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Unformatted text preview: Strategic Management Quiz # 4 (a) 0.25 negative mark for each wrong answer True/False 1. Corporate strategy deals with the choice of direction for the firm as a whole. (p.137) Answer: T 2. Corporate parenting is the coordination of cash flow among units. (p.137) Answer: F 3. A merger is a transaction involving two or more corporations in which stock is exchanged, but from which only one corporation survives. (p.139) Answer: T 4. Vertical integration is going backward on an industry’s value chain. (p.140) Answer: F 5. Forward integration is the degree to which a firm operates vertically in multiple locations on an industry’s value chain from extracting raw materials to manufacturing to retailing. (p.140) Answer: T 6. Conglomerate diversification is diversifying into an industry unrelated to its current one.(p.143) Answer: T 7. Exporting grants rights to another company to open a retail store using the franchiser’s name and operating system. (p.143) Answer: F 8. Turnkey operations are typically contracts for the construction of operating facilities in exchange for a...
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- Spring '11
- Management, wrong answer