Business Exam Questions and
Correct Answers 100% Correct
Answers
The strategic goal of ________ involves going after countries that offer the highest price
- Answer-Market seeking
First mover advantages do not include: - Answer-Successful clashes with dominant
firms in domestic markets
Large-scale entries do which of the following? - Answer-All of the above
Non-equity modes of entry typically involve: - Answer-Exports and contractual
agreements
All of the following are true of direct exports except: - Answer-The agendas and
objectives of the intermediaries and exporters are the same
Selling the rights to intellectual property for a royalty fee is involved in: - Answer-
Licensing/Franchising
Greenfield operations refers to: - Answer-Wholly owned subsidiaries
Sources of operational synergy include - Answer-All of the above
Diversification premium is the same thing as: - Answer-Conglomerate advantage
Which would be more characteristic of conglomerates? - Answer-B and C above
Research regarding the relationship between product diversification and firm
performance indicates that - Answer-All of the above
Which geographic diversification is most likely to reduce the liability of foreignness? -
Answer-Culturally adjacent countries
, In combining product and geographic diversification, which is not one of the four
possible combinations? - Answer-Classic replicators
At its core, diversification is essentially driven by all of the following except: - Answer-
Less complicated information systems
Select the best choice: a company that is engaged in oil production, pipelines and
tankers, refining, and gasoline stations has engaged in ________ expansion - Answer-
Vertical
Which is one motive for M&A which does not necessarily increase shareholder value? -
Answer-Hubris
Corporate scope is shaped by: - Answer-All of the above
Product-related diversification involves all of the following except: - Answer-A single
business strategy
The following managerial motives for conglomerations do not benefit shareholders
except: - Answer-Organizational stability
Which of the following is true regarding M&As? - Answer-As many as 70 percent of
M&As reportedly fail
To ensure the success of the M&A, managers need to make sure of all the following
except: - Answer-Seek organizational contrast and variety rather than organizational fit
Which is true regarding restructuring? - Answer-Corporate restructuring is not widely
embraced around the world
Which is true of relatedness? - Answer-Relatedness can be a common underlying
dominant logic that connects various businesses in a diversified firm
Overall, strategy is - Answer-None of the above
Much of our knowledge about "the firm" is from research on firms in - Answer-Anglo-
American capitalism
The word ________ has now become the most famous Chinese business word to
appear English-language media and means interpersonal networks - Answer-Guanxi
"Global Strategy" refers to - Answer-All of the above