i i i i i i i
rified Answers i i
BrinkeriInternationalioperatesirestaurantsiiniseveral
idifferentisegmentsiofitheicasualidiningimarket.iThisii
si
a.iairelativelyihighileveliofidiversification.
b.ianiexampleiofiproductidiversification.i
c.iunlikelyitoireduceivariabilityiinitheifirm'siprofitabil
ityisinceitheirestaurantsiareialliinitheicasualidiningica
tegory.i
d.ianiexampleiofirelatedilinkedidiversification.i-
iCorrectiAnswer-
b.ianiexampleiofiproductidiversification.
Onitheimostibasicilevel,icorporate-
levelistrategyiisiconcernediwithi____iandihowitoimana
geitheseibusinesses.i
a.iwhetheritheifirmishouldiinvestiiniglobalioridomesti
cibusinessesi
b.iwhatiproductimarketsiandibusinessesitheifirmishou
ldibeiini
c.iwhetheritheiportfolioiofibusinessesishouldigenerat
eiimmediateiabove-
averageireturnsiorishouldibeitroubledibusinessesiwhi
chiwillicreateiabove-
averageireturnsionlyiafterirestructuringi
d.iwhetheritoiintegrateibackwardioriforward.i-
iCorrectiAnswer-
b.iwhatiproductimarketsiandibusinessesitheifirmishou
ldibeiin
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Vendarsol
,WhichiacquisitioniwouldibeiconsidereditheiLEASTirel
ated?i
a.iaicandyimanufactureripurchasesiaichemicalilabora
toryispecializingiinifoodiflavorings.i
b.iaichainiofigardenicentersiacquiresiailandscapeiarc
hitectureifirm.i
c.iaihospitaliacquiresiailong-termicareinursingihome.i
d.ianiupscalei"white-
tablecloth"irestaurantichainiacquiresiaitraveliagencyi
-iCorrectiAnswer-d.ianiupscalei"white-
tablecloth"irestaurantichainiacquiresiaitraveliagency
Theimorei"constrained"itheirelatednessiofidiversifica
tion,i
a.itheilessilikelyitheifirm'siportfolioiofibusinessesiwilli
reduceitheifirm'sivariabilityiiniprofitability.i
b.itheiwideritheivariationiinitheiportfolioiofibusinesse
siownedibyitheifirm.i
c.itheimoreilinksithereiareiamongitheibusinessesiown
edibyianiorganization.i
d.iloweritheiproportioniofitotaliorganizationalirevenu
eiderivedifromitheidominant-business.i-
iCorrectiAnswer-
c.itheimoreilinksithereiareiamongitheibusinessesiown
edibyianiorganization.
WhichiofitheifollowingiisiNOTiailimititoiverticaliintegr
ation?i
a.ibureaucraticicostsi
b.itheilossiofiflexibilityithroughiinvestmentiinispecifici
technologiesi
c.icapacityibalanceiandicoordinationiproblemsifromic
hangesiinidemandi
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Vendarsol
, d.iimitationioficoreitechnologyibyipotentialicompetito
rsi-iCorrectiAnswer-
d.iimitationioficoreitechnologyibyipotentialicompetito
rs
Horizontaliacquisitionsiinitheivideoirentaliindustryiar
eitypicallyiintendeditoi
a.itakeiadvantageiofiinnovationsicreatedibyitheiotheri
firm.i
b.ireduceisomeiofitheiovercapacityiinitheiindustry.
c.icontrolimoreipartsiofitheivalueichain.i
d.iovercomeibarriersitoientryi-iCorrectiAnswer-
b.ireduceisomeiofitheiovercapacityiinitheiindustry.
ForeignifirmsiseekingitoiacquireiU.S.ifirmsiareiintere
stediinialliofitheifollowingiEXCEPTi
a.igainingiaccessitoitheiU.S.icompanyibrandinames.i
b.igainingiaccessitoicriticaliresourcesiheldibyiU.S.ico
mpanies.i
c.idiversifyingiintoiunrelatediindustriesiiniorderitoibr
oadenitheirimarketiscope.i
d.iacquiringirelationshipsiwithidealersithroughihoriz
ontaliacquisitions.i-iCorrectiAnswer-
d.iacquiringirelationshipsiwithidealersithroughihoriz
ontaliacquisitions.
Researchersihaveifoundithatishareholdersiofiacquire
difirmsiofteni
a.iearniabove-averageireturns.i
b.iearnibelow-averageireturns.i
c.iearnicloseitoizeroiasiairesultiofitheiacquisition.i
d.iareinotiaffectedibyitheiacquisition.i-
iCorrectiAnswer-a.iearniabove-averageireturns.
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Vendarsol