MGT 489 Final Exam MCQs

MGT 489 Final Exam MCQs

QUESTION 1

1. A ____________ is an association of several companies sharing a specific strategic purpose.

a.

cross-equity alliance

b.

virtual alliance

c.

golden parachute

d.

consortia

e.

diversified organization

5 points

QUESTION 2

1. When considering first-mover advantage within an industry that has powerful suppliers, which of the following is a critical resource for the first-mover to possess?

a.

The implementation of pay for performance

b.

Bargaining power

c.

Valuable customers

d.

An easily imitated product

e.

An easily imitated service

5 points

QUESTION 3

1. The most complex configuation aims to simultaneously achieve global ____________.

a.

cost leadership and differentiation

b.

mergers and acquisitions

c.

efficiency and maximize local responsiveness

d.

dominance while acting in an ethical fashion

e.

notoriety while keeping proprietary information secret

5 points

QUESTION 4

1. Effective corporate strategies focus on __________.

a.

considering how entry into a new industry will increase overall firm competitiveness

b.

considering how the corporation can add value to its existing lines of business

c.

considering which business arenas the company should compete in

d.

considering how diversification might help the corporation to compete

e.

All of the Above

5 points

QUESTION 5

1. In an alliance with Big Company, your company invested in a $10,000,000 diaper making machine with the idea being that Big Company would buy the supply of diapers you made over the next ten years. After you had bought and installed the machine, the management of Big Company informed you that they would only be paying you 10 cents a diaper as opposed to the 20 cents you thought they had initially indicated. This is an example of ___________.

a.

adverse selction

b.

moral hazard

c.

a hold-up

d.

how easy it is to understand alliance partners

e.

a criminal activity

5 points

QUESTION 6

1. The essential elements of ___________ deal with accountability for fraud, analysts' conflicts of interest, disclosure, auditor independence, accounting oversight and attorney's responsibilities.

a.

the Taft-Hartley Act

b.

the EEOC

c.

the Humpty-Dumpty Act

d.

the Sarbanes-Oxley Act

e.

Emageon analysis

5 points

QUESTION 7

1. ____________ strategies do not take existing rules of competition for granted but attempt to create value by approaching competition by violating some of these taken-for-granted rules.

a.

Illegal

b.

Unethical

c.

Revolutionary

d.

Static

e.

Global

5 points

QUESTION 8

1. ___________ is/are required if top management wants to execute rapid strategic change.

a.

Confusion

b.

Stress

c.

Incentives

d.

Frustration

e.

Conflict

5 points

QUESTION 9

1. ___________ is an exaggerated self-confidence that may lead managers to overestimate the value of an acquisition target.

a.

Agency theory

b.

Esteem

c.

Hubris

d.

Efficacy

e.

Ineptitude

5 points

QUESTION 10

1. The "Milk Cliff" concerns _________.

a.

an attractive vacation location on the shores of Lake Superior in the Upper Peninsula

b.

a lack of political leadership

c.

where cows go to hang-out

d.

tension among the major political parties

e.

where one throws his or her money in the air, and hopes it hits the river of milk below

5 points

QUESTION 11

1. The breadth and diversity of countries in which a firm operates is referred to as __________.

a.

geographic scope

b.

global positioning

c.

diversification

d.

differentiation

e.

transnational operations

5 points

QUESTION 12

1. When entering a promising arena with a new business a company can ________.

a.

use a revolutionary strategy

b.

focus on a niche

c.

leverage existing resources

d.

use various combinations of (a), (b), and (c)

e.

any one method, either (a), or (b), or (c)

5 points

QUESTION 13

1. If you were considering the impact that different languages, political stability, physical remoteness, and cost and quality of available resources were going to have on your plans for geographical expansion, you would most likely be using ____________ as an analysis tool.

a.

the value net

b.

portfolio planning

c.

profit pools

d.

the cage framework

e.

Bower's Classification

5 points

QUESTION 14

1. When thinking about strategic alliances the _________ is a framework that allows the top management of firms to better understand which points of coordination exist as opportunities for improving performance.

a.

value chain

b.

competitive grid

c.

diversity complex

d.

theory of quantum mechanics

e.

winner's circle

5 points

QUESTION 15

1. Which of the following allows top management to better control its organization?

a.

Organizational processes

b.

Organizational structure

c.

Organizational systems

d.

Incentive programs for employees

e.

All of the Above

5 points

QUESTION 16

1. Your firm has created a contract with Political Contacts. LLC., located in Mexico to provide you with needed political advice and connections for your geographic expansion. Unfortunately, Political Contacts, LLC has personnel that know very little and have no useful political connections in Mexico. This is an example of ____________.

a.

adverse selection

b.

moral hazard

c.

a hold-up

d.

how easy it is to understand alliance partners

e.

your management having done a good job with its due diligence

5 points

QUESTION 17

1. Which of the following are considered the three Cs of strategy communication?

a.

Contacts, Contracts, Credibility

b.

Contacts, Collaboration, Cultural Understanding

c.

Collaboration, Credibility, Cultural Understanding

d.

Contacts, Credibility, Cultural Understanding

e.

Contacts, Clarity, Cultural Understanding

5 points

QUESTION 18

1. Mathmatically, synergy can be expressed as ____________.

a.

14/2 = 7

b.

4+4=10

c.

2+2<4 d. 4>