BSG COMPREHENSIVE EXAM (FALL) NEWEST
2026 ACTUAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) ALL ANSWERED {120 Q & A}
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In France, fine dressmaking and tailoring have been a tradition
predating Queen Marie Antoinette. Cloth manufacturers, design
schools, craft apprenticeship programs, modeling agencies, and
so forth, all exist to supply the clothing industry. This is an
example of the __________ in Porter's model. - ✔✔✔ Correct Answer >
related and supporting industries
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 ____. - ✔✔✔ Correct Answer
> reduce their employment risk, increase the company's value
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
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proposal for - ✔✔✔ Correct Answer > increased diversification of
Sierra Infusion.
T or F? If a large Asian cosmetics firm was to engage in a 50-50
partnership with a large American chemical company to form a
new company focused on creating advanced skin care products,
this would be considered a joint venture. - ✔✔✔ Correct Answer > T
Managerial employment risk is the - ✔✔✔ Correct Answer > managers'
risk of job loss, loss of compensation, and/or loss of reputation
The market for corporate control serves as a means of
governance when - ✔✔✔ Correct Answer > internal controls have
failed.
Corporate governance is all of the following EXCEPT - ✔✔✔ Correct
Answer > resolve conflicts among corporate employees.
Corporate governance is - ✔✔✔ Correct Answer > mechanisms used to
determine and control the strategic direction and performance of
organizations.
a means to establish and maintain harmony between owners and
top managers whose interests may conflict.
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ensuring that top managers' interests are aligned with the
interests of stockholders.
T or F? Collusion is a form of cooperative strategy. - ✔✔✔ Correct
Answer > T
T or F? Firms who are competitors can form cooperative
strategies - ✔✔✔ Correct Answer > T
T or F? Strategic alliances are cooperative strategies between
firms that combine their resources and capabilities to create a
competitive advantage - ✔✔✔ Correct Answer > T
T or F? Being (and having) a trustworthy partner increases the
probability of alliance success - ✔✔✔ Correct Answer > T
T or F? Equity strategic alliances exist when one firm acquire
another firm - ✔✔✔ Correct Answer > F
T or F? Nonequity strategic alliances are formed when one
partner owns a much larger (or inequitable) share of the joint
venture than do the remaining partner(s). - ✔✔✔ Correct Answer > F
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T or F? Cooperation in slow-cycle markets is destructive,
especially in emerging markets. - ✔✔✔ Correct Answer > F
T or F? Mergers are the most popular cooperative strategy used
in standard-cycle markets - ✔✔✔ Correct Answer > F
T or F? Standard-cycle markets are often large and gain
economies of scale through cooperative alliances. - ✔✔✔ Correct
Answer > T
T or F? In a horizontal complementary strategic alliance, one firm
enters a nonequity strategic alliance with another to help in the
design, manufacture, or distribution of its product - ✔✔✔ Correct
Answer > F
Which of the following is NOT a motive for firms to become
multinational? - ✔✔✔ Correct Answer > to reduce domestic country
political pressures to expand
What is a motive for firms to become multinational - ✔✔✔ Correct
Answer > to take advantage of potential opportunities to expand the
market for the firm's products
to secure access to low-cost factors of production