Reference no: EM132169616
1. One of the disadvantages of franchising is the risk of creating competitors.
True
False
2. When working with venture capitalists, entrepreneurs may consider ceding a portion of their ownership in a start-up firm in order to obtain larger-scale financing.
True
False
3. Indirect exporting can be achieved through export intermediaries.
True
False
4. SMEs are;:
a. The exclusive domain of entrepreneurship.
b. Rarely entrepreneurial.
c. Reclassified as MNEs within 2–5 years.
d. On average, more entrepreneurial than large firms.
5. First-mover advantages always outweigh late-mover advantages.
True
False
6. Selling out can be a viable exit strategy.
True
False
7. A key dimension in foreign entry decisions is the amount of resources committed to entering the foreign market, referred to as:
a. Regulatory risk.
b. Regulatory risk.
c. Scale of entry.
d. Local content requirement.
8. Non-equity modes of entry typically involve:
a. Larger, harder-to-reverse commitments.
b. Establishing independent organizations overseas.
c. Exports and contractual agreements.
d. Joint ventures (JVs).
9. The liability of foreignness sometimes has a positive effect on customers’ perception and their desire for products from a certain country. This concept is known as:
a. OLI advantage.
b. Co-marketing.
c. Strategic hedging.
d. Country-of-origin effect.
10. Which of the following would NOT be considered a route of entrepreneurial harvest and exit?
a. Declaring bankruptcy.
b. Merging with another firm.
c. Considering an initial public offering.
d. Engaging a venture capitalist.
11. Greenfield operations refer to:
a. Wholly owned subsidiaries.
b. Co-marketing.
c. Turnkey projects.
d. R&D contracts.
12. Around the world, there are striking differences in government regulations concerning start-ups.
True
False
13. The comprehensive model of entrepreneurship involves which of the following perspectives?
a. MNE-based.
b. Transaction cost–based.
c. Accounting-based.
d. Institution-based.
14. When it comes to the propensity to internationalize, an enthusiastic internationalizer will most likely be characterized by being a:
a. Large firm in a large domestic market.
b. Large firm in a small domestic market.
c. Small firm in a large domestic market.
d. Small firm in a small domestic market.
15. quity and non-equity modes of entry into foreign markets are essentially the same.
True
False
16. Customer discrimination against foreign firms has been eliminated in recent years.
True
False
17. The sale of products made by entrepreneurial firms in their home country to customers in other countries is best described as:
a. Direct exporting.
b. Indirect exporting.
c. Franchising.
d. None of the above.
18. Which of the following would NOT be considered an advantage of MNEs?
a. Location.
b. Barriers.
c. Internalization.
d. Ownership
19. When entrepreneurs are private owners of small firms, their personal networks are unlikely to have much impact on firm performance.
True
False
20. SMEs can enter foreign markets through:
a. Direct exports.
b. All of the above.
c. Foreign direct investment.
d. Licensing and franchising.