According to journalists' findings, what is a serious obstacle for many small business owners?

According to journalists' findings, what is a serious obstacle for many small business owners?

A) A lack of business ethics
B) An excess of employees and managerial staff
C) A lack of experience in networking
D) A lack of strategic-management knowledge
E) Having too many suppliers


Answer: D) A lack of strategic-management knowledge

When companies take over functional operations of other firms, such as human resources, information systems, payroll, accounting, or customer service, this is called

When companies take over functional operations of other firms, such as human resources, information systems, payroll, accounting, or customer service, this is called

A) marketing.
B) outsourcing.
C) licensing.
D) franchising.
E) divestiture.


Answer: B) outsourcing.

Which strategy would be most appropriate when the distinctive competencies of two or more firms complement each other especially well?

Which strategy would be most appropriate when the distinctive competencies of two or more firms complement each other especially well?

A) Conglomerate diversification
B) Divestiture
C) Joint venture
D) Retrenchment
E) Integration


Answer: C) Joint venture

Which of the following is NOT a reason joint ventures fail?

Which of the following is NOT a reason joint ventures fail?

A) Managers who must collaborate daily in operating the venture are not involved in forming or shaping the venture.
B) The venture may not be supported equally by both partners.
C) The venture may benefit the partnering companies but may not benefit the customers who then complain about poorer service or criticize the companies in other ways.
D) Stakeholders from both partners are equally satisfied.
E) The venture may begin to compete more with one of the partners than the other.



Answer: D) Stakeholders from both partners are equally satisfied.