Question 1

The integrative aspect of negotiation:

Accepted Answer

A)  focuses on decreasing the "size of the pie." 
B)  is more beneficial than a conflict resolution approach. 
C)  requires the entrepreneur to lower the reservation price. 
D)  requires the negotiator to not decrease the price and not back down. 
A)  focuses on decreasing the "size of the pie." 
B)  is more beneficial than a conflict resolution approach. 
C)  requires the entrepreneur to lower the reservation price. 
D)  requires the negotiator to not decrease the price and not back down. B

Question 2

Which of the following statements is typically not true of industry-university joint venture agreements

Accepted Answer

A)  Neither party wants to share the research results. 
B)  Both parties want to share in any possible financial returns from a resulting patent. 
C)  The corporation has the objective of obtaining tangible results, such as a patent. 
D)  Industry-university joint venture agreements are created for the purpose of doing research. 
A)  Neither party wants to share the research results. 
B)  Both parties want to share in any possible financial returns from a resulting patent. 
C)  The corporation has the objective of obtaining tangible results, such as a patent. 
D)  Industry-university joint venture agreements are created for the purpose of doing research. A

Question 3

Most leveraged buyouts use the same standardized financial package.

Accepted Answer

A) True 
 B)False  False

Question 4

Acquisitions are so similar to ________ that at times the two terms are used interchangeably.

Accepted Answer

A)  leveraged buyouts 
B)  joint ventures 
C)  mergers 
D)  franchises. 
A)  leveraged buyouts 
B)  joint ventures 
C)  mergers 
D)  franchises.

Question 5

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

Accepted Answer

A)  break-even price 
B)  franchise price 
C)  bargaining zone 
D)  reservation price 
A)  break-even price 
B)  franchise price 
C)  bargaining zone 
D)  reservation price

Question 6

The ________ is the range of outcomes between the entrepreneur's reservation price and the reservation price of the other party.

Accepted Answer

A)  reservation price 
B)  franchise price 
C)  bargaining zone 
D)  break-even price 
A)  reservation price 
B)  franchise price 
C)  bargaining zone 
D)  break-even price

Question 7

When an entrepreneur bootstraps the purchase of a company,the entrepreneur usually puts down 10 to 20 percent in cash,financing the remainder of the price with long-term debt paid back through the company's earnings.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a subjective technique an entrepreneur can use to evaluate the asking price of an LBO

Accepted Answer

A)  The competitive position of the firm within its industry 
B)  The uniqueness of the firm's offerings 
C)  Price-earnings ratio 
D)  The abilities of management and other key personnel 
A)  The competitive position of the firm within its industry 
B)  The uniqueness of the firm's offerings 
C)  Price-earnings ratio 
D)  The abilities of management and other key personnel

Question 9

Popular reasons to merge include protection,diversification,and survival.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

A ________ is a separate entity that involves a partnership between two or more active participants.

Accepted Answer

A)  merger 
B)  franchise 
C)  joint venture 
D)  leveraged buyout 
A)  merger 
B)  franchise 
C)  joint venture 
D)  leveraged buyout

Question 12

One disadvantage to an acquisition is that they are often a slow way to expand.

Accepted Answer

A) True 
 B)False

Question 13

Joint ventures can involve a wide variety of partners,which can include:

Accepted Answer

A)  the federal government. 
B)  business rivals. 
C)  traditional businesses. 
D)  All of the answers are correct. 
A)  the federal government. 
B)  business rivals. 
C)  traditional businesses. 
D)  All of the answers are correct.

Question 14

The disclosure document provided by the franchisor:

Accepted Answer

A)  is required by the FTC. 
B)  will state a guaranteed yearly return for the franchisee. 
C)  is done on a voluntary basis. 
D)  has information that is certified by a CPA and the FTC so it is always a reliable source of data. 
A)  is required by the FTC. 
B)  will state a guaranteed yearly return for the franchisee. 
C)  is done on a voluntary basis. 
D)  has information that is certified by a CPA and the FTC so it is always a reliable source of data.

Question 15

The integration task phase of negotiation explores mutual benefits for the parties.

Accepted Answer

A) True 
 B)False

Question 16

To be successful the partners in a joint venture should have symmetry.

Accepted Answer

A) True 
 B)False

Question 17

By buying a franchise,the entrepreneur reduces the amount of money available for advertising.

