1|Page
MBA 705 EXAM 4 MCLAUGHLIN LSUS Exam (latest
version 2026/2027) Most Recent Exam 2026|2027
Actual Complete Real Verified Exam Questions And
Correct Answers (Verified Answers) Already Graded
A+ | Guaranteed Success!! Newest Exam!!!
T/F Synergy occurs when the combination of two
organizations results in higher effectiveness and efficiency
than would otherwise be generated by them separately. -
Answer-True
T/F A strategic alliance occurs when two or more firms
agree to share the costs, risks, and benefits associated
with pursuing new business opportunities. - Answer-True
T/F A firm may choose stability over growth for reasons
associated with product quality. - Answer-True
T/F A large competitor may choose the stability strategy to
avoid prosecution for monopolistic practices. - Answer-
True
,2|Page
T/F A turnaround includes such actions as eliminating
unprofitable outputs and reassessing the firm's product
lines and customer groups. - Answer-True
T/F Divestment is the strategy of last resort, and
terminates the business unit by selling its assets. -
Answer-False
T/F According to the BCG matrix, a star is a business unit
with a low market share, but high growth potential. -
Answer-False
T/F Under an international licensing agreement, a foreign
licensee purchases the rights to produce a company's
products and or use its technology in the licensee's
country for a negotiated fee structure. - Answer-True
The first step in strategy formulation is
a. the corporate strategy.
b. the corporate profile.
c. the functional strategy.
d. the business strategy. - Answer-B
,3|Page
Which of the following is not a corporate profile option?
a. Operate in unrelated industries.
b. Operate in related industries.
c. Operate in a single industry.
d. All of the above are corporate profile options. - Answer-
D
Which of the following options is commonly viewed as risk
averse?
a. Operate in unrelated industries.
b. Operate in related industries.
c. Operate in a single industry.
d. None of the above. - Answer-A
T/F The first step in formulating an organization's strategy
is analysis of the functional strategies - Answer-False
T/F Firms often seek to reduce risk by operating in a
single industry. - Answer-False
, 4|Page
T/F Every healthy firm should pursue a retrenchment
strategy from time to time. - Answer-False
T/F As opposed to external growth, internal growth
enables the firm to grow more quickly. - Answer-False
T/F A merger is a form of a acquisition whereby one firm
purchases another, often with a combination of cash and
stock - Answer-False
T/F A firm is engaging in horizontal related diversification
when it acquires a business outside of its present scope of
operation, but with similar or related core competencies. -
Answer-True
T/F The firm's key capabilities and collective learning skills
that are fundamental to its strategy, performance, and long
term profitability are known as core competencies. -
Answer-True
Which of the following places "all eggs in one basket?"
a. Operate in unrelated industries.
b. Operate in related industries
MBA 705 EXAM 4 MCLAUGHLIN LSUS Exam (latest
version 2026/2027) Most Recent Exam 2026|2027
Actual Complete Real Verified Exam Questions And
Correct Answers (Verified Answers) Already Graded
A+ | Guaranteed Success!! Newest Exam!!!
T/F Synergy occurs when the combination of two
organizations results in higher effectiveness and efficiency
than would otherwise be generated by them separately. -
Answer-True
T/F A strategic alliance occurs when two or more firms
agree to share the costs, risks, and benefits associated
with pursuing new business opportunities. - Answer-True
T/F A firm may choose stability over growth for reasons
associated with product quality. - Answer-True
T/F A large competitor may choose the stability strategy to
avoid prosecution for monopolistic practices. - Answer-
True
,2|Page
T/F A turnaround includes such actions as eliminating
unprofitable outputs and reassessing the firm's product
lines and customer groups. - Answer-True
T/F Divestment is the strategy of last resort, and
terminates the business unit by selling its assets. -
Answer-False
T/F According to the BCG matrix, a star is a business unit
with a low market share, but high growth potential. -
Answer-False
T/F Under an international licensing agreement, a foreign
licensee purchases the rights to produce a company's
products and or use its technology in the licensee's
country for a negotiated fee structure. - Answer-True
The first step in strategy formulation is
a. the corporate strategy.
b. the corporate profile.
c. the functional strategy.
d. the business strategy. - Answer-B
,3|Page
Which of the following is not a corporate profile option?
a. Operate in unrelated industries.
b. Operate in related industries.
c. Operate in a single industry.
d. All of the above are corporate profile options. - Answer-
D
Which of the following options is commonly viewed as risk
averse?
a. Operate in unrelated industries.
b. Operate in related industries.
c. Operate in a single industry.
d. None of the above. - Answer-A
T/F The first step in formulating an organization's strategy
is analysis of the functional strategies - Answer-False
T/F Firms often seek to reduce risk by operating in a
single industry. - Answer-False
, 4|Page
T/F Every healthy firm should pursue a retrenchment
strategy from time to time. - Answer-False
T/F As opposed to external growth, internal growth
enables the firm to grow more quickly. - Answer-False
T/F A merger is a form of a acquisition whereby one firm
purchases another, often with a combination of cash and
stock - Answer-False
T/F A firm is engaging in horizontal related diversification
when it acquires a business outside of its present scope of
operation, but with similar or related core competencies. -
Answer-True
T/F The firm's key capabilities and collective learning skills
that are fundamental to its strategy, performance, and long
term profitability are known as core competencies. -
Answer-True
Which of the following places "all eggs in one basket?"
a. Operate in unrelated industries.
b. Operate in related industries
