50 !

1) diversification generally works best when companies add products related to their established business
a. true
b. false

2) mrs. fields cookies is an indirect competitor for krispy kreme because
a. both companies sell specialty treats, but different types
b. there products are served at the same type of occasions
c. much of krispy kremes sales come from cookies
d. their businesses seem to be open at different hours

3) which of the following is an example of diminishing returns?
a. the value of an investment declines at a steady rate over the course of a year
b. a pair of dogs has seven puppies in their first litter and only three in their second
c. a farmer increases the crops planted but gets increasingly smaller harvests
d. a business decides to open a second business, which struggles, but opens a third anyway

4) why is liquidating the lease a desirable option for a harvest plan?
a. it is done only if an initial public offering fails
b. it is time-consuming and labor-intensive option
c. the business while likely lose money when liquidating
d. it is the least creative business solution

5) which of the following is the best example of an indirect competitor for krispy kreme?
a. mcdonald's
b. cinnabon
c. starbucks
d. pizza hut

6) which of the following is an example of an innovation?
a. repeating a competitors past successes
b. holding numerous brainstorming sessions
c. inventing a better functioning product
d. bringing in experts to resolve a business problem

7) which of the following is an example of diversification?
a. two rival pizza establishments opening in the same area
b. a gas station adding a car wash
c. a successful office-supply store opening a second branch
d. an air-conditioning repair business adding plumbing services

8) which if the following would be a disadvantage of releasing cash flow to buy out an investor?
a. the company will pay less in taxes if it has little cash
b. it is better to liquidate assets than release cash
c. investors become concerned when cash is released without a good reason
d. it might not have the funds available to cover unanticipated expenses

9) expanding businesses often centralize distribution to create more efficient processes
a. true
b. false

10) once a business has saturated the market, it should
a. cut back so there will be room for growth
b. plan on expanding in the same area
c. develop a new product or service
d. all of the above

11) why should management increase with the size of the company
a. so the company can maintain the same ratio as when it was small
b. so that the growth can be carefully monitored and managed
c. because a variety of consultants will need more supervision
d. because investors favor companies with a lot of administrative positions