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Chapter Quiz
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1
All diversification moves, including those involving mergers and acquisitions, erode performance.
A)True
B)False
2
A core competence always provides a viable basis for synergy among the businesses in a corporation.
A)True
B)False
3
Sharing activities across business units only provides the benefit of cost savings.
A)True
B)False
4
With unrelated diversification, few benefits are derived from horizontal relationships.
A)True
B)False
5
A prearranged contract with managers specifying that in the event of a hostile takeover, the target firm's managers will be paid a significant severance package is known as a golden parachute.
A)True
B)False
6
Core competencies reflect the collective learning in organizations such as how to
A)coordinate production skills.
B)integrate multiple streams of technologies.
C)market and merchandise diverse products and services.
D)do all of the above.
7
Firms' abilities to profit through restricting or controlling supply to a market or coordinating with other firms to reduce investment is called
A)pooled power.
B)negotiating power.
C)market power.
D)transaction power.
8
Which of the following is an example of unrelated diversification?
A)sharing activities
B)parenting
C)vertical integration
D)horizontal integration
9
Which of the following is(are) an advantage of strategic alliances?
A)entering new markets
B)reducing manufacturing or other costs in the value chain
C)developing and diffusing new technologies
D)all of the above are advantages
10
What is the term used to describe an antitakeover tactic in which existing shareholders have the option to buy additional shares of stock at a discount to the current market price?
A)poison pills
B)greenmail
C)a golden parachute
D)a poison purchase







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