MGMT 490 FINAL QUESTIONS AND VERIFIED
ANSWERS
1. The purchasing of firms in the same industry is called:
a. unrelated diversification.
b. vertical integration.
c. networking the organization.
d. horizontal acquisition. - Answers - d. horizontal acquisition.
2. Backward integration occurs when a company
a. produces its own inputs.
b. owns its own source of distribution of outputs.
c. is concentrated in a single industry.
d. is divesting unrelated businesses. - Answers - a. produces its own inputs
3. South Korea's Kimbo Asiana Group's decision to divest its Daewoo Engineering
& Construction Co. because its liquidity was being questioned illustrates the
acquisition problem of
a. integration difficulties.
b. inability to achieve synergy.
c. large or extraordinary debt.
d. managers overly focused on acquisitions. - Answers - c. large or extraordinary debt.
4. Andermeyer Jewelers has been in existence since the 1870s. It specializes in
high-end jewelry using both colored precious stones and diamonds. Generations of
wealthy families have patronized Andermeyer. Andermeyer has been owned and
managed by the Andermeyer family since its founding, and has never had more than 20
designers and jewelers in its shop. Andermeyer Jewelers should use the ____structure
a. simple
b. functional
c. matrix
d. Network - Answers - a. simple
5. One of the primary reasons for failure of cross-border strategic alliances is
a. the incompatibility of the partners (integration issues).
b. conflict between legal and business systems.
c. security concerns and terrorism.
d. high debt financing. - Answers - a. the incompatibility of the partners (integration
issues).
6. The problems associated with exporting include
a. merging corporate cultures.
b. a partner's incompatibility.
ANSWERS
1. The purchasing of firms in the same industry is called:
a. unrelated diversification.
b. vertical integration.
c. networking the organization.
d. horizontal acquisition. - Answers - d. horizontal acquisition.
2. Backward integration occurs when a company
a. produces its own inputs.
b. owns its own source of distribution of outputs.
c. is concentrated in a single industry.
d. is divesting unrelated businesses. - Answers - a. produces its own inputs
3. South Korea's Kimbo Asiana Group's decision to divest its Daewoo Engineering
& Construction Co. because its liquidity was being questioned illustrates the
acquisition problem of
a. integration difficulties.
b. inability to achieve synergy.
c. large or extraordinary debt.
d. managers overly focused on acquisitions. - Answers - c. large or extraordinary debt.
4. Andermeyer Jewelers has been in existence since the 1870s. It specializes in
high-end jewelry using both colored precious stones and diamonds. Generations of
wealthy families have patronized Andermeyer. Andermeyer has been owned and
managed by the Andermeyer family since its founding, and has never had more than 20
designers and jewelers in its shop. Andermeyer Jewelers should use the ____structure
a. simple
b. functional
c. matrix
d. Network - Answers - a. simple
5. One of the primary reasons for failure of cross-border strategic alliances is
a. the incompatibility of the partners (integration issues).
b. conflict between legal and business systems.
c. security concerns and terrorism.
d. high debt financing. - Answers - a. the incompatibility of the partners (integration
issues).
6. The problems associated with exporting include
a. merging corporate cultures.
b. a partner's incompatibility.
