Chapter 8 Multiple-choice questions

. Which of the following would not be classified as an innovation advance?

A company's R&D facility.

The launching of a completely new product.

A modification that improves an existing good or service.

A major improvement in a production process.

. Tacit knowledge is:

Knowledge that can be written down.

Lost when employees leave the firm.

Easily transferable from one employee to another.

Not important to the business.

. Which of the following can be seen as part of a commercial firm's intellectual property?

Scientists employed by a pharmaceutical company.

A technological breakthrough at a state funded university.

Expenditure on R&D.

A brand name such as Coke.

. When looking for new ideas to exploit commercially, multinationals:

Depend exclusively on their own R&D efforts.

Always set up partnerships with university research laboratories.

May collaborate with rivals, suppliers, or customers.

Spend large sums of money on R&D.

. Which of the following are likely to be the most active innovators?

A small retailer in India.

A medium-sized Spanish textile firm.

A large Chinese producer of smartphones.

A large Brazilian mining company.

. Technological advance does not:

Allow firms to bring new goods and services to the market.

Make it possible to freeze competitors out of the market place.

Increase productivity.

Guarantee that business will be successful.

. China raises a problem for Western firms trying to protect their intellectual property rights (IPRs) because of:

The high cost of taking out patents.

The failure by the Chinese authorities to enforce the law on IPRs.

The high cost of pursuing infringers of IPRs through the Chinese courts compared with the USA.

The hostile attitude of the Communist Party to Western firms.

. What is a potential consequence to employees resulting from technological advancement in the workplace?

Deskilling.

De-commissioning.

Disassociation.

Discarding.

. The development of the Cloud can result in:

Small firms finding it more difficult to communicate with large numbers of customers.

Big multinationals facing more competition from small and medium-sized rivals.

Multinationals focussing solely on competing with their large established rivals.

An increase in a small firm's expenditure on IT personnel and infrastructure.

. How has info-technology affected traditional and classical forms of capitalism?

Info-technology pushes the boundaries and limits of classical forms of capitalism.

Info-technology does not affect capitalism.

The evolution of capitalism is not disrupted by info-technology.

Capitalism does not affect technological growth and innovation.

Chapter 8 Multiple-choice questions

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