MACS 264 Midterm Questions And
Answers With Verified Solutions 100%
Correct Latest Update.
Horizontal integration – Owning multiple businesses on the same level of the supply
chain, which reduces variety (example: owning several hotdog stands).
Diversification – Expanding ownership into different industries or supply chains (example:
owning both a movie company and an amusement park).
Vertical integration – Taking control of all stages of production, from raw materials to
retail, which reduces flexibility but increases control (example: owning the hotdog stand plus
the buns, hotdogs, and condiments).
Portfolio companies – Large corporations acquiring smaller firms as investments, while
staying within their specialty area (example: Coca-Cola owning other soda brands).
The Hollywood studio system – A period when studios kept audiences tied to theaters; no
blockbusters or home video existed.
Post-studio era Hollywood – Film production became project-based, with studios moving
away from full production control and focusing more on acquiring and distributing completed
films.
Studio specialty divisions – Smaller branches within major studios that create and
distribute niche or independent films (example: Disney’s Miramax).
Chain of title – Legal documentation showing ownership rights of a film (copyright
clearances, contracts with talent, etc.).
Artist-label relationships (music industry) – Record labels hold more power, advancing
money like a loan. Artists repay through music sales, but if earnings fall short, the label
simply drops them.
“Key man clause” (recording contracts) – If an essential member of a band leaves, the
label can stop promotion or cancel contracts. Conversely, some artists negotiate release if
their “key person” departs.
“Change a word, get a third” – Refers to splitting royalties between songwriters and
recording artists when one modifies the other’s work.
Havilland rule – An artist’s contract cannot legally last longer than seven years (sometimes
interpreted as seven albums).
Independent record stores – Music shops serving as the link between the music industry
and audiences.
360-degree deal – A record company oversees and profits from nearly every aspect of an
artist’s career (touring, merchandising, promotion, etc.), often to the artist’s disadvantage.
Syndication – Selling TV programs market by market for cash or advertising slots.
Answers With Verified Solutions 100%
Correct Latest Update.
Horizontal integration – Owning multiple businesses on the same level of the supply
chain, which reduces variety (example: owning several hotdog stands).
Diversification – Expanding ownership into different industries or supply chains (example:
owning both a movie company and an amusement park).
Vertical integration – Taking control of all stages of production, from raw materials to
retail, which reduces flexibility but increases control (example: owning the hotdog stand plus
the buns, hotdogs, and condiments).
Portfolio companies – Large corporations acquiring smaller firms as investments, while
staying within their specialty area (example: Coca-Cola owning other soda brands).
The Hollywood studio system – A period when studios kept audiences tied to theaters; no
blockbusters or home video existed.
Post-studio era Hollywood – Film production became project-based, with studios moving
away from full production control and focusing more on acquiring and distributing completed
films.
Studio specialty divisions – Smaller branches within major studios that create and
distribute niche or independent films (example: Disney’s Miramax).
Chain of title – Legal documentation showing ownership rights of a film (copyright
clearances, contracts with talent, etc.).
Artist-label relationships (music industry) – Record labels hold more power, advancing
money like a loan. Artists repay through music sales, but if earnings fall short, the label
simply drops them.
“Key man clause” (recording contracts) – If an essential member of a band leaves, the
label can stop promotion or cancel contracts. Conversely, some artists negotiate release if
their “key person” departs.
“Change a word, get a third” – Refers to splitting royalties between songwriters and
recording artists when one modifies the other’s work.
Havilland rule – An artist’s contract cannot legally last longer than seven years (sometimes
interpreted as seven albums).
Independent record stores – Music shops serving as the link between the music industry
and audiences.
360-degree deal – A record company oversees and profits from nearly every aspect of an
artist’s career (touring, merchandising, promotion, etc.), often to the artist’s disadvantage.
Syndication – Selling TV programs market by market for cash or advertising slots.
