Test Bank for Strategic
Management Concepts and
Cases Competitiveness
and Globalization 14th
Edition By Michael Hitt,
Duane Ireland, Robert
Hoskisson, Jeffrey Harrison
(All Chapters 1-13, 100%
Original Verified, A+ Grade)
All Chapters Arranged
Reverse: 13-1
,Chapter 13 - Strategic Entrepreneurship
True / False
1. Rosalie has become totally preoccupied with her idea for creating a business leasing horses to riders on the same
principle as time-shares on condominiums. Rosalie is researching the legal, financial, and insurance aspects of her idea
and is preparing a prospectus to take to banks to ask for a business loan. Rosalie's significant other is complaining that she
"sleeps, eats, and drinks" this concept. Rosalie has the entrepreneurial characteristic of passion.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: 13-5 Entrepreneurs and Their Mind-set
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.13.05 - Describe entrepreneurs and the entrepreneurial mind-set.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 5:16 PM
DATE MODIFIED: 6/8/2023 8:53 PM
2. Bill Kroganski is the owner of a moderately successful industrial services firm. His reaction to the introduction of a
new process technology that could be a direct competitor to the process his firm utilizes is fear. He spends his time
considering ways to isolate his firm from this new technology. Bill has characteristics consistent with the entrepreneurial
mind-set.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: 13-5 Entrepreneurs and Their Mind-set
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.13.05 - Describe entrepreneurs and the entrepreneurial mind-set.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 5:16 PM
DATE MODIFIED: 6/8/2023 8:53 PM
3. Amazon's Dash button allows customers to reorder household essentials at the click of a button. This is an example of a
radical, or novel, innovation that provided significant technological changes.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
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,REFERENCES: 13-7 Internal Innovation in Organizations
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.13.07 - Describe how firms internally develop innovations.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 5:16 PM
DATE MODIFIED: 6/8/2023 8:53 PM
4. While smaller firms must use cooperative strategies as a means of producing innovations, larger firms with large R&D
units such as P&G and 3M can produce most if not all innovations internally.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: 13-9 Innovation Through Acquisitions
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.13.09 - Describe how firms use acquisitions as a means of innovation.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 5:16 PM
DATE MODIFIED: 6/8/2023 8:53 PM
Multiple Choice
5. Firms develop innovation in all of the following ways EXCEPT:
a. through autonomous or induced strategic behavior.
b. by acquiring other companies.
c. through cooperative strategies.
d. via divestiture of low-performing units.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 13-9 Innovation Through Acquisitions
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.13.09 - Describe how firms use acquisitions as a means of innovation.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Understand
DATE CREATED: 4/19/2023 5:16 PM
DATE MODIFIED: 6/8/2023 8:53 PM
6. Pet Care Companion Connection (PCCC) is an organization that trains persons with mild-to-moderate mental
disabilities to care for pets in a pet boarding facility. This organization has been successful in providing a quality service
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, for pet owners and a supportive training environment for their trainees. The tuition charged to trainees is only somewhat
higher than the fee that day-care providers would charge for these individuals. Graduates of the program are qualified for
employment by commercial kennels. PCCC is an example of
a. taking advantage of a need in the marketplace.
b. creative destruction of existing services for pet boarding.
c. institutionalized entrepreneurship.
d. internal corporate venturing.
ANSWER: a
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: 13-1 Strategic and Corporate Entrepreneurship
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.13.01 - Define strategic entrepreneurship and corporate entrepreneurship.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 5:16 PM
DATE MODIFIED: 6/13/2023 6:29 PM
7. Isidore Security Services is a national provider of guard and security services for businesses. It has been in business for
over 90 years, having been founded by one of Teddy Roosevelt's Rough Riders (Isidore O'Malley). Lately, it has been
losing clients to more aggressive and innovative firms offering remote security monitoring systems instead of a guard-
based approach. The board of directors of Isidore Security Services is concerned that this downward trend may threaten
the existence of this venerable firm and the jobs of its employees. Which of the following statements is true?
a. This is an example of an established firm neglecting the opportunity-seeking aspect of strategic
entrepreneurship.
b. This example shows the dysfunctional aspects of unrestricted entrepreneurialism.
c. This is an example of the lack of human capital hampering internal innovation.
d. Isidore Security Services is suffering from the "novelty effect" wherein new firms are more attractive to
clients/customers merely because they are new and not because they add value.
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 13-10 Creating Value Through Strategic Entrepreneurship
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.13.10 - Explain how strategic entrepreneurship helps firms create value.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 5:16 PM
DATE MODIFIED: 6/8/2023 8:53 PM
8. The use or application of entrepreneurship within an established firm is called
a. corporate emergence.
b. transformational leadership.
c. exceptional R&D.
d. corporate entrepreneurship.
