Question 1

Transferring capabilities is a special case of resource sharing that can create cost savings and revenue enhancement.

Accepted Answer

A) True 
 B)False

Question 2

All of the following are ways in which managers can assess relatedness among geographic national markets except ________.

Accepted Answer

A)  laws 
B)  customs 
C)  language 
D)  geology 
A)  laws 
B)  customs 
C)  language 
D)  geology

Question 3

Economies of scope are possible when companies can leverage a value-chain activity across more than one or all of the following except ________.

Accepted Answer

A)  product 
B)  service 
C)  geographic arena 
D)  strategy 
A)  product 
B)  service 
C)  geographic arena 
D)  strategy

Question 4

Diversification increases firm ________.

Accepted Answer

A)  costs 
B)  simplicity 
C)  complexity 
D)  revenues 
A)  costs 
B)  simplicity 
C)  complexity 
D)  revenues

Question 5

In analyzing the data for the S&P 500 and S&P Midcap firms over an eight-year period, it was discovered that at the median level of diversification, performance is ________ than at low or high levels of diversification.

Accepted Answer

A)  slightly lower 
B)  much lower 
C)  slightly higher 
D)  much higher 
A)  slightly lower 
B)  much lower 
C)  slightly higher 
D)  much higher

Question 6

Economies of scope generally arise from bundling and joint-selling opportunities.

Accepted Answer

A) True 
 B)False

Question 7

Empire building almost always results in greater prestige for top executives.

Accepted Answer

A) True 
 B)False

Question 8

As a result of the Sherman Antitrust Act of 1890, many large firms began expanding into areas unrelated to their core businesses.

Accepted Answer

A) True 
 B)False

Question 9

Discuss some of the possible side effects of too much diversification.

Accepted Answer

The harmful side effects of too much div

Question 10

Managers can integrate what they know about products or industry life cycles with the portfolio visualization tool.

Accepted Answer

A) True 
 B)False

Question 11

Whenever a common resource can be used across more than one business unit, the company will always generate enhanced shareholder value.

Accepted Answer

A) True 
 B)False

Question 12

A firm becomes a prime candidate for takeover when investors suspect the prospect of a significant diversification discount.

Accepted Answer

A) True 
 B)False

Question 13

A "cash cow" is a business that has a strong competitive position in a fast-growth industry.

Accepted Answer

A) True 
 B)False

Question 14

What are some of the possible ways that industries may be related?

Accepted Answer

The degree to which horizontal expansion

Question 15

Comarketing two products may provide cost savings.

Accepted Answer

A) True 
 B)False

Question 16

Both economies of scope and revenue enhancement materialize when a firm expands into new lines of business.

Accepted Answer

A) True 
 B)False

Question 17

General Electric is a company that is only involved in electronics-related businesses.

Accepted Answer

A) True 
 B)False

Question 18

When diversification is unrelated it is more likely to create value.

Accepted Answer

A) True 
 B)False

Question 19

Increased horizontal scope is attractive to firms because it offers opportunities by reducing costs through exploiting possible economies of scope and by ________.

Accepted Answer

A)  increasing the customer base 
B)  decreasing production costs 
C)  decreasing competition between similar business units 
D)  increasing revenues through synergies 
A)  increasing the customer base 
B)  decreasing production costs 
C)  decreasing competition between similar business units 
D)  increasing revenues through synergies

Question 20

The maximum opportunities to exploit potential economies of scope and revenue enhancement synergies lie at the intersection of the two dimensions of fit among parent-subsidiary ________ and ________.

Accepted Answer

A)  products; services 
B)  similarities; dissimilarities 
C)  managers; employees 
D)  resources; strategies 
A)  products; services 
B)  similarities; dissimilarities 
C)  managers; employees 
D)  resources; strategies

Transferring capabilities is a special case of resource sharing that can create cost savings and revenue enhancement.

All of the following are ways in which managers can assess relatedness among geographic national markets except ________.

Economies of scope are possible when companies can leverage a value-chain activity across more than one or all of the following except ________.

Diversification increases firm ________.

In analyzing the data for the S&P 500 and S&P Midcap firms over an eight-year period, it was discovered that at the median level of diversification, performance is ________ than at low or high levels of diversification.

Economies of scope generally arise from bundling and joint-selling opportunities.

Empire building almost always results in greater prestige for top executives.

As a result of the Sherman Antitrust Act of 1890, many large firms began expanding into areas unrelated to their core businesses.

Discuss some of the possible side effects of too much diversification.

Managers can integrate what they know about products or industry life cycles with the portfolio visualization tool.

Whenever a common resource can be used across more than one business unit, the company will always generate enhanced shareholder value.

A firm becomes a prime candidate for takeover when investors suspect the prospect of a significant diversification discount.

A "cash cow" is a business that has a strong competitive position in a fast-growth industry.

What are some of the possible ways that industries may be related?

Comarketing two products may provide cost savings.

Both economies of scope and revenue enhancement materialize when a firm expands into new lines of business.

General Electric is a company that is only involved in electronics-related businesses.

When diversification is unrelated it is more likely to create value.

Increased horizontal scope is attractive to firms because it offers opportunities by reducing costs through exploiting possible economies of scope and by ________.

The maximum opportunities to exploit potential economies of scope and revenue enhancement synergies lie at the intersection of the two dimensions of fit among parent-subsidiary and .

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Examining the Internal Environment: Resources

Exploring the External Environment: Macro Industry and Dynamics

Creating Business Strategies

Crafting Business Strategy of Dynamic Contexts

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Studying Merges and Acquisitions

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Corporate Governance in the Twenty-First Century

Filters

Exam 7: Developing Corporate Strategy

Transferring capabilities is a special case of resource sharing that can create cost savings and revenue enhancement.

All of the following are ways in which managers can assess relatedness among geographic national markets except ________.

Economies of scope are possible when companies can leverage a value-chain activity across more than one or all of the following except ________.

Diversification increases firm ________.

In analyzing the data for the S&P 500 and S&P Midcap firms over an eight-year period, it was discovered that at the median level of diversification, performance is ________ than at low or high levels of diversification.

Economies of scope generally arise from bundling and joint-selling opportunities.

Empire building almost always results in greater prestige for top executives.

As a result of the Sherman Antitrust Act of 1890, many large firms began expanding into areas unrelated to their core businesses.

Discuss some of the possible side effects of too much diversification.

Managers can integrate what they know about products or industry life cycles with the portfolio visualization tool.

Whenever a common resource can be used across more than one business unit, the company will always generate enhanced shareholder value.

A firm becomes a prime candidate for takeover when investors suspect the prospect of a significant diversification discount.

A "cash cow" is a business that has a strong competitive position in a fast-growth industry.

What are some of the possible ways that industries may be related?

Comarketing two products may provide cost savings.

Both economies of scope and revenue enhancement materialize when a firm expands into new lines of business.

General Electric is a company that is only involved in electronics-related businesses.

When diversification is unrelated it is more likely to create value.

Increased horizontal scope is attractive to firms because it offers opportunities by reducing costs through exploiting possible economies of scope and by ________.

The maximum opportunities to exploit potential economies of scope and revenue enhancement synergies lie at the intersection of the two dimensions of fit among parent-subsidiary ________ and ________.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Examining the Internal Environment: Resources

Exploring the External Environment: Macro Industry and Dynamics

Creating Business Strategies

Crafting Business Strategy of Dynamic Contexts

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Studying Merges and Acquisitions

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Corporate Governance in the Twenty-First Century

Filters

The maximum opportunities to exploit potential economies of scope and revenue enhancement synergies lie at the intersection of the two dimensions of fit among parent-subsidiary and .