FREE AND STUDY GAMES ABOUT MGMT FINAL CH 6 EXAM

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FREE AND STUDY GAMES ABOUT MGMT FINAL CH 6 EXAM

QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -67 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: In managing a firm's portfolio, the BCG matrix would suggest that:

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question marks can represent future stars if their market share increased Question 2: portfolio management should be considered as the primary basis for formulating corporate level strategies. true or false?

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false Question 3: among the disadvantages of acquisitions are the expensive premiums that are frequently paid to acquire a business. true or false?

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true Question 4: according to the text, the 2 main sources of synergy is unrelated diversification are parenting and financial synergies via portfolio management. true or false?

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true

Question 5: similar businesses working together or the affiliation of a business with a strong parent can strengthen a firm's bargaining position relative to suppliers and customers. true or false?

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true Question 6: according to the text, corporate restructuring includes:

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capital restructuring, asset restructuring, and management restructuring Question 7: an antitakeover called _____ is when a firm offers to buy shares of their stock from a company planning to acquire their firm at a higher price than the unfriendly company paid for it

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greenmail Question 8: an advantage of mergers and acquisitions is that the can enable a firm to rapidly enter new product markets. true or false?

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true Question 9: vertical integration is attractive when market transaction costs are higher than internal admin costs. true or false?

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true Question 10: Diversification that results in strengthening the value chain and increasing competitive advantages is the best possible example of investing stockholders' funds in a way that individual investors cannot. true or false?

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true Question 11: an advantage of a firm entering into a strategic alliance is that it does not have to share the wealth with is partners. true or false?

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false

Question 12: Sharing core competencies is one of the primary potential advantages of diversification. in order for diversification to be most successful, it is important that:

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the similarity required for sharing core competencies must be in the value chain, not in the product.

Question 13: antitakeover tactics include

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greenmail, golden parachutes, poison pills Question 14: market power refers to cost savings from leveraging core competencies or sharing activities among the businesses in a corporation. true or false?

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false Question 15: a newly acquired business must always have products that are similar to the existing businesses' products to benefit from the corporation's core competence. true or false?

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false Question 16: Unbalanced capacities that limit cost savings, difficulties in combining

specializations, and reduced flexibility are disadvantages associated with:

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vertical integration Question 17: a publishing company that purchases a chain of bookstores to sell its books is an example of unrelated diversification. true or false?

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false Question 18: portfolio management matrices are applied to what level of strategy?

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corporate level

Question 19: The risks of vertical integration include:

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costs and expenses associated with increased overhead and capital expenditures, problems associated with unbalanced capacities along the value chain, additional admin costs associated with managing a more complex set of activities Question 20: the acquisition of 2 or more counter cyclical businesses is an example of using diversification to reduce risk. true or false?

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true Question 21: an antitakeover tactic in which existing shareholders have the option to buy additional shares of stock at a discount to the current market price is called

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a poison pill Question 22: when a firm's corporate office helps subsidiaries make wise choices in their own acquisitions, divestures, and new ventures

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parenting Question 23: portfolio management matrices generally costs of 2 axes that reflect industry or market growth and the market share of a business. true or false?

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true Question 24: reflects the collective learning in organizations such as how to coordinate production skills, integrate multiple streams of technologies, and market and merchandise diverse products and services

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core competencies Question 25: Philip Morris bought Miller Brewing and used its marketing expertise to improve Miller's market share. This justification for diversification is best described as:

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capitalizing on core competencies