Question 1

_____ refers to a business strategy in which each partner in an alliance holds stock in the other firm.

Accepted Answer

A)  Acquisition 
B)  Strategic investment 
C)  Cross-shareholding 
D)  Merger 
A)  Acquisition 
B)  Strategic investment 
C)  Cross-shareholding 
D)  Merger C

Question 2

The alliance between Nilesmith Corp.and Pentrall Inc.is set to dissolve.Both the companies are engaged in extensive negotiations with new alliance partners.Which of the following stages of alliance dissolution is shown in the given scenario?

Accepted Answer

A)  Going public 
B)  Initiation 
C)  Uncoupling 
D)  Aftermath 
A)  Going public 
B)  Initiation 
C)  Uncoupling 
D)  Aftermath D

Question 3

The second phase in the dissolution of alliances is going public.

Accepted Answer

A) True 
 B)False  True

Question 4

In the pre-acquisition phase,which of the following must be avoided by an acquirer to reduce the possibility of acquisition failure?

Accepted Answer

A)  Adopting a synergistic view 
B)  Giving importance to executive hubris 
C)  Taking actions to eliminate poor organizational fit 
D)  Addressing stakeholders' concerns 
A)  Adopting a synergistic view 
B)  Giving importance to executive hubris 
C)  Taking actions to eliminate poor organizational fit 
D)  Addressing stakeholders' concerns

Question 5

Which of the following is true of relational capabilities while managing interfirm relationships?

Accepted Answer

A)  They emphasize competition rather than collaboration. 
B)  They foster potential partner opportunism. 
C)  They are covered in the traditional business school curriculum. 
D)  They are rarely found in managers involved in alliances. 
A)  They emphasize competition rather than collaboration. 
B)  They foster potential partner opportunism. 
C)  They are covered in the traditional business school curriculum. 
D)  They are rarely found in managers involved in alliances.

Question 6

The worst scenario for the dissolution of an alliance can be described as "death by 1000 cuts".

Accepted Answer

A) True 
 B)False

Question 7

Formal institutions influence alliances and acquisitions by:

Accepted Answer

A)  requiring firms to conform to the entry mode requirements. 
B)  centering on collective norms,supported by a normative pillar. 
C)  emphasizing internalized values and beliefs,supported by a cognitive pillar. 
D)  emphasizing the creation of value. 
A)  requiring firms to conform to the entry mode requirements. 
B)  centering on collective norms,supported by a normative pillar. 
C)  emphasizing internalized values and beliefs,supported by a cognitive pillar. 
D)  emphasizing the creation of value.

Question 8

Fly Wagons Inc.and Esca Motors Inc.are competing to acquire Charge Tool Inc.,a spark plug manufacturing company,which is worth $5 million.Esca Motors quotes a bid of $10 million to acquire the company,and Fly Wagons quotes a bid of $20 million.In this scenario,which of the following approaches should be adopted by Fly Wagons for the acquisition?

Accepted Answer

A)  Fly Wagons should submit a bid of $30 million. 
B)  Fly Wagons should drop the deal. 
C)  Fly Wagons should continue bidding till Esca Motors gives up on Charge Tool. 
D)  Fly Wagons should double the bid amount. 
A)  Fly Wagons should submit a bid of $30 million. 
B)  Fly Wagons should drop the deal. 
C)  Fly Wagons should continue bidding till Esca Motors gives up on Charge Tool. 
D)  Fly Wagons should double the bid amount.

Question 9

Arc Corp.,a consumer goods manufacturer in Lumeria,proposed to merge with Borton Inc.,a consumer goods manufacturer in Arkadas.Arc Corp.cleared the antitrust scrutiny in Lumeria but failed to anticipate a rigorous antitrust scrutiny in Arkadas.As a result,the merger never took place.In this scenario,which of the following is most likely the reason for the failure of the merger?

