Archives: Quiz

Which of the following promotional strategies is being used by a company that hires a fleet of trucks to drive through village squares and hand out free trial packages to potential end users? A) push strategy B) pull strategy C) […]

________ is an effective alternative to traditional distribution channels for firms that sell digitized products. A) Dual licensing B) Electronic distribution C) Visual merchandising D) Digital switchover Answer: Compare and contrast the business environments in China and Russia. Answer: Doing […]

Company debt normally takes the form of ________. A) bonds B) equity C) stocks D) bank loans Answer: While ________ encourages free trade among Canada, Mexico and the United States, manufacturers and distributors must abide by local content requirements and […]

________ is a decentralized exchange encompassing a global computer network of foreign exchange traders and other market participants. A) Securities exchanges B) Eurocurrency market C) Interbank market D) Over-the-counter market Answer: Which of the following countries is a member of […]

A company can achieve market power through ________. A) ownership advantages B) internalization advantages C) horizontal integration D) vertical integration Answer: Crystal inc. is a multifaceted company that deals with the mining, cutting, and selling of diamonds. It gives distributors […]

The intentional raising of the value of a currency by a nation’s government is called ________. A) revaluation B) securitization C) fundamental disequilibrium D) currency hedging Answer: Which of the following is least likely a reason for companies to seek […]

Which of the following requires an importer to pay for the imported goods when they are delivered? A) sight draft B) inland bill of lading C) air way bill of lading D) time draft Answer: Which of the following philosophies […]

Which of the following is the main cultural motive behind government intervention in trade? A) promotion of strategic trade policies B) protection of jobs C) protection of national identity D) protection of young industries from competition Answer: Which of the […]

A class system is a system of social stratification in which ________. A) people are divided into various political groups and subgroups B) a person’s social rank depends upon his/her parentage C) people join highly exclusive associations that forbid external […]

Most of the world merchandise trade is composed of trade in ________. A) minerals B) services C) manufactured goods D) agricultural products Answer: Economic integration whereby countries remove all barriers to trade among themselves, but set a common trade policy […]

If Verandas International chooses to pursue equity financing, but wants to avoid the time and money required to comply with stock exchange regulations, the company would most likely issue ________. A) American Depository Receipts B) bills of lading C) equity […]

Which of the following is also known as direct marketing? A) an intensive channel B) an exclusive channel C) a zero-level channel D) a two-level channel Answer: Which of the following is considered as a primary activity in an organization? […]

The most common method used for buying and selling goods internationally is licensing. Answer: A voluntary export restraint refers to a quota that a nation imposes on its exports, usually at the request of another nation. Answer: TRUE Products made […]

The immediate cause of country risk is a legal or political factor. Answer: The ISO 9000 is a production technique in which inputs to the production process arrive exactly when they are needed. Answer: FALSE Predictable exchange rates increase the […]

The scope of a corporation’s operations refers to the size of its operations. Answer: Companies strive toward quality improvements for attaining economies of scale. Answer: FALSE Gross national product (GNP) is the value of all goods and services imported into […]

According to Michael Porter, advanced factors account for the sustained competitive advantage a country enjoys in a product. Answer: The European monetary system is still in practice today. Answer: FALSE Today, due to improved technology, it is fairly easy to […]

When going global with an Internet presence, it is highly beneficial for a business to localize its Web site. Answer: Increased regulation of national capital markets has been instrumental in the expansion of the international capital market. Answer: FALSE[/cpmembership] The […]

Volatile currency values make it easier for firms to predict future earnings accurately in terms of the home-country currency. Answer: Direct exporters always sell directly to end users. Answer: FALSE Trade missions are advantageous to small businesses as they are […]

Subcultures contribute very little to national culture and can be safely ignored when making marketing and production decisions. Answer: Trade barriers and specialized knowledge are examples of market imperfections. Answer: TRUE Advance payment is the least favorable method of payment […]

A market is efficient if the prices of financial instruments quickly reflect new public information made available to traders. Answer: Unwanted cultural influence in a nation can cause governments to block imports that it believes are harmful. Answer: TRUE Availability […]

By ignoring important cultural nuances, companies can inadvertently decrease the potential for noise that can cloud the audience’s understanding of their promotional message. Answer: The rapid pace of technological innovation today extends the life cycles of products. Answer: FALSE Customer […]

Developed countries have been the major participants behind cross-border mergers and acquisitions. Answer: Cultural elements can influence what kinds of products are sold and how they are sold in a country. Answer: TRUE The marketing communication process involves encoding and […]

The first phase of human resource planning is estimating the company’s future HR needs. Answer: The bureaucracy is the part of government that implements the rules and laws passed by elected representatives. Answer: TRUE Currency speculation is the purchase or […]

The theory of absolute advantage destroys the mercantilist idea that international trade is a zero-sum game. Answer: According to the eclectic theory that explains FDI, an ownership advantage is the advantage that arises from internalizing a business activity rather than […]

Debt financing involves ________. A) raising venture capital or securing a private placement B) selling corporate bonds or selling stock via an IPO C) getting a grant or selling corporate bonds D) getting a loan or raising venture capital E) […]

