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15 Cards in this Set
- Front
- Back
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Small and medium enterprises (SMEs) are important because: a. They create approximately 50% of total value added in the world b. They increase employment rate in government sectors c. They account for 50% of the number of firms in the world d. They revive old management practices |
a. They create approximately 50% of total value added in the world |
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Which of the following steps should be taken by governments to be entrepreneur-friendly? a. governments should adopt collectivist attitudes b. governments should impose fewer procedures for entrepreneurs c. governments should increase processing time to ensure proper background check of entrepreneurs is done d. governments should refrain from approving entrepreneurial firms that involve high risks |
b. governments should impose fewer procedures for entrepreneurs |
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_____ involves lending sums ($50-$300) used to start small businesses with the intention of ultimately lifting the entrepreneurs out of poverty. a. microfinance b. venture capital c. foreign direct investment (FDI) d. foreign portfolio investment (FPI) |
a. microfinance |
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A _______ refers to a financial contract that states that the importer's bank will pay a specific sum of money to the exporter. a. letter of credit b. petition c. Bill of Lading d. Letter of Intent |
a. Letter of Credit |
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Being a first mover in a market is advantageous for a firm because: a. it may have an opportunity to free ride on late-mover investments b. it may gain advantage through proprietary technology c. it would attract more firms to join their business network d. it would face minimal technological and market uncertainties |
b. it may gain advantage through proprietary technology |
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_____ is defined as a project in which clients pay contractors to design and construct new facilities and train personnel a. an acquisition b. a joint venture c. a greenfield project d. a turnkey project |
d. a turnkey project |
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_______ are associations between firms that are based on contracts and do not involve the sharing of ownership. a. non-equity-based alliances b. acquisitions c. equity-based alliances d. competitive alliances |
a. non-equity-based alliances |
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_____ refers to a business strategy in which each partner in an alliance holds stock in the other firm. a. acquisition b. strategic investment c. cross-shareholding d. merger |
c. cross-shareholding |
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A(n)________ is a transfer of the control of operations and management from one firm to another. a. strategic investment b. equity-based alliance c. merger d. acquisition |
d. acquisition |
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Informal institutions affect the formation of alliances and acquisitions by: a. imposing entry mode requirements b. centering on collective norms, supported by a normative pillar c. involving antitrust authorities to monitor the market d. discouraging acquisitions |
b. centering on collective norms, supported by a normative pillar |
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In the context of organizing acquisitions, _____ is the similarity in culture, systems, and structures between two or more firms. a. strategic fit b. organizational fit c. relational capability d. collaborative capability |
b. organizational fit |
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In the pre-acquisition phase, which of the following must be avoided by an acquirer to reduce the possibility of acquisition failure? a. adopting a synergistic view b. giving importance to executive hubris c. taking actions to eliminate poor organizational fit d. addressing stakeholders' concerns |
a. adopting a synergistic view |
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The two sets of pressures that multinational enterprises (MNEs) confront are _______. a. formal institutions and informal institutions b. cost reduction and local responsiveness c. liability of foreignness and investment risk d. explicit knowledge and tacit knowledge |
b. cost reduction and local responsiveness |
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_______ means reacting to different consumer preferences and host-country demands. a. global integration b. global standardization c. local responsiveness d. home replication |
c. local responsiveness |
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Which of the following is an effect of adopting a local responsiveness strategy? a. standardized products are developed and distributed b. home-country-based competencies are duplicated in foreign countries c. regulations on local products are loosened d. costs of products and services are increased |
d. costs of products and services are increased |
