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BUSA 4980 - Test 2 Practice Questions And Answers Latest Update
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BUSA 4980 - Test 2 Practice Questions And Answers Latest Update
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Solution 2024/2025Pepper
BUSA 4980 - Test 2 Practice Questions And
Answers Latest Update
The term "conglomerates" refers to firms using which of the following forms
of corporate-level strategy.
a) unrelated
b) related constrained
c) related linked
d) mix of related linked and unrelated ANS✔✔ a
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 ANS✔✔ b
(T/F) Economies of scope are cost savings resulting from a firm successfully
leveraging, either through sharing or transferring, some of its capabilities
and competencies developed in one business to another business. ANS✔✔
True
, Solution 2024/2025
Pepper
The more "constrained" the relatedness of diversification:
a) the fewer the linkages between the businesses within the portfolio owned
by the firm
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
d) the lower the proportion of total organizational revenue derived from the
dominant business ANS✔✔ c
(T/F) Companies creating financial economies through restructuring typically
focus on high-technology businesses primarily because these firms are
human-resource dependent. ANS✔✔ False
The problems for firms that follow an unrelated diversification strategy is
that:
a) external investors tend to dump the stocks of conglomerates during
economic downturns
b) conglomerates are typically owned by one powerful entrepreneur and do
not survive his/her retirement or death
c) government regulations have periodically forced the dissolution of
conglomerates
d) it poses demanding managerial time requirements, without providing
cross-business strategic fits and hence economies of scope ANS✔✔ d
United Technologies has a number of highly diverse businesses, including
Otis (elevators), Pratt & Whitney (turbofan engines), Carrier (HVAC), and
, Solution 2024/2025
Pepper
Chubb (fire controls). How would you characterize their corporate-level
strategy?
a) single business
b) unrelated
c) related
d) mix of related and unrelated ANS✔✔ b
(T/F) Vertical integration allows the firm to gain market power as the firm
develops the ability to save on its operations, avoid market costs, improve
product quality, and possibly protect its technology from rivals. ANS✔✔ True
(T/F) The three basic benefits of international strategies are 1) increased
market size; 2) increased economies of scale and learning; and 3)
development of competitive advantages through location. ANS✔✔ True
The following refers to the differences in institutions, culture, personnel
policies, etc. that make it difficult for firms to effectively implement their
international strategies
a) the effects of regionalization
b) the risks of a multi-domestic strategy
c) the liability of foreignness
d) the effect of demand conditions ANS✔✔ c
The problems associated with exporting as a mode of international entry
include:
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