Question 1

Which is not a strategy used to elicit information about the other party in a negotiation

Accepted Answer

A)  Take up a new negotiation at the end of the first 
B)  Ask lots of questions 
C)  Make multiple offers simultaneously 
D)  Build trust and share information

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

In evaluating the potential profit for a new franchise,the entrepreneur should request data from the franchisor so they can develop pro forma income and cash flow statements.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Joint ventures are sometimes called:

Accepted Answer

A)  mergers. 
B)  strategic alliances. 
C)  acquisitions. 
D)  leveraged buyouts.

Question 6

Which of the following statements about locating acquisition candidates is not true

Accepted Answer

A)  Entrepreneurs can acquire another business through a broker. 
B)  Brokers represent the acquisition buyer or the seller. 
C)  Accountants, attorneys, or bankers may know of good acquisition candidates. 
D)  Entrepreneurs may find acquisition candidates in the classified sections of the newspaper.

Question 7

Which franchise below is an example of the most popular type of franchise

Accepted Answer

A)  KFC 
B)  A Ford dealership 
C)  H&R Block 
D)  Real estate franchises

Question 8

In a leveraged buyout,the entrepreneur wants to raise as much of the capital needed as possible in the form of long-term debt.This makes it particularly critical for the entrepreneur to assess the firm's

Accepted Answer

A)  debt capacity 
B)  financial package 
C)  competitive position in the industry 
D)  market loss

Question 9

One advantage to an acquisition is that there is an established customer base.

Accepted Answer

A) True 
 B)False

Question 10

The most common type of joint venture is between two or more public sector companies.

Accepted Answer

A) True 
 B)False

Question 11

Discuss the main disadvantages of an acquisition.

Accepted Answer

The answer of Discuss the main disadvantages of an acquisition....

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Negotiating parties will often focus on the distribution task and ignore the integration task.

Accepted Answer

A) True 
 B)False

Question 14

If a franchise looks good as an investment,the entrepreneur may request a franchise package from the franchisor at no cost,which usually contains a draft franchise agreement or contract.

Accepted Answer

A) True 
 B)False

Exam 14: Accessing Resources for Growth From External Sources

Which is not a strategy used to elicit information about the other party in a negotiation

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

In evaluating the potential profit for a new franchise,the entrepreneur should request data from the franchisor so they can develop pro forma income and cash flow statements.

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

Joint ventures are sometimes called:

Which of the following statements about locating acquisition candidates is not true

Which franchise below is an example of the most popular type of franchise

In a leveraged buyout,the entrepreneur wants to raise as much of the capital needed as possible in the form of long-term debt.This makes it particularly critical for the entrepreneur to assess the firm's

One advantage to an acquisition is that there is an established customer base.

The most common type of joint venture is between two or more public sector companies.

Discuss the main disadvantages of an acquisition.

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

Negotiating parties will often focus on the distribution task and ignore the integration task.

If a franchise looks good as an investment,the entrepreneur may request a franchise package from the franchisor at no cost,which usually contains a draft franchise agreement or contract.