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Unformatted text preview: Strategic Management Quiz 4 ( c) 0.25 negative mark for each wrong answer 1. Bankruptcy is the termination of the firm. (p.150) Answer: F 2. A no change strategy is a decision to do nothing new in a worsening situation, but instead to act as though the companys problems are only temporary. (p.147) Answer: F 3. Exporting grants rights to another company to open a retail store using the franchisers name and operating system. (p.143) Answer: F 4. Vertical integration is going backward on an industrys value chain. (p.140) Answer: F 5. Corporate parenting is the coordination of cash flow among units. (p.137) Answer: F 6. 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 7. Forward integration is the degree to which a firm operates vertically in multiple locations on an industrys value chain from extracting raw materials to manufacturing to retailing. (p.140) Answer: T 8. Turnkey operations are typically contracts for the construction of operating facilities in exchange for a fee.8....
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