Question 1

In the context of strategic alliances, ________ feature cooperation in research and development, engineering, and manufacturing.

Accepted Answer

A)  administrative alliances 
B)  directorial alliances 
C)  marketing alliances 
D)  organizational alliances 
E)  technological alliances 
A)  administrative alliances 
B)  directorial alliances 
C)  marketing alliances 
D)  organizational alliances 
E)  technological alliances E

Question 2

The Partnering for Success feature in Chapter 14 is titled "Three Steps to Alliance Success." The three steps to alliance success identified in the feature are:

Accepted Answer

A)  drafting a licensing agreement, setting up a governance structure, and making it work 
B)  selecting a partner, cutting the deal, and making it work 
C)  interviewing potential partners, cutting the deal, and supervising the implementation of the agreement 
D)  drafting a licensing agreement, cutting the deal, and setting up a governance structure 
E)  selecting an alliance "manager," setting up a governance structure, and making it work 
A)  drafting a licensing agreement, setting up a governance structure, and making it work 
B)  selecting a partner, cutting the deal, and making it work 
C)  interviewing potential partners, cutting the deal, and supervising the implementation of the agreement 
D)  drafting a licensing agreement, cutting the deal, and setting up a governance structure 
E)  selecting an alliance "manager," setting up a governance structure, and making it work B

Question 3

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% C

Question 4

Describe the internal growth strategy of 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 5

Geographic expansion is most common in retail settings.

Accepted Answer

A) True 
 B)False

Question 6

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

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)  No foreign currency risk is involved. 
B)  Exporting requires little knowledge of foreign markets. 
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)  No foreign currency risk is involved. 
B)  Exporting requires little knowledge of foreign markets. 
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

Kent Williamson owns a firm that manufacturers and sells electrical supplies. He is currently trying to grow his firm through licensing and strategic alliances. Kent is pursuing a(n):

Accepted Answer

A)  domestic growth strategy 
B)  external growth strategy 
C)  subsidiary growth strategy 
D)  internal growth strategy 
E)  secondary growth strategy 
A)  domestic growth strategy 
B)  external growth strategy 
C)  subsidiary growth strategy 
D)  internal growth strategy 
E)  secondary growth strategy

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

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

Accepted Answer

A)  licensing 
B)  merger 
C)  new product development 
D)  strategic alliance 
E)  acquisition 
A)  licensing 
B)  merger 
C)  new product development 
D)  strategic alliance 
E)  acquisition

Question 12

Which of the following statements is incorrect regarding acquisitions?

Accepted Answer

A)  In an acquisition, the surviving firm is called the acquirer. 
B)  An acquisition is the outright purchase of one firm by another. 
C)  In most cases, a firm acquires a competitor or a company that has a product line or distinctive competency that it needs. 
D)  If a firm decides to grow through acquisitions, it is extremely important for it to exercise extreme care in finding acquisition candidates. 
E)  Many firms have found that the process of assimilating another company into their current operation was easier than they thought it would be. 
A)  In an acquisition, the surviving firm is called the acquirer. 
B)  An acquisition is the outright purchase of one firm by another. 
C)  In most cases, a firm acquires a competitor or a company that has a product line or distinctive competency that it needs. 
D)  If a firm decides to grow through acquisitions, it is extremely important for it to exercise extreme care in finding acquisition candidates. 
E)  Many firms have found that the process of assimilating another company into their current operation was easier than they thought it would be.

Question 13

________ 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 14

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

Accepted Answer

A)  encourages internal entrepreneurship 
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)  encourages internal entrepreneurship 
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 15

Describe what licensing is. What type of intellectual property can be licensed? Identify the two types of licensing pursued by entrepreneurial firms.

Accepted Answer

Licensing is the granting of permission

Question 16

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(n):

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 17

Which of the following is a disadvantage of growth by means of external growth strategies?

Accepted Answer

A)  diversification of business risk 
B)  economies of scale 
C)  getting access to proprietary products or services 
D)  reducing competition 
E)  increased business complexity 
A)  diversification of business risk 
B)  economies of scale 
C)  getting access to proprietary products or services 
D)  reducing competition 
E)  increased business complexity

Question 18

A(n) ________ 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 19

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 20

New product development is a low-risk growth strategy.

Accepted Answer

A) True 
 B)False

In the context of strategic alliances, ________ feature cooperation in research and development, engineering, and manufacturing.

The Partnering for Success feature in Chapter 14 is titled "Three Steps to Alliance Success." The three steps to alliance success identified in the feature are:

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.

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

Geographic expansion is most common in retail settings.

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

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

Kent Williamson owns a firm that manufacturers and sells electrical supplies. He is currently trying to grow his firm through licensing and strategic alliances. Kent is pursuing a(n):

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

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

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

Which of the following statements is incorrect regarding acquisitions?

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

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

Describe what licensing is. What type of intellectual property can be licensed? Identify the two types of licensing pursued by entrepreneurial firms.

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(n):

Which of the following is a disadvantage of growth by means of external growth strategies?

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

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

New product development is a low-risk growth strategy.

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 Ventures 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

In the context of strategic alliances, ________ feature cooperation in research and development, engineering, and manufacturing.

The Partnering for Success feature in Chapter 14 is titled "Three Steps to Alliance Success." The three steps to alliance success identified in the feature are:

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.

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

Geographic expansion is most common in retail settings.

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

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

Kent Williamson owns a firm that manufacturers and sells electrical supplies. He is currently trying to grow his firm through licensing and strategic alliances. Kent is pursuing a(n):

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

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

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

Which of the following statements is incorrect regarding acquisitions?

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

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

Describe what licensing is. What type of intellectual property can be licensed? Identify the two types of licensing pursued by entrepreneurial firms.

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(n):

Which of the following is a disadvantage of growth by means of external growth strategies?

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

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

New product development is a low-risk growth strategy.

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 Ventures 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