Exam 14: Accessing Resources for Growth From External Sources

International joint ventures are decreasing in popularity.

The U.S.Department of Justice frequently issues guidelines for different types of mergers.

Cultural differences between international joint venture partners can create management difficulties.

One advantage of franchising is that the entrepreneur usually enters into a business that has an accepted name and product.

Which of the following is not an advantage of franchising?

The best way to "increase the size of the pie" in negotiation is to use a conflict resolution approach.

The __________ is the price at which the entrepreneur is indifferent about whether to accept the agreement or choose an alternative.

Product innovation,diversification,protection against market encroachment are some of the reasons why a company would opt for this:

Joint ventures are sometimes called:

The concept that "the whole is greater than the sum of its parts" is known as:

In a leveraged buyout,the entrepreneur uses equity funds to purchase an existing venture for cash.

An unproven franchise is not a suitable investment for an entrepreneur.

________ is an arrangement whereby the manufacturer or sole distributor of a trademarked product or service gives exclusive rights of local distribution to independent retailers in return for their payment of royalties and conformance to standardized operating procedures.

When negotiating,the entrepreneur should make only one offer and stick to it.

The ______ frequently issues guidelines for mergers.

The most common type of franchise is the dealership.

Which of the following would be a quantitative way to ascertain the fairness of an LBO's asking price?

The two most common means of acquisition are the entrepreneur's direct purchase of the firm's entire stock or assets or the bootstrap purchase of these assets.

Franchising allows the franchisor to benefit from economies of scale in purchasing.

Often,when a business changes hands,key employees move into the acquiring company.