Q5. Schumpeter's concept of creative destruction holds that: a. when entrepreneurs take over a business, they should strive to dismantle the way the business used to be run and implement new innovation-friendly processes b. a natural feature of capitalism is that established businesses cannot keep up with economic changes and entrepreneurial forces drive them out of business c. creative managers need to reinvent themselves constantly d. creative processes in the arts, sciences, and social systems entail rethinking how things should work Q8. According to William Abernathy's innovation life-cycle, during which stage is product innovation most prominent? a. Early stage b. Transition stage c. Maturity stage d. Post-maturity stage Q9. According to William Abernathy's perspective on corporate innovation, for a company to break the stranglehold of doing business the same old way, it should: a. focus R&D efforts on improving its existing products in order to make them more attractive in the market b. strive to strengthen the processes it employs to produce its products c. increase its R&D budget d. strive for de-maturation Q12. According to Richard Foster, market leaders often become "losers" and are supplanted by a new generation of companies because: a. they do not invest enough money in R&D b. their marketing strategies become "old hat" and lose their impact c. new companies are willing to invest more in R&D than well-established companies d. they invest primarily in existing successful technologies that are near the end of their technology life-cycle Q13. Which of the following questions reflects market risk concerns? a. At what point will breakeven occur? b. Do we have the capability to produce a desired technology? c. How should we price our new product? d. Are we prepared to deal with changing regulations? Q16. The primary goal of quality control charts is: a. to show graphically the rate at which production quality improves b. to anticipate changes in the cost of production c. to determine whether goods produced lie within the range of tolerable variation d. to document the number of products produced that conform to specifications Q18. In the start up phase of the product life-cycle: a. profits are negative b. owners usually have pre-production contracts with potential buyers c. risk is lowest d. sales grow explosively Q31. At the time the electric light bulb was invented by Edison, a major challenge he faced in selling them was: a. fighting a lawsuit by Westinghouse Corporation, claiming his light bulb patent infringed one they held b. dealing with competition from overseas c. handling claims by his partners that they were entitled to half the profits derived from light bulb sales d. the absence of electric power distribution systems in American communities Q32. Which of the following is a purely scientific discipline? a. Electronics b. Physics c. Chemical engineering d. Astrology Q34. Creative thinking techniques try to strengthen convergent thinking. a. true b. false .