Question 1

The key to successful entrepreneurship is to develop an idea that has a large,reachable market.

Accepted Answer

A) True 
 B)False

Question 2

A ________ is the joining of two firms in order to form a third company in which the equity is shared.

Accepted Answer

A)  majority interest 
B)  joint venture 
C)  product extension merger 
D)  minority interest 
A)  majority interest 
B)  joint venture 
C)  product extension merger 
D)  minority interest

Question 3

________ is defined as the risk of interference with the operations of the venture.

Accepted Answer

A)  Transfer risk 
B)  Ownership risk 
C)  Investment risk 
D)  Operating risk 
A)  Transfer risk 
B)  Ownership risk 
C)  Investment risk 
D)  Operating risk

Question 4

The Small Business Association provides Business Development Centers but also has a Women's Business Center and a Minority Business Center.

Accepted Answer

A) True 
 B)False

Question 5

Entrepreneurs doing business in the former U.S.S.R.should be aware that barter,or third-party arrangements,are commonplace.

Accepted Answer

A) True 
 B)False

Question 6

Profits and tax benefits are common motivations for going global.

Accepted Answer

A) True 
 B)False

Question 7

________ is the process of an entrepreneur conducting business activities across national borders.

Accepted Answer

A)  Intrapreneurship 
B)  International entrepreneurship 
C)  Domestic entrepreneurship 
D)  Direct importing 
A)  Intrapreneurship 
B)  International entrepreneurship 
C)  Domestic entrepreneurship 
D)  Direct importing

Question 8

The North American Free Trade Agreement (NAFTA)increases trade barriers and quotas among the United States,Canada,and Mexico.

Accepted Answer

A) True 
 B)False

Question 9

Gifts related to business proceedings are illegal in most other countries and should not be offered to foreign business partners.

Accepted Answer

A) True 
 B)False

Question 10

McDonald's acquiring its store franchises is an example of what type of merger

Accepted Answer

A)  Market extension merger 
B)  Horizontal merger 
C)  Product extension merger 
D)  Vertical merger 
A)  Market extension merger 
B)  Horizontal merger 
C)  Product extension merger 
D)  Vertical merger

Question 11

All of the following statements concerning opportunity assessment plans are correct except:

Accepted Answer

A)  the first major section of the opportunity assessment plan develops a time line indicating what steps need to be take to successfully launch the venture. 
B)  an opportunity assessment plan is not a business plan. 
C)  the second major section of the opportunity assessment plan focuses on the market. 
D)  an opportunity assessment plan has four sections-two major sections and two minor sections. 
A)  the first major section of the opportunity assessment plan develops a time line indicating what steps need to be take to successfully launch the venture. 
B)  an opportunity assessment plan is not a business plan. 
C)  the second major section of the opportunity assessment plan focuses on the market. 
D)  an opportunity assessment plan has four sections-two major sections and two minor sections.

Question 12

Identify and briefly describe the four sections of an opportunity assessment plan.

Accepted Answer

The first major section develops the pro

Question 13

A turn-key project is best defined as:

Accepted Answer

A)  a method of doing business whereby a foreign entrepreneur supplies the manufacturing technology or infrastructure for a business and then turns it over to local owners 
B)  giving a foreign manufacturer the right to use a patent in return for the payment of a royalty 
C)  a method in which an entrepreneur contracts his or her management techniques and skills to a (foreign) purchasing company 
D)  a form of direct foreign investment in which the investing entrepreneur holds a minority ownership position in the foreign venture 
A)  a method of doing business whereby a foreign entrepreneur supplies the manufacturing technology or infrastructure for a business and then turns it over to local owners 
B)  giving a foreign manufacturer the right to use a patent in return for the payment of a royalty 
C)  a method in which an entrepreneur contracts his or her management techniques and skills to a (foreign) purchasing company 
D)  a form of direct foreign investment in which the investing entrepreneur holds a minority ownership position in the foreign venture

Question 14

Reference groups in any culture provide values and attitudes that influence behavior.

Accepted Answer

A) True 
 B)False

Question 15

Nonequity arrangements discussed by the text include licensing,management projects and exporting.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is true

Accepted Answer

A)  Most countries have laws and court procedures protecting intellectual property such as those in the United States. 
B)  Civil laws tend to be relatively nonspecific. 
C)  Laws of a country regulate the manner in which business transactions are executed. 
D)  Global entrepreneurs cannot specify in the contract that any contract disputes will be heard in the courts of another country. 
A)  Most countries have laws and court procedures protecting intellectual property such as those in the United States. 
B)  Civil laws tend to be relatively nonspecific. 
C)  Laws of a country regulate the manner in which business transactions are executed. 
D)  Global entrepreneurs cannot specify in the contract that any contract disputes will be heard in the courts of another country.