Copyright Cengage Learning. Powered by Cognero. Page 3
Management Concepts and
Cases Competitiveness
and Globalization 14th
Edition By Michael Hitt,
Duane Ireland, Robert
Hoskisson, Jeffrey Harrison
(All Chapters 1-13, 100%
Original Verified, A+ Grade)
All Chapters Arranged
Reverse: 13-1
,Chapter 13 - Strategic Entrepreneurship
True / False
1. Rosalie has become totally preoccupied with her idea for creating a business leasing horses to riders on the same
principle as time-shares on condominiums. Rosalie is researching the legal, financial, and insurance aspects of her idea
and is preparing a prospectus to take to banks to ask for a business loan. Rosalie's significant other is complaining that she
"sleeps, eats, and drinks" this concept. Rosalie has the entrepreneurial characteristic of passion.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: 13-5 Entrepreneurs and Their Mind-set
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.13.05 - Describe entrepreneurs and the entrepreneurial mind-set.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 5:16 PM
DATE MODIFIED: 6/8/2023 8:53 PM
2. Bill Kroganski is the owner of a moderately successful industrial services firm. His reaction to the introduction of a
new process technology that could be a direct competitor to the process his firm utilizes is fear. He spends his time
considering ways to isolate his firm from this new technology. Bill has characteristics consistent with the entrepreneurial
mind-set.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: 13-5 Entrepreneurs and Their Mind-set
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.13.05 - Describe entrepreneurs and the entrepreneurial mind-set.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 5:16 PM
DATE MODIFIED: 6/8/2023 8:53 PM
3. Amazon's Dash button allows customers to reorder household essentials at the click of a button. This is an example of a
radical, or novel, innovation that provided significant technological changes.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
Copyright Cengage Learning. Powered by Cognero. Page 1
,REFERENCES: 13-7 Internal Innovation in Organizations
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.13.07 - Describe how firms internally develop innovations.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 5:16 PM
DATE MODIFIED: 6/8/2023 8:53 PM
4. While smaller firms must use cooperative strategies as a means of producing innovations, larger firms with large R&D
units such as P&G and 3M can produce most if not all innovations internally.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: 13-9 Innovation Through Acquisitions
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.13.09 - Describe how firms use acquisitions as a means of innovation.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 5:16 PM
DATE MODIFIED: 6/8/2023 8:53 PM
Multiple Choice
5. Firms develop innovation in all of the following ways EXCEPT:
a. through autonomous or induced strategic behavior.
b. by acquiring other companies.
c. through cooperative strategies.
d. via divestiture of low-performing units.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 13-9 Innovation Through Acquisitions
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.13.09 - Describe how firms use acquisitions as a means of innovation.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Understand
DATE CREATED: 4/19/2023 5:16 PM
DATE MODIFIED: 6/8/2023 8:53 PM
6. Pet Care Companion Connection (PCCC) is an organization that trains persons with mild-to-moderate mental
disabilities to care for pets in a pet boarding facility. This organization has been successful in providing a quality service
Copyright Cengage Learning. Powered by Cognero. Page 2
, for pet owners and a supportive training environment for their trainees. The tuition charged to trainees is only somewhat
higher than the fee that day-care providers would charge for these individuals. Graduates of the program are qualified for
employment by commercial kennels. PCCC is an example of
a. taking advantage of a need in the marketplace.
b. creative destruction of existing services for pet boarding.
c. institutionalized entrepreneurship.
d. internal corporate venturing.
ANSWER: a
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: 13-1 Strategic and Corporate Entrepreneurship
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.13.01 - Define strategic entrepreneurship and corporate entrepreneurship.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 5:16 PM
DATE MODIFIED: 6/13/2023 6:29 PM
7. Isidore Security Services is a national provider of guard and security services for businesses. It has been in business for
over 90 years, having been founded by one of Teddy Roosevelt's Rough Riders (Isidore O'Malley). Lately, it has been
losing clients to more aggressive and innovative firms offering remote security monitoring systems instead of a guard-
based approach. The board of directors of Isidore Security Services is concerned that this downward trend may threaten
the existence of this venerable firm and the jobs of its employees. Which of the following statements is true?
a. This is an example of an established firm neglecting the opportunity-seeking aspect of strategic
entrepreneurship.
b. This example shows the dysfunctional aspects of unrestricted entrepreneurialism.
c. This is an example of the lack of human capital hampering internal innovation.
d. Isidore Security Services is suffering from the "novelty effect" wherein new firms are more attractive to
clients/customers merely because they are new and not because they add value.
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 13-10 Creating Value Through Strategic Entrepreneurship
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: SM.HITT.24.13.10 - Explain how strategic entrepreneurship helps firms create value.
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
KEYWORDS: Bloom's: Apply
DATE CREATED: 4/19/2023 5:16 PM
DATE MODIFIED: 6/8/2023 8:53 PM
8. The use or application of entrepreneurship within an established firm is called
a. corporate emergence.
b. transformational leadership.
c. exceptional R&D.
d. corporate entrepreneurship.
Copyright Cengage Learning. Powered by Cognero. Page 3
