Question 1

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

Accepted Answer

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

Question 2

Internal growth strategies involve efforts taken within the firm itself, such as new product development, other product-related strategies, and international expansion.

Accepted Answer

A) True 
 B)False  True

Question 3

Describe what licensing is. What type of intellectual property can be licensed? Identify the two types of licensing pursued by entrepreneurial firms.

Accepted Answer

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.Virtually any intellectual property a company owns that is protected by a patent,trademark or copyright can be licensed to a third party.There are two principle types of licensing.Technology licensing is the licensing of proprietary technology that the licensor typically controls by virtue of a utility patent.Merchandise and character licensing is the licensing of a recognized trademark or brand that the licensor typically controls through a registered trademark or copyright.

Question 4

Which of the following is a disadvantage of growth by means of external growth strategies?

Accepted Answer

A)  diversification of business risk 
B)  economies of scale 
C)  getting access to proprietary products or services 
D)  reducing competition 
E)  antitrust implications 
A)  diversification of business risk 
B)  economies of scale 
C)  getting access to proprietary products or services 
D)  reducing competition 
E)  antitrust implications

Question 5

Laura Watts owns a printing company. Over the past three years, Laura has significantly increased her sales through the outright purchase of other printing firms. Laura is pursuing a(n) ________ strategy.

Accepted Answer

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

Question 6

Which of the following statements is incorrect regarding acquisitions?

Accepted Answer

A)  In an acquisition, the surviving firm is called the acquirer. 
B)  An acquisition is the outright purchase of one firm by another. 
C)  In most cases, a firm acquires a competitor or a company that has a product line or distinctive competency that it needs. 
D)  If a firm decides to grow through acquisitions, it is extremely important for it to exercise extreme care in finding acquisition candidates. 
E)  May firms have found that the process of assimilating another company into their current operation was easier than they thought it would be. 
A)  In an acquisition, the surviving firm is called the acquirer. 
B)  An acquisition is the outright purchase of one firm by another. 
C)  In most cases, a firm acquires a competitor or a company that has a product line or distinctive competency that it needs. 
D)  If a firm decides to grow through acquisitions, it is extremely important for it to exercise extreme care in finding acquisition candidates. 
E)  May firms have found that the process of assimilating another company into their current operation was easier than they thought it would be.

Question 7

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

Accepted Answer

Internal growth strategies rely on effor

Question 8

Brad Williamson owns a firm that manufacturers and sells electrical supplies. He is currently trying to grow his firm through alliances and joint ventures. Brad is pursuing a(n):

Accepted Answer

A)  domestic growth strategy 
B)  external growth strategy 
C)  subsidiary growth strategy 
D)  internal growth strategy 
E)  secondary growth strategy 
A)  domestic growth strategy 
B)  external growth strategy 
C)  subsidiary growth strategy 
D)  internal growth strategy 
E)  secondary growth strategy

Question 9

According to the textbook, international new ventures are:

Accepted Answer

A)  businesses that have employees located in three or more countries 
B)  businesses that sell products in five 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)  business that are headquartered in a foreign country and export their products to the U.S. 
E)  new ventures that export at least one-third of their products to foreign countries 
A)  businesses that have employees located in three or more countries 
B)  businesses that sell products in five 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)  business that are headquartered in a foreign country and export their products to the U.S. 
E)  new ventures that export at least one-third of their products to foreign countries

Question 10

University Parent Media, the company profiled in the opening feature for Chapter 14, published print guides and provides online resources for the parents of college students. During its early years, University Parent Media relied primary on ________ to increase its sales.

Accepted Answer

A)  organic growth 
B)  acquisitions 
C)  franchising 
D)  licensing 
E)  strategic alliances and joint ventures 
A)  organic growth 
B)  acquisitions 
C)  franchising 
D)  licensing 
E)  strategic alliances and joint ventures

Question 11

In the context of strategic alliances, ________ feature cooperation in research and development, engineering, and manufacturing.

Accepted Answer

A)  administrative alliances 
B)  directorial alliances 
C)  marketing alliances 
D)  organizational alliances 
E)  technological alliances 
A)  administrative alliances 
B)  directorial alliances 
C)  marketing alliances 
D)  organizational alliances 
E)  technological alliances

Question 12

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 a 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 cows image on the carton. If Paul accepts this proposal, he will need to enter into a ________ 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 13

A market penetration strategy involves making additional versions of a product so that it will appeal to different clientele.

