BSG Final Exam PREP Questions With Answes Latest 2023/2024 (Already Graded A+)

BSG Final Exam PREP Questions With Answes Latest 2023/2024 (Already Graded A+) 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. d. are not affected by the acquisition. - Answer a. earn above-average returns. The fastest and easiest way for a firm to diversify its portfolio of businesses is through acquisition because a. of barriers to entry in many industries. b. it is difficult for companies to develop products that differ from their current product line c. innovation in both the acquired and the acquiring firm is enhanced by the exchange of competencies resulting from acquisition d. unrelated acquisitions are usually uncomplicated because the acquired firm is allowed to continue to function independently as it did before acquisition - Answer b. it is difficult for companies to develop products that differ from their current product line Related acquisitions to build market power a. are likely to undergo regulatory review. b. are rarely permitted to occur across international borders. c. typically involve a firm purchasing one of its suppliers or distributors. d. concentrate on capturing value at more than one stage in the value chain. - Answer a. are likely to undergo regulatory review. International strategy refers to a(an) a. action plan pursued by American companies to compete against foreign companies operating in the United States. b. strategy through which the firm sells products in markets outside the firm's domestic market. c. political and economic action plan developed by businesses and governments to cope with global competition. d. strategy American firms use to dominate international market - Answer b. strategy through which the firm sells products in markets outside the firm's domestic market. U.S. companies moving into the international market need to be sensitive to the need for local country or regional responsiveness due to BSG Final Exam 2023 Questions With Complete Solutions. a. increasing rejection of American culture across much of the world. b. the sophistication of the international consumer due to the Internet c. customization required by cultural differences. d. the increasing loss of economies of scale - Answer c. customization required by cultural differences. Which of the following is NOT a motive for firms to become multinational? a. to take advantage of potential opportunities to expand the market for the firm's products. b. to secure needed resources. c. to avoid high domestic taxation on corporate income. d. increasing universal product demand - Answer c. to avoid high domestic taxation on corporate income. Which of the following is NOT a factor pressuring companies for local responsiveness? a. the need for local repair and service to customers b. customization due to cultural differences c. government pressure for firms to use local sources for procurement d. availability of low labor costs - Answer d. availability of low labor costs The choices that a firm has for entering the international market include all of the following EXCEPT: a. exporting. b. licensing. c. leasing. d. acquisition. - Answer c. leasing. Firms participate in strategic alliances for all the following reasons EXCEPT to a. enter markets more quickly. b. acquire technology. c. create values they could not develop acting independently. d. retain tight control over intangible core competencies - Answer d. retain tight control over intangible core competencies When using business-level and corporate-level cooperative strategies, a firm's primary intent is to develop strategic alliances that a. enhance the firm's reputation in the marketplace. b. are long-lived. c. will reduce the firm's political risk. d. create a competitive advantage. - Answer d. create a competitive advantage. In a(an) ____ the firms involved own equal shares of a newly-created venture. a. equality-based strategic alliance b. non-equity strategic alliance c. joint venture d. equity strategic alliance - Answer c. joint venture BSG Final Exam 2023 Questions With Complete Solutions. A state-wide alliance of independent hospitals has formed in order to do group purchasing of medical supplies. Group purchasing allows the hospital alliance to negotiate lower prices with suppliers because of the large quantity of materials ordered. This is an example of the advantage of ____ resulting from an alliance. a. explicit collusion. b. economies of scale. c. opportunistic behavior. d. distribution opportunities. - Answer b. economies of scale. Firms entering into synergistic strategic alliances expect to attain a. technological complexity. b. economies of scope. c. monopolistic market power. d. learning curve efficiencies - Answer b. economies of scope. The top management team at Sierra Infusion is concerned about the declining performance of firms in their industry. The team members are becoming concerned about the security of their jobs at Sierra Infusion. At a meeting over dinner, the top management team agrees to go to the board of directors with a proposal for a. increased diversification of Sierra Infusion. b. the addition of outside directors to the board. c. increased shareholder participation in decision making. d. greater concentration on Sierra's core industry. - Answer a. increased diversification of Sierra Infusion. The separation between firm ownership and management creates a(n) ____ relationship. a. governance b. control c. agency d. dependent - Answer c. agency A primary objective of corporate governance is to a. determine and control the strategic direction of an organization, so that the top executives are focused on maximizing corporate profits. b. ensure that the interests of top-level managers are aligned with the interests of shareholders. c. lobby legislators to pass laws that are aligned with the organization's interests. d. resolve conflicts among corporate employees. - Answer b. ensure that the interests of top-level managers are aligned with the interests of shareholders. Which of the following is NOT an internal governance mechanism? a. the board of directors b. ownership concentration c. executive compensation d. the market for corporate control - Answer d. the market for corporate control BSG Final Exam 2023 Questions With Complete Solutions. A major conflict of interest between top executives and owners, is that top executives wish to diversify the firm in order to ____, while owners wish to diversify the firm to ____. a. generate free cash flows, reduce the risk of total firm failure b. increase the price of the firm's stock, increase the dividends paid out from free cash flows c. reduce the risk of total firm failure, reduce their total portfolio risk d. reduce their employment risk, increase the company's value - Answer d. reduce their employment risk, increase the company's value In the US, monitoring by shareholders is usually accomplished through a. management consultants. b. government auditors. c. the firm's top managers. d. the board of directors. - Answer d. the board of directors. Generally, a board member who is a source of information about a firm's day-to-day activities is classified as a(an) ____ director. a. lead independent b. inside c. related d. encumbered - Answer b. inside A primary objective of corporate governance is to a. determine and control the strategic direction of an organization, so that the top executives are focused on minimizing corporate profits. b. ensure that the interests of top-level managers are aligned with the interests of shareholders. c. lobby legislators to pass laws that are aligned with the organization's interests. d. resolve conflicts among corporate employees. - Answer b. ensure that the interests of top-level managers are aligned with the interests of shareholders. Executive compensation is a governance mechanism that seeks to align managers' and owners' interests through all of the following EXCEPT a. bonuses. b. long-term incentives such as stock options. c. salary. d. penalties for inadequate firm performance - Answer d. penalties for inadequate firm performance