SEVI 3013 CHAPTER #6 EXAM
QUESTIONS AND ANSWERS
Parenting advantage is the ______. - Answer-positive contributions of the corporate
office to a new business as a result of the expertise and support provided
______ is entering a new business through investment in new facilities. It is often called
corporate entrepreneurship and new venture development. - Answer-Internal
development
Which of the following is one of the best-known portfolio management frameworks? -
Answer-Boston Consulting Group's growth/share matrix
Which of the following statements about shareholders and managers are true? (Check
all that apply.) - Answer-Shareholders expect managers to be rational beings.
Shareholders expect managers to act in the best interest of shareholders.
Shareholders expect managers to maximize long-term shareholder value.
Which of the following are ways that synergy is created through the use of unrelated
diversification? (Check all that apply.) - Answer-The corporate office contributes through
parenting.
The corporate office adds value by allocating resources throughout the entire
corporation to optimize corporate profitability goals.
The parent company restructures the acquired business.
Firms pursuing differentiation strategies might engage in ______, such as using a
shared order-processing system. - Answer-sharing activities
Which of the following are ways that parent companies create value through their
management expertise? (Check all that apply.) - Answer-providing consulting on
business units' acquisitions, divestitures, and new internal development decisions
improving plans and budgets
providing central functions such as human resource management and procurement
Which of the following are the two types of market power? (Check all that apply.) -
Answer-pooled negotiating power
vertical integration
Which of the following are quadrants in the Boston Consulting Group's portfolio matrix?
(Check all that apply.) - Answer-cash cow
question mark
dog
QUESTIONS AND ANSWERS
Parenting advantage is the ______. - Answer-positive contributions of the corporate
office to a new business as a result of the expertise and support provided
______ is entering a new business through investment in new facilities. It is often called
corporate entrepreneurship and new venture development. - Answer-Internal
development
Which of the following is one of the best-known portfolio management frameworks? -
Answer-Boston Consulting Group's growth/share matrix
Which of the following statements about shareholders and managers are true? (Check
all that apply.) - Answer-Shareholders expect managers to be rational beings.
Shareholders expect managers to act in the best interest of shareholders.
Shareholders expect managers to maximize long-term shareholder value.
Which of the following are ways that synergy is created through the use of unrelated
diversification? (Check all that apply.) - Answer-The corporate office contributes through
parenting.
The corporate office adds value by allocating resources throughout the entire
corporation to optimize corporate profitability goals.
The parent company restructures the acquired business.
Firms pursuing differentiation strategies might engage in ______, such as using a
shared order-processing system. - Answer-sharing activities
Which of the following are ways that parent companies create value through their
management expertise? (Check all that apply.) - Answer-providing consulting on
business units' acquisitions, divestitures, and new internal development decisions
improving plans and budgets
providing central functions such as human resource management and procurement
Which of the following are the two types of market power? (Check all that apply.) -
Answer-pooled negotiating power
vertical integration
Which of the following are quadrants in the Boston Consulting Group's portfolio matrix?
(Check all that apply.) - Answer-cash cow
question mark
dog
