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Q:
In the United States, there are no laws to protect trade secrets.
Q:
A common set of international copyright laws automatically protects an author's work throughout the world.
Q:
Titles and names can be copyrighted.
Q:
If you live in a country that is a member of the Madrid Union and you register a trademark in your country, that trademark is protected throughout the world.
Q:
Trademarks must be registered before a suit can be brought in federal court against an infringement of the mark.
Q:
A service mark distinguishes the provider of a service rather than a product.
Q:
Patent laws do not vary from country to country.
Q:
Discovery of scientific principles that pertain to natural laws can be patented.
Q:
If the knowledge underlying a particular technology is tacit, competitors will typically find it very easy to duplicate.
Q:
How can firms evaluate potential partners?
Q:
What are the characteristics of collective research organizations?
Q:
Why do licensing agreements impose restrictions on the licensee? How does licensing enable a firm to opt for a steady stream of royalties rather than risk losing the dominant position of its technology?
Q:
Greyer Corp. has developed a method of killing cancer cells with light in a process called Photodynamic Therapy (PDT). While their scientists have the medical knowledge, they are short on equipment, money, and marketing know-how. As a consultant, what would you advise Greyer to do?
Q:
What are the advantages and disadvantages of collaborating for research and product development?
Q:
Self-enforcing norms based on goodwill, trust, and reputation of the partners is known as _____.
A. capability complement
B. alliance contract
C. equity ownership
D. relational governance
Q:
When each partner of an alliance contributes capital and owns a specified right to a percentage of the proceeds from the alliance, the collaborative relationship is referred to as _____.
A. equity ownership
B. relational governance
C. alliance contracts
D. solo internal development
Q:
_____ refers to the degree to which partners have compatible objectives and styles.
A. Resource fit
B. Strategic fit
C. Capability complementation
D. Contractual fit
Q:
Which of the following statements is true of a collective research organization?
A. It does not help firms to leverage their competencies.
B. It is a short-term commitment.
C. It is an effort to rapidly access capabilities or technology.
D. It allows a firm to share the cost and risk of basic research.
Q:
_____ offers a fast way for a firm to extend the reach of its technology that is nearly free and offers the potential for royalties.
A. Licensing out a technology
B. Forming a joint venture
C. Solo internal development
D. Vertical integration
Q:
Which of the following collaborative arrangements is the most appropriate when firms place great importance on access to other firms' competencies?
A. Licensing in
B. Joint venture
C. Licensing out
D. Sole internal development
Q:
Which of the following statements is true of outsourcing?
A. It involves significantly low amounts of transaction costs.
B. It is the most viable option for companies seeking to avoid becoming hollow.
C. It is the best way for a company to develop in-house manufacturing capabilities.
D. It carries a risk of proprietary technology being expropriated by the contract manufacturer.
Q:
Alumplus Aluminum Company has come up with a new type of metal. However, producing it would take up 75 percent of its manufacturing capacity and would hinder its ability to continue producing its other products. Alumplus Aluminum hires LM Group of Manufacturers to manufacture the new type of metal. This collaborative arrangement is most likely to be classified as _____.
A. outsourcing
B. disintermediation
C. capability complementation
D. solo internal development
Q:
Which of the following statements is true of contract manufacturing?
A. It requires companies to increase its labor force to meet the scale of market demand.
B. It requires firms to meet the scale of market demand by committing to long-term capital investments.
C. It enables a firm to tap the greater economies of scale.
D. It decreases organizational responsiveness to the environment.
Q:
Allured Cosmetics Corp. enters into a contractual agreement with Pure Cosmetics Inc., a manufacturing firm in the West Coast. According to the contract, Pure Cosmetics can use the manufacturing processes of Allured Cosmetics to produce cosmetics in return for a specific fee. Pure Cosmetics is bound to use the manufacturing process only to make complementary products for the cosmetics manufactured by Allured Cosmetics. This collaborative arrangement is most accurately classified as _____.
A. licensing
B. outsourcing
C. a joint venture
D. capability complementation
Q:
Greyer Corp. manufactures surgical instruments. Systems Medico Inc. enters into a contractual arrangement with Greyer that allows it to use Greyer manufacturing methods and management structure to produce and sell surgical instruments. Systems Medico must pay a yearly fee to Greyer for the use of its manufacturing processes. In this scenario, Systems Medico is the _____.
A. licensor
B. contract manufacturer
C. licensee
D. intrapreneur
Q:
Easymake Corp. developed a new Web design software to build Web pages for its clients. However, Easymake soon realized it could make more money by selling this software to those who wish to quickly build Web pages to sell their products. Which of the following would be the most appropriate strategy for Easymake?
