BA 7080 FINAL EXAM CURRENTLY TESTING
COMPLETE EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS)
/ALREADY GRADED A+
The opening quotation concerning Bath Fitter illustrates the following benefits of
vertical integration:
A. None of the above
B. Economies of scale
C. Avoiding the transactions costs involved monitoring and enforcing contracts
with external suppliers.
D. Technical economies from the physical integration of processes
- ans -C. Avoiding the transactions costs involved monitoring and enforcing
contracts with external suppliers.
The opening quotation from Tom Peters states that as "yesterday's highly
integrated giants" de-integrate, their vertical relationships are taking the form of:
A. Long-term contracts
B. All of the above
C. Alliances and partnerships
D. Market contracts - ans -C. Alliances and partnerships
Corporate strategy decisions are concerned with:
A. Establishing competitive advantage
B. Diversification and vertical integration
C. The geographical boundaries of the firm
D. The scope of the firm's activities
- ans -D. The scope of the firm's activities
The corporate scope of Walt Disney Company may be described as follows:
A. A broad vertical and geographical scope but narrow product scope
B. A broad product, geographical and vertical scope.
,C. A broad product and vertical scope, but a narrow geographical scope
D. A broad product and geographical scope, but narrow vertical scope
- ans -B. A broad product, geographical and vertical scope.
The capitalist economy comprises two forms of economic organization, the
market mechanism operated by prices and the administrative mechanism of
firms.
A. The notion of the capitalist economy as governed by market processes is a
myth. In reality the global capitalist economy is controlled by large corporations.
B. The market mechanism is referred to as the "invisible hand" while the
administrative mechanism of firms is referred to as the "visible hand".
C. The market mechanism is referred to as the "visible hand" while the
administrative mechanism of firms is referred to as the "invisible hand".
D. The simultaneous operation of both "hands" means that the capitalist system is
often referred to as an "ambidextrous organization".
- ans -B. The market mechanism is referred to as the "invisible hand" while the
administrative mechanism of firms is referred to as the "visible hand".
The vertical scope of a firm relates to:
A. The proportion of the firm's inputs that are produced in-house.
B. The number of hierarchical layers of the firm's management structure.
C. The extent to which a firm owns adjacent stages of the industry value chain.
D. The size of the firm's value added.
- ans -C. The extent to which a firm owns adjacent stages of the industry value
chain.
The growth in the scope of business enterprises for most of the 19th and 20th
centuries can be attributed to a drop in administrative costs of firms relative to
the transaction costs of market. This resulted from:
A. Innovation in information and communications technology and in management
B. Globalization
C. The growing transaction costs of markets as a result of taxes, regulation, and
litigation
, D. The monopolistic power of large firms to raise prices and push down wages -
ans -A. Innovation in information and communications technology and in
management
The main cause of downsizing, refocusing, and outsourcing during the latter part
of the 20th century was:
A. The size of the firm
B. All of the above
C. None of the above
D. A greater turbulence in the environment and also developments in IT—
especially the advent of the internet
- ans -D. A greater turbulence in the environment and also developments in IT—
especially the advent of the internet
Vertical integration by industrial firms during the major part of the 20th century
was motivated primarily by firms' desire for:
A. Reducing costs
B. Increasing speed
C. Securing scare inputs
D. Reducing risk and improving coordination
- ans -D. Reducing risk and improving coordination
Which of the following factors is not conducive to vertical integration between
two adjacent stages of production?
A. Similarity of the optimum scale of production between the two stages
B. Different organizational capabilities are required at each stage
C. Stability in the technologies used at each stage
D. Few companies at each of the two stages
- ans -B. Different organizational capabilities are required at each stage
Vendor partnerships based on relational contacts—such as the relationships
between Toyota and its major component suppliers—are more successful than
either pure market contracts or vertical integration because:
COMPLETE EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS)
/ALREADY GRADED A+
The opening quotation concerning Bath Fitter illustrates the following benefits of
vertical integration:
A. None of the above
B. Economies of scale
C. Avoiding the transactions costs involved monitoring and enforcing contracts
with external suppliers.
D. Technical economies from the physical integration of processes
- ans -C. Avoiding the transactions costs involved monitoring and enforcing
contracts with external suppliers.
The opening quotation from Tom Peters states that as "yesterday's highly
integrated giants" de-integrate, their vertical relationships are taking the form of:
A. Long-term contracts
B. All of the above
C. Alliances and partnerships
D. Market contracts - ans -C. Alliances and partnerships
Corporate strategy decisions are concerned with:
A. Establishing competitive advantage
B. Diversification and vertical integration
C. The geographical boundaries of the firm
D. The scope of the firm's activities
- ans -D. The scope of the firm's activities
The corporate scope of Walt Disney Company may be described as follows:
A. A broad vertical and geographical scope but narrow product scope
B. A broad product, geographical and vertical scope.
,C. A broad product and vertical scope, but a narrow geographical scope
D. A broad product and geographical scope, but narrow vertical scope
- ans -B. A broad product, geographical and vertical scope.
The capitalist economy comprises two forms of economic organization, the
market mechanism operated by prices and the administrative mechanism of
firms.
A. The notion of the capitalist economy as governed by market processes is a
myth. In reality the global capitalist economy is controlled by large corporations.
B. The market mechanism is referred to as the "invisible hand" while the
administrative mechanism of firms is referred to as the "visible hand".
C. The market mechanism is referred to as the "visible hand" while the
administrative mechanism of firms is referred to as the "invisible hand".
D. The simultaneous operation of both "hands" means that the capitalist system is
often referred to as an "ambidextrous organization".
- ans -B. The market mechanism is referred to as the "invisible hand" while the
administrative mechanism of firms is referred to as the "visible hand".
The vertical scope of a firm relates to:
A. The proportion of the firm's inputs that are produced in-house.
B. The number of hierarchical layers of the firm's management structure.
C. The extent to which a firm owns adjacent stages of the industry value chain.
D. The size of the firm's value added.
- ans -C. The extent to which a firm owns adjacent stages of the industry value
chain.
The growth in the scope of business enterprises for most of the 19th and 20th
centuries can be attributed to a drop in administrative costs of firms relative to
the transaction costs of market. This resulted from:
A. Innovation in information and communications technology and in management
B. Globalization
C. The growing transaction costs of markets as a result of taxes, regulation, and
litigation
, D. The monopolistic power of large firms to raise prices and push down wages -
ans -A. Innovation in information and communications technology and in
management
The main cause of downsizing, refocusing, and outsourcing during the latter part
of the 20th century was:
A. The size of the firm
B. All of the above
C. None of the above
D. A greater turbulence in the environment and also developments in IT—
especially the advent of the internet
- ans -D. A greater turbulence in the environment and also developments in IT—
especially the advent of the internet
Vertical integration by industrial firms during the major part of the 20th century
was motivated primarily by firms' desire for:
A. Reducing costs
B. Increasing speed
C. Securing scare inputs
D. Reducing risk and improving coordination
- ans -D. Reducing risk and improving coordination
Which of the following factors is not conducive to vertical integration between
two adjacent stages of production?
A. Similarity of the optimum scale of production between the two stages
B. Different organizational capabilities are required at each stage
C. Stability in the technologies used at each stage
D. Few companies at each of the two stages
- ans -B. Different organizational capabilities are required at each stage
Vendor partnerships based on relational contacts—such as the relationships
between Toyota and its major component suppliers—are more successful than
either pure market contracts or vertical integration because:
