QUESTION A business model defines the need a proposed business will fill as well as its operations, components, functions, and expected revenues and expenses. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Clarifying the business model is an important step before writing a business plan for a new enterprise.
QUESTION Cyclane’s head of sales in the United States thinks that if Cyclane opts for working with an international company, it should undertake a project-based joint venture instead of a merger. Which of the following, if true, strengthens her case? A) Project-based joint ventures limit the amount of control a company has over its international […]
QUESTION The term going public refers to the launch of a company’s website. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: “Going public” means that a privately owned company becomes a publicly owned company through stock issued for sale to the public.
QUESTION Ryan Motors’ director of marketing favors the first option, marketing the company’s products in Chile. Which of the following, if true, strengthens his case for the company selling in Chile? A) Chile is thousands of miles from the United States. B) Chile’s economy has grown steadily for the last several years. C) Chile has […]
QUESTION The Ryan Motors CEO identifies one particular large Chilean engineering company, Gola Technologies, that she says would be a good fit as a partner for Ryan. Which of the following, if true, weakens her case for the partnership? A) Gola’s annual profits have risen for three consecutive years. B) Ryan Motors has fewer financial […]
QUESTION Which of the following, if true, most strongly supports the Domino Grace CEO’s argument? A) The current proposal calls for all Kryptos’ employees with outstanding benefit packages to keep them in the merged company. B) Shareholders of Domino Grace tend to support the merger. C) According to the charters of both companies, any savings […]
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, strengthens the case for Nina running the business as a sole proprietorship? A) Sam is experienced in dry-cleaning. B) Sam has a wide base of existing customer contacts. C) Sam is not willing to take on legal liability in the company. D) Nina is relatively new to the […]
QUESTION Which of the following, if true, strengthens the case for Sam and Nina owning the business in a partnership? A) Sam and Nina have very different personalities. B) Sam and Nina have the same skill sets. C) Sam and Nina are both motivated and energetic. D) Nina has good leadership qualities. E) Sam has […]
QUESTION Which of the following, if true, weakens the case for Sam and Nina owning the business in a partnership? A) Sam and Nina have different personalities. B) Sam and Nina have known each other for many years. C) Sam and Nina have conflicting ideas about what would make a dry-cleaning business succeed. D) Nina […]
