BUSI 4940 Exam 3 Latest Update 2024-2025
Actual Exam from Credible Sources with 75
Questions and Verified Correct Answers Golden
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2 types of organizational controls - CORRECT ANSWER: strategic, financial
3 benefits of multidivisional structure - CORRECT ANSWER: monitor performance of
each business simplifying problem of control, compare between divisions, look for ways
of improving performance
3 Purposes of controls - CORRECT ANSWER: guide the use of strategy, how to
compare results, suggest corrective actions
A firm's growth patterns determine its _________ form - CORRECT ANSWER:
structural
Acquiring firm becomes too large: - CORRECT ANSWER: additional costs of controls
exceed the benefits, less innovation
Acquisition - CORRECT ANSWER: One firm buys a controlling (100% interest) in
another firm with the intent of making the acquired firm a subsidiary business w/in its
portfolio (amazon buying whole foods)
Acquisitions intended to increase market power are subject to: - CORRECT ANSWER:
Regulatory review and analysis by financial markets
Alfred Chandler said - CORRECT ANSWER: firms grow in predictable patterns
All diversification can be implemented through acquisitions and ____ risk - CORRECT
ANSWER: mitigate
, An acquisition can: (reshaping firm's competitive scope) - CORRECT ANSWER: reduce
negative effect of an intense rivalry, reduce a firm's dependence
Centralization - CORRECT ANSWER: decision-making authority
Competition Reducing Strategy - CORRECT ANSWER: Reduce competition; explicit
collusion (illegal), tacit collusion (indirectly coordinate)
Competition Response Alliances - CORRECT ANSWER: When firms join forces to
respond to strategic action, formed to respond to strategic rather than tactical
Competitive form - CORRECT ANSWER: complete independence among the firm's
divisions, unrelated diversification strategy, creates flexibility, increase motivation
Competitive Risks of Cooperative Strategies - CORRECT ANSWER: opportunistically,
misrepresent competencies, fail to make committed resources available to other
partners, one partner may make investments that are specific to the alliance while its
partner doesn't
Complementary Strategic Alliances - CORRECT ANSWER: Combine partner firm's
assets in complementary ways, include distribution, supplier or outsourcing
Cooperative form - CORRECT ANSWER: Used with related constrained diversification,
horizontal integration
Cooperative Strategy - CORRECT ANSWER: in which two or more firms work together
to achieve a shared objective
Corporate level is concerned with - CORRECT ANSWER: Diversification
Actual Exam from Credible Sources with 75
Questions and Verified Correct Answers Golden
Ticket to Guaranteed A+ Verified by Professor
2 types of organizational controls - CORRECT ANSWER: strategic, financial
3 benefits of multidivisional structure - CORRECT ANSWER: monitor performance of
each business simplifying problem of control, compare between divisions, look for ways
of improving performance
3 Purposes of controls - CORRECT ANSWER: guide the use of strategy, how to
compare results, suggest corrective actions
A firm's growth patterns determine its _________ form - CORRECT ANSWER:
structural
Acquiring firm becomes too large: - CORRECT ANSWER: additional costs of controls
exceed the benefits, less innovation
Acquisition - CORRECT ANSWER: One firm buys a controlling (100% interest) in
another firm with the intent of making the acquired firm a subsidiary business w/in its
portfolio (amazon buying whole foods)
Acquisitions intended to increase market power are subject to: - CORRECT ANSWER:
Regulatory review and analysis by financial markets
Alfred Chandler said - CORRECT ANSWER: firms grow in predictable patterns
All diversification can be implemented through acquisitions and ____ risk - CORRECT
ANSWER: mitigate
, An acquisition can: (reshaping firm's competitive scope) - CORRECT ANSWER: reduce
negative effect of an intense rivalry, reduce a firm's dependence
Centralization - CORRECT ANSWER: decision-making authority
Competition Reducing Strategy - CORRECT ANSWER: Reduce competition; explicit
collusion (illegal), tacit collusion (indirectly coordinate)
Competition Response Alliances - CORRECT ANSWER: When firms join forces to
respond to strategic action, formed to respond to strategic rather than tactical
Competitive form - CORRECT ANSWER: complete independence among the firm's
divisions, unrelated diversification strategy, creates flexibility, increase motivation
Competitive Risks of Cooperative Strategies - CORRECT ANSWER: opportunistically,
misrepresent competencies, fail to make committed resources available to other
partners, one partner may make investments that are specific to the alliance while its
partner doesn't
Complementary Strategic Alliances - CORRECT ANSWER: Combine partner firm's
assets in complementary ways, include distribution, supplier or outsourcing
Cooperative form - CORRECT ANSWER: Used with related constrained diversification,
horizontal integration
Cooperative Strategy - CORRECT ANSWER: in which two or more firms work together
to achieve a shared objective
Corporate level is concerned with - CORRECT ANSWER: Diversification
