Question 1

A(n) ________ strategy involves making additional versions of a product so that it will appeal to different clientele.

Accepted Answer

A)  market penetration 
B)  geographic expansion 
C)  improving an existing product or service 
D)  strategic alliance 
E)  product line extension 
A)  market penetration 
B)  geographic expansion 
C)  improving an existing product or service 
D)  strategic alliance 
E)  product line extension

Question 2

Internally generated growth is often called ________ growth.

Accepted Answer

A)  artificial 
B)  natural 
C)  acquisitive 
D)  organic 
E)  inorganic 
A)  artificial 
B)  natural 
C)  acquisitive 
D)  organic 
E)  inorganic

Question 3

In regard to acquisitions, many firms have found that the process of assimilating another company into their current operations is relatively easy and is not disruptive to the current operations of their firm.

Accepted Answer

A) True 
 B)False

Question 4

In a scale joint venture, the position of the parties is not symmetrical, and the objectives of the partners may diverge.

Accepted Answer

A) True 
 B)False

Question 5

Samantha Jones owns a chain of ice cream stores in New England. To draw attention to her stores, she adopted a very colorful and distinctive logo several years ago, which depicts a funny-looking cow churning ice cream. Recently, a dairy company asked Samantha if it could use a characterization of her funny-looking cow on a line of yogurt it is coming out with, and offered to pay Samantha's company 3 cents for every carton of yogurt it sells that has the cow's image on the carton. If Samantha accepts this proposal, she will need to enter into a(n) ________ agreement with the dairy.

Accepted Answer

A)  licensing 
B)  joint venture 
C)  strategic alliance 
D)  new product development 
E)  exporting 
A)  licensing 
B)  joint venture 
C)  strategic alliance 
D)  new product development 
E)  exporting

Question 6

Which of the following was NOT identified in the textbook as a key to effective new product development?

Accepted Answer

A)  Develop products that add value. 
B)  Get quality and pricing right. 
C)  Find a need and fill it. 
D)  Conduct ongoing feasibility analysis. 
E)  Focus on broad target markets. 
A)  Develop products that add value. 
B)  Get quality and pricing right. 
C)  Find a need and fill it. 
D)  Conduct ongoing feasibility analysis. 
E)  Focus on broad target markets.

Question 7

Internally generated growth is often called organic growth because it does not rely on ________.

Accepted Answer

A)  outside intervention 
B)  its own skills and capabilities 
C)  external funding 
D)  internal leadership 
E)  internal design expertise 
A)  outside intervention 
B)  its own skills and capabilities 
C)  external funding 
D)  internal leadership 
E)  internal design expertise

Question 8

If a business enhances the quality of a product, makes it more convenient to use, improves its durability, or makes it more up-to-date, any one of those initiatives fall under the category of ________.

Accepted Answer

A)  increasing the market penetration of an existing product or service 
B)  extending product lines 
C)  geographic expansion 
D)  licensing 
E)  improving an existing product or service 
A)  increasing the market penetration of an existing product or service 
B)  extending product lines 
C)  geographic expansion 
D)  licensing 
E)  improving an existing product or service

Question 9

Which of the following is an example of an external growth strategy?

Accepted Answer

A)  Geographic expansion 
B)  Improving an existing product or service 
C)  Increasing the market penetration of an existing product or service 
D)  Extending product lines 
E)  Strategic alliances 
A)  Geographic expansion 
B)  Improving an existing product or service 
C)  Increasing the market penetration of an existing product or service 
D)  Extending product lines 
E)  Strategic alliances

Question 10

Merchandise and character licensing is the licensing of a recognized trademark or brand that the licensor typically controls through a registered ________.

Accepted Answer

A)  trade secret or copyright 
B)  patent or copyright 
C)  trademark or patent 
D)  patent or trade secret 
E)  trademark or copyright 
A)  trade secret or copyright 
B)  patent or copyright 
C)  trademark or patent 
D)  patent or trade secret 
E)  trademark or copyright

Question 11

Describe what a joint venture is. Identify the two types of joint ventures.

Accepted Answer

A joint venture is an entity created whe

Question 12

Which of the following is the primary advantage of exporting as a foreign market entry strategy?

