Question 1

Liquidation is often appropriate when retrenchment and divestiture have failed.

Accepted Answer

A) True 
 B)False

Question 2

When an acquisition or merger is not desired by both parties,it is called a takeover or hostile takeover.

Accepted Answer

A) True 
 B)False

Question 3

For all of 2008,global merger and acquisition volume increased 12 percent,putting it on par with the volume in 2005.

Accepted Answer

A) True 
 B)False

Question 4

Adding new,related products or services for present customers is called

Accepted Answer

A)  forward integration. 
B)  related diversification. 
C)  backward integration. 
D)  conglomerate diversification. 
E)  unrelated diversification. 
A)  forward integration. 
B)  related diversification. 
C)  backward integration. 
D)  conglomerate diversification. 
E)  unrelated diversification.

Question 5

An appropriate strategy when an organization has excess production capacity is market development.

Accepted Answer

A) True 
 B)False

Question 6

The percent of McDonalds' restaurants actually owned by the McDonalds corporation is approximately

Accepted Answer

A)  23 percent. 
B)  35 percent. 
C)  43 percent. 
D)  55 percent. 
E)  63 percent. 
A)  23 percent. 
B)  35 percent. 
C)  43 percent. 
D)  55 percent. 
E)  63 percent.

Question 7

Discuss four common problems that cause joint ventures to fail.

Accepted Answer

One problem that causes joint ventures t

Question 8

Cadbury PLC selling its Australian drinks business to Asahi Breweries Ltd.of Japan is an example of which type of strategy?

Accepted Answer

A)  Related diversification 
B)  Unrelated diversification 
C)  Retrenchment 
D)  Divestiture 
E)  Liquidation 
A)  Related diversification 
B)  Unrelated diversification 
C)  Retrenchment 
D)  Divestiture 
E)  Liquidation

Question 9

Integration strategies are sometimes collectively referred to as which of the following categories of strategies?

Accepted Answer

A)  Horizontal integration 
B)  Diversification 
C)  Vertical integration 
D)  Stuck-in-the-middle 
E)  Hierarchical integration 
A)  Horizontal integration 
B)  Diversification 
C)  Vertical integration 
D)  Stuck-in-the-middle 
E)  Hierarchical integration

Question 10

Horizontal integration is seeking ownership or increased control over competitors.

Accepted Answer

A) True 
 B)False

Question 11

When companies take over functional operations of other firms,such as human resources,information systems,payroll,accounting,or customer service,this is called

Accepted Answer

A)  marketing. 
B)  outsourcing. 
C)  licensing. 
D)  franchising. 
E)  divestiture. 
A)  marketing. 
B)  outsourcing. 
C)  licensing. 
D)  franchising. 
E)  divestiture.

Question 12

IBM's entrance into the water management business is an example of related diversification.

Accepted Answer

A) True 
 B)False

Question 13

Forward integration strategy is especially effective when the availability of quality distributors is so limited as to offer a competitive advantage to those firms that integrate forward.

Accepted Answer

A) True 
 B)False

Question 14

The nonprofit sector is America's largest employer.

Accepted Answer

A) True 
 B)False

Question 15

Smithfield Foods laying off 1,800 employees,closing 6 of its 40 plants,and cutting production by 10 percent in 2009 in efforts to stop the liquidity drain on the firm is an example of

Accepted Answer

A)  divestiture. 
B)  backward integration. 
C)  liquidation. 
D)  retrenchment. 
E)  forward integration. 
A)  divestiture. 
B)  backward integration. 
C)  liquidation. 
D)  retrenchment. 
E)  forward integration.

Question 16

Gaining ownership or increased control over distributors or retailers is called forward integration strategy.

Accepted Answer

A) True 
 B)False

Question 17

Chapter 13 bankruptcy is similar to Chapter 11,but available only to large corporations.

Accepted Answer

A) True 
 B)False

Question 18

Selling all of a company's assets in parts for their tangible worth is called

Accepted Answer

A)  joint venture. 
B)  divestiture. 
C)  concentric diversification. 
D)  liquidation. 
E)  unrelated integration. 
A)  joint venture. 
B)  divestiture. 
C)  concentric diversification. 
D)  liquidation. 
E)  unrelated integration.

Question 19

Divestiture has become a popular strategy for firms to focus on their core business and become more diversified.

Accepted Answer

A) True 
 B)False

Question 20

In which situation would horizontal integration be an especially effective strategy?