Accepted Answer

A)  The firms neglected the influence of informal institutions on the merger. 
B)  The firms neglected the influence of formal institutions on the merger. 
C)  The firms gave excessive importance to soft relational capabilities. 
D)  The firms overpaid for their targets. 
A)  The firms neglected the influence of informal institutions on the merger. 
B)  The firms neglected the influence of formal institutions on the merger. 
C)  The firms gave excessive importance to soft relational capabilities. 
D)  The firms overpaid for their targets.

Question 10

In the context of cross-border mergers and acquisitions (M&As),which of the following statements is true?

Accepted Answer

A)  There are no cultural differences if both sides are from the same continent. 
B)  They do not involve major problems at the employee level. 
C)  There are integration difficulties due to clashes of organizational and national cultures. 
D)  They fail only because of poor strategic fit. 
A)  There are no cultural differences if both sides are from the same continent. 
B)  They do not involve major problems at the employee level. 
C)  There are integration difficulties due to clashes of organizational and national cultures. 
D)  They fail only because of poor strategic fit.

Question 11

In the context of real options,which of the following is a disadvantage of entering into alliances?

Accepted Answer

A)  Investments are unlikely to be modified. 
B)  Firms are most likely to choose the wrong partners. 
C)  Alliances with other firms are most likely to fail. 
D)  Entering into alliances is very costly. 
A)  Investments are unlikely to be modified. 
B)  Firms are most likely to choose the wrong partners. 
C)  Alliances with other firms are most likely to fail. 
D)  Entering into alliances is very costly.

Question 12

In the context of acquisition,the only identifiable group of winners is:

Accepted Answer

A)  the shareholders of target firms. 
B)  the shareholders of acquiring firms. 
C)  the employees of acquiring firms. 
D)  the first line managers of target firms. 
A)  the shareholders of target firms. 
B)  the shareholders of acquiring firms. 
C)  the employees of acquiring firms. 
D)  the first line managers of target firms.

Question 13

In the context of an institution-based view,which of the following is true of managerial motives that drive acquisitions?

Accepted Answer

A)  They are a response to formal rules and regulations. 
B)  They display herd behavior by chasing fads of acquisitions. 
C)  They do not benefit a company overall in the long run. 
D)  They cannot simultaneously coexist with hubristic and synergistic motives. 
A)  They are a response to formal rules and regulations. 
B)  They display herd behavior by chasing fads of acquisitions. 
C)  They do not benefit a company overall in the long run. 
D)  They cannot simultaneously coexist with hubristic and synergistic motives.

Question 14

A(n)_____ is a transfer of the control of operations and management from one firm to another.

Accepted Answer

A)  strategic investment 
B)  equity-based alliance 
C)  merger 
D)  acquisition 
A)  strategic investment 
B)  equity-based alliance 
C)  merger 
D)  acquisition

Question 15

In the context of organizing acquisitions,_____ is the similarity in culture,systems,and structures between two or more firms.

Accepted Answer

A)  strategic fit 
B)  organizational fit 
C)  relational capability 
D)  collaborative capability 
A)  strategic fit 
B)  organizational fit 
C)  relational capability 
D)  collaborative capability

Question 16

If a firm wants to have some direct control over joint activities on a continuing basis,it should choose an equity relationship over a contractual relationship.

Accepted Answer

A) True 
 B)False

Question 17

An acquisition is the combination of operations and management of two firms to establish a new legal entity.

Accepted Answer

A) True 
 B)False

Question 18

Explain the three-stage model in the formations of alliances.

Accepted Answer

In Stage One,a firm must decide if growt

Question 19

Equity,learning and experience,relational capabilities,and organization are the four factors that may influence alliance performance.

Accepted Answer

A) True 
 B)False

Question 20

What is the percentage of acquisitions that reportedly fail?

Accepted Answer

A)  20% 
B)  40% 
C)  70% 
D)  90% 
A)  20% 
B)  40% 
C)  70% 
D)  90%

_____ refers to a business strategy in which each partner in an alliance holds stock in the other firm.

The alliance between Nilesmith Corp.and Pentrall Inc.is set to dissolve.Both the companies are engaged in extensive negotiations with new alliance partners.Which of the following stages of alliance dissolution is shown in the given scenario?

The second phase in the dissolution of alliances is going public.

In the pre-acquisition phase,which of the following must be avoided by an acquirer to reduce the possibility of acquisition failure?

Which of the following is true of relational capabilities while managing interfirm relationships?

The worst scenario for the dissolution of an alliance can be described as "death by 1000 cuts".

Formal institutions influence alliances and acquisitions by:

In the context of cross-border mergers and acquisitions (M&As),which of the following statements is true?

In the context of real options,which of the following is a disadvantage of entering into alliances?

In the context of acquisition,the only identifiable group of winners is:

In the context of an institution-based view,which of the following is true of managerial motives that drive acquisitions?

A(n)_____ is a transfer of the control of operations and management from one firm to another.

In the context of organizing acquisitions,_____ is the similarity in culture,systems,and structures between two or more firms.

If a firm wants to have some direct control over joint activities on a continuing basis,it should choose an equity relationship over a contractual relationship.

An acquisition is the combination of operations and management of two firms to establish a new legal entity.

Explain the three-stage model in the formations of alliances.

Equity,learning and experience,relational capabilities,and organization are the four factors that may influence alliance performance.

What is the percentage of acquisitions that reportedly fail?

Globalizing Business

Understanding Politics Laws Economics

Emphasizing Cultures Ethics Norms

Leveraging Resources Capabilities

Trading Internationally

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing On Global Regional Integration

Growing Internationalizing The Entrepreneurial Firm

Entering Foreign Markets

Strategizing Structuring Learning Around The World

Managing Human Resources Globally

Competing On Marketing and Supply Chain Management

Managing Corporate Social Responsibility Globally

Filters

Exam 11: Making Alliances Acquisitions Work

_____ refers to a business strategy in which each partner in an alliance holds stock in the other firm.

The alliance between Nilesmith Corp.and Pentrall Inc.is set to dissolve.Both the companies are engaged in extensive negotiations with new alliance partners.Which of the following stages of alliance dissolution is shown in the given scenario?

The second phase in the dissolution of alliances is going public.

In the pre-acquisition phase,which of the following must be avoided by an acquirer to reduce the possibility of acquisition failure?

Which of the following is true of relational capabilities while managing interfirm relationships?

The worst scenario for the dissolution of an alliance can be described as "death by 1000 cuts".

Formal institutions influence alliances and acquisitions by:

In the context of cross-border mergers and acquisitions (M&As),which of the following statements is true?

In the context of real options,which of the following is a disadvantage of entering into alliances?

In the context of acquisition,the only identifiable group of winners is:

In the context of an institution-based view,which of the following is true of managerial motives that drive acquisitions?

A(n)_____ is a transfer of the control of operations and management from one firm to another.

In the context of organizing acquisitions,_____ is the similarity in culture,systems,and structures between two or more firms.

If a firm wants to have some direct control over joint activities on a continuing basis,it should choose an equity relationship over a contractual relationship.

An acquisition is the combination of operations and management of two firms to establish a new legal entity.

Explain the three-stage model in the formations of alliances.

Equity,learning and experience,relational capabilities,and organization are the four factors that may influence alliance performance.

What is the percentage of acquisitions that reportedly fail?

Globalizing Business

Understanding Politics Laws Economics

Emphasizing Cultures Ethics Norms

Leveraging Resources Capabilities

Trading Internationally

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing On Global Regional Integration

Growing Internationalizing The Entrepreneurial Firm

Entering Foreign Markets

Strategizing Structuring Learning Around The World

Managing Human Resources Globally

Competing On Marketing and Supply Chain Management

Managing Corporate Social Responsibility Globally

Filters