WPC 480: Chapter 7 Quiz with correct
Answers
b ii- iiAnswers ii-_____ iigenerally iileads iito iimore iipositive iioutcomes iiin iiboth iithe iishort
iiand iilong iiterm.
a. iiDownsizing
b. iiDownscoping
c. iiA iileveraged iibuyout
d. iiA iinonleveraged iibuyout
c ii- iiAnswers ii-A iilarge iicar iimanufacturer iihas iiacquired iiits iitire iisupplier iithrough iia
iivertical iiacquisition. iiUnfortunately, iiinstead iiof iirealizing iieconomies iiof iiscale iiby
iiadding iito iiits iivalue iichain, iithe iimanufacturer iihas iihad iia iivery iismall iireturn iion iiits
iiinvestment. iiThe iifirm iiis iistruggling iito iiprioritize iiits iiefforts iibetween iimanufacturing
iiand iiacting iias iia iitire iisupplier iifor iioutside iibusinesses. iiWith iiso iimuch iiproduction
iipower iiand iiso iilittle iiuse iiof iiit, iithe iimanufacturer's iioperations iihave iibecome
iiineffective. iiWhat iicommon iiproblem iiof iiacquisitions iihas iithe iimanufacturer
iiencountered?
a. iiInability iito iiachieve iisynergy
b. iiToo iimuch iidiversification
c. iiToo iilarge
d. iiInadequate iievaluation iiof iitarget
d ii- iiAnswers ii-A iijewelry iifirm iihas iirecently iiacquired iiits iigem iisupplier. iiThe iijewelry
iifirm iiprides iiitself iion iialways iibeing iithe iifirst iito iipredict iiand iiserve iinew iitrends. iiFor
iiexample, iithe iifirm iiwas iione iiof iithe iifirst iito iiintroduce iirose iigold iijewelry iipieces iiafter
iiresearch iipredicted iia iilarge iidemand. iiWhich iiof iithe iifollowing iiattributes iiof iithe iifirm
iihelps iiit iito iimaintain iia iilong-term iicompetitive iiadvantage iiin iimarkets?
a. iiMerged iifirm iimaintains iia iilow iito iimoderate iidebt iiposition
b. iiAcquisition iiis iifriendly
c. iiAcquiring iifirm iihas iifinancial iislack
d. iiAcquiring iifirm iihas iia iisustained iiand iiconsistent iiemphasis iion iiresearch iiand
iidevelopment ii(R&D) iiand iiinnovation
b ii- iiAnswers ii-The iishort-term iioutcomes iiof iidownscoping iiinclude iireduced iidebt iicosts
iiand iian iiemphasis iion iistrategic iicontrols. iiWhat iiis iithe iilong-term iioutcome iithat iiresults
iifrom iithe iishort-term iioutcomes?
Answers
b ii- iiAnswers ii-_____ iigenerally iileads iito iimore iipositive iioutcomes iiin iiboth iithe iishort
iiand iilong iiterm.
a. iiDownsizing
b. iiDownscoping
c. iiA iileveraged iibuyout
d. iiA iinonleveraged iibuyout
c ii- iiAnswers ii-A iilarge iicar iimanufacturer iihas iiacquired iiits iitire iisupplier iithrough iia
iivertical iiacquisition. iiUnfortunately, iiinstead iiof iirealizing iieconomies iiof iiscale iiby
iiadding iito iiits iivalue iichain, iithe iimanufacturer iihas iihad iia iivery iismall iireturn iion iiits
iiinvestment. iiThe iifirm iiis iistruggling iito iiprioritize iiits iiefforts iibetween iimanufacturing
iiand iiacting iias iia iitire iisupplier iifor iioutside iibusinesses. iiWith iiso iimuch iiproduction
iipower iiand iiso iilittle iiuse iiof iiit, iithe iimanufacturer's iioperations iihave iibecome
iiineffective. iiWhat iicommon iiproblem iiof iiacquisitions iihas iithe iimanufacturer
iiencountered?
a. iiInability iito iiachieve iisynergy
b. iiToo iimuch iidiversification
c. iiToo iilarge
d. iiInadequate iievaluation iiof iitarget
d ii- iiAnswers ii-A iijewelry iifirm iihas iirecently iiacquired iiits iigem iisupplier. iiThe iijewelry
iifirm iiprides iiitself iion iialways iibeing iithe iifirst iito iipredict iiand iiserve iinew iitrends. iiFor
iiexample, iithe iifirm iiwas iione iiof iithe iifirst iito iiintroduce iirose iigold iijewelry iipieces iiafter
iiresearch iipredicted iia iilarge iidemand. iiWhich iiof iithe iifollowing iiattributes iiof iithe iifirm
iihelps iiit iito iimaintain iia iilong-term iicompetitive iiadvantage iiin iimarkets?
a. iiMerged iifirm iimaintains iia iilow iito iimoderate iidebt iiposition
b. iiAcquisition iiis iifriendly
c. iiAcquiring iifirm iihas iifinancial iislack
d. iiAcquiring iifirm iihas iia iisustained iiand iiconsistent iiemphasis iion iiresearch iiand
iidevelopment ii(R&D) iiand iiinnovation
b ii- iiAnswers ii-The iishort-term iioutcomes iiof iidownscoping iiinclude iireduced iidebt iicosts
iiand iian iiemphasis iion iistrategic iicontrols. iiWhat iiis iithe iilong-term iioutcome iithat iiresults
iifrom iithe iishort-term iioutcomes?
