Question 1

Today's most successful companies identified a viable business model before they developed their product.

Accepted Answer

A) True 
 B)False

Question 2

Developments in technology have spurred young companies to build alliances and joint partnerships in their efforts to expand globally.

Accepted Answer

A) True 
 B)False

Question 3

The primary purpose of outsourcing is to increase net margins.

Accepted Answer

A) True 
 B)False

Question 4

It is better to formulate the organizational culture after your company begins to grow, rather than at the company's inception.

Accepted Answer

A) True 
 B)False

Question 5

If you have a replicable business model, it is wise to use which of the following strategies to expand internationally:

Accepted Answer

A)   Foreign Direct Investment
B)   Venture financing
C)   Exporting
D)   Franchising
E)   Technology Licensing D

Question 6

Of the following differentiators, which most commonly determines the success of a company?

Accepted Answer

A)   The number of distinct products offered
B)   Competitive advantage
C)   Being the first player to enter a market
D)   Better execution than the competition
E)   A and C

Question 7

Which of the following is a primary means for FDI?

Accepted Answer

A)   Acquiring foreign assets
B)   Building new facilities overseas
C)   Expanding current facilities overseas
D)   None of the above
E)   All of the above

Question 8

Which of the following is the cheapest and easiest way to enter new markets?

Accepted Answer

A)   Venture financing
B)   Technology Transfer
C)   Exporting
D)   Outsourcing
E)   Foreign Direct Investment

Question 9

Which of the following is true about all of the large, retail corporations in existence today?

Accepted Answer

A)   They started as multinationals.
B)   They employed a franchising strategy.
C)   They had roots in one geographic region.
D)   They attracted venture capital.
E)   None of the above

Question 10

What is the goal of outsourcing?

Accepted Answer

A)   To shift the firm's cost model to one that is comprised of more variable costs and less fixed costs
B)   To increase gross margins
C)   To reduce overall up-front fixed costs
D)   To decrease labor costs
E)   All of the above

Question 11

How many beta-tests of the product should the company do before releasing it to the market?

Accepted Answer

A)   As many as necessary
B)   At least 3
C)   Not more than 5
D)   5 to 10
E)   B and C

Question 12

Typically, survival is the most pressing concern for a startup during the first:

Accepted Answer

A)   1 - 2 years
B)   2 - 3 years
C)   3 - 4 years
D)   4 - 5 years
E)   5 - 6 years B

Question 13

Which of the following is part of the first-mover myth?

Accepted Answer

A)   You must launch the first product in the market.
B)   Creating a new market is easier than entering an existing one.
C)   Creating a market is inexpensive.
D)   A first mover's advantage is expensive.
E)   B and C

Question 14

In a Freemium business model, your COGS for free offerings can be viewed as a marketing expense.

Accepted Answer

A) True 
 B)False

Question 15

A strategy that attempts to capture the first-mover's advantage is usually the most inexpensive.

Accepted Answer

A) True 
 B)False

Question 16

Franchising speeds growth, but lowers a company's revenue overall.

Accepted Answer

A) True 
 B)False

Question 17

According to Dickson, a "born-again" global, entrepreneurial firm enters international markets as a result of:

Accepted Answer

A)   Long-standing relationships with supplies overseas
B)   A triggering event, such as an unsolicited order from overseas
C)   Reduced risk in certain international markets
D)   Their initial strategy included a desire to enter foreign markets
E)   None of the above

Question 18

Dickson describes the following three types of global entrepreneurial firms:

Accepted Answer

A)   Born global, born-again global, full global
B)   Born-again global, direct global, gradual global
C)   Gradual global, born global, born-again global
D)   Born-again global, gradual global, diversified global

Question 19

Examples of an iterative launch strategy would be:

Accepted Answer

A)   Launching a web advertising campaign nationwide in beta
B)   Contracting multiple outsourcing manufacturers for your first production run of a single product
C)   Opening a food truck business using a short term truck lease in a single market.
D)   None of the above C

Question 20

Exporting is one of the most expensive ways to enter new markets.

Accepted Answer

A) True 
 B)False

Exam 5: Understanding Your Business Model and Developing Your Strategy

Today's most successful companies identified a viable business model before they developed their product.

Correct AnswerverifiedShow Answer

Developments in technology have spurred young companies to build alliances and joint partnerships in their efforts to expand globally.

Correct AnswerverifiedShow Answer

The primary purpose of outsourcing is to increase net margins.

Correct AnswerverifiedShow Answer

It is better to formulate the organizational culture after your company begins to grow, rather than at the company's inception.

Correct AnswerverifiedShow Answer

If you have a replicable business model, it is wise to use which of the following strategies to expand internationally:

Correct AnswerverifiedD

Of the following differentiators, which most commonly determines the success of a company?

Correct AnswerverifiedShow Answer

Which of the following is a primary means for FDI?

Correct AnswerverifiedShow Answer

Which of the following is the cheapest and easiest way to enter new markets?

Correct AnswerverifiedShow Answer

Which of the following is true about all of the large, retail corporations in existence today?

Correct AnswerverifiedShow Answer

What is the goal of outsourcing?

Correct AnswerverifiedShow Answer

How many beta-tests of the product should the company do before releasing it to the market?

Correct AnswerverifiedShow Answer

Typically, survival is the most pressing concern for a startup during the first:

Correct AnswerverifiedB

Which of the following is part of the first-mover myth?

Correct AnswerverifiedShow Answer

In a Freemium business model, your COGS for free offerings can be viewed as a marketing expense.

Correct AnswerverifiedShow Answer

A strategy that attempts to capture the first-mover's advantage is usually the most inexpensive.

Correct AnswerverifiedShow Answer

Franchising speeds growth, but lowers a company's revenue overall.

Correct AnswerverifiedShow Answer

According to Dickson, a "born-again" global, entrepreneurial firm enters international markets as a result of:

Correct AnswerverifiedShow Answer

Dickson describes the following three types of global entrepreneurial firms:

Correct AnswerverifiedShow Answer

Examples of an iterative launch strategy would be:

Correct AnswerverifiedC

Exporting is one of the most expensive ways to enter new markets.

Correct AnswerverifiedShow Answer

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D

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B

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C

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