Accepted Answer

A)  Provides a firm total control over its foreign operations 
B)  Ability to generate revenue 
C)  Exporting is a relatively inexpensive way for a firm to become involved in foreign markets. 
D)  The exporting company's customers put up most of the capital needed to establish the export operation. 
E)  Exporting involves very little effort on the part of a firm. 
A)  Provides a firm total control over its foreign operations 
B)  Ability to generate revenue 
C)  Exporting is a relatively inexpensive way for a firm to become involved in foreign markets. 
D)  The exporting company's customers put up most of the capital needed to establish the export operation. 
E)  Exporting involves very little effort on the part of a firm.

Question 13

A ________ strategy seeks to increase the sales of a product or service through greater marketing efforts or through increased production capacity and efficiency.

Accepted Answer

A)  product line extension 
B)  product line sharpening 
C)  product line widening 
D)  market penetration 
E)  market expansion 
A)  product line extension 
B)  product line sharpening 
C)  product line widening 
D)  market penetration 
E)  market expansion

Question 14

International new ventures are ________.

Accepted Answer

A)  businesses that have employees located in two or more countries 
B)  businesses that sell products in two or more countries 
C)  businesses that, from inception, seek to derive significant competitive advantage by using their resources to sell products or services in multiple countries 
D)  businesses that are headquartered in a foreign country and export their products to the United States 
E)  new ventures that export at least one-third of their products to foreign countries 
A)  businesses that have employees located in two or more countries 
B)  businesses that sell products in two or more countries 
C)  businesses that, from inception, seek to derive significant competitive advantage by using their resources to sell products or services in multiple countries 
D)  businesses that are headquartered in a foreign country and export their products to the United States 
E)  new ventures that export at least one-third of their products to foreign countries

Question 15

In an acquisition, the surviving firm is called the acquirer, and the firm that is acquired is called the target.

Accepted Answer

A) True 
 B)False

A(n) ________ strategy involves making additional versions of a product so that it will appeal to different clientele.

Internally generated growth is often called ________ growth.

In regard to acquisitions, many firms have found that the process of assimilating another company into their current operations is relatively easy and is not disruptive to the current operations of their firm.

In a scale joint venture, the position of the parties is not symmetrical, and the objectives of the partners may diverge.

Which of the following was NOT identified in the textbook as a key to effective new product development?

Internally generated growth is often called organic growth because it does not rely on ________.

If a business enhances the quality of a product, makes it more convenient to use, improves its durability, or makes it more up-to-date, any one of those initiatives fall under the category of ________.

Which of the following is an example of an external growth strategy?

Merchandise and character licensing is the licensing of a recognized trademark or brand that the licensor typically controls through a registered ________.

Describe what a joint venture is. Identify the two types of joint ventures.

Which of the following is the primary advantage of exporting as a foreign market entry strategy?

A ________ strategy seeks to increase the sales of a product or service through greater marketing efforts or through increased production capacity and efficiency.

International new ventures are ________.

In an acquisition, the surviving firm is called the acquirer, and the firm that is acquired is called the target.

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New-Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Franchising

Filters

Exam 14: Strategies for Firm Growth

A(n) ________ strategy involves making additional versions of a product so that it will appeal to different clientele.

Internally generated growth is often called ________ growth.

In regard to acquisitions, many firms have found that the process of assimilating another company into their current operations is relatively easy and is not disruptive to the current operations of their firm.

In a scale joint venture, the position of the parties is not symmetrical, and the objectives of the partners may diverge.

Which of the following was NOT identified in the textbook as a key to effective new product development?

Internally generated growth is often called organic growth because it does not rely on ________.

If a business enhances the quality of a product, makes it more convenient to use, improves its durability, or makes it more up-to-date, any one of those initiatives fall under the category of ________.

Which of the following is an example of an external growth strategy?

Merchandise and character licensing is the licensing of a recognized trademark or brand that the licensor typically controls through a registered ________.

Describe what a joint venture is. Identify the two types of joint ventures.

Which of the following is the primary advantage of exporting as a foreign market entry strategy?

A ________ strategy seeks to increase the sales of a product or service through greater marketing efforts or through increased production capacity and efficiency.

International new ventures are ________.

In an acquisition, the surviving firm is called the acquirer, and the firm that is acquired is called the target.

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New-Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Franchising

Filters