Question 1

Who is formally charged with monitoring management to ensure any diversification or other actions increase shareholder value?

Accepted Answer

A) Firm senior executives 
B) Audit division 
C) Board of directors 
D) SEC 
E) Shareholders themselves 
A) Firm senior executives 
B) Audit division 
C) Board of directors 
D) SEC 
E) Shareholders themselves

Question 2

Examining which of the following is broadly considered one of the easiest ways to measure diversifying activity?

Accepted Answer

A) Joint Ventures 
B) Mergers and acquisitions 
C) Internal Business Development 
D) Strategic Alliances 
E) Collaborative agreements 
A) Joint Ventures 
B) Mergers and acquisitions 
C) Internal Business Development 
D) Strategic Alliances 
E) Collaborative agreements

Question 3

Which of the following is generally a way that LBOs can help a firm realize its potential value?

Accepted Answer

A) The synergies created allow for cost savings 
B) The transaction reduces the disparity between a firm's actual and potential share price 
C) The reduction in the number of shares outstanding makes it possible to give a firm's management a large equity share 
D) The acquisition reduces the likelihood of competition in the industry 
E) The buyout gives an opportunity to adjust the management structure and makeup 
A) The synergies created allow for cost savings 
B) The transaction reduces the disparity between a firm's actual and potential share price 
C) The reduction in the number of shares outstanding makes it possible to give a firm's management a large equity share 
D) The acquisition reduces the likelihood of competition in the industry 
E) The buyout gives an opportunity to adjust the management structure and makeup

Question 4

After American Can's initial transition from only producing manufacturing tin cans and other metal containers (1950)to diversifying with businesses that included paper products,printing,record distribution,and direct mail marketing,what Rumelt relatedness classification best described the firm (1980)?

Accepted Answer

A) Conglomerated-business 
B) Single-business 
C) Dominant-business 
D) Related-business 
E) Unrelated-business 
A) Conglomerated-business 
B) Single-business 
C) Dominant-business 
D) Related-business 
E) Unrelated-business

Question 5

Which of the following benefits of diversification explains the idea that mergers are more likely when there is an expectation of positive changes in market share?

Accepted Answer

A) Use of internal capital markets 
B) Economies of scale and scope 
C) Economizing on transaction costs 
D) Diversifying shareholder portfolios 
E) Identifying undervalued firms 
A) Use of internal capital markets 
B) Economies of scale and scope 
C) Economizing on transaction costs 
D) Diversifying shareholder portfolios 
E) Identifying undervalued firms

Who is formally charged with monitoring management to ensure any diversification or other actions increase shareholder value?

Examining which of the following is broadly considered one of the easiest ways to measure diversifying activity?

Which of the following is generally a way that LBOs can help a firm realize its potential value?

Which of the following benefits of diversification explains the idea that mergers are more likely when there is an expectation of positive changes in market share?

Basic Microeconomic Principles

Economies of Scale and Scope

Agency and Coordination

The Power of Principles - an Historical Perspective

The Vertical Boundaries of the Firm

Organizing Vertical Boundariesvertical Integration and Its Alternatives

Competitors and Competition

Strategic Commitment

The Dynamics of Pricing Rivalry

Entry and Exit

Industry Analysispart Fourstrategic Position and Dynamics

Strategic Positioning for Competitive Advantage

Sustaining Competitive Advantage

The Origins of Competitive Advantage, innovation, evolution, and Environment part Five internal Organization

Performance Measurement and Incentives in Firms

Strategy and Structure

Environment, power, and Culture

Filters

Exam 7: Diversificationpart Threemarket and Competitive Analysis

Who is formally charged with monitoring management to ensure any diversification or other actions increase shareholder value?

Examining which of the following is broadly considered one of the easiest ways to measure diversifying activity?

Which of the following is generally a way that LBOs can help a firm realize its potential value?

Which of the following benefits of diversification explains the idea that mergers are more likely when there is an expectation of positive changes in market share?

Basic Microeconomic Principles

Economies of Scale and Scope

Agency and Coordination

The Power of Principles - an Historical Perspective

The Vertical Boundaries of the Firm

Organizing Vertical Boundariesvertical Integration and Its Alternatives

Competitors and Competition

Strategic Commitment

The Dynamics of Pricing Rivalry

Entry and Exit

Industry Analysispart Fourstrategic Position and Dynamics

Strategic Positioning for Competitive Advantage

Sustaining Competitive Advantage

The Origins of Competitive Advantage, innovation, evolution, and Environment part Five internal Organization

Performance Measurement and Incentives in Firms

Strategy and Structure

Environment, power, and Culture

Filters