Question 1

Corporate scope is shaped by:

Accepted Answer

A) Industry conditions. 
B) Firm capabilities. 
C)  Institutional constraints. 
D)  All of the above. 
A) Industry conditions. 
B) Firm capabilities. 
C)  Institutional constraints. 
D)  All of the above.

Question 2

Which geographic diversification is most likely to reduce the liability of foreignness?

Accepted Answer

A) Culturally adjacent countries. 
B) Extensive international scope. 
C)  Beyond geographically neighboring countries. 
D)  Beyond culturally neighboring countries. 
A) Culturally adjacent countries. 
B) Extensive international scope. 
C)  Beyond geographically neighboring countries. 
D)  Beyond culturally neighboring countries.

Question 3

High entry barriers are a main factor in the decision to avoid diversification.

Accepted Answer

A) True 
 B)False

Question 4

The optimum level for a firm's diversification is where:

Accepted Answer

A) ​Marginal bureaucratic costs are greater than marginal economic benefit. 
B) ​Marginal economic benefit is less than marginal bureaucratic costs. 
C)  ​Total bureaucratic costs equal marginal economic benefits. 
D)  ​Marginal bureaucratic costs equal marginal economic benefits. 
A) ​Marginal bureaucratic costs are greater than marginal economic benefit. 
B) ​Marginal economic benefit is less than marginal bureaucratic costs. 
C)  ​Total bureaucratic costs equal marginal economic benefits. 
D)  ​Marginal bureaucratic costs equal marginal economic benefits.

Question 5

Although the term mergers and acquisitions (M&As) is often used, in reality, acquisitions dominate the scene.

Accepted Answer

A) True 
 B)False

Question 6

Instead of operational synergy, conglomerates focus on financial synergy.

Accepted Answer

A) True 
 B)False

Question 7

Traits such as goals, experiences, and behaviors of a target firm that complement those of the acquiring firm lead to good organizational fit.

Accepted Answer

A) True 
 B)False

Question 8

Diversification is beneficial for all of the following situations EXCEPT:

Accepted Answer

A) Risk is spread over several (product or country) markets. 
B) Core resources are leveraged. 
C)  The art of post-acquisition integration has been mastered. 
D)  Commonly shared industry skills are used. 
A) Risk is spread over several (product or country) markets. 
B) Core resources are leveraged. 
C)  The art of post-acquisition integration has been mastered. 
D)  Commonly shared industry skills are used.

Question 9

When a firm experiences a failure to integrate its M&As after the acquisition, it is most likely the result of:

Accepted Answer

A) ​An inadequate number of worthy targets. 
B) ​Poor strategic fit. 
C)  ​Far-flung conglomerates. 
D)  ​Poor organizational fit. 
A) ​An inadequate number of worthy targets. 
B) ​Poor strategic fit. 
C)  ​Far-flung conglomerates. 
D)  ​Poor organizational fit.

Question 10

Product-related diversification involves all of the following EXCEPT:

Accepted Answer

A) A single business strategy. 
B) Synergy. 
C)  The emphasis is on economies of scale rather than scope. 
D)  Increases in competitiveness. 
A) A single business strategy. 
B) Synergy. 
C)  The emphasis is on economies of scale rather than scope. 
D)  Increases in competitiveness.

Corporate scope is shaped by:

Which geographic diversification is most likely to reduce the liability of foreignness?

High entry barriers are a main factor in the decision to avoid diversification.

The optimum level for a firm's diversification is where:

Although the term mergers and acquisitions (M&As) is often used, in reality, acquisitions dominate the scene.

Instead of operational synergy, conglomerates focus on financial synergy.

Traits such as goals, experiences, and behaviors of a target firm that complement those of the acquiring firm lead to good organizational fit.

Diversification is beneficial for all of the following situations EXCEPT:

When a firm experiences a failure to integrate its M&As after the acquisition, it is most likely the result of:

Product-related diversification involves all of the following EXCEPT:

Strategizing Around the Globe

Managing Industry Competition

Leveraging Resources and Capabilities

Emphasizing Institutions, Cultures, and Ethics

Growing and Internationalizingthe Entrepreneurial Firm

Entering Foreign Markets

Making Strategic Alliancee and Networks Work

Managing Global Competitive Dynamics

Strategizing, Structuring, and Learningaround the World

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

Filters

Exam 9: Diversifying, Acquiring, and Restructuring

Corporate scope is shaped by:

Which geographic diversification is most likely to reduce the liability of foreignness?

High entry barriers are a main factor in the decision to avoid diversification.

The optimum level for a firm's diversification is where:

Although the term mergers and acquisitions (M&As) is often used, in reality, acquisitions dominate the scene.

Instead of operational synergy, conglomerates focus on financial synergy.

Traits such as goals, experiences, and behaviors of a target firm that complement those of the acquiring firm lead to good organizational fit.

Diversification is beneficial for all of the following situations EXCEPT:

When a firm experiences a failure to integrate its M&As after the acquisition, it is most likely the result of:

Product-related diversification involves all of the following EXCEPT:

Strategizing Around the Globe

Managing Industry Competition

Leveraging Resources and Capabilities

Emphasizing Institutions, Cultures, and Ethics

Growing and Internationalizingthe Entrepreneurial Firm

Entering Foreign Markets

Making Strategic Alliancee and Networks Work

Managing Global Competitive Dynamics

Strategizing, Structuring, and Learningaround the World

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

Filters