supply chain
(b; Medium; p. 2; AACSB: Reflective thinking skills; LO1)
25. Which of the following strategic issues that Microsoft encountered when developing the
Xbox 360 is best explained as benefiting from a reduction in cost per unit as production
volume increases?
a. economies of scale
b. significant investment in research and development
c. developing new supply channels
d. managing contractual relationships with other companies
(a; Medium; p. 2; LO1)
26. Which of the following is an example of an important technology?
a. information technology
b. biologically-based technology
c. mechanically-based technology
d. all of the above are important
(d; Medium; p. 4; LO2)
Copyright © 2009 Pearson Education, Inc. 3
Publishing as Prentice Hall
