Question 1

New product development, other product-related strategies, and international expansion are examples of:

Accepted Answer

A)  external growth strategies 
B)  domestic growth strategies 
C)  secondary growth strategies 
D)  internal growth strategies 
E)  inward growth strategies 
A)  external growth strategies 
B)  domestic growth strategies 
C)  secondary growth strategies 
D)  internal growth strategies 
E)  inward growth strategies

Question 2

New product development involves designing, producing, and selling new products as a means of increasing firm revenues and profitability.

Accepted Answer

A) True 
 B)False

Question 3

A spin-in occurs when a large company divests itself of one of its smaller divisions and the division becomes an independent company.

Accepted Answer

A) True 
 B)False

Question 4

According to the textbook, the key to effective merchandise and character licensing is:

Accepted Answer

A)  get licensing income monthly rather than yearly 
B)  resist the temptation to license a trademark too widely 
C)  licensing a trademark very widely 
D)  restrict licensing agreements to one year 
E)  restrict licensing to product categories that have no relevance and appeal to a firm's core customers 
A)  get licensing income monthly rather than yearly 
B)  resist the temptation to license a trademark too widely 
C)  licensing a trademark very widely 
D)  restrict licensing agreements to one year 
E)  restrict licensing to product categories that have no relevance and appeal to a firm's core customers

Question 5

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 6

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

Accepted Answer

A)  natural 
B)  whole 
C)  expected 
D)  organic 
E)  ordinary 
A)  natural 
B)  whole 
C)  expected 
D)  organic 
E)  ordinary

Question 7

The majority of entrepreneurial firms first enter foreign markets via joint ventures.

Accepted Answer

A) True 
 B)False

Question 8

________ is work that is done for a company by people other than the company's full-time employees.

Accepted Answer

A)  Ability enhancement 
B)  Productivity subcontracting 
C)  Capacity enhancement 
D)  Outsourcing 
E)  Insourcing 
A)  Ability enhancement 
B)  Productivity subcontracting 
C)  Capacity enhancement 
D)  Outsourcing 
E)  Insourcing

Question 9

A(n) ________ is the pooling of interests to combine two or more firms into one. A(n) ________ is the outright purchase of one firm by another.

Accepted Answer

A)  acquisition, merger 
B)  merger, acquisition 
C)  licensing agreement, acquisition 
D)  joint venture, strategic alliance 
E)  strategic alliance, joint venture 
A)  acquisition, merger 
B)  merger, acquisition 
C)  licensing agreement, acquisition 
D)  joint venture, strategic alliance 
E)  strategic alliance, joint venture

Question 10

Explain the difference between internal and external growth strategies. Provide examples of each.

Accepted Answer

Internal growth strategies rely on effor

Question 11

An acquisition is the pooling of interests to combine two or more firms into one. A merger is the outright purchase of one firm by another.

Accepted Answer

A) True 
 B)False

Question 12

Describe what a product line extension strategy is. What are the advantages of this strategy? Describe a company you are familiar with that utilizes a product line extension growth strategy.

Accepted Answer

A product line extension strategy involv

Question 13

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

Accepted Answer

A)  market penetration 
B)  product line extension 
C)  strategic alliance 
D)  new product development 
E)  geographic expansion 
A)  market penetration 
B)  product line extension 
C)  strategic alliance 
D)  new product development 
E)  geographic expansion

Question 14

Ted Donovan owns a store that sells all-terrain vehicles (ATVs). In the past Ted just sold one version of each of the ATVs he sold in his showroom, but to increase sales, Ted now sells a low-end, a medium-priced, and a high-end version of each of the ATVs he sells. Ted's new strategy is called a(n):

Accepted Answer

A)  improving an existing product or service strategy 
B)  market penetration strategy 
C)  product line extension strategy 
D)  geographic expansion strategy 
E)  joint venture strategy 
A)  improving an existing product or service strategy 
B)  market penetration strategy 
C)  product line extension strategy 
D)  geographic expansion strategy 
E)  joint venture strategy

Question 15

Which of the following was not identified in Chapter 14 as one of the top 10 reasons new products fail?

