Question 1

All of the following statements concerning opportunity assessment plans are correct except:

Accepted Answer

A)   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.
B)   an opportunity assessment plan is not a business plan.
C)   the second major section of the opportunity assessment plan focuses on the market.
D)   an opportunity assessment plan has four sections-two major sections and two minor sections.E) C) and D)
F) A) and B)

Question 2

________ is defined as the risk of interference with the operations of the venture.

Accepted Answer

A)   Transfer risk
B)   Ownership risk
C)   Investment risk
D)   Operating riskE) C) and D)
F) A) and B)

Question 3

Entrepreneurs doing business in the former U.S.S.R.should be aware that barter,or third-party arrangements,are commonplace.

Accepted Answer

A) True 
 B)False

Question 4

________ is the process of an entrepreneur conducting business activities across national borders.

Accepted Answer

A)   Intrapreneurship
B)   International entrepreneurship
C)   Domestic entrepreneurship
D)   Direct importingE) A) and B)
F) A) and C)

Question 5

Reference groups in any culture provide values and attitudes that influence behavior.

Accepted Answer

A) True 
 B)False

Question 6

The North American Free Trade Agreement (NAFTA)increases trade barriers and quotas among the United States,Canada,and Mexico.

Accepted Answer

A) True 
 B)False

Question 7

The Euromonitor provides very industry-specific information on companies in the European Union.

Accepted Answer

A) True 
 B)False

Question 8

Profits and tax benefits are common motivations for going global.

Accepted Answer

A) True 
 B)False

Question 9

A ________ is the joining of two firms in order to form a third company in which the equity is shared.

Accepted Answer

A)   majority interest
B)   joint venture
C)   product extension merger
D)   minority interestE) A) and D)
F) None of the above

Question 10

Which of the following statements is true

Accepted Answer

A)   Most countries have laws and court procedures protecting intellectual property such as those in the United States.
B)   Civil laws tend to be relatively nonspecific.
C)   Laws of a country regulate the manner in which business transactions are executed.
D)   Global entrepreneurs cannot specify in the contract that any contract disputes will be heard in the courts of another country.E) A) and B)
F) None of the above

Question 11

Identify and briefly describe the four sections of an opportunity assessment plan.

Accepted Answer

The first major section develops the pro...

Question 12

Gifts related to business proceedings are illegal in most other countries and should not be offered to foreign business partners.

Accepted Answer

A) True 
 B)False

Question 13

Nonequity arrangements discussed by the text include licensing,management projects and exporting.

Accepted Answer

A) True 
 B)False

Question 14

Useful government sources of information include Business Source Complete and Mergent.

Accepted Answer

A) True 
 B)False

Question 15

A turn-key project is best defined as:

Accepted Answer

A)   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
B)   giving a foreign manufacturer the right to use a patent in return for the payment of a royalty
C)   a method in which an entrepreneur contracts his or her management techniques and skills to a (foreign)  purchasing company
D)   a form of direct foreign investment in which the investing entrepreneur holds a minority ownership position in the foreign ventureE) A) and B)
F) A) and C)

Question 16

The key to successful entrepreneurship is to develop an idea that has a large,reachable market.

Accepted Answer

A) True 
 B)False

Question 17

The Small Business Association provides Business Development Centers but also has a Women's Business Center and a Minority Business Center.

Accepted Answer

A) True 
 B)False

Question 18

________ are both government sources of information that might be helpful in gathering the information needed to start a business.

Accepted Answer

A)   Mergent and The Industrial monitor
B)   NAICS and SIC codes
C)   Business Source Complete and Small Business News
D)   The Euromonitor and Business Source CompleteE) B) and C)
F) A) and C)

Question 19

________ has the main disadvantages of high transportation costs,trade barriers,and problems with local marketing agents.

Accepted Answer

A)   Exporting
B)   Turn-key projects
C)   Licensing
D)   FranchisingE) B) and D)
F) All of the above

Question 20

McDonald's acquiring its store franchises is an example of what type of merger

Accepted Answer

A)   Market extension merger
B)   Horizontal merger
C)   Product extension merger
D)   Vertical mergerE) All of the above
F) A) and D)

Exam 5: Identifying and Analyzing Domestic and International Opportunities

Entrepreneurs doing business in the former U.S.S.R.should be aware that barter,or third-party arrangements,are commonplace.

Correct AnswerverifiedShow Answer

________ is the process of an entrepreneur conducting business activities across national borders.

Correct AnswerverifiedShow Answer

McDonald's acquiring its store franchises is an example of what type of merger

Correct AnswerverifiedShow Answer

Profits and tax benefits are common motivations for going global.

Correct AnswerverifiedShow Answer

A ________ is the joining of two firms in order to form a third company in which the equity is shared.

Correct AnswerverifiedShow Answer

All of the following statements concerning opportunity assessment plans are correct except:

Correct AnswerverifiedShow Answer

Gifts related to business proceedings are illegal in most other countries and should not be offered to foreign business partners.

Correct AnswerverifiedShow Answer

Useful government sources of information include Business Source Complete and Mergent.

Correct AnswerverifiedShow Answer

Reference groups in any culture provide values and attitudes that influence behavior.

Correct AnswerverifiedShow Answer

________ are both government sources of information that might be helpful in gathering the information needed to start a business.

Correct AnswerverifiedShow Answer

The North American Free Trade Agreement (NAFTA)increases trade barriers and quotas among the United States,Canada,and Mexico.

Correct AnswerverifiedShow Answer

Nonequity arrangements discussed by the text include licensing,management projects and exporting.

Correct AnswerverifiedShow Answer

________ is defined as the risk of interference with the operations of the venture.

Correct AnswerverifiedShow Answer

The Small Business Association provides Business Development Centers but also has a Women's Business Center and a Minority Business Center.

Correct AnswerverifiedShow Answer

Which of the following statements is true

Correct AnswerverifiedShow Answer

The key to successful entrepreneurship is to develop an idea that has a large,reachable market.

Correct AnswerverifiedShow Answer

Identify and briefly describe the four sections of an opportunity assessment plan.

Correct AnswerverifiedThe first major section develops the pro...View AnswerShow Answer

________ has the main disadvantages of high transportation costs,trade barriers,and problems with local marketing agents.

Correct AnswerverifiedShow Answer

A turn-key project is best defined as:

Correct AnswerverifiedShow Answer

The Euromonitor provides very industry-specific information on companies in the European Union.

Correct AnswerverifiedShow Answer

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The first major section develops the pro...
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