Accepted Answer

A) True 
 B)False

Question 18

In order to further investigate a franchise opportunity an entrepreneur can request a franchise package from the franchisor,which:

Accepted Answer

A)  is usually free. 
B)  costs between $400 and $600 and is usually refundable. 
C)  costs between $800 and $1000 and is usually not refundable. 
D)  contains guarantees about expected sales revenues in years 1 and 2. 
A)  is usually free. 
B)  costs between $400 and $600 and is usually refundable. 
C)  costs between $800 and $1000 and is usually not refundable. 
D)  contains guarantees about expected sales revenues in years 1 and 2.

Question 19

Negotiating how the benefits of the relationship will be allocated between the parties is known as the distribution task.

Accepted Answer

A) True 
 B)False

Question 20

One method of expanding a business is the purchase of an entire company or part of it so that the entity is completely absorbed and no longer exists as a separate company.This is called:

Accepted Answer

A)  a joint venture. 
B)  an acquisition. 
C)  a subsidiary. 
D)  a takeover. 
A)  a joint venture. 
B)  an acquisition. 
C)  a subsidiary. 
D)  a takeover.

The integrative aspect of negotiation:

Which of the following statements is typically not true of industry-university joint venture agreements

Most leveraged buyouts use the same standardized financial package.

Acquisitions are so similar to ________ that at times the two terms are used interchangeably.

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

The ________ is the range of outcomes between the entrepreneur's reservation price and the reservation price of the other party.

When an entrepreneur bootstraps the purchase of a company,the entrepreneur usually puts down 10 to 20 percent in cash,financing the remainder of the price with long-term debt paid back through the company's earnings.

Which of the following is not a subjective technique an entrepreneur can use to evaluate the asking price of an LBO

Popular reasons to merge include protection,diversification,and survival.

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

A ________ is a separate entity that involves a partnership between two or more active participants.

One disadvantage to an acquisition is that they are often a slow way to expand.

Joint ventures can involve a wide variety of partners,which can include:

The disclosure document provided by the franchisor:

The integration task phase of negotiation explores mutual benefits for the parties.

To be successful the partners in a joint venture should have symmetry.

By buying a franchise,the entrepreneur reduces the amount of money available for advertising.

In order to further investigate a franchise opportunity an entrepreneur can request a franchise package from the franchisor,which:

Negotiating how the benefits of the relationship will be allocated between the parties is known as the distribution task.

One method of expanding a business is the purchase of an entire company or part of it so that the entity is completely absorbed and no longer exists as a separate company.This is called:

The Entrepreneurial Mind-Set

Corporate Entrepreneurship

Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Protecting the Idea 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

Strategies for Growth and Managing the Implication of Growth

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters

Exam 14: Accessing Resources for Growth From External Sources

The integrative aspect of negotiation:

Which of the following statements is typically not true of industry-university joint venture agreements

Most leveraged buyouts use the same standardized financial package.

Acquisitions are so similar to ________ that at times the two terms are used interchangeably.

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

The ________ is the range of outcomes between the entrepreneur's reservation price and the reservation price of the other party.

When an entrepreneur bootstraps the purchase of a company,the entrepreneur usually puts down 10 to 20 percent in cash,financing the remainder of the price with long-term debt paid back through the company's earnings.

Which of the following is not a subjective technique an entrepreneur can use to evaluate the asking price of an LBO

Popular reasons to merge include protection,diversification,and survival.

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

A ________ is a separate entity that involves a partnership between two or more active participants.

One disadvantage to an acquisition is that they are often a slow way to expand.

Joint ventures can involve a wide variety of partners,which can include:

The disclosure document provided by the franchisor:

The integration task phase of negotiation explores mutual benefits for the parties.

To be successful the partners in a joint venture should have symmetry.

By buying a franchise,the entrepreneur reduces the amount of money available for advertising.

In order to further investigate a franchise opportunity an entrepreneur can request a franchise package from the franchisor,which:

Negotiating how the benefits of the relationship will be allocated between the parties is known as the distribution task.

One method of expanding a business is the purchase of an entire company or part of it so that the entity is completely absorbed and no longer exists as a separate company.This is called:

The Entrepreneurial Mind-Set

Corporate Entrepreneurship

Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Protecting the Idea 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

Strategies for Growth and Managing the Implication of Growth

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters