Entrepreneurship and Small Business Management

Chapter 23: Making Your Business Grow

Practice Test

1
______________ growth strategies take advantage of opportunities within a current market.
A)Internal
B)Intensive
C)Integrative
D)Diversification
2
_____________ is an attempt to increase sales in your current market.
A)Franchising
B)Market penetration
C)Market development
D)Product development
3
A business that can be duplicated is a candidate for_______________.
A)acquisition
B)growth
C)franchising
D)product development
4
Introducing new or improved products into the marketplace is called______________.
A)product development
B)franchising
C)market penetration
D)market development
5
______________ is the merging of companies that are in the same distribution chain of a product.
A)Acquisition
B)Vertical diversification
C)Vertical integration
D)Horizontal integration
6
An example of_______________would be the purchase of a large sporting goods manufacturer by another sporting goods maker.
A)diversification
B)horizontal integration
C)joint venture
D)vertical integration
7
_____________diversification is finding new products that are technologically compatible with yours.
A)Horizontal
B)Conglomerate
C)Synergistic
D)Lateral
8
______________diversification involves finding products or businesses that are unrelated to your product or business.
A)Conglomerate
B)Lateral
C)Horizontal
D)Synergistic
9
When everyone in your business has the same vision, they are said to share a/an____________
A)value
B)mindset
C)mission
D)image
10
When a business has multiple sites, one of the common functions it may not want to control from the main store is____________.
A)accounting
B)finance
C)marketing
D)security
11
A business needs_________money as it expands than it did at start-up.
A)more
B)less
C)the same
D)newer sources of
12
_____________ is/are a way to raise money by selling investment interests to private investors.
A)ESOPs
B)Stock options
C)Private placement
D)Bonds
13
The best source of expansion capital is a/an________________.
A)bank loan
B)employee stock option plan
C)good cash flow
D)stock offering
14
To make a public stock offering, your corporation should have revenues of at least $ ____________ million annually.
A)5
B)10
C)20
D)30
15
In an ESOP, a company takes existing stock or borrows money to buy stock which is then bought by _______________.
A)the general public
B)the original investors
C)company employees
D)private investment firms
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