Question 1

​Engaging in thorough due diligence concerning both strategic fit and organizational fit will not guarantee successful M&As.

Accepted Answer

A) True 
 B)False

Question 2

​You are managing a firm in a developing economy.What advantages might you have in pursuing conglomeration for your firm?

Accepted Answer

​Conglomerates in emerging economies may

Question 3

Porter's five forces model can be used in regards to the structural attractiveness of an industry.

Accepted Answer

A) True 
 B)False

Question 4

​Conglomerate M&As are transactions involving firms in product-related industries.

Accepted Answer

A) True 
 B)False

Question 5

​Most cross-border deals are mergers rather than acquisitions.

Accepted Answer

A) True 
 B)False

Question 6

​Product relatedness is determined exclusively by visible product linkages.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following managerial motives for conglomerations benefits shareholders?

Accepted Answer

A)  Norms. 
B)  Reducing managers' employment risk. 
C)  Organizational stability. 
D)  Pursuing power,prestige,and income. 
A)  Norms. 
B)  Reducing managers' employment risk. 
C)  Organizational stability. 
D)  Pursuing power,prestige,and income.

Question 8

​The mechanisms needed to obtain financial synergy in diversification are the same as those needed to obtain operational synergy.

Accepted Answer

A) True 
 B)False

Question 9

​Cross-border M&As:

Accepted Answer

A)  ​Are rare. 
B)  ​Have increased in the past 20 years. 
C)  ​Have decreased in the past 20 years. 
D)  ​Consist mainly of mergers rather than acquisitions. 
A)  ​Are rare. 
B)  ​Have increased in the past 20 years. 
C)  ​Have decreased in the past 20 years. 
D)  ​Consist mainly of mergers rather than acquisitions.

Question 10

By the 1980s MBC began to decrease.

Accepted Answer

A) True 
 B)False

Question 11

​In reality,the need for flexible diversification strategies is because of the static nature of:

Accepted Answer

A)  ​Industry dynamics. 
B)  ​Resource repertoires. 
C)  ​Institutional conditions. 
D)  None of the above. 
A)  ​Industry dynamics. 
B)  ​Resource repertoires. 
C)  ​Institutional conditions. 
D)  None of the above.

Question 12

To add maximum value,a product-related diversifier needs to:

Accepted Answer

A)  ​Focus primarily on geographic diversification. 
B)  ​Switch to a product-unrelated diversification strategy. 
C)  ​Foster a centralized organizational structure with a cooperative culture. 
D)  ​None of the above. 
A)  ​Focus primarily on geographic diversification. 
B)  ​Switch to a product-unrelated diversification strategy. 
C)  ​Foster a centralized organizational structure with a cooperative culture. 
D)  ​None of the above.

Question 13

When conglomerate units are better off competing as stand-alone entities,we call it diversification premium.

Accepted Answer

A) True 
 B)False

Question 14

Porter's five forces affect the structural attractiveness of an industry.

Accepted Answer

A) True 
 B)False

Question 15

Research regarding the relationship between product diversification and firm performance indicates that:

Accepted Answer

A)  Putting your eggs in similar baskets," has emerged as a balanced way to both reduce risk and leverage synergy. 
B)  Performance may decrease as firms change from product-related to -unrelated. 
C)  The linkage between diversification and performance is inverted U shaped. 
D)  All of the above. 
A)  Putting your eggs in similar baskets," has emerged as a balanced way to both reduce risk and leverage synergy. 
B)  Performance may decrease as firms change from product-related to -unrelated. 
C)  The linkage between diversification and performance is inverted U shaped. 
D)  All of the above.

Question 16

You recently noticed a comment in a blog which stated: "By its very nature,restructuring is a violation of CSR!" How do you feel about that?

Accepted Answer

In all of these questions,the important

Question 17

​Firms that engage in product-related diversification as well as far-flung multinational expansion are following a classic conglomerate strategy.

Accepted Answer

A) True 
 B)False

Question 18

Interest in conglomerates has declined in emerging economies due to their developed capital markets.

Accepted Answer

A) True 
 B)False

Question 19

You are the CEO of Mega Global Corporation and you are weighing a number of decisions involving diversification,acquisition,and restructuring.Long ago you were the manager of a mutual fund and you decide to make your decisions using the same approach as you used in managing that fund.How would that affect your decisions and decision process?

Accepted Answer

In all of these questions,the important

Question 20

​Among the following synergistic motives for M&As,which is a resource-based consideration?

Accepted Answer

A)  ​Learning and developing new skills. 
B)  ​Overcoming entry barriers. 
C)  ​Responding to formal institutional constraints. 
D)  ​Reducing risk. 
A)  ​Learning and developing new skills. 
B)  ​Overcoming entry barriers. 
C)  ​Responding to formal institutional constraints. 
D)  ​Reducing risk.

Engaging in thorough due diligence concerning both strategic fit and organizational fit will not guarantee successful M&As.

You are managing a firm in a developing economy.What advantages might you have in pursuing conglomeration for your firm?

Porter's five forces model can be used in regards to the structural attractiveness of an industry.

Conglomerate M&As are transactions involving firms in product-related industries.

Most cross-border deals are mergers rather than acquisitions.

Product relatedness is determined exclusively by visible product linkages.

Which of the following managerial motives for conglomerations benefits shareholders?

The mechanisms needed to obtain financial synergy in diversification are the same as those needed to obtain operational synergy.

Cross-border M&As:

By the 1980s MBC began to decrease.

In reality,the need for flexible diversification strategies is because of the static nature of:

To add maximum value,a product-related diversifier needs to:

When conglomerate units are better off competing as stand-alone entities,we call it diversification premium.

Porter's five forces affect the structural attractiveness of an industry.

Research regarding the relationship between product diversification and firm performance indicates that:

You recently noticed a comment in a blog which stated: "By its very nature,restructuring is a violation of CSR!" How do you feel about that?

Firms that engage in product-related diversification as well as far-flung multinational expansion are following a classic conglomerate strategy.

Interest in conglomerates has declined in emerging economies due to their developed capital markets.

Among the following synergistic motives for M&As,which is a resource-based consideration?

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

​Engaging in thorough due diligence concerning both strategic fit and organizational fit will not guarantee successful M&As.

​You are managing a firm in a developing economy.What advantages might you have in pursuing conglomeration for your firm?

Porter's five forces model can be used in regards to the structural attractiveness of an industry.

​Conglomerate M&As are transactions involving firms in product-related industries.

​Most cross-border deals are mergers rather than acquisitions.

​Product relatedness is determined exclusively by visible product linkages.

Which of the following managerial motives for conglomerations benefits shareholders?

​The mechanisms needed to obtain financial synergy in diversification are the same as those needed to obtain operational synergy.

​Cross-border M&As:

By the 1980s MBC began to decrease.

​In reality,the need for flexible diversification strategies is because of the static nature of:

To add maximum value,a product-related diversifier needs to:

When conglomerate units are better off competing as stand-alone entities,we call it diversification premium.

Porter's five forces affect the structural attractiveness of an industry.

Research regarding the relationship between product diversification and firm performance indicates that:

You recently noticed a comment in a blog which stated: "By its very nature,restructuring is a violation of CSR!" How do you feel about that?

​Firms that engage in product-related diversification as well as far-flung multinational expansion are following a classic conglomerate strategy.

Interest in conglomerates has declined in emerging economies due to their developed capital markets.

​Among the following synergistic motives for M&As,which is a resource-based consideration?

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

Engaging in thorough due diligence concerning both strategic fit and organizational fit will not guarantee successful M&As.

You are managing a firm in a developing economy.What advantages might you have in pursuing conglomeration for your firm?

Conglomerate M&As are transactions involving firms in product-related industries.

Most cross-border deals are mergers rather than acquisitions.

Product relatedness is determined exclusively by visible product linkages.

The mechanisms needed to obtain financial synergy in diversification are the same as those needed to obtain operational synergy.

Cross-border M&As:

In reality,the need for flexible diversification strategies is because of the static nature of:

Firms that engage in product-related diversification as well as far-flung multinational expansion are following a classic conglomerate strategy.

Among the following synergistic motives for M&As,which is a resource-based consideration?