BSG Exam Latest 2025 Updates with 100% Correct
Questions and Verified Answers
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. |- |ANSWERb. |an |example |of
|product |diversification.
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. |- |ANSWERb. |what |product |markets
|and |businesses |the |firm |should |be |in
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 |-
|ANSWERd. |an |upscale |"white-tablecloth" |restaurant |chain |acquires |a |travel
|agency
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. |- |ANSWERc. |the |more |links |there |are |among |the |businesses
|owned |by |an |organization.
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 |- |ANSWERd. |imitation
|of |core |technology |by |potential |competitors
, 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 |- |ANSWERb. |reduce |some |of |the |overcapacity |in
|the |industry.
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. |-
|ANSWERd. |acquiring |relationships |with |dealers |through |horizontal |acquisitions.
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. |- |ANSWERa. |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 |-
|ANSWERb. |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.
|- |ANSWERa. |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.
Questions and Verified Answers
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. |- |ANSWERb. |an |example |of
|product |diversification.
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. |- |ANSWERb. |what |product |markets
|and |businesses |the |firm |should |be |in
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 |-
|ANSWERd. |an |upscale |"white-tablecloth" |restaurant |chain |acquires |a |travel
|agency
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. |- |ANSWERc. |the |more |links |there |are |among |the |businesses
|owned |by |an |organization.
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 |- |ANSWERd. |imitation
|of |core |technology |by |potential |competitors
, 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 |- |ANSWERb. |reduce |some |of |the |overcapacity |in
|the |industry.
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. |-
|ANSWERd. |acquiring |relationships |with |dealers |through |horizontal |acquisitions.
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. |- |ANSWERa. |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 |-
|ANSWERb. |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.
|- |ANSWERa. |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.
