Deck 9: The Family Firm Alternative: How Do I Take Over My Familys Business

Question 1

Mexico is a partner in NAFTA.

Answer 1

True

Question 2

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.

Answer 2

B

Question 3

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.

Answer 3

A

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

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 7

The renewal stage of the Business Life Cycle is followed by .

Question 8

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

Question 9

Predatory pricing is an aggressive, but perfectly legal activity.

Question 10

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 11

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

Question 12

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

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

Question 13

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

Question 14

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

Question 15

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.

Question 16

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 17

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

Question 18

EDC stands for:

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

Question 19

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

Question 20

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

Question 21

The "T" in SWOT analysis refers to .

Question 22

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

Question 23

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

Question 24

Meeting with a departing employee is referred to as an .

Question 25

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

Question 26

" expansion" means selling more of what you're already selling to the customer groups you're already selling to.

Question 27

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

Question 28

" expansion" means selling what you're already selling to new groups of customers.