University of North Dakota MGMT 475 Quiz 6 1)Usually, a company is classified as a single-business firm when revenues generated from its core business area are greater than       percent

University of North Dakota

MGMT 475

Quiz 6

1)Usually, a company is classified as a single-business firm when revenues generated from its core business area are greater than       percent.

2. One method of facilitating the transfer of corporate-level core competencies between firms is to:
3. The Publicis Groupe has three major groups of business (advertising, media, and digital) that share resources and capabilities. The Publicis Groupe is using a(n)                                      diversification strategy.
4. Because of the tax laws of the 1960s and 1970s, when dividends were taxed more heavily than capital gains, shareholders preferred that corporations:
5. The purchasing of firms in the same industry is called:
6. The                          diversification strategy creates value in two ways. First, because the core competency has already been developed in one business, the firm does not have to allocate resources to develop it. Second, because the resource is intangible, competitors cannot easily imitate it.

7. The main difference between the related constrained level of diversification and the related linked level of diversification is:
8. PorkPride Foods produces hams and other meat products. It owns hog raising operations. This is an example of a business that is:
9. When a firm simultaneously practices operational relatedness and corporate relatedness:
10. Firms that have selected a related diversification corporate-level strategy seek to exploit:
11. Research has shown that horizontal acquisitions
12. In making a decision to diversify, managers should use value-creating reasons or face the risk that their firms will be acquired and they could lose their jobs. Which of the following is a value- creating reason to diversify?
13. Acquisitions to increase market power require that the firm have a(n)                     diversification strategy.
14. Research suggests that                        has decreased while                         has increased, possibly due to the restructuring that continued in the 1990s through the early twenty-first century.
15. The drawbacks to transferring competencies by moving key people into new management positions include all of the following EXCEPT
16. Certain regulatory changes (such as antitrust regulation and tax laws) create incentives or disincentives for diversification that:
17. During the 1990s, top executives of Titanic, Inc., followed a pattern of aggressive acquisitions and diversification. Now, Titanic is performing poorly and earning below average returns. Lusitania, a large conglomerate firm, is in the final stages of purchasing Titanic. Lusitania has announced that it will fire Titanic's current top executives. The Titanic executives may not be worried about their impending job loss if they: