QUESTION 30

1. The two basic approaches to successfully manage cooperativestrategic alliances involve ____ and ____.

   	a.	cost minimization, opportunity maximization
   	b.	monitoring systems, multiple management approaches
   	c.	equity approaches, nonequity approaches
   	d.	contractual systems, financial systems

5 points   

QUESTION 31

1. In managing cooperative strategies, research indicates that ____can be a capability that is valuable, rare, imperfectly imitable,and often nonsubstitutable giving these firms a competitiveadvantage.

   	a.	Internet competency
   	b.	trustworthiness
   	c.	stability
   	d.	extensive capitalization

5 points   

QUESTION 32

1. The ultimate test of the value of a corporate-level strategy iswhether the

   	a.	businesses in the portfolio increase the firm’s financialreturns.
   	b.	top management team is satisfied with the corporation'sperformance.
   	c.	businesses in the portfolio are worth more under the managementof the company in question than they would be under any otherownership.
   	d.	corporation earns a great deal of money.

5 points   

QUESTION 33

1. Backward integration occurs when a company

   	a.	is concentrated in a single industry.
   	b.	owns its own source of distribution of outputs.
   	c.	produces its own inputs.
   	d.	is divesting unrelated businesses.

5 points   

QUESTION 34

1. Sales of watches among teenagers and 20-somethings are decliningrapidly as this age group uses cellphones, iPods, and other devicesto tell time. A company that specializes in selling inexpensivewatches to this age group may wish to consider ____ in order todevelop new products other than watches.

   	a.	horizontal acquisitions.
   	b.	unrelated diversification.
   	c.	forward integration.
   	d.	backward integration.

5 points   

QUESTION 35

1. Market power is derived primarily from the

   	a.	quality of a firm’s top management team.
   	b.	depth of a firm’s strategy.
   	c.	size of a firm and its resources and capabilities.
   	d.	core competencies of the firm.

5 points   

QUESTION 36

1. The problems associated with exporting include

   	a.	high transportation costs and the expense of tariffs.
   	b.	difficulty in negotiating relationships.
   	c.	merging corporate cultures.
   	d.	a partner’s incompatibility.

5 points   

QUESTION 37

1. In general, cross-border alliances are more ____ and ____ thandomestic alliances, especially in emerging markets.

   	a.	complex, risky
   	b.	uncertainty reducing, diversifying
   	c.	flexible, trust-based
   	d.	highly leveraged, tightly monitored

5 points   

QUESTION 38

1. All of the following complicate the implementation of aninternational diversification strategy EXCEPT

   	a.	cultural diversity.
   	b.	increased costs of coordination between business units.
   	c.	widespread multilingualism.
   	d.	logistical costs.

5 points   

QUESTION 39

1. After a leveraged buyout, ____ typically occur(s).

   	a.	private synergy
   	b.	selling of assets
   	c.	further rounds of acquisitions
   	d.	due diligence

5 points   

QUESTION 40

1. A friendly acquisition

   	a.	allows joint ventures to be developed.
   	b.	enhances the complementarity of the two firms’ assets.
   	c.	facilitates the integration of the acquired and acquiringfirms.
   	d.	raises the price that has to be paid for a firm.