BSG FINAL EXAM 2025 QUESTIONS AND
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. - ANS b. 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
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,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. - ANS b. 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 - ANS d. 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.
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, d. lower the proportion of total organizational revenue derived from the dominant-business. -
ANS c. 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 - ANS d. 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 - ANS b. reduce some of the overcapacity in the industry.
Foreign firms seeking to acquire U.S. firms are interested in all of the following EXCEPT
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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. - ANS b. 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
1 @COPYRIGHT THESTAR 2025/2026
,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. - ANS b. 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 - ANS d. 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.
2 @COPYRIGHT THESTAR 2025/2026
, d. lower the proportion of total organizational revenue derived from the dominant-business. -
ANS c. 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 - ANS d. 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 - ANS b. reduce some of the overcapacity in the industry.
Foreign firms seeking to acquire U.S. firms are interested in all of the following EXCEPT
3 @COPYRIGHT THESTAR 2025/2026
