Exam 6: Organizing Vertical Boundariesvertical Integration and Its Alternatives

Suppose we have two firms (Firm 1 & Firm 2)enter into a transaction where Firm 1 is upstream of firm 2 in a vertical chain.What term best describes the organization of the transaction where Firm 2 owns the assets of Firm 1?

What concept describes the situation where the owner of an asset grants another party the right to use that asset,but the owner retains all controlling rights that are not explicitly stipulated in the contract?

What term describes when a firm is using the least-cost production process?

What Japanese term describes a labyrinth of firms with long-term semi-formal relationships up and down the vertical chain?

Why are the current health care systems on the rise being built around the integration of clinical information technology and disease management systems?

Which of the following is a characteristic of an implicit contract?

Which of the following conclusions can we make about vertical integration with regard to product market share and scope? A. Firms should make an asset, rather than buy it, if that asset is a source of competitive advantage for the firm

Suppose we have two firms (Firm 1 & Firm 2)enter into a transaction where Firm 1 is upstream of firm 2 in a vertical chain.What term best describes the organization of the transaction where Firm 1 owns the assets of Firm 2?

Which of the following conclusions can we make about vertical integration with regards to asset specificity?

Which of the following conclusions can we make about vertical integration with regard to scale and scope economies?

Which of the following is not a benefit of tapered integration?

Which of the following is true with regard to the difference in exchange costs between an item produced internally firm and an item purchased from an outside supplier through an arm's length market transaction as the level of asset specificity increases?

What term describes when a firm has minimized the extent to which the exchange of goods and services in the vertical chain has been organized to minimize coordination,agency and transaction costs?

What happens when the process by which governance develops exhibits path dependence?

What term does Uzzi use to describe relationships characterized by trust and a willingness to exchange closely held information and work together to solve problems?

Which of the following in the late 19ᵗʰ century was predicted by the firm-size hypothesis?

Which of the following is true with regard to the difference in production costs between an item produced in a vertically integrated firm and an item exchanged through an arm's length market transaction as the level of asset specificity increases?

Which of the following is not a benefit that Toys "R" Us gained through its alliance with McDonald's Japan?

Which of the following conclusions can we make about vertical integration with regards to product market share and scope?

For what critical aspect of drug development has research (Azoulay & Henderson)shown that major drug houses have chosen tapered integration?