Question 1

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 2

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

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is an advantage of internal growth strategies?

Accepted Answer

A)  provides maximum control 
B)  adds to industry capacity 
C)  need to develop new resources 
D)  investment in a failed internal effort can be difficult to recoup 
E)  slow form of growth 
A)  provides maximum control 
B)  adds to industry capacity 
C)  need to develop new resources 
D)  investment in a failed internal effort can be difficult to recoup 
E)  slow form of growth

Question 4

Which of the following was identified in the textbook as a disadvantage of participating in strategic alliances and joint ventures?

Accepted Answer

A)  risk and cost sharing 
B)  learning 
C)  partial loss of decision autonomy 
D)  speed to market 
E)  neutralizing or blocking competitors 
A)  risk and cost sharing 
B)  learning 
C)  partial loss of decision autonomy 
D)  speed to market 
E)  neutralizing or blocking competitors

Question 5

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 6

A ________ is an entity created when two or more firms pool a portion of their resources to create a separate, jointly owned organization.

Accepted Answer

A)  strategic venture 
B)  strategic alliance 
C)  tactical venture 
D)  acquisition venture 
E)  joint venture 
A)  strategic venture 
B)  strategic alliance 
C)  tactical venture 
D)  acquisition venture 
E)  joint venture

Question 7

Which mechanism for firm growth involves the creation and sale of new products or services?

Accepted Answer

A)  acquisitions 
B)  licensing 
C)  franchising 
D)  new product development 
E)  international expansion 
A)  acquisitions 
B)  licensing 
C)  franchising 
D)  new product development 
E)  international expansion

Question 8

According to a recent PricewaterhouseCooper's survey (cited in the textbook) of rapid-growth entrepreneurial firms, ________ of the 350 firms surveyed sell in international markets.

Accepted Answer

A)  15% 
B)  25% 
C)  46% 
D)  77% 
E)  90% 
A)  15% 
B)  25% 
C)  46% 
D)  77% 
E)  90%

Question 9

The ________ is the company that owns the intellectual property. The ________ is the company purchasing the right to use it.

Accepted Answer

A)  endorsee, endorser 
B)  licensor, licensee 
C)  licensor, endorsee 
D)  endorser, endorsee 
E)  licensee, licensor 
A)  endorsee, endorser 
B)  licensor, licensee 
C)  licensor, endorsee 
D)  endorser, endorsee 
E)  licensee, licensor

Question 10

Loss of organizational flexibility is a disadvantage of participating in strategic alliances and joint ventures.

Accepted Answer

A) True 
 B)False

Question 11

A joint venture 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

Question 12

Which of the following statement is not true regarding new product development?

Accepted Answer

A)  New product development involves designing, producing, and selling new products as a means of increasing firm revenues and profits. 
B)  When developing new products is properly executed, there is tremendous upside potential. 
C)  The key to successful new product development strategy is to develop products that aren't simple "me-too" products. 
D)  In general, developing new products is a low-risk strategy. 
E)  In many fast-paced industries, new product development is a competitive necessity. 
A)  New product development involves designing, producing, and selling new products as a means of increasing firm revenues and profits. 
B)  When developing new products is properly executed, there is tremendous upside potential. 
C)  The key to successful new product development strategy is to develop products that aren't simple "me-too" products. 
D)  In general, developing new products is a low-risk strategy. 
E)  In many fast-paced industries, new product development is a competitive necessity.

Question 13

A ________ 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)  joint alliances 
B)  joint venture 
C)  licensing agreement 
D)  merger 
E)  strategic alliance 
A)  joint alliances 
B)  joint venture 
C)  licensing agreement 
D)  merger 
E)  strategic alliance

Question 14

In a link 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 15

Which of the following is an advantage of growth by means of external growth strategies?

