QUESTION A Ryan vice president argues that the company would be better off by pursuing a policy of internal expansion. Which of the following, if true, strengthens his position? A) Ryan’s management and employees are currently embroiled in a contentious labor dispute. B) Mergers in the automotive industry peaked in the 1930s. C) External expansion […]
QUESTION Which of the following, if true, most weakens the Domino Grace CEO’s argument? A) Kryptos’ stable finances offer outstanding long-term stability. B) Both Domino Grace and Kryptos use a variety of tools to communicate their corporate cultures, such as stories, awards, and special employee-only events. C) Kryptos’ latest offer involves paying a higher price […]
QUESTION The primary motive of an enterprise is to make a profit. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: The mission of any business is to generate wealth, or earn a profit.
QUESTION Which of the following, if true, strengthens the Kryptos CEO’s argument? A) Mergers are more common in the financial services industry than in many other industries. B) Mergers are easier to execute when the merged organizations have similar corporate cultures. C) At Kryptos, accounting, operations, and human resources are among the departments that already […]
QUESTION Which of the following, if true, undermines the Kryptos CEO’s argument? A) A few years ago, Kryptos merged with another company. B) Concern over a possible reduction of benefits is only one of many reasons why Domino Grace employees object to the merger. C) Attempting to overcome change through hiding the truth about the […]
QUESTION After working hard and facing enormous risks, many entrepreneurs sell their business to realize a substantial profit. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Some people develop businesses with the intention of creating a valuable enterprise that can be sold for a healthy return on their investment. Creating […]
QUESTION A small business that requires little investment to become operational is called an ultralight startup. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Many ultralights are Web-based businesses.
QUESTION More entrepreneurs are driven by opportunity than necessity. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Most entrepreneurs fall under the category of opportunity entrepreneurs; they are ambitious and start their own businesses in voluntary pursuit of opportunity.
QUESTION A skunkworks is a group of people who split off from a company to use its proprietary technology and trade secrets for starting their own enterprise. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: A skunkworks is a team that is separated from the normal operation of an organization […]
QUESTION Cyclane’s chief operating officer thinks that the company should begin international operations by looking to acquire an existing company in another country, arguing that this will save money. Which of the following, if true, strengthens the COO’s argument? A) Cyclane will have to pay a premium above the company’s market price in order to […]
