BUS 321 FINAL UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. How was General Mills able to gain 25% of the European
cereal market?
A) selling organic products
B) sharing facilities with Kellogg
C) marketing its products online
D) forming a joint venture with Nestle
Answer:
D
Question:
2. Company X and Company Z have established a business
arrangement whereby the two firms will cooperate for
their mutual benefit. Which of the following has most
likely been established?
A) competitive advantage
B) licensing agreement
C) franchising arrangement
D) strategic alliance
Answer:
D
Question:
3. A ________ is a special type of strategic alliance in which two
or more firms join together to create a new business
entity that is legally separate and distinct from its parents.
A) joint venture
B) licensing agreement
C) franchising arrangement
D) greenfield strategy
Answer:
A
,Question:
4. Nestle and General Mills created Cereal Partners
Worldwide to compete effectively in the European
market. Cereal Partners Worldwide is owned equally by
the two firms, so CPW is an example of a(n) ________.
A) franchising arrangement
B) acquisition strategy
C) joint venture
D) FDI
Answer:
C
Question:
5. Cross-licensing of proprietary technology, sharing of
production facilities, cofounding research projects, and
the marketing of each other's products using existing
distribution networks is known as ________.
A) a joint venture
B) a merger
C) an acquisition
D) a strategic alliance
Answer:
D
Question:
6. What is the primary difference between a joint venture
and a non-joint venture strategic alliance?
A) level of political, cultural and financial risk for each
firm
B) formation of a third, legally separate business entity
C) amount of financial investment required
D) geographic location of the alliance
Answer:
B
, Question:
7. Advanced Audio and EQ Electronics recently established
a joint venture for the purpose of cooperating in the
design, production, and sale of a line of audio equipment.
Executives at the two firms must now decide the best way
to manage the joint venture. Which of the following
choices would defeat the purpose of the joint venture?
A) hiring an independent management team
B) jointly sharing management responsibilities
C) assigning one firm all management responsibilities
D) continuing completely separate management activities
Answer:
D
Question:
8. Furman Furnishings wants to expand its international
operations in cooperation with another firm. Which of the
following methods would be most appropriate for
Furman?
A) exporting
B) licensing
C) joint venture
D) foreign direct investment
Answer:
C
Question:
9. Feldman Insurance wants to enter the Brazilian market
but is concerned about hostile government regulations in
Brazil. Which of the following would most likely help
Feldman overcome this problem?
A) forming a joint venture with a local firm
B) identifying the potential market share
C) hiring only local employees
D) appealing to the WTO
Answer:
A
CORRECT ANSWERS
Question:
1. How was General Mills able to gain 25% of the European
cereal market?
A) selling organic products
B) sharing facilities with Kellogg
C) marketing its products online
D) forming a joint venture with Nestle
Answer:
D
Question:
2. Company X and Company Z have established a business
arrangement whereby the two firms will cooperate for
their mutual benefit. Which of the following has most
likely been established?
A) competitive advantage
B) licensing agreement
C) franchising arrangement
D) strategic alliance
Answer:
D
Question:
3. A ________ is a special type of strategic alliance in which two
or more firms join together to create a new business
entity that is legally separate and distinct from its parents.
A) joint venture
B) licensing agreement
C) franchising arrangement
D) greenfield strategy
Answer:
A
,Question:
4. Nestle and General Mills created Cereal Partners
Worldwide to compete effectively in the European
market. Cereal Partners Worldwide is owned equally by
the two firms, so CPW is an example of a(n) ________.
A) franchising arrangement
B) acquisition strategy
C) joint venture
D) FDI
Answer:
C
Question:
5. Cross-licensing of proprietary technology, sharing of
production facilities, cofounding research projects, and
the marketing of each other's products using existing
distribution networks is known as ________.
A) a joint venture
B) a merger
C) an acquisition
D) a strategic alliance
Answer:
D
Question:
6. What is the primary difference between a joint venture
and a non-joint venture strategic alliance?
A) level of political, cultural and financial risk for each
firm
B) formation of a third, legally separate business entity
C) amount of financial investment required
D) geographic location of the alliance
Answer:
B
, Question:
7. Advanced Audio and EQ Electronics recently established
a joint venture for the purpose of cooperating in the
design, production, and sale of a line of audio equipment.
Executives at the two firms must now decide the best way
to manage the joint venture. Which of the following
choices would defeat the purpose of the joint venture?
A) hiring an independent management team
B) jointly sharing management responsibilities
C) assigning one firm all management responsibilities
D) continuing completely separate management activities
Answer:
D
Question:
8. Furman Furnishings wants to expand its international
operations in cooperation with another firm. Which of the
following methods would be most appropriate for
Furman?
A) exporting
B) licensing
C) joint venture
D) foreign direct investment
Answer:
C
Question:
9. Feldman Insurance wants to enter the Brazilian market
but is concerned about hostile government regulations in
Brazil. Which of the following would most likely help
Feldman overcome this problem?
A) forming a joint venture with a local firm
B) identifying the potential market share
C) hiring only local employees
D) appealing to the WTO
Answer:
A
