Quiz: Business Development Questions
- 1.Please enlighten us and your fellow team members with regards to the following questions:BDMs: In what ways does the BD function of a pharma company differ from the BD function here at M2 and how can we market to members of this team? What can M2 offer them? How would you pitch to them?CSMs: What criteria would you be looking for in a consultant to fill a role in the BD function of a pharma company. What types of needs can you anticipate a BD team member having and in what ways would you refine your search criteria to fund a consultant to fill that need?Operations: What did you learn in this chapter that you did not know before and how can you use it to support other members of the LSG team?You may submit this via e-mail or in the space below, which ever you feel more comfortable with.
- 2.Upon what is a company's "Partnership Reputation" based?
- A.
Ability to successfully conduct hostile takeovers of companies
- B.
Ability to forge BD contracts and creative payment strategies
- C.
Ability to successfully merge with other companies
- D.
Street cred
- 3.What do BD deals typically involve, at the highest level?
- A.
Attracting clients
- B.
Selling products
- C.
Alliances or partnerships with other companies
- 4.What does the BD function of a pharma company do?
- A.
Identify, negotiate, and often implement deals that align with corporate strategy
- B.
Create and negotiate deals that bring new and innovative ideas into the company
- C.
Assist the marketing arm of the company with promoting the company
- D.
Monitor acquisition and divestiture deals.
- 5.With which other teams does BD work most closely?
- A.
Marketing, Clinical Development, and Regulatory
- B.
Regulatory, Legal, and Marketing
- C.
Discovery, Development, and Regulatory
- D.
Clinical Development, Marketing, and Discovery
- 6.True or false: While products under development and licensing opportunities can come from anywhere within the company, BD takes the first pass at processing/screening them.
- A.
True
- B.
False
- 7.Once a BD screens an opportunity and accepts it, it becomes a qualified opportunity. Where does it go at this point?
- A.
Immediately goes into processing
- B.
Goes to a secondary approval committee
- C.
Stays in BD to advance to the next step
- D.
It goes back to the other company until their BD team accepts it
- 8.What method is typically used to evaluate the financial potential of a deal?
- A.
Due diligence
- B.
GAAP
- C.
Discounted cash flow
- D.
Scientific risk-aversion analysis
- E.
Stochastic analysis
- 9.For opportunities that survive in-depth analysis, who makes up the team that sits down at the negotiating table to finalize the deal?
- A.
BD, Legal, Finance
- B.
Marketing, Legal, BD
- C.
Discovery, Development, BD
- D.
Marketing, Development, Finance
- 10.There are three contractual terms that usually receive the most attention. Which item below is no one of them?
- A.
Description of the business relationship
- B.
Deal value
- C.
Legal description
- D.
Schedule of payments
- 11.Name the following common BD deals: A. Marketing of the same product under a different brand name B. Establishment of a new corporate entity to commercialize a product that is jointly owned by the partners. C. Licensing by one contract partner of sales and marketing rights to the other's product in a specified geography. D. Licensing of limited commercial rights by one contract partner to the other partners product in exchange for development funding and/or assistance
- A.
A. Co-marketing B. Co-promotion C. Manufacturing or supply D. Marketing-Licensing
- B.
A. Co-Marketing B. Joint Venture C. Market-Licensing D. R&D and Marketing Licensing
- C.
A. Joint Venture B. Product Acquisition C. Market-Licensing D. Co-Promotion
- D.
A. Product acquisition B. Joint Venture C. Market-Licensing D. Manufacturing or Supply
- 12.Which is not one of the three categories in which a BD deal typically falls?
- A.
In-licensing and Acquisitions
- B.
Cooperative Development and Commercialization
- C.
Out-Licensing and Divestiture
- D.
Hostile takeovers
- 13.True or False: Negotiations and deals cannot cover multiple products and/or involve complementary services; there must be a specific deal for each product/service.
- A.
True
- B.
False
- 14.What might the structure of a deal look like when two parties want to "test the waters" with a product while still looking to collaborate with other products?
- A.
A deal with contingent terms.
- B.
A deal with a "test/no fault" clause.
- C.
When a deal is structured so that the success of the initial product triggers mutual obligations with respect to other products.
- D.
