Q1: Which of the following is a barrier to entry?

a. consumer demand for a product

.b. brand identification

c. the existence of a popular complement

d. a low-cost distribution method

e. an inexpensive production process

Q2: Pams father told her, I admire your boldness, but Im not sure that you should open that business. Ive heard that entrepreneurs are ________. Pam replied, Thats a common myth. In fact, entrepreneurs take very careful, calculated risks and are not afraid to act on those decisions.

a. inventors

b. gamblers

c. promoters

d. planners

e. investors

Q3: Economies of scope refers to the idea that

a. producing large quantities results in lower costs per unit produced.

b. materials and processes employed in one product can be used to make related products.

c. getting products to market ahead of the competition is, often, a key to success.

d. the producer with the greatest percentage of market share has maximum staying power.

e. the variety of products offered indicates sustainable economic growth.

Q4: A strategic alliance is a(n)

a. organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights.

b. firm in which top management ensures that there is consensus about the direction in which the business is heading.

c. independent grassroots effort whose goal is to create a sustainable organization that helps solve important social problems.

d. way of managing in which everyone is committed to continuous improvement of his or her part of the organization.

e. formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals.