BUSI 4940 Exam 3 Review Latest Update 2024-
2025 Actual Exam from Credible Sources with 40
Questions and Verified Correct Answers Golden
Ticket to Guaranteed A+ Verified by Professor
"A dollar today is worth more than a dollar in the future" is a statement that reflects the
time value of money which underlies the concept and utility of net present value
calculations. - CORRECT ANSWER: True
Acquisitions, strategic alliances and innovation are different strategies a firm can
choose for either horizontal or vertical diversification. - CORRECT ANSWER: False
Advantages of outsourcing can include loss of control, loss of power, and loss of
capabilities. - CORRECT ANSWER: False
Alignment - CORRECT ANSWER: A condition where organizational elements fit
together and reinforce each other is the definition of which important aspect of
successful implementation
All of the answers are correct - CORRECT ANSWER: Corporate governance in a public
firm is led by the board of directors. During class lectures we have discussed the role of
the board. The board of directors hires and fires the CEO. The CEO is responsible for
strategy and execution but the board of directors is accountable to shareholders for
strategic direction and performance. If performance is below expectations the following
can happen:
Alliances follow a continuum from an open market transaction or a handshake
agreement to what other forms? Which of the following options are in the proper order. -
CORRECT ANSWER: Contractual alliance, equity alliance, joint venture
An example of a strategic alliance is the acquisition of Whole Foods by Amazon and Dr.
Pepper by Keurig - CORRECT ANSWER: False
, An example of radical innovation is Frito-Lay's innovation of the chip and dip kits to
provide heartier snacking options for new snacking occasions. - CORRECT ANSWER:
False
Anti-trust legislation was primarily responsible for the creation of conglomerates made
up of unrelated businesses from approximately 1950-1980. Many corporations acquired
unrelated businesses to grow and later divested those same businesses to re-focus on
core business where they could create more advantage. - CORRECT ANSWER: True
Conglomerates (large organizations made up of unrelated businesses) were common
after World War II. Companies chose to diversify this way (acquiring a collection of
unrelated businesses) because anti-trust regulation at the time limited their ability to
acquire related companies for diversification. - CORRECT ANSWER: True
Disruptive innovation generally comes from outside of incumbent firms (existing firms)
the industry. FinTech, Telsa, Amazon e-commerce and Skype are examples of disruptive
innovation that came from outside the established industry competitors. - CORRECT
ANSWER: True
Diversification along the supply chain - represented as a horizontal illustration of the
sequence of all activities performed by a firm to turn raw materials into finished product
sold to a buyer - represents vertical diversification - CORRECT ANSWER: True
False - CORRECT ANSWER: A strategy has no value until it is implemented. Nearly all
strategies are effectively implemented.
False - CORRECT ANSWER: Blue ocean innovation relates is a type of innovation that
is characterized by sustainability - innovation that is good for the earth.
False - CORRECT ANSWER: Developing growth strategy along the value or supply
chain is known as horizontal diversification.
General Electric was a company that endured throughout history by acquring unrelated
businesses (conglomerate). One of the few remaining corporate conglomerates,
2025 Actual Exam from Credible Sources with 40
Questions and Verified Correct Answers Golden
Ticket to Guaranteed A+ Verified by Professor
"A dollar today is worth more than a dollar in the future" is a statement that reflects the
time value of money which underlies the concept and utility of net present value
calculations. - CORRECT ANSWER: True
Acquisitions, strategic alliances and innovation are different strategies a firm can
choose for either horizontal or vertical diversification. - CORRECT ANSWER: False
Advantages of outsourcing can include loss of control, loss of power, and loss of
capabilities. - CORRECT ANSWER: False
Alignment - CORRECT ANSWER: A condition where organizational elements fit
together and reinforce each other is the definition of which important aspect of
successful implementation
All of the answers are correct - CORRECT ANSWER: Corporate governance in a public
firm is led by the board of directors. During class lectures we have discussed the role of
the board. The board of directors hires and fires the CEO. The CEO is responsible for
strategy and execution but the board of directors is accountable to shareholders for
strategic direction and performance. If performance is below expectations the following
can happen:
Alliances follow a continuum from an open market transaction or a handshake
agreement to what other forms? Which of the following options are in the proper order. -
CORRECT ANSWER: Contractual alliance, equity alliance, joint venture
An example of a strategic alliance is the acquisition of Whole Foods by Amazon and Dr.
Pepper by Keurig - CORRECT ANSWER: False
, An example of radical innovation is Frito-Lay's innovation of the chip and dip kits to
provide heartier snacking options for new snacking occasions. - CORRECT ANSWER:
False
Anti-trust legislation was primarily responsible for the creation of conglomerates made
up of unrelated businesses from approximately 1950-1980. Many corporations acquired
unrelated businesses to grow and later divested those same businesses to re-focus on
core business where they could create more advantage. - CORRECT ANSWER: True
Conglomerates (large organizations made up of unrelated businesses) were common
after World War II. Companies chose to diversify this way (acquiring a collection of
unrelated businesses) because anti-trust regulation at the time limited their ability to
acquire related companies for diversification. - CORRECT ANSWER: True
Disruptive innovation generally comes from outside of incumbent firms (existing firms)
the industry. FinTech, Telsa, Amazon e-commerce and Skype are examples of disruptive
innovation that came from outside the established industry competitors. - CORRECT
ANSWER: True
Diversification along the supply chain - represented as a horizontal illustration of the
sequence of all activities performed by a firm to turn raw materials into finished product
sold to a buyer - represents vertical diversification - CORRECT ANSWER: True
False - CORRECT ANSWER: A strategy has no value until it is implemented. Nearly all
strategies are effectively implemented.
False - CORRECT ANSWER: Blue ocean innovation relates is a type of innovation that
is characterized by sustainability - innovation that is good for the earth.
False - CORRECT ANSWER: Developing growth strategy along the value or supply
chain is known as horizontal diversification.
General Electric was a company that endured throughout history by acquring unrelated
businesses (conglomerate). One of the few remaining corporate conglomerates,
