Deck 10: Managing for Growth: How Can I Expand My Business

Question 1

The concept of "100 % Capacity" can be applied to most businesses.

Answer 1

True

Question 2

Which of the following is not a stage in the business life cycle:

A)introduction.
B)growth.
C)maturity.
D)decline.

Answer 2

A

Question 3

When a business is operating at a small percentage of its capacity, the strategy should be to:

A)increase capacity.
B)increase sales.
C)reduce promotion.
D)all of the above.

Answer 3

B

Question 4

As a business grows, there tends to be a shift from equity capital to debt capital.

Question 5

Which of the following is not an indicator of the need for renewal:

A)declining sales and profits.
B)declining market share.
C)declining employee turnover.
D)None of the above are indicators.

Question 6

"Going public" is the most common way for a small business to acquire growth capital.

Question 7

The biggest trading partner of the U.S.(volume of trade) is Japan.

Question 8

EDC stands for:

A)External Distribution Control.
B)Economic Development Corporation.
C)Export Development Canada.
D)Environmental Disaster Control.

Question 9

Features of both debt and equity financing are found in "subordinate financing".

Question 10

SWOT analysis examines:

A)the situation, the work, the organization, the tactics.
B)internal and external advantages and disadvantages of a business.
C)the predictions of the Conference Board of Canada.
D)the ethical issues of conducting business.

Question 11

Multinational corporations tend to:

A)come in large and small sizes.
B)have supply sources in a single country.
C)conduct marketing on an international basis.
D)all of the above.

Question 12

The biggest trading partner (volume of trade) of Canada is the U.S.

Question 13

Predatory pricing is an aggressive, but perfectly legal activity.

Question 14

Compared to building your own chain of company-owned stores, selling franchises is:

A)faster.
B)more expensive.
C)legally simpler.
D)all of the above.

Question 15

Market potential is made up of your market share plus the market share of all your competitors.

Question 16

Mexico is a partner in NAFTA.

Question 17

The amount of time it takes to recoup the amount of an investment is called the:

A)project R.O.I.
B)future value.
C)payback period.
D)return interval.

Question 18

The growth stage of the business cycle is characterized by:

A)increasing revenue.
B)increasing profits.
C)declining risk of failure.
D)all of the above.

Question 19

Identify the stages of the business cycle and list one or two characteristics of each stage.

Question 20

It is possible to have increasing sales while the market potential is shrinking.

Question 21

Discuss the dangers of entering into Export Markets for small Canadian firms.

Question 22

Outline the Product Life Cycle and explain how it can be extended.Use examples.

Question 23

Identify and explain the major indicators that a business is in decline and ready for renewal..