BSG COMPREHENSIVE EXAM LATEST 2022-

BSG COMPREHENSIVE EXAM LATEST 2022-

2024/BSG COMPREHENSIVE EXAM REAL EXAM

QUESTIONS AND ANSWERS 2022 -2024

Brinker International operates restaurants in several different segments of the casual dining market. This is

• a relatively high level of diversification.
• an example of product diversification.
• unlikely to reduce variability in the firm's profitability since the restaurants are

all in the casual dining category.

• an example of related linked diversification.

-ANSWER- b. an example of product diversification.

On the most basic level, corporate-level strategy is concerned with ____ and how to manage these businesses.

• whether the firm should invest in global or domestic businesses
• what product markets and businesses the firm should be in
• whether the portfolio of businesses should generate immediate above-average

returns or should be troubled businesses which will create above-average returns only after restructuring

• whether to integrate backward or forward.

-ANSWER- b. what product markets and businesses the firm should be in

Which acquisition would be considered the LEAST related?

• a candy manufacturer purchases a chemical laboratory specializing in food

flavorings.

• a chain of garden centers acquires a landscape architecture firm.
• a hospital acquires a long-term care nursing home.
• an upscale "white-tablecloth" restaurant chain acquires a travel agency

-ANSWER- d. an upscale "white-tablecloth" restaurant chain acquires a travel agency

The more "constrained" the relatedness of diversification,

• the less likely the firm's portfolio of businesses will reduce the firm's variability

in profitability.

• the wider the variation in the portfolio of businesses owned by the firm.
• the more links there are among the businesses owned by an organization. 1 / 2

• lower the proportion of total organizational revenue derived from the dominant-

business.-ANSWER- c. the more links there are among the businesses owned by an organization.

Which of the following is NOT a limit to vertical integration?

• bureaucratic costs
• the loss of flexibility through investment in specific technologies
• capacity balance and coordination problems from changes in demand
• imitation of core technology by potential competitors

-ANSWER- d. imitation of core technology by potential competitors

Horizontal acquisitions in the video rental industry are typically intended to

• take advantage of innovations created by the other firm.
• reduce some of the overcapacity in the industry.
• control more parts of the value chain.
• overcome barriers to entry

-ANSWER- b. reduce some of the overcapacity in the industry.

Foreign firms seeking to acquire U.S. firms are interested in all of the following

EXCEPT

• 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.
• acquiring relationships with dealers through horizontal acquisitions.

-ANSWER- d. acquiring relationships with dealers through horizontal acquisitions.

Researchers have found that shareholders of acquired firms often

• earn above-average returns.
• earn below-average returns.
• earn close to zero as a result of the acquisition.
• are not affected by the acquisition.

-ANSWER- a. earn above-average returns.

The fastest and easiest way for a firm to diversify its portfolio of businesses is through acquisition because

• of barriers to entry in many industries.
• it is difficult for companies to develop products that differ from their current

product line

• / 2