Question 1

Joint ventures are sometimes called:

Accepted Answer

A) mergers. 
B) strategic alliances. 
C) acquisition. 
D) leveraged buyout. 
A) mergers. 
B) strategic alliances. 
C) acquisition. 
D) leveraged buyout.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

An unproven franchise:

Accepted Answer

A) requires the franchisee to make a larger investment than a proven one. 
B) is riskier than a proven one. 
C) offers more excitement and challenge than a proven one. 
D) could see constant reorganization that could result in confusion and mismanagement. 
A) requires the franchisee to make a larger investment than a proven one. 
B) is riskier than a proven one. 
C) offers more excitement and challenge than a proven one. 
D) could see constant reorganization that could result in confusion and mismanagement.

Question 4

The reservation price is the price at which the entrepreneur is ready to accept the agreement.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) Merger. 
B) Acquisition. 
C) Leveraged buyouts. 
D) Lease. 
A) Merger. 
B) Acquisition. 
C) Leveraged buyouts. 
D) Lease.

Question 6

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

Accepted Answer

A) Price-earnings ratio 
B) Book value 
C) Present value of future earnings 
D) All of the above 
A) Price-earnings ratio 
B) Book value 
C) Present value of future earnings 
D) All of the above

Question 7

The bootstrap purchase of assets:

Accepted Answer

A) is a direct purchase of the entire assets of a firm. 
B) means the entrepreneur purchases a small percentage of a firm for cash. 
C) frequently results in a long-term capital gain to the seller. 
D) results in double taxation. 
A) is a direct purchase of the entire assets of a firm. 
B) means the entrepreneur purchases a small percentage of a firm for cash. 
C) frequently results in a long-term capital gain to the seller. 
D) results in double taxation.

Question 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

Franchising involves payment of royalties in exchange for exclusive distribution rights.

Accepted Answer

A) True 
 B)False

Question 11

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

Question 12

What are the main benefits (to the franchisee)of franchising?

Accepted Answer

Product Acceptance:The franchisee does n

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The ______ frequently issues guidelines for mergers.

Accepted Answer

A) SBDC 
B) Department of Justice 
C) Supreme Court 
D) United States Senate 
A) SBDC 
B) Department of Justice 
C) Supreme Court 
D) United States Senate

Question 15

Which of the following is not an advantage of franchising?

Accepted Answer

A) No entry cost 
B) Availability of management expertise 
C) Product acceptance 
D) Knowledge of the market 
A) No entry cost 
B) Availability of management expertise 
C) Product acceptance 
D) Knowledge of the market

Question 16

Terminating a franchise results in more lawsuits than any other issue in franchising.

Accepted Answer

A) True 
 B)False

Question 17

By understanding more about the other party,the entrepreneur has a greater opportunity to achieve integration in negotiation.

Accepted Answer

A) True 
 B)False

Question 18

In regards to negotiation,define the following: distribution task,integration task and reservation price.
Negotiating how the benefits of the relationship will be allocated between the parties
Exploring possible mutual benefits from the relationship so that the "size of the pie" can be increased
The price (the bundle of resources from the agreement)at which the entrepreneur is indifferent about whether to accept the agreement or choose the alternative

Accepted Answer

Distribution task In

Question 19

In the _________ task,the mutual benefits from the relationship are explored,making the "size of the pie" larger.

Accepted Answer

A) distributive 
B) assessment 
C) integrative 
D) reservation 
A) distributive 
B) assessment 
C) integrative 
D) reservation

Question 20

In negotiations the _________ task involves how the benefits of the relationship will be allocated between the parties.

Accepted Answer

A) distributive 
B) assessment 
C) integrative 
D) reservation 
A) distributive 
B) assessment 
C) integrative 
D) reservation

Joint ventures are sometimes called:

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

An unproven franchise:

The reservation price is the price at which the entrepreneur is ready to accept the agreement.

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

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

The bootstrap purchase of assets:

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

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

Franchising involves payment of royalties in exchange for exclusive distribution rights.

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

What are the main benefits (to the franchisee)of franchising?

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

The ______ frequently issues guidelines for mergers.

Which of the following is not an advantage of franchising?

Terminating a franchise results in more lawsuits than any other issue in franchising.

By understanding more about the other party,the entrepreneur has a greater opportunity to achieve integration in negotiation.

In the _________ task,the mutual benefits from the relationship are explored,making the "size of the pie" larger.

In negotiations the _________ task involves how the benefits of the relationship will be allocated between the parties.

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

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

Joint ventures are sometimes called:

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

An unproven franchise:

The reservation price is the price at which the entrepreneur is ready to accept the agreement.

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

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

The bootstrap purchase of assets:

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

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

Franchising involves payment of royalties in exchange for exclusive distribution rights.

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

What are the main benefits (to the franchisee)of franchising?

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

The ______ frequently issues guidelines for mergers.

Which of the following is not an advantage of franchising?

Terminating a franchise results in more lawsuits than any other issue in franchising.

By understanding more about the other party,the entrepreneur has a greater opportunity to achieve integration in negotiation.

In the _________ task,the mutual benefits from the relationship are explored,making the "size of the pie" larger.

In negotiations the _________ task involves how the benefits of the relationship will be allocated between the parties.

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

Strategies for Growth and Managing the Implication of Growth

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters