Question 1

Which of the following is TRUE regarding restructuring?

Accepted Answer

A)   The two primary ways of restructuring are downsizing and upsizing.
B)   Restructuring (downsizing) is used more often by acquiring firms than by seller firms.
C)   Corporate restructuring is the primary tool for reducing firm size and scope.
D)   Restructuring is easier in knowledge-intensive firms than capital intensive firms.E) A) and C)
F) A) and B)

Question 2

Which geographic diversification is most likely to reduce the liability of foreignness?

Accepted Answer

A)   Culturally adjacent countries.
B)   Extensive international scope.
C)   Beyond geographically neighboring countries.
D)   Beyond culturally neighboring countries.E) B) and D)
F) A) and B)

Question 3

Although the term mergers and acquisitions (M&As)is often used,in reality,acquisitions dominate the scene.

Accepted Answer

A) True 
 B)False

Question 4

A superior product-related diversification strategy does not require a centralized and cooperative organizational architecture in order to add value.

Accepted Answer

A) True 
 B)False

Question 5

​To best add value,a product-unrelated diversifier needs to focus on:

Accepted Answer

A)   ​Economies of scale.
B)   ​Centralization.
C)   ​Financial synergy.
D)   ​Cooperative organizational culture.E) B) and D)
F) A) and C)

Question 6

​In diversification,firms benefit from declining unit costs by leveraging product relatedness.

Accepted Answer

A) True 
 B)False

Question 7

Conglomeration tends to provide all of the following EXCEPT:

Accepted Answer

A)   Product-unrelated diversification.
B)   Financial synergy.
C)   Economies of scale.
D)   Economies of scope.E) C) and D)
F) All of the above

Question 8

​A nondiversified single-business firm faces less risk than a diversified firm.

Accepted Answer

A) True 
 B)False

Question 9

​In general,the costs associated with doing business abroad but maintaining product-related diversification are:

Accepted Answer

A)   ​Greater than the costs of managing a conglomeration while mostly staying at home.
B)   ​Less than the costs of managing a conglomeration while mostly staying at home.
C)   ​About the same as the costs of managing a conglomeration while mostly staying at home.
D)   ​Greater than the costs for all other combinations of geographic and product scope.E) All of the above
F) A) and C)

Question 10

Which is not true regarding geographic diversification and firm performance?

Accepted Answer

A)   U-shaped relationship at low level of internationalization.
B)   Initially a negative effect of international expansion on performance.
C)   Inverted-U shape at moderate to high levels of internationalization.
D)   Positive only at high levels of internationalization.E) B) and D)
F) B) and C)

Question 11

You should understand that the nature of your industry might call for diversification,acquisitions,and restructuring.

Accepted Answer

A) True 
 B)False

Question 12

​Among the industry-based considerations that motivate a firm to diversify is:

Accepted Answer

A)   ​Substantial growth opportunity in an industry.
B)   ​Decreased bargaining power of buyers and suppliers.C) A) and B)
D) undefined

Question 13

In that same blog another person stated: "Decisions about diversification and acquisition are not based on the well-being of the shareholder but instead on the needs of the CEO such as ego and job security.As a result,all such decisions should be submitted to a government agency for approval." Do you agree? Why or why not?

Accepted Answer

In all of these questions,the important ...

Question 14

In the United States between the 1950s and 1970s MEB decreased,resulting in a decreased scope of the firm into conglomeration.

Accepted Answer

A) True 
 B)False

Question 15

​To improve the odds for success with its acquisitions,a firm should:

Accepted Answer

A)   ​Engage its rivals in a bidding war.
B)   ​Look for potential firms with high acquisition premiums.
C)   ​Conduct due diligence concerning strategic and organizational fit.
D)   ​Only acquire after participating in an alliance first.E) All of the above
F) B) and D)

Question 16

​Managerial motives for diversification that may advance their personal careers without aligning with the interests of the firm include:

Accepted Answer

A)   ​Leveraging connections with foreign governments.
B)   ​Reducing managers' employment risk.
C)   ​A focus on the core competencies of the firm.
D)   ​Searching for formal marketing-supporting and marketing-opening policy changes.E) B) and C)
F) None of the above

Question 17

​Operational synergy is a primary goal of product-unrelated diversification.

Accepted Answer

A) True 
 B)False

Question 18

​Describe the four "types" of firms that come from combining product and geographic diversification.Explain which form is most successful and why.

Accepted Answer

​Most firms have to entertain both geogr...

Question 19

Sources of operational synergy include:

Accepted Answer

A)   Technologies.
B)   Marketing.
C)   Manufacturing.
D)   All of the above.E) None of the above
F) C) and D)

Question 20

​High entry barriers are a main factor in the decision to avoid diversification.

Accepted Answer

A) True 
 B)False

Exam 9: Diversifying, acquiring, and Restructuring

Describe the four "types" of firms that come from combining product and geographic diversification.Explain which form is most successful and why.

Correct Answer
verified
Most firms have to entertain both geogr...
View Answer

Which is not true regarding geographic diversification and firm performance?

