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ELE 3010 QUIZ 5 Exam Questions With
Verified Answers
What percent of businesses make it to the third generation - Answers✔12%
The concept that "the whole is greater than the sum of its parts" is known as: -
Answers✔Synergy
strategies that involve developing and selling new product to people who are already purchasing
the firms existing products - Answers✔Product Development
Which statements about capital requirements in franchising is NOT true? - Answers✔the
franchisee has to spend resources to establish the credibility of the business
A computer company buys a hard-drive manufacturer - Answers✔backwards integration
Franchising opportunities have often evolved from changes in the environment as well as
important social trends. This is not one of the factors responsible: - Answers✔acceptance of
different cultures(health, second baby boom, environment)
The strategy for growth in which the firm encourages existing customers to buy more of the
firm's current product is... - Answers✔penetration strategy
One method of expanding a business is the purchase of an entire company or part of it so that the
entity is completely absorbed and no longer exists as a separate company: - Answers✔an
acquisition
Occurs when an entrepreneur or an employee group uses borrowed funds to purchase an existing
venture for cash: - Answers✔leveraged buyout
Which of the following is the most significant advantage of an acquisition according to the text?
- Answers✔established image and track record
Creating a Positive Organizational Culture - Answers✔establishing a "we" not "me" spirit
Chapter 11 is the type of bankruptcy that results in: - Answers✔Reorganization
1
ALL RIGHTS RESERVED.
ELE 3010 QUIZ 5 Exam Questions With
Verified Answers
What percent of businesses make it to the third generation - Answers✔12%
The concept that "the whole is greater than the sum of its parts" is known as: -
Answers✔Synergy
strategies that involve developing and selling new product to people who are already purchasing
the firms existing products - Answers✔Product Development
Which statements about capital requirements in franchising is NOT true? - Answers✔the
franchisee has to spend resources to establish the credibility of the business
A computer company buys a hard-drive manufacturer - Answers✔backwards integration
Franchising opportunities have often evolved from changes in the environment as well as
important social trends. This is not one of the factors responsible: - Answers✔acceptance of
different cultures(health, second baby boom, environment)
The strategy for growth in which the firm encourages existing customers to buy more of the
firm's current product is... - Answers✔penetration strategy
One method of expanding a business is the purchase of an entire company or part of it so that the
entity is completely absorbed and no longer exists as a separate company: - Answers✔an
acquisition
Occurs when an entrepreneur or an employee group uses borrowed funds to purchase an existing
venture for cash: - Answers✔leveraged buyout
Which of the following is the most significant advantage of an acquisition according to the text?
- Answers✔established image and track record
Creating a Positive Organizational Culture - Answers✔establishing a "we" not "me" spirit
Chapter 11 is the type of bankruptcy that results in: - Answers✔Reorganization
1
