Question 1

Inventory control:

Accepted Answer

A) is not necessary for small firms. 
B) eliminates the need to carry inventory. 
C) balances the cost of carrying inventory with the cost of lost sales. 
D) requires a computerized inventory system. 
A) is not necessary for small firms. 
B) eliminates the need to carry inventory. 
C) balances the cost of carrying inventory with the cost of lost sales. 
D) requires a computerized inventory system.

Question 2

When a retail tire store buys a tire wholesaler this is an example of horizontal integration.

Accepted Answer

A) True 
 B)False

Question 3

A recognition of the need to change personal attitudes and habits regarding the allocation of time is known as the principle of desire.

Accepted Answer

A) True 
 B)False

Question 4

Using a large proportion of part-time workers:

Accepted Answer

A) provides the firm with flexibility. 
B) makes building organizational culture easier. 
C) improves worker commitment to the organization. 
D) increases the overall productivity of the organization. 
A) provides the firm with flexibility. 
B) makes building organizational culture easier. 
C) improves worker commitment to the organization. 
D) increases the overall productivity of the organization.

Question 5

___________ refers to a diversification strategy that involves taking a step back (up)on the value chain toward the raw materials.

Accepted Answer

A) Horizontal integration 
B) Backward integration 
C) Forward integration 
D) Conglomerate integration 
A) Horizontal integration 
B) Backward integration 
C) Forward integration 
D) Conglomerate integration

Question 6

______ are used to characterize potential customers based upon their income,education,age,sex,and so forth.

Accepted Answer

A) Demographics 
B) Development strategies 
C) Democracies 
D) Diversifications 
A) Demographics 
B) Development strategies 
C) Democracies 
D) Diversifications

Question 7

The value-added chain is usually available only to large national firms.

Accepted Answer

A) True 
 B)False

Question 8

Product development strategies use customers' experiences to develop new products for existing customers.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following would NOT be a recommended diversification strategy?

Accepted Answer

A) Backward integration. 
B) Horizontal integration. 
C) Forward integration. 
D) Integration into markets unrelated to existing products. 
A) Backward integration. 
B) Horizontal integration. 
C) Forward integration. 
D) Integration into markets unrelated to existing products.

Question 10

_____ strategies involve selling a new product to a new market.

Accepted Answer

A) Penetration 
B) Market development 
C) Product development 
D) Diversification 
A) Penetration 
B) Market development 
C) Product development 
D) Diversification

Question 11

Time management is the process of improving an individual's productivity through more efficient use of time.

Accepted Answer

A) True 
 B)False

Question 12

___________ refers to a diversification strategy that involves taking a step forward (down)on the value-added chain toward the customers.

Accepted Answer

A) Backward integration 
B) Horizontal integration 
C) Forward integration 
D) Conglomerate integration 
A) Backward integration 
B) Horizontal integration 
C) Forward integration 
D) Conglomerate integration

Question 13

Conducting a(n)____ on cash flow involves assigning a + or - probability to the estimated value.

Accepted Answer

A) break even analysis 
B) audit 
C) distribution analysis 
D) sensitivity analysis 
A) break even analysis 
B) audit 
C) distribution analysis 
D) sensitivity analysis

Question 14

An increase in supplier prices may require:

Accepted Answer

A) raising the price of products/services. 
B) purchase of lesser inventory. 
C) an increase in the purchasing budget. 
D) reviewing all other expenses and perhaps institute tighter controls. 
A) raising the price of products/services. 
B) purchase of lesser inventory. 
C) an increase in the purchasing budget. 
D) reviewing all other expenses and perhaps institute tighter controls.

Question 15

The _______ requires that the entrepreneur recognize that he or she is a time waster,that time is an important resource,and that there is a need to change personal attitudes and habits regarding the allocation of time.

Accepted Answer

A) principle of desire 
B) principle of effectiveness 
C) principle of analysis 
D) principle of prioritized planning 
A) principle of desire 
B) principle of effectiveness 
C) principle of analysis 
D) principle of prioritized planning

Question 16

The __________ strategy focuses on selling the firm's existing products to new groups of customers.

