MGMT182 Exam2 - Fall 2004 Dr John Merchant CALIFORNIA STATE UNIVERSITY SACRAMENTO College of Business Administration MGMT 182 Strategic Management

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Fall 2004 Dr. John Merchant CALIFORNIA STATE UNIVERSITY, SACRAMENTO College of Business Administration MGMT 182 – Strategic Management EXAM (Chapters 8-10) 200 POINTS Place your answers on a Scantron 882. 1. A merger is where: a. one firm buys controlling interest in another firm. b. two firms agree to integrate their operations on a relatively coequal basis. c. two firms combine to create a third separate entity that seeks to conduct one given function. d. two firms agree to share certain information, but their operations remain independent. 2. A(n) ________ is when one firm buys a controlling, or 100% interest, in another firm. a. merger b. acquisition c. takeover d. restructuring 3. When a firm acquires its supplier, it is engaging in: a. a horizontal acquisition. b. an unrelated acquisition. c. a hostile takeover. d. a vertical acquisition. 4. Barriers to entry represent factors associated with: a. a market, and/or firms currently operating in the market, that make it more expensive and difficult to enter that market. b. a market, and/or firms currently operating in the market, that make it more expensive and difficult to leave that market. c. differentiation strategies in which the firm maximizes its returns by emphasizing lower quality products than that of those found in markets without barriers to entry. d. the presence of above-average returns for a firm.
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MGMT 182 2 Dr. John Merchant 5. Compared to internal product development, acquisitions allow quicker routes to: a. expanded economies of scope. b. new markets and new capabilities. c. synergy within a portfolio of businesses. d. financial economies of scale. 6. Research has shown that _____________________ the greater is the probability that an acquisition will be successful. a. the more related the acquired and acquiring firms are b. the more diverse the resulting portfolio of competencies c. the more disparate the corporate cultures d. the more concentrated management attention is given to making acquisitions 7. Over-diversification is more likely to occur with: a. related businesses. b. unrelated businesses. c. all types of businesses. d. single business units. 8. One problem with becoming too large is that firms: a. become too easy to manage. b. often adopt a decentralized decision-making philosophy. c. gain increasing efficiencies. d. usually increase bureaucratic controls. 9. Bureaucratic controls refer to: a. formalized supervisory and behavioral rules and policies that are designed to ensure consistency across units. b. those activities that promote creativity in an organization. c. procedures that are not beneficial to an organization. d. formalized supervisory and behavior controls that must be sought out in a firm and eliminated. 10.
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This note was uploaded on 10/31/2010 for the course MGMT 182 taught by Professor Johnmerchant during the Fall '04 term at CSU Sacramento.

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MGMT182 Exam2 - Fall 2004 Dr John Merchant CALIFORNIA STATE UNIVERSITY SACRAMENTO College of Business Administration MGMT 182 Strategic Management

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