Question 1

An industry whose products can be easily substituted faces more threats from other firms currently not in the same industry.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Operational synergy involves economies of scale.

Accepted Answer

A) True 
 B)False

Question 4

​Compared with acquisitions,alliances cost less and allow for opportunities to learn from working with each other before engaging in full-blown acquisitions.

Accepted Answer

A) True 
 B)False

Question 5

To ensure the success of the M&A,managers need to make sure of all the following EXCEPT:

Accepted Answer

A)  Be willing to walk out when premiums are too high. 
B)  Engage in adequate due diligence concerning strategic fit. 
C)  Seek organizational contrast and variety rather than organizational fit. 
D)  Address the concerns of multiple stakeholders. 
A)  Be willing to walk out when premiums are too high. 
B)  Engage in adequate due diligence concerning strategic fit. 
C)  Seek organizational contrast and variety rather than organizational fit. 
D)  Address the concerns of multiple stakeholders.

Question 6

​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 7

​Firms that excel in postacquisition integration tend to possess hard-to-imitate capabilities.

Accepted Answer

A) True 
 B)False

Question 8

​Firm A is operating in a sunset industry;what is its most prudent strategic move?

Accepted Answer

A)  ​Engage in vertical acquisitions. 
B)  ​Diversify out of the industry. 
C)  ​Acquire its rivals. 
D)  ​None of the above. 
A)  ​Engage in vertical acquisitions. 
B)  ​Diversify out of the industry. 
C)  ​Acquire its rivals. 
D)  ​None of the above.

Question 9

High entry barriers often result in green-field entries as opposed to acquisitions.

Accepted Answer

A) True 
 B)False

Question 10

Select the best choice: a company that is engaged in oil production,pipelines and tankers,refining,and gasoline stations has engaged in ______________ expansion.

Accepted Answer

A)  Horizontal 
B)  Vertical 
C)  Hostile M&A 
D)  Friendly M&A 
A)  Horizontal 
B)  Vertical 
C)  Hostile M&A 
D)  Friendly M&A

Question 11

Not all product-related diversifiers outperform product-unrelated diversifiers.

Accepted Answer

A) True 
 B)False

Question 12

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.

Question 13

​What is the difference between strategic fit and organizational fit?

Accepted Answer

​Inadequate screening and failure to ach

Question 14

Which of the following is true of relatedness?

Accepted Answer

A)  Measurement of product relatedness is no longer debatable. 
B)  A "product-related" firm will be considered related regardless of the measure used. 
C)  Product-unrelated conglomerates are not linked by institutional relatedness. 
D)  Relatedness can be a common underlying dominant logic that connects various businesses in a diversified firm. 
A)  Measurement of product relatedness is no longer debatable. 
B)  A "product-related" firm will be considered related regardless of the measure used. 
C)  Product-unrelated conglomerates are not linked by institutional relatedness. 
D)  Relatedness can be a common underlying dominant logic that connects various businesses in a diversified firm.

Question 15

​Which of the following is the most likely reason Firm A would decide to forgo an acquisition and pursue an alliance instead?

Accepted Answer

A)  ​It wants learning opportunities without long-term commitment. 
B)  ​It wants greater control of day-to-day operations. 
C)  ​It wishes to engage in a long-term enduring relationship. 
D)  ​It wishes to consolidate market power,reduce risks,and leverage economies of scope. 
A)  ​It wants learning opportunities without long-term commitment. 
B)  ​It wants greater control of day-to-day operations. 
C)  ​It wishes to engage in a long-term enduring relationship. 
D)  ​It wishes to consolidate market power,reduce risks,and leverage economies of scope.

Question 16

​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 17

Diversification discount is the situation when unrelated-product diversification enables conglomerate units to beat stand-alone rivals.

Accepted Answer

A) True 
 B)False

Question 18

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 19

​Which of the following statements is TRUE?