Accepted Answer

A)  clash of corporate cultures 
B)  increased business complexity 
C)  loss of organizational flexibility 
D)  antitrust implications 
E)  diversification of business risk 
A)  clash of corporate cultures 
B)  increased business complexity 
C)  loss of organizational flexibility 
D)  antitrust implications 
E)  diversification of business risk

Question 16

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 17

Qualcomm, a high-tech company headquartered in San Diego, owns the rights to several of the key components that permit cell phones to work. Instead of selling cell phones itself, Qualcomm grants permission to many companies, such as Samsung and LG, to use specific forms of its intellectual property in exchange for monetary compensation. Qualcomm in engaging in an external growth strategy referred to as:

Accepted Answer

A)  licensing 
B)  strategic alliances 
C)  acquisitions 
D)  new product development 
E)  joint ventures 
A)  licensing 
B)  strategic alliances 
C)  acquisitions 
D)  new product development 
E)  joint ventures

Question 18

Two years ago, Jason Jennings and Mary Scott each owned a small chain of bagel restaurants in Orange County, California. Just recently, they decided to pool their interests and combine their individual chains of restaurants into one chain. What Jason and Mary did with their firms is called a:

Accepted Answer

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

Question 19

The granting of permission by one company to another company to use a specific form of its intellectual property under clearly defined conditions is referred to as:

Accepted Answer

A)  verifying 
B)  confirming 
C)  endorsing 
D)  licensing 
E)  certifying 
A)  verifying 
B)  confirming 
C)  endorsing 
D)  licensing 
E)  certifying

Question 20

Which of the following was not identified as one of the keys to effective new product and service development?

Accepted Answer

A)  focus on a specific target market 
B)  get quality and pricing right 
C)  resist the temptation to conduct ongoing feasibility analysis 
D)  develop products that add value 
E)  find a need and fill it 
A)  focus on a specific target market 
B)  get quality and pricing right 
C)  resist the temptation to conduct ongoing feasibility analysis 
D)  develop products that add value 
E)  find a need and fill it

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

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

Which of the following is an advantage of internal growth strategies?

Which of the following was identified in the textbook as a disadvantage of participating in strategic alliances and joint ventures?

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

A ________ is an entity created when two or more firms pool a portion of their resources to create a separate, jointly owned organization.

Which mechanism for firm growth involves the creation and sale of new products or services?

According to a recent PricewaterhouseCooper's survey (cited in the textbook) of rapid-growth entrepreneurial firms, ________ of the 350 firms surveyed sell in international markets.

The is the company that owns the intellectual property. The is the company purchasing the right to use it.

Loss of organizational flexibility is a disadvantage of participating in strategic alliances and joint ventures.

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

Which of the following statement is not true regarding new product development?

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

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

Which of the following is an advantage of growth by means of external growth strategies?

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

Two years ago, Jason Jennings and Mary Scott each owned a small chain of bagel restaurants in Orange County, California. Just recently, they decided to pool their interests and combine their individual chains of restaurants into one chain. What Jason and Mary did with their firms is called a:

The granting of permission by one company to another company to use a specific form of its intellectual property under clearly defined conditions is referred to as:

Which of the following was not identified as one of the keys to effective new product and service development?

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

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

Which of the following is an advantage of internal growth strategies?

Which of the following was identified in the textbook as a disadvantage of participating in strategic alliances and joint ventures?

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

A ________ is an entity created when two or more firms pool a portion of their resources to create a separate, jointly owned organization.

Which mechanism for firm growth involves the creation and sale of new products or services?

According to a recent PricewaterhouseCooper's survey (cited in the textbook) of rapid-growth entrepreneurial firms, ________ of the 350 firms surveyed sell in international markets.

The ________ is the company that owns the intellectual property. The ________ is the company purchasing the right to use it.

Loss of organizational flexibility is a disadvantage of participating in strategic alliances and joint ventures.

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

Which of the following statement is not true regarding new product development?

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

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

Which of the following is an advantage of growth by means of external growth strategies?

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

Two years ago, Jason Jennings and Mary Scott each owned a small chain of bagel restaurants in Orange County, California. Just recently, they decided to pool their interests and combine their individual chains of restaurants into one chain. What Jason and Mary did with their firms is called a:

The granting of permission by one company to another company to use a specific form of its intellectual property under clearly defined conditions is referred to as:

Which of the following was not identified as one of the keys to effective new product and service development?

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

The is the company that owns the intellectual property. The is the company purchasing the right to use it.