Accepted Answer

A)  When an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition. 
B)  When an organization competes in a slowing industry. 
C)  When decreased economies of scale provide major competitive advantages. 
D)  When an organization has neither the capital nor human talent needed to successfully manage an expanded organization. 
E)  When competitors are succeeding due to managerial expertise or having particular resources an organization possesses. 
A)  When an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition. 
B)  When an organization competes in a slowing industry. 
C)  When decreased economies of scale provide major competitive advantages. 
D)  When an organization has neither the capital nor human talent needed to successfully manage an expanded organization. 
E)  When competitors are succeeding due to managerial expertise or having particular resources an organization possesses.

Liquidation is often appropriate when retrenchment and divestiture have failed.

When an acquisition or merger is not desired by both parties,it is called a takeover or hostile takeover.

For all of 2008,global merger and acquisition volume increased 12 percent,putting it on par with the volume in 2005.

Adding new,related products or services for present customers is called

An appropriate strategy when an organization has excess production capacity is market development.

The percent of McDonalds' restaurants actually owned by the McDonalds corporation is approximately

Discuss four common problems that cause joint ventures to fail.

Cadbury PLC selling its Australian drinks business to Asahi Breweries Ltd.of Japan is an example of which type of strategy?

Integration strategies are sometimes collectively referred to as which of the following categories of strategies?

Horizontal integration is seeking ownership or increased control over competitors.

When companies take over functional operations of other firms,such as human resources,information systems,payroll,accounting,or customer service,this is called

IBM's entrance into the water management business is an example of related diversification.

Forward integration strategy is especially effective when the availability of quality distributors is so limited as to offer a competitive advantage to those firms that integrate forward.

The nonprofit sector is America's largest employer.

Smithfield Foods laying off 1,800 employees,closing 6 of its 40 plants,and cutting production by 10 percent in 2009 in efforts to stop the liquidity drain on the firm is an example of

Gaining ownership or increased control over distributors or retailers is called forward integration strategy.

Chapter 13 bankruptcy is similar to Chapter 11,but available only to large corporations.

Selling all of a company's assets in parts for their tangible worth is called

Divestiture has become a popular strategy for firms to focus on their core business and become more diversified.

In which situation would horizontal integration be an especially effective strategy?

The Nature of Strategic Management

The Business Vision and Mission

The External Assessment

The Internal Assessment

Strategy Analysis and Choice

Implementing Strategies: Management and Operations Issues

Implementing Strategies: Marketing, Finance/Accounting, R&D, and MIS Issues

Strategy Review, Evaluation, and Control

Business Ethics/Social Responsibility/Environmental Sustainability

Global/International Issues

Filters

Exam 5: Strategies in Action

Liquidation is often appropriate when retrenchment and divestiture have failed.

When an acquisition or merger is not desired by both parties,it is called a takeover or hostile takeover.

For all of 2008,global merger and acquisition volume increased 12 percent,putting it on par with the volume in 2005.

Adding new,related products or services for present customers is called

An appropriate strategy when an organization has excess production capacity is market development.

The percent of McDonalds' restaurants actually owned by the McDonalds corporation is approximately

Discuss four common problems that cause joint ventures to fail.

Cadbury PLC selling its Australian drinks business to Asahi Breweries Ltd.of Japan is an example of which type of strategy?

Integration strategies are sometimes collectively referred to as which of the following categories of strategies?

Horizontal integration is seeking ownership or increased control over competitors.

When companies take over functional operations of other firms,such as human resources,information systems,payroll,accounting,or customer service,this is called

IBM's entrance into the water management business is an example of related diversification.

Forward integration strategy is especially effective when the availability of quality distributors is so limited as to offer a competitive advantage to those firms that integrate forward.

The nonprofit sector is America's largest employer.

Smithfield Foods laying off 1,800 employees,closing 6 of its 40 plants,and cutting production by 10 percent in 2009 in efforts to stop the liquidity drain on the firm is an example of

Gaining ownership or increased control over distributors or retailers is called forward integration strategy.

Chapter 13 bankruptcy is similar to Chapter 11,but available only to large corporations.

Selling all of a company's assets in parts for their tangible worth is called

Divestiture has become a popular strategy for firms to focus on their core business and become more diversified.

In which situation would horizontal integration be an especially effective strategy?

The Nature of Strategic Management

The Business Vision and Mission

The External Assessment

The Internal Assessment

Strategy Analysis and Choice

Implementing Strategies: Management and Operations Issues

Implementing Strategies: Marketing, Finance/Accounting, R&D, and MIS Issues

Strategy Review, Evaluation, and Control

Business Ethics/Social Responsibility/Environmental Sustainability

Global/International Issues

Filters