Accepted Answer

A)  ​Diversification creates value in all circumstances. 
B)  ​Diversification can create value by leveraging certain core competencies and capabilities. 
C)  ​Compared with diversified firms,non-diversified single-business firms are better able to spread risk. 
D)  ​Firms that undertake acquisitions have mastered the art of post-acquisition integration. 
A)  ​Diversification creates value in all circumstances. 
B)  ​Diversification can create value by leveraging certain core competencies and capabilities. 
C)  ​Compared with diversified firms,non-diversified single-business firms are better able to spread risk. 
D)  ​Firms that undertake acquisitions have mastered the art of post-acquisition integration.

Question 20

​Which of the following is true of mergers?

Accepted Answer

A)  ​A new legal entity is established. 
B)  ​A target firm becomes a unit of the acquiring firm. 
C)  ​Control of assets is turned over from one firm to its partner. 
D)  ​Mergers are much more common than acquisitions. 
A)  ​A new legal entity is established. 
B)  ​A target firm becomes a unit of the acquiring firm. 
C)  ​Control of assets is turned over from one firm to its partner. 
D)  ​Mergers are much more common than acquisitions.

An industry whose products can be easily substituted faces more threats from other firms currently not in the same industry.

Corporate scope is shaped by:

Operational synergy involves economies of scale.

Compared with acquisitions,alliances cost less and allow for opportunities to learn from working with each other before engaging in full-blown acquisitions.

To ensure the success of the M&A,managers need to make sure of all the following EXCEPT:

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

Firms that excel in postacquisition integration tend to possess hard-to-imitate capabilities.

Firm A is operating in a sunset industry;what is its most prudent strategic move?

High entry barriers often result in green-field entries as opposed to acquisitions.

Select the best choice: a company that is engaged in oil production,pipelines and tankers,refining,and gasoline stations has engaged in ______________ expansion.

Not all product-related diversifiers outperform product-unrelated diversifiers.

Product-related diversification involves all of the following EXCEPT:

What is the difference between strategic fit and organizational fit?

Which of the following is true of relatedness?

Which of the following is the most likely reason Firm A would decide to forgo an acquisition and pursue an alliance instead?

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

Diversification discount is the situation when unrelated-product diversification enables conglomerate units to beat stand-alone rivals.

Diversification is beneficial for all of the following situations EXCEPT:

Which of the following statements is TRUE?

Which of the following is true of mergers?

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

An industry whose products can be easily substituted faces more threats from other firms currently not in the same industry.

Corporate scope is shaped by:

Operational synergy involves economies of scale.

​Compared with acquisitions,alliances cost less and allow for opportunities to learn from working with each other before engaging in full-blown acquisitions.

To ensure the success of the M&A,managers need to make sure of all the following EXCEPT:

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

​Firms that excel in postacquisition integration tend to possess hard-to-imitate capabilities.

​Firm A is operating in a sunset industry;what is its most prudent strategic move?

High entry barriers often result in green-field entries as opposed to acquisitions.

Select the best choice: a company that is engaged in oil production,pipelines and tankers,refining,and gasoline stations has engaged in ______________ expansion.

Not all product-related diversifiers outperform product-unrelated diversifiers.

Product-related diversification involves all of the following EXCEPT:

​What is the difference between strategic fit and organizational fit?

Which of the following is true of relatedness?

​Which of the following is the most likely reason Firm A would decide to forgo an acquisition and pursue an alliance instead?

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

Diversification discount is the situation when unrelated-product diversification enables conglomerate units to beat stand-alone rivals.

Diversification is beneficial for all of the following situations EXCEPT:

​Which of the following statements is TRUE?

​Which of the following is true of mergers?

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

Compared with acquisitions,alliances cost less and allow for opportunities to learn from working with each other before engaging in full-blown acquisitions.

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

Firms that excel in postacquisition integration tend to possess hard-to-imitate capabilities.

Firm A is operating in a sunset industry;what is its most prudent strategic move?

What is the difference between strategic fit and organizational fit?

Which of the following is the most likely reason Firm A would decide to forgo an acquisition and pursue an alliance instead?

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

Which of the following statements is TRUE?

Which of the following is true of mergers?