Accepted Answer

A) penetration 
B) market development 
C) product development 
D) diversification 
A) penetration 
B) market development 
C) product development 
D) diversification

Question 17

Using a penetration strategy,the entrepreneur attempts to encourage existing customers to buy more of the firm's current products.

Accepted Answer

A) True 
 B)False

Question 18

Many entrepreneurs find that as they grow they need to change their management style.

Accepted Answer

A) True 
 B)False

Question 19

Even when cash flow problems are discovered,the pro forma budgeted amounts should never be changed.

Accepted Answer

A) True 
 B)False

Question 20

A market development strategy would not involve:

Accepted Answer

A) selling the existing product in new locations. 
B) offering the same product to a different demographic group. 
C) using customer experience to develop new uses for the existing product. 
D) selling new products to consumer's purchasing the firm's existing products. 
A) selling the existing product in new locations. 
B) offering the same product to a different demographic group. 
C) using customer experience to develop new uses for the existing product. 
D) selling new products to consumer's purchasing the firm's existing products.

Inventory control:

When a retail tire store buys a tire wholesaler this is an example of horizontal integration.

A recognition of the need to change personal attitudes and habits regarding the allocation of time is known as the principle of desire.

Using a large proportion of part-time workers:

___________ refers to a diversification strategy that involves taking a step back (up)on the value chain toward the raw materials.

______ are used to characterize potential customers based upon their income,education,age,sex,and so forth.

The value-added chain is usually available only to large national firms.

Product development strategies use customers' experiences to develop new products for existing customers.

Which of the following would NOT be a recommended diversification strategy?

_____ strategies involve selling a new product to a new market.

Time management is the process of improving an individual's productivity through more efficient use of time.

___________ refers to a diversification strategy that involves taking a step forward (down)on the value-added chain toward the customers.

Conducting a(n)____ on cash flow involves assigning a + or - probability to the estimated value.

An increase in supplier prices may require:

The _______ requires that the entrepreneur recognize that he or she is a time waster,that time is an important resource,and that there is a need to change personal attitudes and habits regarding the allocation of time.

The __________ strategy focuses on selling the firm's existing products to new groups of customers.

Using a penetration strategy,the entrepreneur attempts to encourage existing customers to buy more of the firm's current products.

Many entrepreneurs find that as they grow they need to change their management style.

Even when cash flow problems are discovered,the pro forma budgeted amounts should never be changed.

A market development strategy would not involve:

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, venture Capital, and Going Public

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters

Exam 13: Strategies for Growth and Managing the Implication of Growth

Inventory control:

When a retail tire store buys a tire wholesaler this is an example of horizontal integration.

A recognition of the need to change personal attitudes and habits regarding the allocation of time is known as the principle of desire.

Using a large proportion of part-time workers:

___________ refers to a diversification strategy that involves taking a step back (up)on the value chain toward the raw materials.

______ are used to characterize potential customers based upon their income,education,age,sex,and so forth.

The value-added chain is usually available only to large national firms.

Product development strategies use customers' experiences to develop new products for existing customers.

Which of the following would NOT be a recommended diversification strategy?

_____ strategies involve selling a new product to a new market.

Time management is the process of improving an individual's productivity through more efficient use of time.

___________ refers to a diversification strategy that involves taking a step forward (down)on the value-added chain toward the customers.

Conducting a(n)____ on cash flow involves assigning a + or - probability to the estimated value.

An increase in supplier prices may require:

The _______ requires that the entrepreneur recognize that he or she is a time waster,that time is an important resource,and that there is a need to change personal attitudes and habits regarding the allocation of time.

The __________ strategy focuses on selling the firm's existing products to new groups of customers.

Using a penetration strategy,the entrepreneur attempts to encourage existing customers to buy more of the firm's current products.

Many entrepreneurs find that as they grow they need to change their management style.

Even when cash flow problems are discovered,the pro forma budgeted amounts should never be changed.

A market development strategy would not involve:

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, venture Capital, and Going Public

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters