Exam 5: Strategies in Action

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Strategic objectives include those associated with growth in revenues, growth in earnings, higher dividends, larger profit margins, and improved cash flow.

(True/False)
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Chapter 9 bankruptcy applies to municipalities.

(True/False)
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The practice of a firm borrowing money to fund dividend payouts to itself is known as dividend recapitalization.

(True/False)
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White knight is a term that refers to a firm that agrees to acquire another firm when the other firm is facing a hostile takeover by some company.

(True/False)
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Secondary buyouts decreased substantially from 2011 to 2012.

(True/False)
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What principle is built on the idea that there is no general plan for which way to go and what to do?

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Mergers and acquisitions are created for all of the following reasons EXCEPT to

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Companies are avoiding outsourcing more and more because it is more expensive than traditional methods and it does not allow a firm to concentrate on core competencies.

(True/False)
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A best-value strategy offers products or services to a wide range of customers at the best price-value available on the market.

(True/False)
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Which of these strategies is effective when the number of suppliers is small and the number of competitors is large?

(Multiple Choice)
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Define and give an example, where available, of three integrative strategies.

(Essay)
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A chief executive officer is located in the divisional level of a large firm.

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