IB 300 Test questions with answers
well graded A+
A company's organizational structure helps to determine where formal power and authority will be
located within the organization. - ANS✅✅True
One of the four elements that must be considered when designing the structure of an international
company is customer expertise, which allows a business to gauge the similarity of client groups and
market segments. - ANS✅✅True
The less familiar the home company is with cultural values in a host country, the more likely the
home company will rely on the subsidiary for management. - ANS✅✅True
After acquiring two new foreign affiliates, Henson Manufacturing created a new organizational chart
to indicate where formal authority would lie within the organization. This organizational chart is an
indication of - ANS✅✅organizational structure
Organizational design is best described as - ANS✅✅a process that deals with how an international
business should be organized to ensure that its global business activities are integrated efficiently
and effectively.
While assessing the structure of the proposed international company, the management team asked
for reports on the terrain of the country where they planned to build a new plant. This report would
be used to forecast the costs of building which would vary significantly if the terrain was
mountainous. Which of the four elements of designing the structure of an IC does this represent? -
ANS✅✅geographic expertise
The two main issues for management to consider in designing an international company's structure
include: - ANS✅✅coordinating departments' activities to meet the firm's overall objectives.
Organizational designers in the IC must be aware that the gain achieved from increased
specialization of labor may sometimes be nullified by - ANS✅✅the increased cost of coordination.
When designing the structure of an IC, the element a company considers while it assesses
population groups is - ANS✅✅customer expertise
, Companies controlled by other companies (known as parent companies) through ownership of
enough voting stock to elect a majority of the voting members on the company's board of directors
are known as - ANS✅✅subsidiaries
Companies controlled by other companies, in which less-than-majority owners may exercise control
by a variety of means, both those involving stock ownership and those involving non-ownership
mechanisms, are known as - ANS✅✅affiliates
When comparing controls in international companies to those in domestic operations, it is correct to
say that - ANS✅✅ICs need more controls than domestic operations
Price and profit allocation decisions are usually best made - ANS✅✅at the IC headquarters.
In situations where ICs are setting transfer prices - ANS✅✅the IC should show that other
companies are charging comparable prices for the same or similar products.
While there may be valid reasons for decisions to always be made at an ICs headquarters, why is it
important for some decisions to be delegated to the subsidiary? - ANS✅✅Managers at the
subsidiary may become hostile and disloyal
To create a sustainable competitive advantage, an international company should try to develop
competencies that are valuable, common, difficult to imitate, and readily substitutable. -
ANS✅✅false
A company's ability to achieve and maintain a unique and valuable competitive position both within
a nation and globally, generating higher rates of profit than its competitors, is known as -
ANS✅✅competitive advantage.
Jefferson Materials Corp. has developed a fire-resistant fabric that no one else has been able to
replicate. It is used throughout the world in firefighting equipment and supplies. Since it is the only
company making the product, customers are willing to pay a premium for the fabric. In this scenario,
the fire-resistant fabric has helped the company develop a(n) - ANS✅✅competitive advantage.
Regarding a sustainable competitive advantage, the company must have skills or competencies that -
ANS✅✅are difficult to imitate or substitute for
well graded A+
A company's organizational structure helps to determine where formal power and authority will be
located within the organization. - ANS✅✅True
One of the four elements that must be considered when designing the structure of an international
company is customer expertise, which allows a business to gauge the similarity of client groups and
market segments. - ANS✅✅True
The less familiar the home company is with cultural values in a host country, the more likely the
home company will rely on the subsidiary for management. - ANS✅✅True
After acquiring two new foreign affiliates, Henson Manufacturing created a new organizational chart
to indicate where formal authority would lie within the organization. This organizational chart is an
indication of - ANS✅✅organizational structure
Organizational design is best described as - ANS✅✅a process that deals with how an international
business should be organized to ensure that its global business activities are integrated efficiently
and effectively.
While assessing the structure of the proposed international company, the management team asked
for reports on the terrain of the country where they planned to build a new plant. This report would
be used to forecast the costs of building which would vary significantly if the terrain was
mountainous. Which of the four elements of designing the structure of an IC does this represent? -
ANS✅✅geographic expertise
The two main issues for management to consider in designing an international company's structure
include: - ANS✅✅coordinating departments' activities to meet the firm's overall objectives.
Organizational designers in the IC must be aware that the gain achieved from increased
specialization of labor may sometimes be nullified by - ANS✅✅the increased cost of coordination.
When designing the structure of an IC, the element a company considers while it assesses
population groups is - ANS✅✅customer expertise
, Companies controlled by other companies (known as parent companies) through ownership of
enough voting stock to elect a majority of the voting members on the company's board of directors
are known as - ANS✅✅subsidiaries
Companies controlled by other companies, in which less-than-majority owners may exercise control
by a variety of means, both those involving stock ownership and those involving non-ownership
mechanisms, are known as - ANS✅✅affiliates
When comparing controls in international companies to those in domestic operations, it is correct to
say that - ANS✅✅ICs need more controls than domestic operations
Price and profit allocation decisions are usually best made - ANS✅✅at the IC headquarters.
In situations where ICs are setting transfer prices - ANS✅✅the IC should show that other
companies are charging comparable prices for the same or similar products.
While there may be valid reasons for decisions to always be made at an ICs headquarters, why is it
important for some decisions to be delegated to the subsidiary? - ANS✅✅Managers at the
subsidiary may become hostile and disloyal
To create a sustainable competitive advantage, an international company should try to develop
competencies that are valuable, common, difficult to imitate, and readily substitutable. -
ANS✅✅false
A company's ability to achieve and maintain a unique and valuable competitive position both within
a nation and globally, generating higher rates of profit than its competitors, is known as -
ANS✅✅competitive advantage.
Jefferson Materials Corp. has developed a fire-resistant fabric that no one else has been able to
replicate. It is used throughout the world in firefighting equipment and supplies. Since it is the only
company making the product, customers are willing to pay a premium for the fabric. In this scenario,
the fire-resistant fabric has helped the company develop a(n) - ANS✅✅competitive advantage.
Regarding a sustainable competitive advantage, the company must have skills or competencies that -
ANS✅✅are difficult to imitate or substitute for
