BSG Final Exam 2023 Questions and

BSG Final Exam 2023 Questions and Answers 100% Verified Graded A+ 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. - Correct 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. - Correct 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 - Correct

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

business. - Correct 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 - Correct Answer d. imitation of

core technology by potential competitors 1 / 2

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 - Correct 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. - Correct Answer
• 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. - Correct 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

• innovation in both the acquired and the acquiring firm is enhanced by the exchange of

competencies resulting from acquisition

• unrelated acquisitions are usually uncomplicated because the acquired firm is

allowed to continue to function independently as it did before acquisition - Correct Answer b. it is difficult for companies to develop products that differ from their current product line Related acquisitions to build market power

• are likely to undergo regulatory review.
• are rarely permitted to occur across international borders.
• typically involve a firm purchasing one of its suppliers or distributors.
• concentrate on capturing value at more than one stage in the value chain. - Correct

Answer a. are likely to undergo regulatory review.International strategy refers to a(an)

• action plan pursued by American companies to compete against foreign companies

operating in the United States.

• strategy through which the firm sells products in markets outside the firm's domestic

market.

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