BPS FINAL EXAM QUESTIONS WITH
100% CORRECT ANSWERS
A primary reason for a firm to pursue an acquisition is to ___ - Answer-Achieve greater
market power
When a firm acquires its supplier, it is engaging in a ___ - Answer-Vertical acquisition
Cross-border acquisitions are primarily made to: - Answer-Overcome barriers to entry in
another country
Operating in multiple international markets can provide firms with ______ perhaps even
in terms of _____ - Answer-Economies of scale and learning; larger markets
Firms able to standardize the processes used to produce, sell, distribute, and service
their products across the country borders enhance their ability to: - Answer-Learn how
to continuously reduce costs while increasing the value of their products
Factors of production in Porter's model of international competitive advantage include all
of the following EXCEPT: - Answer-Technology
In France, fine dressmaking and tailoring have been a tradition predating Queen Marie
Antoinette. Cloth manufacturers, design schools, craft apprenticeship programs,
modeling agencies, and so forth, all exist to supply the clothing industry. This is an
example of the _____ in Porter's model: - Answer-Factors of Production
U.S. Steel and Nucor (the two remaining major players in the U.S. steel industry) have
been forming alliances as a means to enter markets in Europe and Asia. The steel
industry is an example of a _____ market in which firms typically use alliances to gain
market access - Answer-Standard Cycle
Firms in a standard-cycle market may form alliance in order to ____ - Answer-capture
economies of scale
The fact that the prices consumers pay for branded breakfast cereals are above the
prices that would exist if there were true competition suggests that the cereal
manufacturers are engaging in ____ - Answer-Tacit collusion
In contrast to managers desires, shareholders usually prefer that free cash flows be
_____ - Answer-Disturbed to them as dividends
100% CORRECT ANSWERS
A primary reason for a firm to pursue an acquisition is to ___ - Answer-Achieve greater
market power
When a firm acquires its supplier, it is engaging in a ___ - Answer-Vertical acquisition
Cross-border acquisitions are primarily made to: - Answer-Overcome barriers to entry in
another country
Operating in multiple international markets can provide firms with ______ perhaps even
in terms of _____ - Answer-Economies of scale and learning; larger markets
Firms able to standardize the processes used to produce, sell, distribute, and service
their products across the country borders enhance their ability to: - Answer-Learn how
to continuously reduce costs while increasing the value of their products
Factors of production in Porter's model of international competitive advantage include all
of the following EXCEPT: - Answer-Technology
In France, fine dressmaking and tailoring have been a tradition predating Queen Marie
Antoinette. Cloth manufacturers, design schools, craft apprenticeship programs,
modeling agencies, and so forth, all exist to supply the clothing industry. This is an
example of the _____ in Porter's model: - Answer-Factors of Production
U.S. Steel and Nucor (the two remaining major players in the U.S. steel industry) have
been forming alliances as a means to enter markets in Europe and Asia. The steel
industry is an example of a _____ market in which firms typically use alliances to gain
market access - Answer-Standard Cycle
Firms in a standard-cycle market may form alliance in order to ____ - Answer-capture
economies of scale
The fact that the prices consumers pay for branded breakfast cereals are above the
prices that would exist if there were true competition suggests that the cereal
manufacturers are engaging in ____ - Answer-Tacit collusion
In contrast to managers desires, shareholders usually prefer that free cash flows be
_____ - Answer-Disturbed to them as dividends