Accepted Answer

A)  lack of passion for the product 
B)  target market is smaller than originally projected 
C)  target market is not defined correctly 
D)  sales and marketing efforts are not focused and aligned 
E)  product doesn't address important customer needs 
A)  lack of passion for the product 
B)  target market is smaller than originally projected 
C)  target market is not defined correctly 
D)  sales and marketing efforts are not focused and aligned 
E)  product doesn't address important customer needs

Question 16

Paul Kite owns a chain of ice cream stores in New England. To draw attention to his stores, he adopted a very colorful and distinctive logo several years ago, which depicts a funny-looking cow churning ice cream. Recently, a dairy company asked Paul if it could use a characterization of his funny-looking cow on a line of yogurt it is coming out with, and offered to pay Paul's company 3 cents for every carton of yogurt it sells that has the cow's image on the carton. If Paul accepts this proposal, he 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 17

Outsourcing is work that is done for a company by people other than the company's full-time employees.

Accepted Answer

A) True 
 B)False

Question 18

A market penetration strategy involves actions taken to increase the sales of a product or service through greater marketing efforts or through increased product capacity and efficiency.

Accepted Answer

A) True 
 B)False

Question 19

Licensing is the granting of permission by one company to another company to use a specific form of its intellectual property under clearly defined conditions.

Accepted Answer

A) True 
 B)False

Question 20

A strategic alliance is a partnership between two or more firms that is developed to achieve a specific goal and has no joint ownership involved.

Accepted Answer

A) True 
 B)False

New product development, other product-related strategies, and international expansion are examples of:

New product development involves designing, producing, and selling new products as a means of increasing firm revenues and profitability.

A spin-in occurs when a large company divests itself of one of its smaller divisions and the division becomes an independent company.

According to the textbook, the key to effective merchandise and character licensing is:

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:

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

The majority of entrepreneurial firms first enter foreign markets via joint ventures.

________ is work that is done for a company by people other than the company's full-time employees.

A(n) is the pooling of interests to combine two or more firms into one. A(n) is the outright purchase of one firm by another.

Explain the difference between internal and external growth strategies. Provide examples of each.

An acquisition is the pooling of interests to combine two or more firms into one. A merger is the outright purchase of one firm by another.

Describe what a product line extension strategy is. What are the advantages of this strategy? Describe a company you are familiar with that utilizes a product line extension growth strategy.

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

Ted Donovan owns a store that sells all-terrain vehicles (ATVs). In the past Ted just sold one version of each of the ATVs he sold in his showroom, but to increase sales, Ted now sells a low-end, a medium-priced, and a high-end version of each of the ATVs he sells. Ted's new strategy is called a(n):

Which of the following was not identified in Chapter 14 as one of the top 10 reasons new products fail?

Outsourcing is work that is done for a company by people other than the company's full-time employees.

A market penetration strategy involves actions taken to increase the sales of a product or service through greater marketing efforts or through increased product capacity and efficiency.

Licensing is the granting of permission by one company to another company to use a specific form of its intellectual property under clearly defined conditions.

A strategic alliance is a partnership between two or more firms that is developed to achieve a specific goal and has no joint ownership involved.

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Industry and Competitor Analysis

Developing an Effective Business Model

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

New product development, other product-related strategies, and international expansion are examples of:

New product development involves designing, producing, and selling new products as a means of increasing firm revenues and profitability.

A spin-in occurs when a large company divests itself of one of its smaller divisions and the division becomes an independent company.

According to the textbook, the key to effective merchandise and character licensing is:

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:

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

The majority of entrepreneurial firms first enter foreign markets via joint ventures.

________ is work that is done for a company by people other than the company's full-time employees.

A(n) ________ is the pooling of interests to combine two or more firms into one. A(n) ________ is the outright purchase of one firm by another.

Explain the difference between internal and external growth strategies. Provide examples of each.

An acquisition is the pooling of interests to combine two or more firms into one. A merger is the outright purchase of one firm by another.

Describe what a product line extension strategy is. What are the advantages of this strategy? Describe a company you are familiar with that utilizes a product line extension growth strategy.

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

Which of the following was not identified in Chapter 14 as one of the top 10 reasons new products fail?

Outsourcing is work that is done for a company by people other than the company's full-time employees.

A market penetration strategy involves actions taken to increase the sales of a product or service through greater marketing efforts or through increased product capacity and efficiency.

Licensing is the granting of permission by one company to another company to use a specific form of its intellectual property under clearly defined conditions.

A strategic alliance is a partnership between two or more firms that is developed to achieve a specific goal and has no joint ownership involved.

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Industry and Competitor Analysis

Developing an Effective Business Model

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

A(n) is the pooling of interests to combine two or more firms into one. A(n) is the outright purchase of one firm by another.