BSG Final Exam 2026/2027 Updated
Verified Questions and Solutions A+
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1. Brinker International operates restaurants in several different
segments of the casual dining market. This is
a. a relatively high level of diversification.
b. an example of product diversification.
c. unlikely to reduce variability in the firm's profitability since
the restaurants are all in the casual dining category.
d. an example of related linked diversification.
- ANS - b. an example of product diversification.
2. On the most basic level, corporate-level strategy is concerned with
____ and how to manage these businesses.
a. whether the firm should invest in global or domestic
businesses
b. what product markets and businesses the firm should be in
c. whether the portfolio of businesses should generate
immediate above-average returns or should be troubled
businesses which will create above-average returns only after
restructuring
d. whether to integrate backward or forward.
- ANS - b. what product markets and businesses the firm
should be in
,3. Which acquisition would be considered the LEAST related?
a. a candy manufacturer purchases a chemical laboratory
specializing in food flavorings.
b. a chain of garden centers acquires a landscape architecture
firm.
c. a hospital acquires a long-term care nursing home.
d. an upscale "white-tablecloth" restaurant chain acquires a
travel agency
- ANS - d. an upscale "white-tablecloth" restaurant chain
acquires a travel agency
4. The more "constrained" the relatedness of diversification,
a. the less likely the firm's portfolio of businesses will reduce
the firm's variability in profitability.
b. the wider the variation in the portfolio of businesses owned
by the firm.
c. the more links there are among the businesses owned by an
organization.
d. lower the proportion of total organizational revenue derived
from the dominant-business.
- ANS - c. the more links there are among the businesses
owned by an organization.
5. Which of the following is NOT a limit to vertical integration?
a. bureaucratic costs
b. the loss of flexibility through investment in specific
technologies
c. capacity balance and coordination problems from changes in
demand
, d. imitation of core technology by potential competitors
- ANS - d. imitation of core technology by potential
competitors
6. Horizontal acquisitions in the video rental industry are typically
intended to
a. take advantage of innovations created by the other firm.
b. reduce some of the overcapacity in the industry.
c. control more parts of the value chain.
d. overcome barriers to entry
- ANS - b. reduce some of the overcapacity in the industry.
7. Foreign firms seeking to acquire U.S. firms are interested in all of
the following EXCEPT
a. gaining access to the U.S. company brand names.
b. gaining access to critical resources held by U.S. companies.
c. diversifying into unrelated industries in order to broaden
their market scope.
d. acquiring relationships with dealers through horizontal
acquisitions.
- ANS - d. acquiring relationships with dealers through
horizontal acquisitions.
8. Researchers have found that shareholders of acquired firms often
a. earn above-average returns.
b. earn below-average returns.
c. earn close to zero as a result of the acquisition.
Verified Questions and Solutions A+
Pass Guaranteed
1. Brinker International operates restaurants in several different
segments of the casual dining market. This is
a. a relatively high level of diversification.
b. an example of product diversification.
c. unlikely to reduce variability in the firm's profitability since
the restaurants are all in the casual dining category.
d. an example of related linked diversification.
- ANS - b. an example of product diversification.
2. On the most basic level, corporate-level strategy is concerned with
____ and how to manage these businesses.
a. whether the firm should invest in global or domestic
businesses
b. what product markets and businesses the firm should be in
c. whether the portfolio of businesses should generate
immediate above-average returns or should be troubled
businesses which will create above-average returns only after
restructuring
d. whether to integrate backward or forward.
- ANS - b. what product markets and businesses the firm
should be in
,3. Which acquisition would be considered the LEAST related?
a. a candy manufacturer purchases a chemical laboratory
specializing in food flavorings.
b. a chain of garden centers acquires a landscape architecture
firm.
c. a hospital acquires a long-term care nursing home.
d. an upscale "white-tablecloth" restaurant chain acquires a
travel agency
- ANS - d. an upscale "white-tablecloth" restaurant chain
acquires a travel agency
4. The more "constrained" the relatedness of diversification,
a. the less likely the firm's portfolio of businesses will reduce
the firm's variability in profitability.
b. the wider the variation in the portfolio of businesses owned
by the firm.
c. the more links there are among the businesses owned by an
organization.
d. lower the proportion of total organizational revenue derived
from the dominant-business.
- ANS - c. the more links there are among the businesses
owned by an organization.
5. Which of the following is NOT a limit to vertical integration?
a. bureaucratic costs
b. the loss of flexibility through investment in specific
technologies
c. capacity balance and coordination problems from changes in
demand
, d. imitation of core technology by potential competitors
- ANS - d. imitation of core technology by potential
competitors
6. Horizontal acquisitions in the video rental industry are typically
intended to
a. take advantage of innovations created by the other firm.
b. reduce some of the overcapacity in the industry.
c. control more parts of the value chain.
d. overcome barriers to entry
- ANS - b. reduce some of the overcapacity in the industry.
7. Foreign firms seeking to acquire U.S. firms are interested in all of
the following EXCEPT
a. gaining access to the U.S. company brand names.
b. gaining access to critical resources held by U.S. companies.
c. diversifying into unrelated industries in order to broaden
their market scope.
d. acquiring relationships with dealers through horizontal
acquisitions.
- ANS - d. acquiring relationships with dealers through
horizontal acquisitions.
8. Researchers have found that shareholders of acquired firms often
a. earn above-average returns.
b. earn below-average returns.
c. earn close to zero as a result of the acquisition.
