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WorksheetsBusiness growth 2
Total questions: 12
Worksheet time: 7mins
If several independent firms in the same office block share the use of a secretary and receptionist, then this is an example of a(n)
Economies of scale
Joint venture
Organic growth
Strategic alliance
Which of the following is least likely to be an advantage of forming a strategic alliance
Firms enjoy some of the advantages of mergers without losing their corporate identity
Profits from the strategic alliance can be shared equally
Strategic alliances are founded on friendly, cooperative and mutual agreements
They are not as expensive as takeovers or mergers
When two different organizations contribute resources to a shared project by forming a separate business, this is known as
A joint venture
A strategic alliance
Collaboration
External growth
Which statement below does not apply to franchises?
The failure rate is low as franchisees are generally very motivated
The franchisee can buy or lease a franchise
The franchisor can expand its business without incurring huge debts
The franchisors have little control over the way the business operates
The franchise is the
Person or business selling the right for others to use their name, logos or products
Person who buys the right to use someone else's products, logo pr brand name
Right to trade using another firm's products, brand name and logo
Use of methods of external growth to enlarge a multinational corporation
Reasons for airlines to form a strategic alliance include all the following, except
The airline companies keep their separate legal identities
They benefit from economies of scale from combined purchasing and marketing power
They can cover more destinations by joining forces
They can grow through diversification
A franchisee offers a franchise to a franchisor.
True
False
Which of the following does not reflect disadvantages of joint ventures?
Diseconomies of scale
Loss of control
Culture clash
Dilution of brand
The franchisee pays a (a) based on the sales revenue of the franchisee to the franchisor.
An advantage, to the buyer, of a takeover bid includes
Changes to corporate cultures
Changes to the corporate identity
Possible staff redundancies
Potential market dominance
Which of the following is a common reason for businesses to enter into a joint venture?
To share risks and resources for a specific project
To reduce competition between the firms
To eliminate the need for a business plan
To maintain complete control over operations
In a strategic alliance, what is typically shared between the organizations involved?
Brand names and trademarks
Legal liabilities
Resources and expertise
Ownership of the companies
