BSG Final Exam
BSG Final Exam With Verified
Questions and Answers | Complete
Study Guide
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. - Correct Answer-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
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. - Correct Answer-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 - Correct
Answer-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.
BSG Final Exam
, BSG Final Exam
d. lower the proportion of total organizational revenue derived from the dominant-
business. - Correct Answer-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 - Correct Answer-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 - Correct Answer-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
a. gaining access to the U.S. company brand names.
b. gaining access to critical resources held by U.S. companies.
c. diversifying into unrelated industries in order to broaden their market scope.
d. acquiring relationships with dealers through horizontal acquisitions. - Correct
Answer-d. acquiring relationships with dealers through horizontal acquisitions.
Researchers have found that shareholders of acquired firms often
a. earn above-average returns.
b. earn below-average returns.
c. earn close to zero as a result of the acquisition.
d. are not affected by the acquisition. - Correct Answer-a. earn above-average returns.
The fastest and easiest way for a firm to diversify its portfolio of businesses is through
acquisition because
a. of barriers to entry in many industries.
b. it is difficult for companies to develop products that differ from their current product
line
c. innovation in both the acquired and the acquiring firm is enhanced by the exchange
of competencies resulting from acquisition
d. unrelated acquisitions are usually uncomplicated because the acquired firm is
allowed to continue to function independently as it did before acquisition - Correct
Answer-b. it is difficult for companies to develop products that differ from their current
product line
BSG Final Exam
BSG Final Exam With Verified
Questions and Answers | Complete
Study Guide
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. - Correct Answer-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
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. - Correct Answer-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 - Correct
Answer-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.
BSG Final Exam
, BSG Final Exam
d. lower the proportion of total organizational revenue derived from the dominant-
business. - Correct Answer-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 - Correct Answer-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 - Correct Answer-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
a. gaining access to the U.S. company brand names.
b. gaining access to critical resources held by U.S. companies.
c. diversifying into unrelated industries in order to broaden their market scope.
d. acquiring relationships with dealers through horizontal acquisitions. - Correct
Answer-d. acquiring relationships with dealers through horizontal acquisitions.
Researchers have found that shareholders of acquired firms often
a. earn above-average returns.
b. earn below-average returns.
c. earn close to zero as a result of the acquisition.
d. are not affected by the acquisition. - Correct Answer-a. earn above-average returns.
The fastest and easiest way for a firm to diversify its portfolio of businesses is through
acquisition because
a. of barriers to entry in many industries.
b. it is difficult for companies to develop products that differ from their current product
line
c. innovation in both the acquired and the acquiring firm is enhanced by the exchange
of competencies resulting from acquisition
d. unrelated acquisitions are usually uncomplicated because the acquired firm is
allowed to continue to function independently as it did before acquisition - Correct
Answer-b. it is difficult for companies to develop products that differ from their current
product line
BSG Final Exam
