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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