MGMT 449 Chapter 6
Showing posts with label MGMT 449 Chapter 6. Show all posts
Showing posts with label MGMT 449 Chapter 6. Show all posts

The term golden parachute refers to _________.

The term golden parachute refers to _________. 




A. a clause requiring that huge dividend payments be made upon takeover

B. pay given to executives fired because of a takeover

C. financial inducements offered by a threatened firm to stop a hostile suitor from acquiring it

D. managers of a firm in a hostile takeover approaching a third party about making the acquisition




Answer: B

The antitakeover tactic, _______, is when a firm offers to buy shares of their stock from a company (or individual) planning to acquire their firm at a higher price than the unfriendly company paid for it.

The antitakeover tactic, _______, is when a firm offers to buy shares of their stock from a company (or individual) planning to acquire their firm at a higher price than the unfriendly company paid for it. 




A. golden parachute

B. poison pill

C. greenmail

D. scorched earth



Answer: C

According to Michael Porter, there is a tremendous allure to _________. It is the big play, the dramatic gesture. With one stroke of the pen you can add billions to size, get a front-page story, and create excitement in markets.

According to Michael Porter, there is a tremendous allure to _________. It is the big play, the dramatic gesture. With one stroke of the pen you can add billions to size, get a front-page story, and create excitement in markets. 




A. strategic alliances and joint ventures

B. internal development

C. mergers and acquisitions

D. differentiation strategies




Answer: C

Internal development may be time consuming and, therefore, firms may forfeit the benefits of speed that growth through __________ and __________ can provide.

Internal development may be time consuming and, therefore, firms may forfeit the benefits of speed that growth through __________ and __________ can provide. 




A. strategic alliances; joint ventures

B. strategic alliances; mergers

C. mergers; acquisitions

D. mergers; strategic alliances




Answer: C

Which of the following statements regarding internal development as a means of diversification is FALSE?

Which of the following statements regarding internal development as a means of diversification is FALSE? 




A. Many companies use internal development to extend their product or service offers.

B. An advantage of internal development is that it is generally faster than other means of diversification and firms can benefit from speed in developing new products and services.

C. The firm is able to capture wealth created without having to share the wealth with alliance partners.

D. Firms can often develop products or services at a lower cost, if they rely on their own resources instead of external funding.





Answer: B

Cooperative relationships such as __________ have potential advantages such as entering new markets, reducing manufacturing (or other) costs in the value chain, and developing and diffusing new technologies.

Cooperative relationships such as __________ have potential advantages such as entering new markets, reducing manufacturing (or other) costs in the value chain, and developing and diffusing new technologies. 




A. joint ventures

B. mergers

C. acquisitions

D. joint ventures and strategic alliances



Answer: D

Verizon Wireless and ILS Technology have a _________ whereby Verizon integrates technology developed by ILS to improve its machine-to machine (M2M) data transmission systems. M2M systems allow firms to securely transmit data to and from various devices.

Verizon Wireless and ILS Technology have a _________ whereby Verizon integrates technology developed by ILS to improve its machine-to machine (M2M) data transmission systems. M2M systems allow firms to securely transmit data to and from various devices. 




A. joint diversification

B. divestment

C. strategic alliance

D. global integration




Answer: C

Divesting of businesses can accomplish many different objectives, except _______.

Divesting of businesses can accomplish many different objectives, except _______. 




A. enabling managers to focus their efforts more directly on the core businesses of the firm

B. providing the firm with more resources to spend on more attractive alternatives

C. dispersing manager focus

D. raising cash to help fund existing businesses


Answer: C

The downsides or limitations of mergers and acquisitions include all of the following EXCEPT:

The downsides or limitations of mergers and acquisitions include all of the following EXCEPT: 




A. Premiums that are frequently paid to acquire a business are expensive.

B. Difficulties exist in integrating the activities and resources of the acquired firm into on-going operations.

C. There can be many cultural issues that can doom an otherwise promising acquisition.

D. It is a slow means to enter new markets and acquire skills and competences.



Answer: D

The primary means by which a firm can diversify are __________, _________, and ________.

The primary means by which a firm can diversify are __________, _________, and ________. 




A. mergers and acquisitions; differentiation; overall cost leadership

B. mergers and acquisitions; joint ventures and strategic alliances; internal development

C. joint ventures and strategic alliances; integration of value chain activities; acquiring human capital

D. mergers and acquisitions; internal development; differentiation



Answer: B
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