A. It should not sell the Web design software as it will give rise to competition on the Internet.
B. It should become a licensor of the new Web design software.
C. It should become a licensee of the new Web design software.
D. It should make the Web design software available to users as open source software.
Q:
Combining the capabilities and other resources of partner firms but not necessarily transferring those resources between the partners is referred to as _____.
A. capability transfer
B. capability complementation
C. resource modification
D. disintermediation
Q:
Gerden Price Corp. and New Ware Systems Inc. formed an alliance to develop a new line of technologically advanced cooking stoves. Which of the following would be the most likely outcome of this alliance?
A. Faster product delivery to the market
B. Increased market development and penetration times
C. Lesser opportunities to pursue other projects
D. Reduced overall flexibility
Q:
Allured Architecture Inc. collaborated with Maze & Matiz Corp. to form a new architecture firm called AllureAmaze Inc. Both the firms had a significant equity stake in the new entity. This collaboration would most accurately be termed a(n) _____.
A. licensing project
B. joint venture
C. outsourcing maneuver
D. contract alliance
Q:
Which of the following is a feature of joint venture that differentiates it from other forms of alliances?
A. It usually does not result in the creation of a new business entity.
B. It increases asset commitment to products that will become rapidly obsolete.
C. It increases cycle time of a technology.
D. It involves a significant equity stake by the partners.
Q:
Which of the following is an advantage of collaborating at the development stage of a technology?
A. It increases asset commitment to obsolete products.
B. It ensures cooperation in the commercialization stage.
C. It increases a product's cycle time.
D. It facilitates the emergence of multiple competing standards for a product.
Q:
Which of the following is an advantage of collaborating?
A. It increases the in-house development time for projects.
B. It increases a product's cycle time.
C. It gives firms more flexibility.
D. It causes firms to commit to assets that will rapidly become obsolete.
Q:
Greyer Corp. has developed a special drug that kills cancer cells. While the scientists at Greyer have the knowledge, they are short on equipment, money, and marketing know-how. In this situation, the most appropriate step for Greyer would be to:
A. give up the idea of selling the drugs altogether.
B. find a partner to collaborate with to sell the drug.
C. forge forward and develop the drug on its own.
D. come up with a completely new drug.
Q:
When technology is progressing rapidly, firms are more likely to:
A. commit themselves to fixed assets that will rapidly become obsolete.
B. avoid forming alliances for projects that are risky and complex.
C. use linkages with other specialized firms to access resources they do not possess.
D. avoid becoming more narrowly specialized.
Q:
Some collaboration agreements include provisions for periodic auditing either by the partner organizations or by a third party.
Q:
The pooling of supplementary resources can enable partners to achieve market power.
Q:
A firm's effectiveness at managing its collaborations will increase with the number of collaborations to which it is committed.
Q:
After licensing a technology, a firm typically has limited discretion over what it can do with the technology.
Q:
Joint ventures are less appropriate than strategic alliances when a firm places great importance on access to other firms' competencies.
Q:
Solo internal development is, on average, a relatively fast and inexpensive way of developing a technology.
Q:
Collective research organizations can take the form of trade associations.
Q:
Licensing a technology from another firm is typically more expensive for a licensee than developing a new technology in-house.
Q:
A joint venture between two companies often results in a new separate company.
Q:
Firms can use strategic alliances to exploit their own capabilities by leveraging them in another firm's development efforts.
Q:
A firm cannot collaborate with its competitor.
Q:
Product life cycles shorten with high-speed technological changes.
Q:
Obtaining some of the necessary capabilities or resources from a partner rather than building them in-house will increase a firm's asset commitment.
Q:
It is unusual for a company to lack certain complementary assets required to transform a body of technological knowledge into a commercial product.
Q:
Some firms avoid collaboration for fear of giving up their proprietary technologies.
Q:
The drawback to data envelopment analysis (DEA) is that it does not allow comparisons of projects using multiple kinds of measures.
Q:
Data envelopment analysis (DEA) utilizes linear programming.
Q:
The most common use of conjoint analysis is to assess the relative importance of different product attributes to customers.
Q:
Derivative projects offer fundamental improvements in the cost, quality, and performance of a technology over preceding generations.
Q:
The investor is an active driver of the value of an investment.
Q:
Breakthrough projects involve development of products that incorporate revolutionary new product and process technologies.
Q:
While the value of a stock is independent of the call holder's behavior, the value of a R&D investment is not independent of the investor's behavior.
Q:
From a real options perspective, the exercise price associated with commercializing a new technology would include the cost of manufacturing, marketing, and distributing the technology.
Q:
From a real options perspective, the value of a call stock option is zero as long as the price of the stock is more than the exercise price.
Q:
Calculating the internal rate of return of a project typically must be done by trial and error.
