Question 1

Which of the following best describes Foreign Direct Investment (FDI)?
a. Avoiding the use of financial intermediaries such as brokers.
b. Firm invests directly in production or service activities in another country.
c. Traveling to a country to invest instead of using the Internet.
d. Citizens of a foreign country invest in their own country with their own resources.
e. The use of cash instead of credit.

Accepted Answer

The answer of Which of the following best describes Foreign...

Question 2

How many people have you known who established an SME because he/she wanted to "be his/her own boss?" How many of them actually worked more hours and had less vacation time than if they worked for someone else? How many had to make sacrifices for at least the first few years in terms of income and time with their family as compared to what their situation would likely have been otherwise? What appears to have motivated them? If you have not known anyone like that, what do you think would drive otherwise rational people to "become their own boss?"

Accepted Answer

The answer of How many people have you known who...

Question 3

Which of the following traits would tend to prevent entrepreneurs from establishing new firms?
a. Strong desire for achievement.
b. Strong locus of control.
c. Willingness to take risks and tolerate ambiguity.
d. The tendency to be a serial entrepreneur.
e. None of the above.

Accepted Answer

The answer of Which of the following traits would tend...

Question 4

Innovation is at the heart of an entrepreneurial mindset and important to success. However, what if a person does not tend to be creative? Should that person not consider forming an SME? Are there approaches that one can follow which will likely enable such a person to be more innovative than would otherwise have been the case?

Accepted Answer

The answer of Innovation is at the heart of an...

Question 5

Suppose you are convinced that you have a product/service that has a huge overseas potential but your funds are very limited and you do not wish to seek partners, investors, or creditors to exploit the opportunity. What can you do?

Accepted Answer

The answer of Suppose you are convinced that you have...

Question 6

"Greenfield ventures" are:
a. Examples of international grain corporations.
b. Environmentally friendly MNEs.
c. Wholly owned subsidiaries that are built from scratch in a foreign country.
d. Irrigation projects in areas stricken by famine.
e. Joint ventures in agriculture between governments and private firms.

Accepted Answer

The answer of "Greenfield ventures" are:
a. Examples of international grain...

Question 7

Suppose you have formed a company that is pursuing a product or service that is the current hot fad among investors and it appears that you could quickly enhance your personal wealth as well as quickly provide funds for your company through an IPO. It seems like an awesome opportunity. However, why might you wish to turn it down?

Accepted Answer

The answer of Suppose you have formed a company that...

Question 8

Which normally provides the most control over technology and brand?
a. Direct investment.
b. Licensing.
c. Franchising.
d. B and C above.
e. There is no difference in any of the above.

Accepted Answer

The answer of Which normally provides the most control over...

Question 9

What were the four implications for action by the savvy entrepreneur listed in the text? Which is the most important for the entrepreneur? Which is the easiest and fastest for that person to implement?

Accepted Answer

The answer of What were the four implications for action...

Question 10

Which of the following involves the most complexity?
a. Direct exporting.
b. Direct importing.
c. Direct investment.
d. Licensing.
e. Franchising.

Accepted Answer

The answer of Which of the following involves the most...

Quiz 6: The Entrepreneurial Firm

Which of the following traits would tend to prevent entrepreneurs from establishing new firms? a. Strong desire for achievement. b. Strong locus of control. c. Willingness to take risks and tolerate ambiguity. d. The tendency to be a serial entrepreneur. e. None of the above.

Suppose you are convinced that you have a product/service that has a huge overseas potential but your funds are very limited and you do not wish to seek partners, investors, or creditors to exploit the opportunity. What can you do?

Which normally provides the most control over technology and brand? a. Direct investment. b. Licensing. c. Franchising. d. B and C above. e. There is no difference in any of the above.

What were the four implications for action by the savvy entrepreneur listed in the text? Which is the most important for the entrepreneur? Which is the easiest and fastest for that person to implement?

Which of the following involves the most complexity? a. Direct exporting. b. Direct importing. c. Direct investment. d. Licensing. e. Franchising.