Busi 4940
Simplified Exam Questions with 100% Correct Answers
"Slowly evolving the components of a concept that has already been accepted as ethically
sound in order to inculcate new ideas under the existing ethical halo," is the definition of what
concept? - Normative Ethics Creep
As discussed in your textbook, all of the following are consequences of the Sarbanes-Oxley Act
EXCEPT: - an increase in the number of IPOs (initial public offerings) occurred because of the
new regulations.
Generally, a board member who works directly for a company and is involved in the company's
day-to-day activities is classified as a(n)
"BLANK" director. - insider
Corporate-level strategy is primarily concerned with
"BLANK" and how to manage these businesses. - what different businesses the firm should
be in
Assume the Dean Wiley Chocolate Chip Cookie Company originally only sold chocolate chip
cookies to grocery stores.
After a while, the company acquired the Ken Cory Cake Company (KCCC). After the acquisition,
chocolate chip cookies accounted for 75% of total sales and cakes accounted for 25% of total
sales. As a result, the Dean Wiley Chocokate Chip Cookie Company can be described as
"BLANK" - Moving away from its traditional dominant strategy toward a related linked
strategy.
Which of the following is NOT typically considered an external form of corporate governance? -
Executive Compensation
, Another term for the diagram that shows three circles overlapping with the words "People,
Planet, Profit" is known as
"BLANK" - Triple Bottom Line
Firms that have selected a related-constrained type of diversification strategy generally seek to
exploit: - economies of scope between business units.
To maintain the low cost and reliably fast delivery of its product, Cory's office furniture bought a
fleet of local delivery vans. When Cory's furniture bought the delivery vans, it engaged in what
type of integration? - Forward
The lowest level (least amount) of diversification is the
"BLANK" level. - single-business
The term "conglomerate" refers to firms using the
"BLANK" type of diversification strategy. - unrelated
As described in your textbook, because of the tax laws of the 1960s and 1970s, when dividends
were taxed more heavily than capital gains, common shareholders tended to prefer that
corporations: - keep free cash flows for investment in acquisitions in unrelated businesses
Which of the following reasons for diversification is MOST likely to increase the firm's true
economic value? - Reducing costs through business restructuring
Per the discussion in the textbook and the lectures, the 'good' kind of market power can be
accomplished using which of the following mechanisms or strategies? - all of the above
could potentially generate the 'good' kind of market power
Simplified Exam Questions with 100% Correct Answers
"Slowly evolving the components of a concept that has already been accepted as ethically
sound in order to inculcate new ideas under the existing ethical halo," is the definition of what
concept? - Normative Ethics Creep
As discussed in your textbook, all of the following are consequences of the Sarbanes-Oxley Act
EXCEPT: - an increase in the number of IPOs (initial public offerings) occurred because of the
new regulations.
Generally, a board member who works directly for a company and is involved in the company's
day-to-day activities is classified as a(n)
"BLANK" director. - insider
Corporate-level strategy is primarily concerned with
"BLANK" and how to manage these businesses. - what different businesses the firm should
be in
Assume the Dean Wiley Chocolate Chip Cookie Company originally only sold chocolate chip
cookies to grocery stores.
After a while, the company acquired the Ken Cory Cake Company (KCCC). After the acquisition,
chocolate chip cookies accounted for 75% of total sales and cakes accounted for 25% of total
sales. As a result, the Dean Wiley Chocokate Chip Cookie Company can be described as
"BLANK" - Moving away from its traditional dominant strategy toward a related linked
strategy.
Which of the following is NOT typically considered an external form of corporate governance? -
Executive Compensation
, Another term for the diagram that shows three circles overlapping with the words "People,
Planet, Profit" is known as
"BLANK" - Triple Bottom Line
Firms that have selected a related-constrained type of diversification strategy generally seek to
exploit: - economies of scope between business units.
To maintain the low cost and reliably fast delivery of its product, Cory's office furniture bought a
fleet of local delivery vans. When Cory's furniture bought the delivery vans, it engaged in what
type of integration? - Forward
The lowest level (least amount) of diversification is the
"BLANK" level. - single-business
The term "conglomerate" refers to firms using the
"BLANK" type of diversification strategy. - unrelated
As described in your textbook, because of the tax laws of the 1960s and 1970s, when dividends
were taxed more heavily than capital gains, common shareholders tended to prefer that
corporations: - keep free cash flows for investment in acquisitions in unrelated businesses
Which of the following reasons for diversification is MOST likely to increase the firm's true
economic value? - Reducing costs through business restructuring
Per the discussion in the textbook and the lectures, the 'good' kind of market power can be
accomplished using which of the following mechanisms or strategies? - all of the above
could potentially generate the 'good' kind of market power
