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1
When cash flow problems are discovered, the pro forma budgeted amounts should be changed.
A)True
B)False
2
One of the most successful diversification strategies is to diversify into related products or related markets to spread the risk.
A)True
B)False
3
The value-added chain is usually available only to small, local firms.
A)True
B)False
4
A product development strategy does not rely on taking market share from competitors.
A)True
B)False
5
Most new ventures need a human resource department from the first day of operations.
A)True
B)False
6
Using a time sheet to record usage of time is part of the principle of:
A)desire.
B)effectiveness.
C)analysis.
D)prioritized planning.
7
Inventory control:
A)is necessary only for larger firms.
B)eliminates the need to carry inventory.
C)balances the cost of carrying inventory with the cost of lost sales.
D)requires a computerized inventory system.
8
________________ provide(s) the opportunity to increase sales of the existing product.
A)Backward integration
B)Horizontal integration
C)Forward integration
D)Forward and backward integration
9
______ strategies involve selling a comparable product to an established market.
A)Penetration
B)Market development
C)Product development
D)Diversification
10
The penetration growth strategy is all of the following except:
A)focuses on developing comparable products for the existing market.
B)relies on creating a new target market share.
C)expands the firm's product offering with comparable products.
D)encourages more frequent repeat purchases.





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