SEVI 3013 CHAPTER #6 SMART-BOOK
EXAM QUESTIONS AND ANSWERS
When two competitors merge, leading to industry consolidation, they are engaging in
Blank______.
backward integration
forward diversification
horizontal integration
vertical integration - Answer-horizontal intergration
When competitors enter strategic alliances and become collaborators, Blank______
ensues and can result in learning races.
co-opetition
early majority liability
inverted acquisition
strategic intent - Answer-co-opetition
A partnership that is based on contracts between companies is referred to as a(n)
Blank______.
non-equity alliance
diversification
allowance alliance
wholly owned subsidiary - Answer-non-equity alliance
Zoe is a manager at a large company engaged in the acquisition of a smaller company.
The smaller company has operated at a loss for the last three years under three
different managers, but Zoe is convinced that she can turn the company around despite
the evidence to the contrary. Zoe is engaging in Blank______.
leveraged acquisition capability
integration complacency
managerial hubris
competence instability - Answer-managerial hubris
What are common reasons a firm might pursue a merger?
To increase strategic alliances in secondary markets
Principal-agent problems.
The desire to overcome competitive disadvantage.
Superior acquisition and integration capability. - Answer-Principal-agent problems.
, The desire to overcome competitive disadvantage.
Superior acquisition and integration capability.
An unfriendly acquisition of one company of another is known as a(n) Blank______.
hostile takeover
joint venture
equity alliance
merger - Answer-hostile takeover
Which are the three main reasons firms make acquisitions?
to preempt rivals
to reduce flexibility
to gain access to a new capability or competency
to increase potential for legal repercussions
to gain access to new distribution channels and markets - Answer-to preempt rivals
to gain access to a new capability or competency
to gain access to new distribution channels and markets
A firm must decide whether to build, borrow, or buy to answer the question of
Blank______.
when to start growth
why it must grow
who must initiate growth
how it will achieve growth - Answer-how it will achieve growth
Which of the following are the three choices in the Build-Borrow-Buy framework?
strategic alliances
internal development
acquisition of new resources
elimination of product cost - Answer-strategic alliances
internal development
acquisition of new resources
A firm might want to use a strategic alliance to Blank______.
release proprietary information to rival firms
lower Internet discounted prices in the primary market
increase the threat of rivalry
change the industry structure - Answer-change the industry structure
A real option gives a firm the right to continue making investments Blank______.
EXAM QUESTIONS AND ANSWERS
When two competitors merge, leading to industry consolidation, they are engaging in
Blank______.
backward integration
forward diversification
horizontal integration
vertical integration - Answer-horizontal intergration
When competitors enter strategic alliances and become collaborators, Blank______
ensues and can result in learning races.
co-opetition
early majority liability
inverted acquisition
strategic intent - Answer-co-opetition
A partnership that is based on contracts between companies is referred to as a(n)
Blank______.
non-equity alliance
diversification
allowance alliance
wholly owned subsidiary - Answer-non-equity alliance
Zoe is a manager at a large company engaged in the acquisition of a smaller company.
The smaller company has operated at a loss for the last three years under three
different managers, but Zoe is convinced that she can turn the company around despite
the evidence to the contrary. Zoe is engaging in Blank______.
leveraged acquisition capability
integration complacency
managerial hubris
competence instability - Answer-managerial hubris
What are common reasons a firm might pursue a merger?
To increase strategic alliances in secondary markets
Principal-agent problems.
The desire to overcome competitive disadvantage.
Superior acquisition and integration capability. - Answer-Principal-agent problems.
, The desire to overcome competitive disadvantage.
Superior acquisition and integration capability.
An unfriendly acquisition of one company of another is known as a(n) Blank______.
hostile takeover
joint venture
equity alliance
merger - Answer-hostile takeover
Which are the three main reasons firms make acquisitions?
to preempt rivals
to reduce flexibility
to gain access to a new capability or competency
to increase potential for legal repercussions
to gain access to new distribution channels and markets - Answer-to preempt rivals
to gain access to a new capability or competency
to gain access to new distribution channels and markets
A firm must decide whether to build, borrow, or buy to answer the question of
Blank______.
when to start growth
why it must grow
who must initiate growth
how it will achieve growth - Answer-how it will achieve growth
Which of the following are the three choices in the Build-Borrow-Buy framework?
strategic alliances
internal development
acquisition of new resources
elimination of product cost - Answer-strategic alliances
internal development
acquisition of new resources
A firm might want to use a strategic alliance to Blank______.
release proprietary information to rival firms
lower Internet discounted prices in the primary market
increase the threat of rivalry
change the industry structure - Answer-change the industry structure
A real option gives a firm the right to continue making investments Blank______.