Accepted Answer

A) True 
 B)False

Question 14

________ licensing is the licensing of proprietary technology that the licensor typically controls by virtue of a utility patent.

Accepted Answer

A)  Skill 
B)  Intellectual property 
C)  Utility 
D)  Technology 
E)  Expertise 
A)  Skill 
B)  Intellectual property 
C)  Utility 
D)  Technology 
E)  Expertise

Question 15

________ 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 16

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

Accepted Answer

A)  market penetration 
B)  product line extension 
C)  joint venture 
D)  new product development 
E)  geographic expansion 
A)  market penetration 
B)  product line extension 
C)  joint venture 
D)  new product development 
E)  geographic expansion

Question 17

Betsy Calvin owns a firm that manufacturers and sells exercise equipment. She is currently trying to grow her firm by developing new products. Betsy is pursuing a(n) ________ growth strategy.

Accepted Answer

A)  outside 
B)  inward 
C)  internal 
D)  external 
E)  domestic 
A)  outside 
B)  inward 
C)  internal 
D)  external 
E)  domestic

Question 18

The majority of entrepreneurial firms first enter foreign markets as exporters.

Accepted Answer

A) True 
 B)False

Question 19

Merchandise and character licensing is the licensing of a recognized trademark or brand and 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 20

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

Accepted Answer

A)  No foreign currency risk is involved. 
B)  Exporting requires little knowledge of foreign markets. 
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)  No foreign currency risk is involved. 
B)  Exporting requires little knowledge of foreign markets. 
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 ________ strategy involves making additional versions of a product so that it will appeal to different clientele.

Internal growth strategies involve efforts taken within the firm itself, such as new product development, other product-related strategies, and international expansion.

Describe what licensing is. What type of intellectual property can be licensed? Identify the two types of licensing pursued by entrepreneurial firms.

Which of the following is a disadvantage of growth by means of external growth strategies?

Laura Watts owns a printing company. Over the past three years, Laura has significantly increased her sales through the outright purchase of other printing firms. Laura is pursuing a(n) ________ strategy.

Which of the following statements is incorrect regarding acquisitions?

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

Brad Williamson owns a firm that manufacturers and sells electrical supplies. He is currently trying to grow his firm through alliances and joint ventures. Brad is pursuing a(n):

According to the textbook, international new ventures are:

University Parent Media, the company profiled in the opening feature for Chapter 14, published print guides and provides online resources for the parents of college students. During its early years, University Parent Media relied primary on ________ to increase its sales.

In the context of strategic alliances, ________ feature cooperation in research and development, engineering, and manufacturing.

A market penetration strategy involves making additional versions of a product so that it will appeal to different clientele.

________ licensing is the licensing of proprietary technology that the licensor typically controls by virtue of a utility patent.

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

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

Betsy Calvin owns a firm that manufacturers and sells exercise equipment. She is currently trying to grow her firm by developing new products. Betsy is pursuing a(n) ________ growth strategy.

The majority of entrepreneurial firms first enter foreign markets as exporters.

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

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

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 Venture's 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 ________ strategy involves making additional versions of a product so that it will appeal to different clientele.

Internal growth strategies involve efforts taken within the firm itself, such as new product development, other product-related strategies, and international expansion.

Describe what licensing is. What type of intellectual property can be licensed? Identify the two types of licensing pursued by entrepreneurial firms.

Which of the following is a disadvantage of growth by means of external growth strategies?

Laura Watts owns a printing company. Over the past three years, Laura has significantly increased her sales through the outright purchase of other printing firms. Laura is pursuing a(n) ________ strategy.

Which of the following statements is incorrect regarding acquisitions?

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

Brad Williamson owns a firm that manufacturers and sells electrical supplies. He is currently trying to grow his firm through alliances and joint ventures. Brad is pursuing a(n):

According to the textbook, international new ventures are:

University Parent Media, the company profiled in the opening feature for Chapter 14, published print guides and provides online resources for the parents of college students. During its early years, University Parent Media relied primary on ________ to increase its sales.

In the context of strategic alliances, ________ feature cooperation in research and development, engineering, and manufacturing.

A market penetration strategy involves making additional versions of a product so that it will appeal to different clientele.

________ licensing is the licensing of proprietary technology that the licensor typically controls by virtue of a utility patent.

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

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

Betsy Calvin owns a firm that manufacturers and sells exercise equipment. She is currently trying to grow her firm by developing new products. Betsy is pursuing a(n) ________ growth strategy.

The majority of entrepreneurial firms first enter foreign markets as exporters.

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

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

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 Venture's 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