Annie Clarke owns a smartphone app development firm. The way Annie prices her products is to determine what consumers are willing to pay, and then she backs off a bit to provide a cushion. The method that Annie used to […]

Which of the following statements is untrue regarding founding teams? A) The members of heterogeneous teams are diverse in terms of their abilities and experiences. B) The members of homogenous teams are very similar in terms of their abilities and […]

Large firms like Apple, Facebook, General Electric, and Microsoft, that trade on organized stock exchanges, are ________. A) limited partnerships B) limited liability companies C) subchapter S corporations D) C corporations E) general partnerships Answer: Which of the following statements […]

In the context of international franchising, under a ________ franchise arrangement, the U.S. firm grants the rights to an individual or company (the master franchisee) to develop one or more franchise businesses and to license others to develop one or […]

The What Went Wrong? feature in Chapter 7 focuses on Fitbit. Fitbit makes wearable activity trackers that measure data such as number of steps walked, quality of sleep, and other personal metrics. The feature centered on a product that Fitbit […]

The Savvy Entrepreneurial Firm feature in Chapter 2 focuses on a technique through which entrepreneurs can learn about emerging trends. The technique focused on in the chapter is ________. A) online databases B) newspapers and magazines C) targeted Internet searches […]

General Motors operates a ________ franchise system. A) product format and trademark B) product extension C) product and trademark D) business format E) business format and trademark Answer: The Savvy Entrepreneurial Firm feature in Chapter 10 focuses on the manner […]

A/B split testing, landing pages, prototyping services, and Web site usability testing are all online tools available to assist in the ________ stage of developing a business idea. A) opportunity recognition B) feasibility analysis C) business model D) business plan […]

A prototype is ________. A) a form of opportunity recognition B) a tool for evaluating the industry a new firm plans to enter C) a financial model D) the first physical depiction of a new product E) a tool for […]

Which of the following is not one of the four factors identified in the textbook as critical in selecting a form of business ownership? A) The cost of setting up and maintaining the legal form B) The number and types […]

Melanie Summer spoke to an investor who is interested in her business idea. Melanie offered to send the investor a copy of her full business plan, but the investor asked for a short overview of the business plan instead. What […]

There are three basic requirements for a patent to be granted. The subject of the patent application must be ________. A) useful, difficult to copy, and novel in relation to prior arts in the field B) based on cutting edge […]

Cody Rodgers is the founder of a company named Extreme Sports Apparel. The company makes apparel products for extreme sports enthusiasts such as rock climbers, triathletes, skateboarders, and BMX bikers. Cody wants his company to pursue a high level of […]

A firm’s target market is the limited group of individuals or businesses that it goes after or tries to appeal to. Answer: A business plan can usually be completed in one to three days. Answer: FALSE An idea is a […]

Entrepreneurship is the process by which individuals pursue opportunities within the constraints of the resources they control. Answer: The major revenue drivers, which are the ways a business earns money, should be first identified in “The Economics of the Business” […]

The primary opportunity available to firms in fragmented industries is consolidation. The most common way to do this is through a geographic roll-up strategy, in which one firm starts acquiring similar firms that are located in different geographic areas. Answer: […]

Financial management deals with raising money and managing a company’s finances in a way that achieves the highest rate of return. Answer: Census Bureau data, analyst forecasts, and other pertinent information gleaned through library and Internet research are examples of […]

External growth strategies involve efforts taken within the firm itself, such as new product development, other product-related strategies, and international expansion. Answer: A product attribute map illustrates the strength of a firm’s niche (or target) market relative to competing markets. […]

A market penetration strategy involves actions taken to increase the sales of a product or service through greater marketing efforts or through increased product capacity and efficiency. Answer: Although a board of directors has formal governance responsibilities, its most useful […]

In a link joint venture, the partners collaborate at a single point in the value chain to gain economies of scale in production or distribution. Answer: A niche market is a place within a market segment that represents a narrow […]

Patents, trademarks, copyrights, and licenses are the four key forms of intellectual property. Answer: An idea bank is a physical or digital repository for storing ideas. Answer: TRUE Most boards of advisers have between 3 and 5 members. Answer: FALSE […]

Loss of proprietary information is a disadvantage of participating in strategic alliances and joint ventures. Answer: Angel investors, private placement, venture capital, and initial public offerings are the most common sources of equity funding. Answer: TRUE The royalty fees a […]

In general, the greater the elasticity, the: A. smaller the responsiveness of price to changes in quantity. B. smaller the responsiveness of quantity to changes in price. C. larger the responsiveness of price to changes in quantity. D. larger the […]

If the elasticity of demand for electricity is 0.13, the demand for electricity is: A. inelastic. B. elastic. C. perfectly inelastic. D. unit elastic. Answer: Refer to the graph shown depicting a monopolistically competitive firm. The demand curve is represented […]

Refer to the graphs shown. If the quantity demanded by consumers is the same for every price, then the demand curve would look like: A. I. B. II. C. III. D. IV. Answer: B. This describes a vertical or perfectly […]