Question 1

When it comes to growth,management often&#10;A)injects their personal funds to finance growth&#10;B)puts more merchandise on the shelves and hopes for the best&#10;C)seeks guidance from suppliers for growth strategies&#10;D)overlooks the importance of planning

Accepted Answer

Management often overlooks the importance of planning, which is crucial for sustainable growth.

Question 2

Growth planning requires attention to external forces such as&#10;A)average cost per unit of product&#10;B)social and cultural norms&#10;C)owner's income goals&#10;D)age of company fleet of delivery vehicles

Accepted Answer

Social and cultural norms are external forces that can have a significant impact on a company's growth planning. Understanding these norms can help a company adapt its products or services to better meet the needs and expectations of its target market, leading to increased growth and market share. The other choices are internal factors that may affect growth planning but do not relate to external forces.

Question 3

Before choosing to grow it is important to determine&#10;A)whether the product can grow in sales&#10;B)if competitors will permit the business to grow&#10;C)how much it will cost to terminate employees if growth doesn't happen&#10;D)if customers will support the initiative

Accepted Answer

D  Determining if the product can grow in sales and if customers will support the initiative are crucial for assessing the potential success and sustainability of growth.

Question 4

High growth firms in Canada&#10;A)are able to accumulate significant cash balances to fund further growth&#10;B)inevitably become profitable&#10;C)usually fund growth from current sales&#10;D)often do not make any money for many years

Accepted Answer

High growth firms often prioritize reinvesting their profits back into the business for further growth, which can lead to not making any profits for many years. These firms may also seek external funding sources such as venture capital or angel investors. Accumulating significant cash balances from current sales (A) and becoming profitable (B) are not necessarily guaranteed outcomes for high growth firms.

Question 5

At the end of a growth stage&#10;A)a business will need to make changes in its business strategy&#10;B)a business will have significant cash balances on hand&#10;C)a business will be able to coast along without entering a decline stage&#10;D)a business will not have any competition

Accepted Answer

At the end of a growth stage, a business may have exhausted its current market and will need to make changes in its business strategy in order to continue growing. This may include entering new markets, introducing new products or services, or pursuing mergers and acquisitions. Therefore, choice A is the most appropriate answer.

Question 6

One of the biggest challenges facing growth companies is&#10;A)financial planning&#10;B)marketing&#10;C)Human Resources&#10;D)technology

Accepted Answer

Human Resources (HR) is a significant challenge for growth companies as they need to attract, retain, and develop talent to sustain and support their growth. As companies expand, managing a growing workforce becomes increasingly complex, requiring effective HR strategies to navigate these challenges.

Question 7

As a business grows&#10;A)owners and employees tend to develop closer relationships&#10;B)it becomes easier to find and integrate new employees&#10;C)owners often need to let go of managing all parts of the operation&#10;D)departments and individuals begin to work together more productively

Accepted Answer

As a business grows, there is an increase in the complexity of operations, and owners cannot manage everything on their own. This requires owners to delegate some responsibilities and let go of micromanaging every aspect of the business. Hence, option C is the correct answer. While options A, B, and D are viable outcomes of growth, they are not as universally applicable as option C. In some cases, as a business grows, owners and employees may become more distant, departments may become more siloed, and new employees may struggle to integrate into the company culture. Therefore, option C is the best answer.

Question 8

Two distinctions between a small and large business are&#10;A)employee morale and customer satisfaction&#10;B)more attractive window displays and speedier delivery of merchandise&#10;C)higher volume and larger transactions&#10;D)quality of life for employees and technology infrastructure

Accepted Answer

The two distinctions between a small and large business are higher volume and larger transactions. Small businesses generally have lower sales and transaction amounts, while large businesses handle higher sales and transaction amounts. This difference can affect the level of resources, such as marketing and inventory, that businesses can allocate for success.

Question 9

A business can become more competitive by&#10;A)improving its factory decor&#10;B)adding new products or expanding to new markets&#10;C)lowering prices to cost on order to increase sales&#10;D)firing employees

Accepted Answer

Adding new products or expanding to new markets can increase a business's customer base and revenue, making it more competitive. Improving factory decor may improve the aesthetics but does not necessarily improve competitiveness. Lowering prices can attract customers but may also decrease profit margins. Firing employees can lead to a loss of skilled staff and may harm the company's reputation.

Question 10

In the decline stage of a business&#10;A)sales may decline but profits usually remain constant&#10;B)both sales and profits usually decline&#10;C)sales may increase for a while but profits decline steadily&#10;D)nothing can be done to halt the decline

Accepted Answer

In the decline stage of a business, both sales and profits usually decline. This may be due to factors such as increased competition, changing market conditions, or the aging of a product or service. While it may be possible to implement strategies to slow or stop the decline, it is important to recognize that this stage may ultimately lead to the business's closure or repositioning.

Question 11

Human resource needs of growth can be addressed by&#10;A)paying higher wages than competitors&#10;B)purchasing technology to control increased operations&#10;C)enhancing the skills of current employees&#10;D)advertising new job openings

Accepted Answer

The answer of Human resource needs of growth can be...

Question 12

The following expense categories are particularly significant during growth periods&#10;A)entertaining potential customers&#10;B)research and development of markets&#10;C)executive salaries&#10;D)rent

Accepted Answer

The answer of The following expense categories are particularly significant...

Question 13

The business cycle and the product life cycle&#10;A)are sometimes the same as one another&#10;B)are always different&#10;C)are never determinable&#10;D)are of little value to know

Accepted Answer

The answer of The business cycle and the product life...

Question 14

Success and growth can&#10;A)make a business more difficult to manage&#10;B)lead to streamlining and simplifying the management of a business&#10;C)help to overcome complexity&#10;D)make life as an owner manager simpler and more enjoyable

Accepted Answer

The answer of Success and growth can&#10;A)make a business more...

Question 15

As a business grows&#10;A)it becomes more difficult to control&#10;B)it becomes easier to control&#10;C)control becomes a less significant concern&#10;D)it is better able to afford to outsource managerial control

Accepted Answer

The answer of As a business grows&#10;A)it becomes more difficult...

Question 16

An acknowledged advantage of a larger growing business is&#10;A)more influence in the industry&#10;B)more social contacts in the owner's community&#10;C)more comfortable corporate offices&#10;D)an easier time raising capital

Accepted Answer

The answer of An acknowledged advantage of a larger growing...

Question 17

It is noted in the text that unless a business is growing&#10;A)it's shrinking&#10;B)it's building debt&#10;C)it's stagnating&#10;D)it's losing employees

Accepted Answer

The answer of It is noted in the text that...

Question 18

Effective planning for the future of a business requires&#10;A)total sales revenue equal to equity invested times a factor of ten&#10;B)an understanding of the life cycle of the business&#10;C)the use of regional development plans for the business's market area&#10;D)connection with lenders

Accepted Answer

The answer of Effective planning for the future of a...

Question 19

Franchising is a strategy that may&#10;A)overcome the weakness of a poor product&#10;B)provide management with more borrowed funds&#10;C)not be possible to control&#10;D)enable high growth with limited capital

Accepted Answer

The answer of Franchising is a strategy that may&#10;A)overcome the...

Question 20

The start-up stage of a business is known for its&#10;A)expansion of product lines&#10;B)growth characteristics&#10;C)level sales results&#10;D)low profits

Accepted Answer

The answer of The start-up stage of a business is...

Deck 13: Managing Growth