When a deal is structured so that one party has the option of backing out before the final negotiations, and the other party is aware of this fact.
- 15.On what will the financial terms of the deal be based?
- A.
It will be based on the value assigned to the asset and decisions about how that value is to be shared.
- B.
It will be based upon the total value of the companies entering into the negotiations.
- C.
It will be based on the value that each party brings to the deal.
- D.
The FDA must assign the value of the product in question.
- 16.What type of product has high risk and low value in a deal?
- A.
A product that has FDA approval
- B.
A late stage product
- C.
An early stage product
- D.
A product that is undergoing off-label investigator trials
- 17.What is the most common way BD mitigates risk in deals?
- A.
By working with the legal team to product airtight contracts that absolves them of any risk.
- B.
Through the careful structuring of deal payments.
- C.
By only entering into negotiations regarding late stage compounds.
- D.
By employing Steve Jaben to handle their legal affairs.
- 18.What are milestone payments?
- A.
Reoccurring payments that happen in predefined intervals.
- B.
Payments that are based on sales performance.
- C.
Where one party leaves bags of money at certain milemarkers along the interstate.
- D.
Payments that are contingent on the achievement of certain development or commercialization goals.
- 19.What type of deal would require FDA/external regulatory body approval?
- A.
When the joint venture would create antitrust concerns through less competition in the market.
- B.
The FDA must always approve BD deals between companies.
- C.
In cases where the contract calls for a change in manufacturing facilities.
- D.
None. Approval is received from internal regulatory bodies only.
- 20.Which is not usually a core competency of the BD function?
- A.
Opportunity prospecting
- B.
Deal evaluation and closure
- C.
Therapeutic evaluation
- D.
Alliance management
- 21.Industry wide, to which entity does BD typically NOT report?
- A.
The C-Suite (CEO, COO, CFO)
- B.
R&D
- C.
Leader of Strategic Marketing
- D.
Regulatory
- 22.Which of the following functions is not one that supports BD on every deal?
- A.
Legal
- B.
Marketing
- C.
Finance
- D.
Technical Specialist
- 23.Most leading companies in the BioPharma industry are engaged in:
- A.
In-licensing
- B.
Out-licensing
- C.
Both in-licensing and out-licensing
- D.
Neither in-licensing or out-licensing
- 24.Beckett's birthday is coming up on March 1. She is wishing for:
- A.
Angel food cake with strawberries.
- B.
New running shoes with speedy red laces.
- C.
W. Lawrence Bragg (back when he was younger and won, of course, not the older gentleman)
- D.
Coffee, coffee, and more coffee.
- E.
All of the above.
Related Topics
Featured Quizzes
Popular Topics
- Accounting Quizzes
- Advertising Quizzes
- Agriculture Quizzes
- Automotive Quizzes
- Brand Quizzes
- Business Accounting Quizzes
- Business Analyst Quizzes
- Business Environment Quizzes
- Business Etiquette Quizzes
- Business Finance Quizzes
- Business Math Quizzes
- Business Organization Quizzes
- Business Study Quizzes
- Business Technology Quizzes
- CEO Quizzes
- Collaboration Quizzes
- CSR Quizzes
- Customer Service Quizzes
- Development Quizzes
- Ecommerce Quizzes
- Employment Quizzes
- Entrepreneurship Quizzes
- Finance Quizzes
- Hospitality Quizzes
- Human Resources Quizzes
- Industry Quizzes
- International Business Quizzes
- Introduction To Business Quizzes
- Investment Quizzes
- Logistics Quizzes
- Management Quizzes
- Manufacturing Quizzes
- Marketing Quizzes
- Material Quizzes
- Media Quizzes
- Office Quizzes
- Organization Quizzes
- Principles Of Business Quizzes
- Printing Quizzes
- Product Quizzes
- Publishing Quizzes
- Real Estate Quizzes
- Retail Quizzes
- Sales Quizzes
- SAP Business One Quizzes
- Small Business Quizzes
- Source Quizzes
- Supply Quizzes
- Survey Quizzes
- Telecommunication Quizzes
- Trade Quizzes
- Training Quizzes
- Transportation Quizzes
- Warehouse Quizzes
- Welding Quizzes
Back to top