ENT 101 WEEK 10 QUIZ STUDY GUIDE — TMU 2026
UPDATE.
Building an Entrepreneurial Mindset | Complete
Solutions.
PART A: GROWTH STRATEGIES & SCALING DRILL (Questions 1–5)
1. A Toronto-based meal-kit company (similar to Goodfood) decides to launch a new line of
ready-to-eat lunches using its existing kitchen facilities and delivery network. This is an example
of:
• A) Inorganic growth through acquisition
• B) Market expansion into a new geographic region
• C) Organic growth through product line extension
• D) Franchising its business model
Answer: C — Organic growth through product line extension. The company is expanding
internally by developing new products within its existing infrastructure, rather than acquiring
another company or licensing its model.
2. Which growth strategy involves granting independent operators the right to use your
business model, brand, and operational systems in exchange for fees and royalties?
• A) Licensing
• B) Franchising
• C) Strategic alliance
• D) Joint venture
Answer: B — Franchising. Think of Tim Hortons or McDonald's—the franchisor provides the
brand and system; the franchisee operates the local location. Licensing (A) typically covers IP
usage (like a patent or trademark), not the full business model.
, 3. A Toronto fintech startup acquires a smaller competitor to gain its customer base and
technology. This represents:
• A) Organic growth
• B) Market penetration
• C) Inorganic growth
• D) Bootstrapping
Answer: C — Inorganic growth. Any expansion through mergers, acquisitions, or strategic
partnerships is classified as inorganic because it relies on external entities rather than internal
development.
4. A DMZ-incubated SaaS company increases its marketing spend to capture more customers
within its current Toronto market. This strategy is best described as:
• A) Market development
• B) Market penetration
• C) Product development
• D) Diversification
Answer: B — Market penetration. The company is selling more of its existing product to its
existing market. Market development (A) would involve entering a new city or demographic;
product development (C) would involve building new features.
5. A Canadian clean-tech startup licenses its proprietary carbon-capture technology to a
European manufacturer in exchange for a 5% royalty on sales. This is an example of:
• A) Franchising
• B) Licensing
• C) An IPO
• D) A management buyout
Answer: B — Licensing. The startup is granting rights to use its intellectual property (the carbon-
capture tech) without transferring ownership of the business itself. This is a lower-risk way to
enter international markets.
UPDATE.
Building an Entrepreneurial Mindset | Complete
Solutions.
PART A: GROWTH STRATEGIES & SCALING DRILL (Questions 1–5)
1. A Toronto-based meal-kit company (similar to Goodfood) decides to launch a new line of
ready-to-eat lunches using its existing kitchen facilities and delivery network. This is an example
of:
• A) Inorganic growth through acquisition
• B) Market expansion into a new geographic region
• C) Organic growth through product line extension
• D) Franchising its business model
Answer: C — Organic growth through product line extension. The company is expanding
internally by developing new products within its existing infrastructure, rather than acquiring
another company or licensing its model.
2. Which growth strategy involves granting independent operators the right to use your
business model, brand, and operational systems in exchange for fees and royalties?
• A) Licensing
• B) Franchising
• C) Strategic alliance
• D) Joint venture
Answer: B — Franchising. Think of Tim Hortons or McDonald's—the franchisor provides the
brand and system; the franchisee operates the local location. Licensing (A) typically covers IP
usage (like a patent or trademark), not the full business model.
, 3. A Toronto fintech startup acquires a smaller competitor to gain its customer base and
technology. This represents:
• A) Organic growth
• B) Market penetration
• C) Inorganic growth
• D) Bootstrapping
Answer: C — Inorganic growth. Any expansion through mergers, acquisitions, or strategic
partnerships is classified as inorganic because it relies on external entities rather than internal
development.
4. A DMZ-incubated SaaS company increases its marketing spend to capture more customers
within its current Toronto market. This strategy is best described as:
• A) Market development
• B) Market penetration
• C) Product development
• D) Diversification
Answer: B — Market penetration. The company is selling more of its existing product to its
existing market. Market development (A) would involve entering a new city or demographic;
product development (C) would involve building new features.
5. A Canadian clean-tech startup licenses its proprietary carbon-capture technology to a
European manufacturer in exchange for a 5% royalty on sales. This is an example of:
• A) Franchising
• B) Licensing
• C) An IPO
• D) A management buyout
Answer: B — Licensing. The startup is granting rights to use its intellectual property (the carbon-
capture tech) without transferring ownership of the business itself. This is a lower-risk way to
enter international markets.
