• Question 62 2 out of 2 points Razor Inc., an automobile company, merges with Tyros Inc., a firm that manufactures tires, in order to limit the uncertainty in the supply of automobile tires and reduce the production cost of its cars. This merger is an example of a: Selected Answer: vertical merger Correct Answer: vertical merger Response Feedback: This is an example of a vertical merger. When companies operating at different but related levels of an industry merge, it is known as a vertical merger. In many instances, a vertical merger results when one corporation merges with one of its customers or suppliers. • Question 63 1 out of 1 points
Disadvantages of product departmentalization are that it duplicates functions and does not focus on an organization's overall objectives. Selected Answer: True Correct Answer: True • Question 64 2 out of 2 points Which of the following statements is true of franchisees? Selected Answer: They have access to standardized quality of goods and services. Correct Answer: They have access to standardized quality of goods and services. Response Feedback: In franchising, franchisees get access to standardized quality of goods and services. In franchising, the franchisee acquires the rights to a name, logo, methods of operation, national advertising, products, and other elements associated with the franchiser's business in return for a financial commitment and the agreement to conduct business in accordance with the franchiser's standard of operations. • Question 65 0 out of 1 points The first step in decision-making process is developing options directly. Selected Answer: True Correct Answer: False • Question 66 2 out of 2 points The top management of XSports Autos Inc. creates a strategic plan to enter new product markets within a period of five years. The company's middle management creates half- yearly plans to ensure that the objectives of the strategic plan are properly implemented. Along with these plans, each department creates short-term plans that specify the actions to be taken by specific employees and teams to meet the objectives of the strategic plan and the half-yearly plans. These short-term plans established at the departmental level are referred to as _____. Selected Answer: operational plans
Correct Answer: operational plans Response Feedback: These short-term plans established at the departmental level are referred to as operational plans. Operational plans are very short term and specify what actions specific individuals, work groups, or departments need to accomplish in order to achieve the tactical plan and ultimately the strategic plan. • Question 67 1 out of 1 points Which of the following is a reason behind the failure of small businesses? Selected Answer: Poor business concept Correct Answer: Poor business concept • Question 68 1 out of 1 points _____ refers to a firm's shared values, beliefs, traditions, philosophies, rules, and role models for behavior. Selected Answer: Organizational culture Correct Answer: Organizational culture
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