Question 1

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 2

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:

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 3

A disadvantage of internal growth is that it is a slow form of growth.

Accepted Answer

A) True 
 B)False

Question 4

Geographic expansion is most common in retail settings.

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

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 7

________ is the licensing of a recognized trademark or brand that the licensor typically control through a registered trademark or copyright.

Accepted Answer

A)  Goods and character licensing 
B)  Products and trademark licensing 
C)  Products and brand licensing 
D)  Merchandise and character licensing 
E)  Products and services licensing 
A)  Goods and character licensing 
B)  Products and trademark licensing 
C)  Products and brand licensing 
D)  Merchandise and character licensing 
E)  Products and services licensing

Question 8

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

Accepted Answer

A joint venture is an entity created whe

Question 9

Entrepreneurial businesses that grow by expanding from their original location to additional geographic sites are pursuing a:

Accepted Answer

A)  common expansion strategy 
B)  market penetration strategy 
C)  universal networking strategy 
D)  geographic expansion strategy 
E)  product line extension strategy 
A)  common expansion strategy 
B)  market penetration strategy 
C)  universal networking strategy 
D)  geographic expansion strategy 
E)  product line extension strategy

Question 10

Pam Ryan owns a store that sells running shoes and related products. Pam is currently trying to increase sales through endorsements by famous runners and former Olympic athletics. Pam is pursuing a:

Accepted Answer

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

Question 11

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

Question 12

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 13

In the context of strategic alliances, ________ typically match a company with a distribution system with a company that has a product to sell to increase sales of a product or service.

Accepted Answer

A)  promotion alliances 
B)  marketing alliances 
C)  organizational alliances 
D)  directional alliances 
E)  technological alliances 
A)  promotion alliances 
B)  marketing alliances 
C)  organizational alliances 
D)  directional alliances 
E)  technological alliances

Question 14

Don Andrews owns a chain of barbershops, that started near Atlanta, and has expended into northern Florida, South Carolina, and North Carolina. Don is growing his company via a strategy of:

Accepted Answer

A)  geographic expansion 
B)  market penetration 
C)  product line extension 
D)  outsourcing 
E)  licensing 
A)  geographic expansion 
B)  market penetration 
C)  product line extension 
D)  outsourcing 
E)  licensing

Question 15

In regard to acquisitions, many firms have found that the process of assimilating another company into their current operations is not easy and can stretch finances to the brink.

Accepted Answer

A) True 
 B)False

Question 16

Internally generated growth is often called organic growth because it relies on outside intervention.

Accepted Answer

A) True 
 B)False

Question 17

Describe the internal growth strategy new product development. Why is it a competitive necessity in some industries that entrepreneurial firms focus on this form of growth?

Accepted Answer

New product development involves the cre

Question 18

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

Accepted Answer

A)  target, acquirer 
B)  goal, objective 
C)  objective, aggressor 
D)  acquirer, target 
E)  aggressor, objective 
A)  target, acquirer 
B)  goal, objective 
C)  objective, aggressor 
D)  acquirer, target 
E)  aggressor, objective

Question 19

The What Went Wrong? feature in Chapter 14 focuses on Steve & Barry's, a retail chain that grew rapidly from 2003 to 2008 but sold its stores to an investment firm in 2009. According to the feature, during its rapid growth, Steve & Barry's sewed the seeds for its ultimately failure primarily because it:

Accepted Answer

A)  had a hard time finding celebrity endorsers 
B)  engaged in a number of disappointing acquisitions 
C)  developed a weak brand 
D)  wasn't able to gain market share 
E)  wasn't making money on its retail operations 
A)  had a hard time finding celebrity endorsers 
B)  engaged in a number of disappointing acquisitions 
C)  developed a weak brand 
D)  wasn't able to gain market share 
E)  wasn't making money on its retail operations

Question 20

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

Accepted Answer

A) True 
 B)False

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

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:

A disadvantage of internal growth is that it is a slow form of growth.

Geographic expansion is most common in retail settings.

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

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.

________ is the licensing of a recognized trademark or brand that the licensor typically control through a registered trademark or copyright.

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

Entrepreneurial businesses that grow by expanding from their original location to additional geographic sites are pursuing a:

Pam Ryan owns a store that sells running shoes and related products. Pam is currently trying to increase sales through endorsements by famous runners and former Olympic athletics. Pam is pursuing a:

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

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:

In the context of strategic alliances, ________ typically match a company with a distribution system with a company that has a product to sell to increase sales of a product or service.

Don Andrews owns a chain of barbershops, that started near Atlanta, and has expended into northern Florida, South Carolina, and North Carolina. Don is growing his company via a strategy of:

In regard to acquisitions, many firms have found that the process of assimilating another company into their current operations is not easy and can stretch finances to the brink.

Internally generated growth is often called organic growth because it relies on outside intervention.

Describe the internal growth strategy new product development. Why is it a competitive necessity in some industries that entrepreneurial firms focus on this form of growth?

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

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

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

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

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:

A disadvantage of internal growth is that it is a slow form of growth.

Geographic expansion is most common in retail settings.

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

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.

________ is the licensing of a recognized trademark or brand that the licensor typically control through a registered trademark or copyright.

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

Entrepreneurial businesses that grow by expanding from their original location to additional geographic sites are pursuing a:

Pam Ryan owns a store that sells running shoes and related products. Pam is currently trying to increase sales through endorsements by famous runners and former Olympic athletics. Pam is pursuing a:

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

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:

In the context of strategic alliances, ________ typically match a company with a distribution system with a company that has a product to sell to increase sales of a product or service.

Don Andrews owns a chain of barbershops, that started near Atlanta, and has expended into northern Florida, South Carolina, and North Carolina. Don is growing his company via a strategy of:

In regard to acquisitions, many firms have found that the process of assimilating another company into their current operations is not easy and can stretch finances to the brink.

Internally generated growth is often called organic growth because it relies on outside intervention.

Describe the internal growth strategy new product development. Why is it a competitive necessity in some industries that entrepreneurial firms focus on this form of growth?

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

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

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

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.

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