Write T if the given statement is True and F
if False. More than one answers for a statement will make the answer incorrect.
- In a partnership agreement, an exit clause is included only if
partners fear a potential failure.
- An exit strategy is to plan on how to optimize the exit situation.
- Through an exit plan, partners may minimize their losses and
optimize the difficult situation.
- Exit strategies are planned for only the following reasons:
problems in style of management, failure to meet strategic objectives,
fulfillment of partnership objectives, financial issues and breach of
agreement by a partner.
- Some partners may want to exit the partnership even when the
business is doing well.
- Acquisition may also be called the purest form of partnership.
- Selling ownership to employees could be one of the exit strategies
for owners to exit the business.
- Exit in case of bankruptcy will have legal authorities intervene to
- Succession is referred to as extent of success a partnership is
- Offering shares to the general public is not considered an exit as
existing owners may still own part of ownership.
- In merger, one of the partner companies ceases to exist after the
merger is completed.
- Liquidation is when some of the assets of the partnership are
offered for sale.
- Once the conditions of an exit clause are agreed and signed upon,
they become binding on partners.
- Termination of a contract by an "aggrieved" partner may
be caused because of the other partner may be “underperforming” or over-performing.
- An explicit Exit clause could also be referred to as an
"implied" or indirect ground of termination of partnership
- Arbitration as an Alternative Dispute Resolution Method cannot be
challenged in a court of law.
- A decision through Mediation is not
- It is best for both partners to have
conditions in the exit clause implemented when the business is still
- Some objectives of International business
operations are meeting quality standards, forecasting demand and supply,
assess the production cost and arrange financial resources.
- A Joint Venture is considered the real form of
- The most cost-effective way of conducting
conferences with international partners is to hold these conferences at
prospective partner's own office.
- A partner development-strategy is successful
when it trains and mentors the staff for future operations.
- Almost all organizations in North America
train their future employees/partners.
- The only motivator for employees is financial rewards.
- The cheapest of the conflict-resolution
methods is a resolution within the organization.
- One of the main objectives of negotiating a
partnership-agreement is to develop trust between potential
- The only objective of finding the right partner
is to assess the organizational "readiness".
- Some companies may also look for a potential
business partner on social networking sites.
- When a company is dealing with a limited
number of clients, an agent is a more appropriate option as compared to a
- A Licensing-agreement is always for a
- Licensing, Franchising and Joint-Ventures are some types of Foreign
- A Greenfield project is bought and run within the country of
- In a franchising agreement, the franchisee
pays a fee to sell the product in a designated area.
- Mostly, the franchise owner advertises the
product whereas the franchisee pays for advertising.
- The upfront fee and commission that a
franchisee pays is also called as Royalty.
- An agent could legally sue and be sued upon
for their Principal whereas a distributor cannot.