Chapter 8 and 9 BSG Practice Test
Exam 2026/2027 Updated
Verified Questions and Solutions
A+ Pass Guaranteed
1. Which of the following are negatives or disadvantages of pursuing
unrelated diversification strategies?
- ANS - No potential for competitive advantage beyond any benefits
of corporate parenting and what each individual business can
generate on its own
2. Calculating quantitative attractiveness ratings for the industries a
company has diversified into involves
- ANS - selecting a set of industry attractiveness measures,
weighting the importance of each measure, rating each industry on
each attractiveness measure, multiplying the industry ratings by
the assigned weight to obtain a weighted rating, adding the
weighted ratings for each industry to obtain an overall industry
attractiveness of all the industries, both individually and as a
group.
3. Which of the following is not part of the procedure for evaluating
the pluses and minuses of a diversified company's strategy and
deciding what actions to take to improve the company's
performance?
- ANS - Conducting a SWOT analysis of each business the company
has diversified into
, 4. The top-level executive task of crafting a diversified company's
overall or corporate strategy includes which one of the following?
- ANS - Picking new industries to enter and deciding on the means
of entry
5. Once a company has diversified into a collection of related or
unrelated businesses and concludes that some strategy
adjustments are needed, which one of the following is not one of
the main strategy options that a company can pursue?
- ANS - Have all of the company's businesses under a common
brand name and craft new initiatives to build/enhance the
reputation of this brand name worldwide
6. Creating added long-term value for share-holders via diversification
requires
- ANS - building a multi-business company where the whole is
greater than the sum of its parts--such 1+1=3 effects are called
synergy
7. Which one of the following is not an example of an economy of
scope
- ANS - building a larger plant or distribution center for a particular
business that can operated more cost efficiently
8. Strategic fit exists when the value chains of different businesses
are sufficiently similar to present such opportunities as
- ANS - transferring competitively valuable resources and
capabilities form one business to enhance the competitiveness and
Exam 2026/2027 Updated
Verified Questions and Solutions
A+ Pass Guaranteed
1. Which of the following are negatives or disadvantages of pursuing
unrelated diversification strategies?
- ANS - No potential for competitive advantage beyond any benefits
of corporate parenting and what each individual business can
generate on its own
2. Calculating quantitative attractiveness ratings for the industries a
company has diversified into involves
- ANS - selecting a set of industry attractiveness measures,
weighting the importance of each measure, rating each industry on
each attractiveness measure, multiplying the industry ratings by
the assigned weight to obtain a weighted rating, adding the
weighted ratings for each industry to obtain an overall industry
attractiveness of all the industries, both individually and as a
group.
3. Which of the following is not part of the procedure for evaluating
the pluses and minuses of a diversified company's strategy and
deciding what actions to take to improve the company's
performance?
- ANS - Conducting a SWOT analysis of each business the company
has diversified into
, 4. The top-level executive task of crafting a diversified company's
overall or corporate strategy includes which one of the following?
- ANS - Picking new industries to enter and deciding on the means
of entry
5. Once a company has diversified into a collection of related or
unrelated businesses and concludes that some strategy
adjustments are needed, which one of the following is not one of
the main strategy options that a company can pursue?
- ANS - Have all of the company's businesses under a common
brand name and craft new initiatives to build/enhance the
reputation of this brand name worldwide
6. Creating added long-term value for share-holders via diversification
requires
- ANS - building a multi-business company where the whole is
greater than the sum of its parts--such 1+1=3 effects are called
synergy
7. Which one of the following is not an example of an economy of
scope
- ANS - building a larger plant or distribution center for a particular
business that can operated more cost efficiently
8. Strategic fit exists when the value chains of different businesses
are sufficiently similar to present such opportunities as
- ANS - transferring competitively valuable resources and
capabilities form one business to enhance the competitiveness and
