Chap 9,10,11,12 quizzezs 595
Which of the following is true about acquisitions?
Acquisitions can be friendly or hostile
Fall 2019HomeAnnouncementsSyllabusModulesAssignmentsQuizzesDiscussionsGradesLibrary ResourcesPeopleTeval Assignment 20 (Quiz 8) Due No due date Points 10 Questions 10 Available until Dec 9 at 11:59am Time Limit 30 Minutes Instructions # of questions: 10 questions on topics from Chapter 10 and Chapter 11 Total points: 10 points maximum (1 point per question) Total time: 30 minutes Open books, open notes. Note that this is an individual assignment. Deadline: Friday, Dec 6 - 11:59 PM This quiz was locked Dec 9 at 11:59am. Attempt History AttemptTimeScoreLATESTAttempt 15 minutes9 out of 10 Score for this quiz: 9 out of 10 Submitted Dec 9 at 10:01am This attempt took 5 minutes. Question 11 / 1 pts Executives of Octa Autos Inc. want to expand the company's operations to foreign markets. They want to ensure that the company's mode of foreign entry allows it to have strong control over its operations and protect its intellectual property, even though it may mean investing a significant amount of capital and other resources. In this scenario, which of the following foreign entry modes would best suit Octa Autos Inc.? exporting franchise agreement Correct! acquisition licensing Question 21 / 1 pts Evara Cosmetics Inc. is a company that operates in 20 countries around the globe. The company clearly understands that the skin and hair type of customers vary from one country to another. Consequently, its products are customized to suit local customer needs and preferences, even though the costs incurred while producing these products are exceptionally high. This strategy helps the company behave as a local firm in a foreign market. In this scenario, which of the following strategies is Evara Cosmetics Inc. most likely pursuing? Correct! a multi-domestic strategy an international strategy a global-standardization strategy a one-product strategy Question 31 / 1 pts Which of the following terms describes the costs that accrue to firms when they enter unfamiliar foreign markets that are different from their domestic market in important ways? Agency costs Diseconomies of scale Correct! Liability of foreignness Conglomerate discount None of the above Question 40 / 1 pts The textbook mentions three key motivations for entering foreign markets. Which of the following is NOT one of these strategically rational motives? gain access to a larger market You Answered gain access to low-cost input factors Correct Answer avoid exchange rate fluctuations develop new competencies Question 51 / 1 pts Acme Corp. has decided to enter a foreign market organically, by building its own production facilities and establishing distribution channels from the ground up. This will allow it to have strong control over all of its business activities. Which of the following foreign entry modes has Acme Corp. chosen? Correct! greenfield venture export joint venture acquisition Question 61 / 1 pts When a country scores high on the ___________ dimension of Hofstede's national culture index, it means that hierarchy relationships, use of titles, and exercise of interpersonal influence is expected to occur among individuals and that people are generally comfortable with such status differences. uncertainty avoidance individualism collectivism Correct! power distance long-term orientation Question 71 / 1 pts The Amos Ball Printing Company was established in 1866. Currently, Amos Ball V is the CEO and chairman of the board. The company has traditionally used a functional structure. Five years ago, the company branched into online publishing and small-batch printing in addition to its regular large-batch operations. Both new businesses are significantly different in technology and marketing from each other and from Ball's traditional business. Despite the hiring of experienced professionals in these new endeavors, performance continues to be poor and is affecting Ball's overall performance. Which of the following statements is TRUE based on the information provided?
Amos should consider adopting the multidivisional structure to better manage and coordinate its activities.
All of the following are likely consequences of Walt Disney's recent acquisitions of 21st Century Fox, EXCEPT:
Disney's industry will become less consolidated
All of the following reasons can explain why appropriate executive compensation is difficult to determine EXCEPT:
It is very difficult for the board to access accounting-based measures of firm performance.
Which of the following is NOT one of the indicators of commonly accepted good corporate governance practices meant to ensure that agents act in principal's interests?
Several affiliated outsiders are serving on the firm's board of directors
Which of the following proves that GE's board of directors is significantly independent?
Sixteen of the 17 board directors are from outside the organization.
In 2014, Disney cancelled its licensing agreement with Mattel and transferred the licensing rights to manufacture the princess dolls line to Mattel's biggest rival - Hasbro. Since Hasbro has traditionally focused on boys' toys, they conducted additional research and redesigned all of Disney's princess dolls. Which of the following benefits of non-equity alliance is Disney taking advantage of in this case?
They are flexible and easy to initiate and terminate.
