Question 1

An advantage of internal growth is that it is a rapid form of growth.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

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

Question 3

In a link joint venture, the partners collaborate at a single point in the value chain to gain economies of scale in production or distribution.

Accepted Answer

A) True 
 B)False

Question 4

According to a survey of rapid growth firms conducted by the Small Business & Entrepreneurship Council and the Financial Services Roundtable, ________ percent of the firms in the survey said that expanding into overseas markets factored into their business plans over the next five years.

Accepted Answer

A)  9 
B)  21 
C)  40 
D)  53 
E)  66 
A)  9 
B)  21 
C)  40 
D)  53 
E)  66

Question 5

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

Accepted Answer

A)  Strategic alliances 
B)  New product development 
C)  Licensing 
D)  Franchising 
E)  Joint ventures 
A)  Strategic alliances 
B)  New product development 
C)  Licensing 
D)  Franchising 
E)  Joint ventures

Question 6

A spin-out 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 7

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

Accepted Answer

A)  Provides a firm total control over its foreign operations 
B)  Ability to generate revenue 
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)  Provides a firm total control over its foreign operations 
B)  Ability to generate revenue 
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.

Question 8

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 athletes. Pam is pursuing a(n) ________ strategy.

Accepted Answer

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

Question 9

Which of the following was not identified in the textbook as a key to effective new product development?

Accepted Answer

A)  Develop products that add value. 
B)  Get quality and pricing right. 
C)  Find a need and fill it. 
D)  Conduct ongoing feasibility analysis. 
E)  Focus on broad target markets. 
A)  Develop products that add value. 
B)  Get quality and pricing right. 
C)  Find a need and fill it. 
D)  Conduct ongoing feasibility analysis. 
E)  Focus on broad target markets.

Question 10

Rachel Watts owns a chain of office supply stores. Over the past three years, Rachel has significantly increased her sales through the outright purchase of additional office supply stores. Rachel 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 11

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

Accepted Answer

A)  Geographic expansion 
B)  Improving an existing product or service 
C)  Increasing the market penetration of an existing product or service 
D)  Extending product lines 
E)  Strategic alliances 
A)  Geographic expansion 
B)  Improving an existing product or service 
C)  Increasing the market penetration of an existing product or service 
D)  Extending product lines 
E)  Strategic alliances

Question 12

________ 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 13

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 14

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

Accepted Answer

A)  outside intervention 
B)  its own skills and capabilities 
C)  external funding 
D)  internal leadership 
E)  internal design expertise 
A)  outside intervention 
B)  its own skills and capabilities 
C)  external funding 
D)  internal leadership 
E)  internal design expertise

Question 15

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 16

Which of the following statements 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 new product development is properly executed, there is tremendous upside potential. 
C)  The key to successful new product development strategy is to develop products that aren't simply "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 new product development is properly executed, there is tremendous upside potential. 
C)  The key to successful new product development strategy is to develop products that aren't simply "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 17

Geographic expansion is most common in manufacturing settings.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  New product development 
B)  Mergers and acquisitions 
C)  Market penetration 
D)  Product line extension 
E)  Geographic expansion 
A)  New product development 
B)  Mergers and acquisitions 
C)  Market penetration 
D)  Product line extension 
E)  Geographic expansion

Question 19

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

Accepted Answer

A)  Management complexities 
B)  Loss of organizational flexibility 
C)  Partners' cultures may clash. 
D)  Risk becoming dependent on a partner 
E)  Learning 
A)  Management complexities 
B)  Loss of organizational flexibility 
C)  Partners' cultures may clash. 
D)  Risk becoming dependent on a partner 
E)  Learning

Question 20

Which of the following is the primary advantage of a wholly owned subsidiary as a foreign market entry strategy?

Accepted Answer

A)  Provides a firm total control over its operations 
B)  Easier to raise capital to implement than other foreign market entry strategies 
C)  Gaining an appreciation of local customs and market preferences 
D)  Low transportation costs 
E)  The ability to give employees foreign market experience 
A)  Provides a firm total control over its operations 
B)  Easier to raise capital to implement than other foreign market entry strategies 
C)  Gaining an appreciation of local customs and market preferences 
D)  Low transportation costs 
E)  The ability to give employees foreign market experience

An advantage of internal growth is that it is a rapid form of growth.

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

In a link joint venture, the partners collaborate at a single point in the value chain to gain economies of scale in production or distribution.

According to a survey of rapid growth firms conducted by the Small Business & Entrepreneurship Council and the Financial Services Roundtable, ________ percent of the firms in the survey said that expanding into overseas markets factored into their business plans over the next five years.

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

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

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

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 athletes. Pam is pursuing a(n) ________ strategy.

Which of the following was not identified in the textbook as a key to effective new product development?

Rachel Watts owns a chain of office supply stores. Over the past three years, Rachel has significantly increased her sales through the outright purchase of additional office supply stores. Rachel is pursuing a(n) ________ strategy.

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

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

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.

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

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

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

Geographic expansion is most common in manufacturing settings.

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

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

Which of the following is the primary advantage of a wholly owned subsidiary as a foreign market entry strategy?

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

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

An advantage of internal growth is that it is a rapid form of growth.

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

In a link joint venture, the partners collaborate at a single point in the value chain to gain economies of scale in production or distribution.

According to a survey of rapid growth firms conducted by the Small Business & Entrepreneurship Council and the Financial Services Roundtable, ________ percent of the firms in the survey said that expanding into overseas markets factored into their business plans over the next five years.

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

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

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

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 athletes. Pam is pursuing a(n) ________ strategy.

Which of the following was not identified in the textbook as a key to effective new product development?

Rachel Watts owns a chain of office supply stores. Over the past three years, Rachel has significantly increased her sales through the outright purchase of additional office supply stores. Rachel is pursuing a(n) ________ strategy.

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

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

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.

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

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

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

Geographic expansion is most common in manufacturing settings.

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

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

Which of the following is the primary advantage of a wholly owned subsidiary as a foreign market entry strategy?

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

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