MGMT 485 Entrepreneurship Exam With
Complete Solutions
Industry Analysis - ANSWER Reviews industry trends and competitive strategies.
Marketing Research - ANSWER Definition of objectives or purpose. Conducted by
entrepreneur or by an external supplier or consultant.
Cost of Survey Methods - ANSWER Telephone: Inexpensive depending on long distance
Mail: Inexpensive depending on number of units and weight
Personal: Most expensive technique and requires face-to-face.
Internet: Inexpensive
Target Market - ANSWER Specific group of potential customers toward which venture
aims its marketing plan.
Opportunity Assessment Plan - ANSWER The basis for marketing the decision to either
act on an opportunity or wait until another, better opportunity comes along.
Types of Political Risk - ANSWER Operating Risk: Interference with the operations of the
venture.
Transfer Risk: Attempting to transfer funds out of the country.
Ownership Risk: Another country takes over venture property and employees.
Education Influence on Global Decisions - ANSWER Technology level of the firm's
products may be too sophisticated for the cultures education level.
, Motivations to go Global - ANSWER Profits
Competitive Pressures
Unique Products or Services
Excess Production Capacity
Declining Home Country Sales
Unique Market Opportunities
Economies of Scale
Technological Advantages
Tax Benefits
Types of Exporting - ANSWER Indirect Exporting: Local market or use an export
management firm.
Direct Exporting: Use of independent distributors or the company's own overseas sales
office.
Non-Equity Arrangements - ANSWER A method by which an entrepreneur can enter a
market and obtain sales and profits without direct equity investment in the foreign
market.
Licensing - ANSWER Involves giving a foreign manufacturer the right to use a patent,
technology, production process, or product in return for the payment of a royalty.
Joint Venture - ANSWER The joining of two firms in order to form a third company in
which the equity is shared.
NAFTA - ANSWER North American Free Trade Agreement
Free trade agreement between the US, Canada, and Mexico.
Patent - ANSWER Grants holder protection from others making, using, or selling a
similar idea.
Complete Solutions
Industry Analysis - ANSWER Reviews industry trends and competitive strategies.
Marketing Research - ANSWER Definition of objectives or purpose. Conducted by
entrepreneur or by an external supplier or consultant.
Cost of Survey Methods - ANSWER Telephone: Inexpensive depending on long distance
Mail: Inexpensive depending on number of units and weight
Personal: Most expensive technique and requires face-to-face.
Internet: Inexpensive
Target Market - ANSWER Specific group of potential customers toward which venture
aims its marketing plan.
Opportunity Assessment Plan - ANSWER The basis for marketing the decision to either
act on an opportunity or wait until another, better opportunity comes along.
Types of Political Risk - ANSWER Operating Risk: Interference with the operations of the
venture.
Transfer Risk: Attempting to transfer funds out of the country.
Ownership Risk: Another country takes over venture property and employees.
Education Influence on Global Decisions - ANSWER Technology level of the firm's
products may be too sophisticated for the cultures education level.
, Motivations to go Global - ANSWER Profits
Competitive Pressures
Unique Products or Services
Excess Production Capacity
Declining Home Country Sales
Unique Market Opportunities
Economies of Scale
Technological Advantages
Tax Benefits
Types of Exporting - ANSWER Indirect Exporting: Local market or use an export
management firm.
Direct Exporting: Use of independent distributors or the company's own overseas sales
office.
Non-Equity Arrangements - ANSWER A method by which an entrepreneur can enter a
market and obtain sales and profits without direct equity investment in the foreign
market.
Licensing - ANSWER Involves giving a foreign manufacturer the right to use a patent,
technology, production process, or product in return for the payment of a royalty.
Joint Venture - ANSWER The joining of two firms in order to form a third company in
which the equity is shared.
NAFTA - ANSWER North American Free Trade Agreement
Free trade agreement between the US, Canada, and Mexico.
Patent - ANSWER Grants holder protection from others making, using, or selling a
similar idea.