When a country scores high on the ___________ dimension of Hofstede's national culture index, it means that hierarchy relationships, use of titles, and exercise of interpersonal influence is expected to occur among individuals and that people are generally comfortable with such status differences.
power distance
Which of the following terms describes the costs that accrue to firms when they enter unfamiliar foreign markets that are different from their domestic market in important ways?
Liability of foreignness
Which of the following is a disadvantage of equity alliances when compared to non-equity alliances?
They require significantly higher levels of investment.
Evara Cosmetics Inc. is a company that operates in 20 countries around the globe. The company clearly understands that the skin and hair type of customers vary from one country to another. Consequently, its products are customized to suit local customer needs and preferences, even though the costs incurred while producing these products are exceptionally high. This strategy helps the company behave as a local firm in a foreign market. In this scenario, which of the following strategies is Evara Cosmetics Inc. most likely pursuing?
a multi-domestic strategy
Executives of Octa Autos Inc. want to expand the company's operations to foreign markets. They want to ensure that the company's mode of foreign entry allows it to have strong control over its operations and protect its intellectual property, even though it may mean investing a significant amount of capital and other resources. In this scenario, which of the following foreign entry modes would best suit Octa Autos Inc.?
acquisition
Steve is a recent graduate who states that he has interned at a major accounting firm so that his value as a candidate for employment increases. A start-up recruits Steve based on his stated credentials without verifying them. Two days into the job, Steve's team lead realizes that Steve does not know much of what he claimed to know during the interview. This scenario best exemplifies
adverse selection.
The textbook mentions three key motivations for entering foreign markets. Which of the following is NOT one of these strategically rational motives?
avoid exchange rate fluctuations
If a firm does not have any of the resources needed for pursuing a new product development opportunity, and if those resources are highly tradable in factor markets, then the firm will likely
enter into a contractual agreement to obtain the required resources
Acme Corp. has decided to enter a foreign market organically, by building its own production facilities and establishing distribution channels from the ground up. This will allow it to have strong control over all of its business activities. Which of the following foreign entry modes has Acme Corp. chosen?
green field venture
In his TED Talk, Dan Pink discussed the power of incentives in motivating employees. He uses research to make the case that employees are more motivated when they find their work interesting and creative compared to when they are only offered bonuses and commissions. Firms that offer interesting and creative work opportunities not only carefully hire workers who fit well with their assigned tasks and clearly define the results expected of each worker, but also allow the workers to determine the means to these results. Based on this information, which of the following should the firm emphasize most when motivating and evaluating its employees?
intrinsic motivation and output controls
According to the build-borrow-buy framework, which of the following examples of build, borrow, buy decisions is NOTcorrect?
joint venture
All of the following are among the reasons why a large proportion of acquisitions fail to achieve desired results, EXCEPT:
low acquisition premiums
Imagine that Dunder Mifflin's stock price fell significantly. Next, Dunder Mifflin's competitor Staples makes an unsolicited bid to acquire Dunder Mifflin, fires Dwight and other executives, and appoints new executives with the goal of improving the company's performance. This mechanism is known as:
market for corporate control
Fast Call Inc. is a pharmaceutical company that has many breakthroughs in medicine to its credit. Unlike many other pharmaceutical companies, Fast Call has a relaxed work environment where employees are free to discuss projects with each other. Employees are encouraged to choose the projects that interest them; communication between team members and their supervisors is open and easy. Because of the company's work culture, its employees feel motivated to work harder and display more entrepreneurial behaviors. In this scenario, Fast Call Inc. is most likely an organization that is
organic
Isidore Crocker, CEO of Gotham Engines, is strongly in favor of acquiring Carolina Textiles, a firm in an unrelated industry. Gotham Engines has recently completed a series of other unrelated acquisitions and some members of the board of directors are questioning Crocker's motives for the acquisitions. They argue that the CEO is using this acquisition to create greater power for himself and increase his compensation rather than to increase shareholder value. In this scenario, this acquisition by Gotham Engines is most likely a result of
principal-agent problems.
In terms of the build-borrow-or-buy framework, a firm's internal resources are considered to be relevant when they are
similar to those that need to be developed and superior to those of competitors in the targeted area
While working a night job, John creates an app called DineSmart, which can be used to make reservations at restaurants, place orders, and rate the restaurants. Because he receives good responses for his app, he quits his current job to focus his efforts on DineSmart. He creates a start-up called TYOP and hires three people to help him run DineSmart and maintain the servers that run it. In this scenario, TYOP most likely has a _____ structure.
simple
