BSG COMPREHENSIVE EXAM (FALL)
ACTUAL EXAM QUESTIONS AND
CORRECT
VERIFIED SOLUTIONS GRADED A+
A dependable and appealing way for managers to try and boost their company's
EPS is to - ✔✔✔ Correct Answer > · Achieve a sizable cost based competitive
advantage over rivals that company managers are savvy enough to sustain; as
the market demand for branded footwear grows and the company exploits its
cost advantage by underpricing most/all rivals in all four geographic regions,
the resulting sales volume and revenue gains will typically spur increases in
EPS
Brinker International operates restaurants in several different segments of the
casual dining market. This is - ✔✔✔ Correct Answer > an example of product
diversification.
On the most basic level, corporate-level strategy is concerned with ____ and
how to manage these businesses. - ✔✔✔ Correct Answer > what product
markets and businesses the firm should be in
Which acquisition would be considered the LEAST related? - ✔✔✔
Page | 1
,Correct Answer > an upscale "white-tablecloth" restaurant chain acquires a
travel agency
The more "constrained" the relatedness of diversification, - ✔✔✔
Correct Answer > the more links there are among the businesses owned by an
organization.
Which of the following is NOT a limit to vertical integration? - ✔✔✔
Correct Answer > imitation of core technology by potential competitors
What is a limit to vertical integration? - ✔✔✔ Correct Answer > bureaucratic
costs
the loss of flexibility through investment in specific technologies
capacity balance and coordination problems from changes in demand
Horizontal acquisitions in the video rental industry are typically intended to -
✔✔✔ Correct Answer > reduce some of the overcapacity in the industry.
Foreign firms seeking to acquire U.S. firms are interested in all of the following
EXCEPT - ✔✔✔ Correct Answer > acquiring relationships with dealers
through horizontal acquisitions.
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, When a foreign firm seeks to acquire U.S. firms they are interested in - ✔✔✔
Correct Answer > gaining access to the U.S.
company brand names.
gaining access to critical resources held by U.S. companies.
diversifying into unrelated industries in order to broaden their market scope.
Researchers have found that shareholders of acquired firms often - ✔✔✔
Correct Answer > earn above-average returns.
The fastest and easiest way for a firm to diversify its portfolio of businesses is
through acquisition because - ✔✔✔ Correct Answer > it is difficult for
companies to develop products that differ from their current product line
Related acquisitions to build market power - ✔✔✔ Correct Answer > are likely
to undergo regulatory review.
International strategy refers to a(an) - ✔✔✔ Correct Answer > strategy through
which the firm sells products in markets outside the firm's domestic market.
Page | 3
ACTUAL EXAM QUESTIONS AND
CORRECT
VERIFIED SOLUTIONS GRADED A+
A dependable and appealing way for managers to try and boost their company's
EPS is to - ✔✔✔ Correct Answer > · Achieve a sizable cost based competitive
advantage over rivals that company managers are savvy enough to sustain; as
the market demand for branded footwear grows and the company exploits its
cost advantage by underpricing most/all rivals in all four geographic regions,
the resulting sales volume and revenue gains will typically spur increases in
EPS
Brinker International operates restaurants in several different segments of the
casual dining market. This is - ✔✔✔ Correct Answer > an example of product
diversification.
On the most basic level, corporate-level strategy is concerned with ____ and
how to manage these businesses. - ✔✔✔ Correct Answer > what product
markets and businesses the firm should be in
Which acquisition would be considered the LEAST related? - ✔✔✔
Page | 1
,Correct Answer > an upscale "white-tablecloth" restaurant chain acquires a
travel agency
The more "constrained" the relatedness of diversification, - ✔✔✔
Correct Answer > the more links there are among the businesses owned by an
organization.
Which of the following is NOT a limit to vertical integration? - ✔✔✔
Correct Answer > imitation of core technology by potential competitors
What is a limit to vertical integration? - ✔✔✔ Correct Answer > bureaucratic
costs
the loss of flexibility through investment in specific technologies
capacity balance and coordination problems from changes in demand
Horizontal acquisitions in the video rental industry are typically intended to -
✔✔✔ Correct Answer > reduce some of the overcapacity in the industry.
Foreign firms seeking to acquire U.S. firms are interested in all of the following
EXCEPT - ✔✔✔ Correct Answer > acquiring relationships with dealers
through horizontal acquisitions.
Page | 2
, When a foreign firm seeks to acquire U.S. firms they are interested in - ✔✔✔
Correct Answer > gaining access to the U.S.
company brand names.
gaining access to critical resources held by U.S. companies.
diversifying into unrelated industries in order to broaden their market scope.
Researchers have found that shareholders of acquired firms often - ✔✔✔
Correct Answer > earn above-average returns.
The fastest and easiest way for a firm to diversify its portfolio of businesses is
through acquisition because - ✔✔✔ Correct Answer > it is difficult for
companies to develop products that differ from their current product line
Related acquisitions to build market power - ✔✔✔ Correct Answer > are likely
to undergo regulatory review.
International strategy refers to a(an) - ✔✔✔ Correct Answer > strategy through
which the firm sells products in markets outside the firm's domestic market.
Page | 3
