WorksheetsChapter 5 homework
Total questions: 31
Worksheet time: 31mins
McDonald's acquiring its store franchises is an example of what type of merger
vertical merger
horizontal merger
product extension merger
market extension merger
What term describes the practice of paying for goods indirectly through another source
licensing
exporting
barter
promotion
_____ provides information on industries such as aerospace, energy, healthcare and defense
plunkett
frost and sullivan
mergent
business complete
An opportunity assessment plan
has a comprehensive financial statement
is longer than a business plan
is the same thing as a business plan
focuses on the opportunity, not the venture
all of the following statements concerning opportunity assessment plans are correct except
the second major section of the opportunity assessment plan focuses on the market
an opportunity assessment plan is not a business plan
the first major section of the opportunity assessment plan develops a time line indicating what steps need to be take to successfully launch the venture
an opportunity assessment plan has four sections - two major sections and two minor sections
all of the following are government sources of information except
NAICS and SIC
census reports
hoovers
export/import authority
philip morris acquiring miller brewing is an example of what type of merger
vertical merger
market extension merger
product extension merger
horizontal merger
which among the following political risks is considered the biggest risk of all
investment risk
transfer risk
operating risk
ownership risk
a country's _____ is the best difference between the value of a country's imports and exports over time
foreign exchange reserve
gross national product
current account
purchasing power parity
_____ are both government sources of information that might be helpful in gathering the information needed to start a business
mergent and the industrial monitor
the euromonitor and business source complete
business source complete and small business news
NAIS and SIC cods
all of the following is true of the general agreement on tariffs and trade except
it reduces tariffs, subsidies, and import quotas
it includes over 100 nations
it has extensive authority to enforce trade practices due to its voluntary membership
it is one of the longest-lasting agreements on trade
a turn-key project is best defined as
a method in which an entrepreneur contracts his or her management techniques and skills to a (foreign) purchasing company
a method of doing business whereby a foreign entrepreneur supplies the manufacturing technology or infrastructure for a business and then turns it over to local owners
a form of direct foreign investment in which the investing entrepreneur holds a minority ownership position in the foreign venture
giving a foreign manufacturer the right to use a patent in return for the payment of a royalty
primary data is
data collected by the government
data that has been collected by the private sector
original information collected by the entrepreneur
data that is hard to find
The North American Free Trade Agreement (NAFTA) is between which of the following countries
the united states, argentina, and brazil
the united states, mexico, and brazil
the united states, brazil, and canada
the united states, canada, and mexico
In Kenya, the tribe where an individual is from can play a significant role in employer relations. This best exemplifies which aspect of culture
political philosophy
social structure
economic philosophy
education
which among the following influences whether customers are able to use the good or service properly and whether they are able to understand the firm's advertising or other promotional messages
religion
education
political philosophy
manners and customs
which of the following statements is not true
technology, like social factors, varies significantly across countries
psychographics exist within demographics
major events often are the beginning of slow shifts in public opinion or buying habits
cultural ethics deals with the values and morals of a society and how they translate to societal acceptance
_____ is the process of an entrepreneur conducting business activities across national borders
domestic entrepreneurship
international entrepreneurship
direct importing
intrapreneurship
_____ has the main disadvantages of high transportation costs, trade barriers, and problems with marketing agents
licensing
franchising
turn-key projects
exporting
_____ is a nonprofit organization that provides free online and in-person assistance to entrepreneurs in the form of training, consulting and mentoring provided mainly by retired executives and entrepreneurs
SCORE
SIC
NAICS
CSBC
concerns regarding roads, electricity, banking facilities, communication, and educational systems have to do with country's
political climate
infrastructure
balance of payments
economics
which of the following statements is true
most countries have laws and court procedures protecting intellectual property such as those in the United States
laws of a country regulate the manner in which business transactions are executed
global entrepreneurs cannot specify in the contract that any contract disputes will be heard in the courts of another country
civil laws tend to be relatively nonspecific
According to the text, the most prevalent reason for mergers is
currency fluctuations
taxation
economies of scale
to combine complementary resources
_____ is defined as the risk of interference with the operations of the venture
operating risk
ownership risk
investment risk
transfer risk
Licensing is best described as
a method that involves giving a foreign manufacturer the right to use a patent, technology, production process, or product in return for the payment of royalty
a method of doing international business whereby a foreign entrepreneur supplies the manufacturing technology or infrastructure for a business and then turns it over to local owners
an equity partnership that involves selling patents to foreign governments
a nonequity method of international business in which an entrepreneur contracts his or her management techniques and skills to a (foreign) purchasing compnay
_____ is a type of merger in which acquiring and acquired companies have related production and/or distribution activities but do not have products that compete directly with each other
horizontal merger
vertical merger
product extension merger
market extension merger
_____ is not considered a nonequity arrangement
turn-key projects
exporting
licensing
management contracts
A _____ is the joining of two firms in order to form a third company in which the equity is shared
minority interest
majority interest
joint venture
product extension merger
McDonalds has learned to adapt its restaurants to local design preferences and the U.S. government tries to design their local embassies with local architectural considerations. these are examples of which aspect of culture
political philosophy
aesthetics
manners and customs
social structer
exporting
can be direct or indirect
results in an inability to realize location economies
is the least popular method for going global
results in a lack of control over quality
motivations for going global, discussed in the text, include all of the following except
cheap shipping costs
technological advantage
excess production capacity
competitive pressures
