Points 15.00/15.00
Grade 100.00 out of 100.00
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Question 1
Which of the following is NOT a guideline for when an organization should use an unrelated diversification
strategy?
a. When an organization's present channels of distribution can be used to market the new products to current
customers
When existing markets for an organization's present products are not yet saturated
b.
c. When revenues derived from an organization's current products or services would increase significantlyby
adding the new unrelated, products
d. When an organization competes in a highly competitive and/or a no-growth industry
e. When the new products have countercyclical sales patterns compared to an organization's present
products
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Question 2
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The practice of a firm borrowing money to fund dividend payouts to itself is known as dividend recapitalization.
True
False
Question 3
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, "If it ain't broke, don't fix it" refers to managing by crisis.
True
False
Question 4
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Market development includes introducing present products into new geographic areas.
True
False
Question 5
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Which of the following is NOT a reason joint ventures fail?
a. The venture may benefit the partnering companies but may not benefit the customers who then
complain about poorer service or criticize the companies in other ways. b. The venture may not be
supported equally by both partners.
c. Managers who must collaborate daily in operating the venture are not involved in forming or shaping the
venture.
d. The venture may begin to compete more with one of the partners than the other.
e. Venture risk was minimized.
Question 6
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What principle is built on the idea that there is no general plan for which way to go and what to do? a.
Managing by hope
b. Managing by objectives
c. Managing by crisis
d. Managing by extrapolation
e. Managing by subjectives
Question 7
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When a domestic company first begins to export to India, it is an example of a.
market development. b. backward integration.
c. forward integration.
d. horizontal integration.
e. concentric diversification.