Firms using a focused approach to corporate entrepreneurship typically separate corporate venturing activities from ongoing operations of the firm.

21.

Firms using a focused approach to corporate entrepreneurship typically separate corporate venturing activities from ongoing operations of the firm.    TRUE Firms using a focused approach typically separate the corporate venturing activity from the other ongoing operations of the firm. CE is usually the domain of autonomous work groups that pursue entrepreneurial aims independent of the rest of the firm.

AACSB: Analytic Blooms: Understand Learning Objective: 12-03 How corporations use new venture teams; business incubators; and product champions to create an internal environment and culture that promote entrepreneurial development. Level of Difficulty: 2 Medium Topic: Corporate Entrepreneurship

22.

Business incubators are designed to support fledgling entrepreneurial ventures until they can operate as stand-alone businesses.    TRUE Business incubators are designed to hatch new businesses. They have a specialized purpose, to support and nurture fledgling entrepreneurial ventures until they can thrive on their own as stand-alone businesses.

AACSB: Analytic Blooms: Understand Learning Objective: 12-03 How corporations use new venture teams; business incubators; and product champions to create an internal environment and culture that promote entrepreneurial development. Level of Difficulty: 2 Medium Topic: Corporate Entrepreneurship

23.	Corporate business incubators often provide physical space and business services to internal ventures, but not funding.    FALSE Incubators typically provide some or all of the following four functions: funding, physical space, business services, and mentoring.

AACSB: Analytic Blooms: Understand Learning Objective: 12-03 How corporations use new venture teams; business incubators; and product champions to create an internal environment and culture that promote entrepreneurial development. Level of Difficulty: 2 Medium Topic: Corporate Entrepreneurship

24.

Dispersed approaches to corporate entrepreneurship are often found in organizations with a strong spirit of entrepreneurship.    TRUE Three related aspects of dispersed entrepreneurship include entrepreneurial cultures that have an overarching commitment to CE activities, resource allotments to support entrepreneurial actions, and the use of product champions in promoting entrepreneurial behaviors.

AACSB: Analytic Blooms: Understand Learning Objective: 12-03 How corporations use new venture teams; business incubators; and product champions to create an internal environment and culture that promote entrepreneurial development. Level of Difficulty: 2 Medium Topic: Corporate Entrepreneurship

25.

Product champions are the employees who identify new product ideas or services.    FALSE Product (or project) champions are those individuals working within a corporation who bring entrepreneurial ideas forward, identify what kind of market exists for the product or service, find resources to support the venture, and promote the venture concept to upper management.

AACSB: Analytic Blooms: Understand Learning Objective: 12-03 How corporations use new venture teams; business incubators; and product champions to create an internal environment and culture that promote entrepreneurial development. Level of Difficulty: 2 Medium Topic: Corporate Entrepreneurship

26.

According to the text, new venture ideas must pass through two critical stages to be implemented by corporations: project definition and project impetus.    TRUE No matter how an entrepreneurial idea comes to light, however, a new venture concept must pass through two critical stages or it may never get off the ground: project definition and project impetus.

AACSB: Analytic Blooms: Understand Learning Objective: 12-03 How corporations use new venture teams; business incubators; and product champions to create an internal environment and culture that promote entrepreneurial development. Level of Difficulty: 2 Medium Topic: Corporate Entrepreneurship

27.

Product champions are critical during the period after a new venture project has been defined but before it has gained momentum and achieved project impetus.    TRUE For a project to advance through the stages of definition and impetus, a product champion is often needed to generate support and encouragement. Champions are especially important during the time after a new project has been defined but before it gains momentum. They form a link between the definition and impetus stages of internal development, which they do by procuring resources and stimulating interest for the product among potential customers.

AACSB: Analytic Blooms: Understand Learning Objective: 12-03 How corporations use new venture teams; business incubators; and product champions to create an internal environment and culture that promote entrepreneurial development. Level of Difficulty: 2 Medium Topic: Corporate Entrepreneurship

28.

Only about fifty percent of corporate venturing efforts reach profitability within six years of their launch.    TRUE Not all corporate venturing efforts are financially rewarding. In terms of financial performance, slightly more than fifty percent of corporate venturing efforts reach profitability (measured by ROI) within six years of their launch.

AACSB: Analytic Blooms: Understand Learning Objective: 12-04 How corporate entrepreneurship achieves both financial goals and strategic goals. Level of Difficulty: 2 Medium Topic: Corporate Entrepreneurship

29.

The strategic goals of corporate entrepreneurship are often just as important as the financial goals.    TRUE In a successful venture, not only are financial and market acceptance (customer) goals met but so are the internal business and innovation and learning goals. Thus, when assessing the success of corporate venturing, it is important to look beyond simple financial returns and consider a well-rounded set of criteria.

AACSB: Analytic Blooms: Understand Learning Objective: 12-04 How corporate entrepreneurship achieves both financial goals and strategic goals. Level of Difficulty: 2 Medium Topic: Corporate Entrepreneurship

30.

Exit champions are often reluctant to gather hard data about a venture because it might kill the project.    FALSE One way to avoid costly and discouraging defeats is to support a key role in the CE process that of exit champions. In contrast to product champions and other entrepreneurial enthusiasts within the corporation, exit champions are willing to question the viability of a venture project. By demanding hard evidence and challenging the belief system that is carrying an idea forward, exit champions hold the line on ventures that appear shaky.

AACSB: Analytic Blooms: Understand Learning Objective: 12-04 How corporate entrepreneurship achieves both financial goals and strategic goals. Level of Difficulty: 2 Medium Topic: Corporate Entrepreneurship