Correct Answer
verified

Sources of operational synergy include:

Correct Answer
verified

To improve the odds for success with its acquisitions,a firm should:

Correct Answer
verified

High entry barriers are a main factor in the decision to avoid diversification.

Correct Answer
verified

Among the industry-based considerations that motivate a firm to diversify is:

Correct Answer
verified

Which of the following is TRUE regarding restructuring?

Correct Answer
verified

A superior product-related diversification strategy does not require a centralized and cooperative organizational architecture in order to add value.

Correct Answer
verified

You should understand that the nature of your industry might call for diversification,acquisitions,and restructuring.

Correct Answer
verified

Although the term mergers and acquisitions (M&As)is often used,in reality,acquisitions dominate the scene.

Correct Answer
verified

A nondiversified single-business firm faces less risk than a diversified firm.

Correct Answer
verified

Operational synergy is a primary goal of product-unrelated diversification.

Correct Answer
verified

In the United States between the 1950s and 1970s MEB decreased,resulting in a decreased scope of the firm into conglomeration.

Correct Answer
verified

To best add value,a product-unrelated diversifier needs to focus on:

Correct Answer
verified

Conglomeration tends to provide all of the following EXCEPT:

Correct Answer
verified

In diversification,firms benefit from declining unit costs by leveraging product relatedness.

Correct Answer
verified

Correct Answer
verified
In all of these questions,the important ...
View Answer

In general,the costs associated with doing business abroad but maintaining product-related diversification are:

Correct Answer
verified

Managerial motives for diversification that may advance their personal careers without aligning with the interests of the firm include:

Correct Answer
verified

Which geographic diversification is most likely to reduce the liability of foreignness?

Correct Answer
verified

Exam 9: Diversifying, acquiring, and Restructuring

​Describe the four "types" of firms that come from combining product and geographic diversification.Explain which form is most successful and why.

Correct Answerverified​Most firms have to entertain both geogr...View AnswerShow Answer

Which is not true regarding geographic diversification and firm performance?

Correct AnswerverifiedShow Answer

Sources of operational synergy include:

Correct AnswerverifiedShow Answer

​To improve the odds for success with its acquisitions,a firm should:

Correct AnswerverifiedShow Answer

​High entry barriers are a main factor in the decision to avoid diversification.

Correct AnswerverifiedShow Answer

​Among the industry-based considerations that motivate a firm to diversify is:

Correct AnswerverifiedShow Answer

Which of the following is TRUE regarding restructuring?

Correct AnswerverifiedShow Answer

A superior product-related diversification strategy does not require a centralized and cooperative organizational architecture in order to add value.

Correct AnswerverifiedShow Answer

You should understand that the nature of your industry might call for diversification,acquisitions,and restructuring.

Correct AnswerverifiedShow Answer

Although the term mergers and acquisitions (M&As)is often used,in reality,acquisitions dominate the scene.

Correct AnswerverifiedShow Answer

​A nondiversified single-business firm faces less risk than a diversified firm.

Correct AnswerverifiedShow Answer

​Operational synergy is a primary goal of product-unrelated diversification.

Correct AnswerverifiedShow Answer

In the United States between the 1950s and 1970s MEB decreased,resulting in a decreased scope of the firm into conglomeration.

Correct AnswerverifiedShow Answer

​To best add value,a product-unrelated diversifier needs to focus on:

Correct AnswerverifiedShow Answer

Conglomeration tends to provide all of the following EXCEPT:

Correct AnswerverifiedShow Answer

​In diversification,firms benefit from declining unit costs by leveraging product relatedness.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedIn all of these questions,the important ...View AnswerShow Answer

​In general,the costs associated with doing business abroad but maintaining product-related diversification are:

Correct AnswerverifiedShow Answer

​Managerial motives for diversification that may advance their personal careers without aligning with the interests of the firm include:

Correct AnswerverifiedShow Answer

Which geographic diversification is most likely to reduce the liability of foreignness?

Correct AnswerverifiedShow Answer

Describe the four "types" of firms that come from combining product and geographic diversification.Explain which form is most successful and why.

Correct Answer
verified
Most firms have to entertain both geogr...
View Answer

Correct Answer
verified

Correct Answer
verified

To improve the odds for success with its acquisitions,a firm should:

Correct Answer
verified

High entry barriers are a main factor in the decision to avoid diversification.

Correct Answer
verified

Among the industry-based considerations that motivate a firm to diversify is:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

A nondiversified single-business firm faces less risk than a diversified firm.

Correct Answer
verified

Operational synergy is a primary goal of product-unrelated diversification.

Correct Answer
verified

Correct Answer
verified

To best add value,a product-unrelated diversifier needs to focus on:

Correct Answer
verified

Correct Answer
verified

In diversification,firms benefit from declining unit costs by leveraging product relatedness.

Correct Answer
verified

Correct Answer
verified
In all of these questions,the important ...
View Answer

In general,the costs associated with doing business abroad but maintaining product-related diversification are:

Correct Answer
verified

Managerial motives for diversification that may advance their personal careers without aligning with the interests of the firm include:

Correct Answer
verified

Correct Answer
verified