Question 1.1. (TCO A) The relationship between speed of innovation and product obsolescence
is (Points : 5)
*direct (as innovation speed increases, products become obsolete more quickly).
inverse (as innovation speed
...
Question 1.1. (TCO A) The relationship between speed of innovation and product obsolescence
is (Points : 5)
*direct (as innovation speed increases, products become obsolete more quickly).
inverse (as innovation speed increases, products become obsolete more
slowly).
indirect (there is an effect, but it cannot be directly determined).
nonexistent (there is no relationship at all).
Question 2.2. (TCO A) While rapid innovation often benefits society, it often makes
success for companies (Points : 5)
*more complicated as they strive to keep up with the latest innovations.
profitable as long as they do not innovate themselves, but rather use innovations
of others to their advantage.
easier since innovation always makes things simpler.
less likely because customers will not be willing to pay as much for goods and
services.
Question 3.3. (TCO B) The scientists at Gerusa are former award-winning Soviet scientists
who have all focused their attention on a cancer treatment. Working together,
they have come up with remarkable solutions. The knowledge base they
have (Points : 5)
is explicit.
is easily imitable.
*is socially complex.
has a low degree of appropriability.
Question 4.4. (TCO B) Absorptive capacity (Points : 5)
is the result of effective strategic decisions by a firm's upper management.
*increases a firm's future ability to assimilate information.
is an essential component of a learning organization.
is inversely proportionate to the size of the organization.
Question 5.5. (TCO C) Natal Technologies is developing a superior ultrasound machine
for which it is required to invest $800,000. Based on the company's analysis,
the product will generate $200,000 from the first year till perpetuity. According to
this, the payback period is ________. (Points : 5)
10 years
6 years
3 months
*4 years
Question 6.6. (TCO C) For several years, Mountain Home University had used IBM
computers. Recently, Apple Computers offered them a better machine at lower a
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