Question 17

The Euromonitor provides very industry-specific information on companies in the European Union.

Accepted Answer

A) True 
 B)False

Question 18

________ are both government sources of information that might be helpful in gathering the information needed to start a business.

Accepted Answer

A)  Mergent and The Industrial monitor 
B)  NAICS and SIC codes 
C)  Business Source Complete and Small Business News 
D)  The Euromonitor and Business Source Complete 
A)  Mergent and The Industrial monitor 
B)  NAICS and SIC codes 
C)  Business Source Complete and Small Business News 
D)  The Euromonitor and Business Source Complete

Question 19

Useful government sources of information include Business Source Complete and Mergent.

Accepted Answer

A) True 
 B)False

Question 20

________ has the main disadvantages of high transportation costs,trade barriers,and problems with local marketing agents.

Accepted Answer

A)  Exporting 
B)  Turn-key projects 
C)  Licensing 
D)  Franchising 
A)  Exporting 
B)  Turn-key projects 
C)  Licensing 
D)  Franchising

The key to successful entrepreneurship is to develop an idea that has a large,reachable market.

A ________ is the joining of two firms in order to form a third company in which the equity is shared.

________ is defined as the risk of interference with the operations of the venture.

The Small Business Association provides Business Development Centers but also has a Women's Business Center and a Minority Business Center.

Entrepreneurs doing business in the former U.S.S.R.should be aware that barter,or third-party arrangements,are commonplace.

Profits and tax benefits are common motivations for going global.

________ is the process of an entrepreneur conducting business activities across national borders.

The North American Free Trade Agreement (NAFTA)increases trade barriers and quotas among the United States,Canada,and Mexico.

Gifts related to business proceedings are illegal in most other countries and should not be offered to foreign business partners.

McDonald's acquiring its store franchises is an example of what type of merger

All of the following statements concerning opportunity assessment plans are correct except:

Identify and briefly describe the four sections of an opportunity assessment plan.

A turn-key project is best defined as:

Reference groups in any culture provide values and attitudes that influence behavior.

Nonequity arrangements discussed by the text include licensing,management projects and exporting.

Which of the following statements is true

The Euromonitor provides very industry-specific information on companies in the European Union.

________ are both government sources of information that might be helpful in gathering the information needed to start a business.

Useful government sources of information include Business Source Complete and Mergent.

________ has the main disadvantages of high transportation costs,trade barriers,and problems with local marketing agents.

The Entrepreneurial Mind-Set

Corporate Entrepreneurship

Generating and Exploiting New Entries

Creativity and the Business Idea

Protecting the Idea and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters

Exam 5: Identifying and Analyzing Domestic and International Opportunities

The key to successful entrepreneurship is to develop an idea that has a large,reachable market.

A ________ is the joining of two firms in order to form a third company in which the equity is shared.

________ is defined as the risk of interference with the operations of the venture.

The Small Business Association provides Business Development Centers but also has a Women's Business Center and a Minority Business Center.

Entrepreneurs doing business in the former U.S.S.R.should be aware that barter,or third-party arrangements,are commonplace.

Profits and tax benefits are common motivations for going global.

________ is the process of an entrepreneur conducting business activities across national borders.

The North American Free Trade Agreement (NAFTA)increases trade barriers and quotas among the United States,Canada,and Mexico.

Gifts related to business proceedings are illegal in most other countries and should not be offered to foreign business partners.

McDonald's acquiring its store franchises is an example of what type of merger

All of the following statements concerning opportunity assessment plans are correct except:

Identify and briefly describe the four sections of an opportunity assessment plan.

A turn-key project is best defined as:

Reference groups in any culture provide values and attitudes that influence behavior.

Nonequity arrangements discussed by the text include licensing,management projects and exporting.

Which of the following statements is true

The Euromonitor provides very industry-specific information on companies in the European Union.

________ are both government sources of information that might be helpful in gathering the information needed to start a business.

Useful government sources of information include Business Source Complete and Mergent.

________ has the main disadvantages of high transportation costs,trade barriers,and problems with local marketing agents.

The Entrepreneurial Mind-Set

Corporate Entrepreneurship

Generating and Exploiting New Entries

Creativity and the Business Idea

Protecting the Idea and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters