BUSI 4940 Exam 3 Review Latest Update -

BUSI 4940 Exam 3 Review Latest Update - h 40 Questions and Verified Correct Answers Golden Ticket to Guaranteed A+ Verified by Professor "A dollar today is worth more than a dollar in the future" is a statement that reflects the time value of money which underlies the concept and utility of net present value

calculations. - CORRECT ANSWER: True

Acquisitions, strategic alliances and innovation are different strategies a firm can choose for either horizontal or vertical diversification. - CORRECT ANSWER: False

Advantages of outsourcing can include loss of control, loss of power, and loss of

capabilities. - CORRECT ANSWER: False

Alignment - CORRECT ANSWER: A condition where organizational elements fit

together and reinforce each other is the definition of which important aspect of successful implementation

All of the answers are correct - CORRECT ANSWER: Corporate governance in a public firm is led by the board of directors. During class lectures we have discussed the role of the board. The board of directors hires and fires the CEO. The CEO is responsible for strategy and execution but the board of directors is accountable to shareholders for strategic direction and performance. If performance is below expectations the following

can happen:

Alliances follow a continuum from an open market transaction or a handshake agreement to what other forms? Which of the following options are in the proper order. -

CORRECT ANSWER: Contractual alliance, equity alliance, joint venture

An example of a strategic alliance is the acquisition of Whole Foods by Amazon and Dr.

Pepper by Keurig - CORRECT ANSWER: False

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An example of radical innovation is Frito-Lay's innovation of the chip and dip kits to

provide heartier snacking options for new snacking occasions. - CORRECT ANSWER:

False

Anti-trust legislation was primarily responsible for the creation of conglomerates made up of unrelated businesses from approximately 1950-1980. Many corporations acquired unrelated businesses to grow and later divested those same businesses to re-focus on

core business where they could create more advantage. - CORRECT ANSWER: True

Conglomerates (large organizations made up of unrelated businesses) were common after World War II. Companies chose to diversify this way (acquiring a collection of unrelated businesses) because anti-trust regulation at the time limited their ability to

acquire related companies for diversification. - CORRECT ANSWER: True

Disruptive innovation generally comes from outside of incumbent firms (existing firms) the industry. FinTech, Telsa, Amazon e-commerce and Skype are examples of disruptive innovation that came from outside the established industry competitors. - CORRECT

ANSWER: True

Diversification along the supply chain - represented as a horizontal illustration of the sequence of all activities performed by a firm to turn raw materials into finished product

sold to a buyer - represents vertical diversification - CORRECT ANSWER: True

False - CORRECT ANSWER: A strategy has no value until it is implemented. Nearly all strategies are effectively implemented.

False - CORRECT ANSWER: Blue ocean innovation relates is a type of innovation that is characterized by sustainability - innovation that is good for the earth.

False - CORRECT ANSWER: Developing growth strategy along the value or supply

chain is known as horizontal diversification.

General Electric was a company that endured throughout history by acquring unrelated businesses (conglomerate). One of the few remaining corporate conglomerates,

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