Q:
Standard discounted cash flow analysis has the potential to severely undervalue a development project's contribution to a firm.
Q:
Both net present value and internal rate of return techniques provide concrete financial estimates that facilitate strategic planning and trade-off decisions.
Q:
According to the net present value method of discounted cash flow analysis, the time required to break even on a project using discounted cash flows is known as period of return.
Q:
The ratio of R&D expenditures to sales is known as R&D trajectory.
Q:
The allocation of a finite quantity of resources over different possible uses is known as research rationing.
Q:
Explain how the real options method uses stock options. Are there any drawbacks to this method?
Q:
Dayton Regional Medical Center has decided to build a new wing for its outpatient services. Dayton wants to know which services are important to its patients in this new wing. Do they prefer large waiting rooms for family members or small rooms adjacent to recovery rooms? Do they prefer patient advocates to keep them informed, or would nurses be better? What technique would be appropriate to come up with the weights and trade-offs for these types of services? Explain why you consider the technique to be most appropriate.
Q:
What is the internal rate of return of a project? How is it calculated? What are the drawbacks of using this method?
Q:
Why do technology start-ups face a much higher cost of capital than larger competitors? Discuss the sources from which new technology start-ups can obtain external financing.
Q:
An efficiency frontier is the range of _____ that optimize a combination of features of a potential project.
A. product features
B. attribute arrangements
C. hypothetical configurations
D. conjoint dimensions
Q:
Which of the following statements is true of conjoint analysis?
A. It is a simple method for ranking objects or ideas on a number of different dimensions.
B. It is used by managers to compare their desired balance of projects with their actual balance of projects.
C. It requires the creation of a hypothetical efficiency frontier.
D. It is most commonly used to assess the relative importance to customers of different product attributes.
Q:
Fabmark Consultancy was asked by a client to evaluate the attractiveness of a potential project to develop a new product line. The data provided by the client included cash flow estimates (in dollars), ranking of marketability by the sales force, and ranking of different product attributes from a potential customer focus group. Which of the following methods would allow Fabmark Consultancy to combine this information and analyze it?
A. Q-sort
B. Data envelopment analysis
C. Attribute ranking
D. Breakeven analysis
Q:
In a survey, Sam was asked to rank, on a scale of 1 to 5, how important different cell phone features were to him. The result was then used by the surveying firm to assess the different attributes of the ranking. This survey would most accurately be termed a _____ analysis.
A. figurative
B. translational
C. fictional
D. conjoint
Q:
In the _____ method, in order to establish scales of customer preferences, individuals in a group are each given a stack of cards with an object or idea on each card.
A. derivative
B. conceptual
C. DEA
D. Q-sort
Q:
A firm that invests heavily in derivative projects that may be immediately commercialized with little risk:
A. will have greater long-term strategic momentum.
B. will be on the leading edge of technology.
C. will likely be unable to compete when the market shifts to a newer technology.
D. will have poor returns on its R&D investment in the short run.
Q:
Coolers Inc. has developed a new generation of air conditioners. It has upgraded the old technology by making the air conditioners work on voice sensors instead of remote control. Though the technology is new, Coolers has decided to introduce the product in the market at a low cost. This project is a(n) _____ project for Coolers Inc.
A. platform
B. derivative
C. breakthrough
D. advanced R&D
Q:
NewDigger Inc. makes backhoes for digging ditches and trenches. It has developed an acid that, when poured on the ground, reduces the time and labor required to dig trenches of various depths, depending on how much is applied. The firm has recently started using this product commercially. This would most probably be considered a(n) _____ project for NewDigger.
A. derivative
B. platform
C. breakthrough
D. additive
Q:
TechToTeach Co. has developed and sold a product that can be used by students to take faster notes in a classroom as the teacher speaks. The device automatically records the teacher's voice and converts it into a text format. This new technology has been widely accepted by various universities and has been appreciated by students, thus increasing the company's inflow. This technology can be most accurately described as a(n) _____ project by TechToTeach.
A. advanced R&D
B. platform
C. breakthrough
D. derivative
Q:
Q:
In the context of qualitative methods for choosing projects, screening questions are used mainly to:
A. increase the rate of employee attrition.
B. structure the discussion about project details like potential costs and benefits.
C. increase employee turnover rates.
D. choose the best consulting firm to analyze a potential project.
Q:
Which of the following is an advantage of using the real options approach of evaluating a project?
A. It results in better technology investment decisions than a cash flow analysis approach.
B. It is useful as technology investment scenarios often conform to the same capital market assumptions upon which the approach is based.
C. It is cheap to use in case of a firm undertaking solo new product development.
D. It is valuable only when there is no uncertainty in technology trajectories.