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Which of the following best explains why a board of directors may grant stock options as part of a compensation package?

To align incentives between shareholders and management

Which of the following is NOT a reason why firms enter alliances?

To replace competitive advantage with competitive parity

For which of the following companies will geographic distance be the most relevant factor in deciding whether or not to trade with a target country?

A firm that extracts and exports iron ore

Which of the following best illustrates an equity alliance?

A partnership in which RedGate Insurance Inc. has a 40 percent ownership claim in TwinTrust Finance Inc.

Which of the following best defines duality in a board of directors

A person holds both the role of CEO and chairperson of the board.

While Cisco Systems has been successful in selecting and buying both big and small technology ventures, HP had to write off some of its recent technology acquisitions. Which of the following statements best explains this scenario?

Acquisition and integration capabilities were not equally distributed across firms.

Onico Inc., a luxury car company, sells the same cars and offers the same superior services in both its home country and foreign markets. The market it operates in faces low pressures for both local responsiveness and cost reductions. Which of the following strategies within the integration-responsiveness framework does Onico Inc. most likely pursue?

An international strategy

Which of the following has been a key driver for firms to expand globally during the globalization 3.0 stage?

Benefits from lower labor costs in manufacturing and services

Which of the following is a feature of an organic organization?

High span of control

Titan Autos Inc. merged with its competitor, Cadvia Autos Inc. This allowed Titan Autos to use its technological competencies along with Cadvia Autos's marketing capabilities to capture a larger market share than what the two entities individually held. What does this scenario best illustrate?

Horizontal integration

Which of the following is an advantage offered by a functional structure?

It allows for a higher degree of specialization and deeper domain expertise.

Which of the following statements is true of an international strategy?

It enables firms to leverage their home-based core competencies in foreign markets.

Which of the following statements best describes groupthink?

It is a situation in which opinions coalesce around a leader without individuals critically challenging and evaluating that leader's opinions and assumptions.

Which of the following is one of the features of an international strategy?

It is characterized by limited local responsiveness.

Which of the following is a characteristic of a public stock company?

Legal personality allows a firm's continuation beyond the founder or the founder's family.

Which of the following real-world scenarios best exemplifies formalization?

McDonald's use of standard operating procedures across the world

Which of the following is an unintended side-effect of a high degree of specialization in an organization?

Reduced employee satisfaction due to repetition of tasks

Which of the following statements best supports the separation of ownership and control in publicly traded companies?

Shareholders own stocks but do not run the company.

. In a non-equity alliance, which of the following types of information would firms most likely share?

The documented information about the material composition of a product

In public stock companies, which of the following expectations of principals is most likely to lead to principal-agent problems?

The expectation that the agent will act in the principal's best interest

Which of the following statements best describes local responsiveness?

The need to tailor product and service offerings to fit native consumer preferences and host-country requirements

Which of the following real-world events would act as the most likely deterrent against adopting a purely stakeholder strategy approach to business?

The nonsustainable debt levels incurred by sovereign governments to fund social program

Which of the following is a drawback of pursuing a multidomestic strategy?

The strategy is costly and inefficient because it requires the duplication of key business functions across several countries.

Which of the following is an advantage of non-equity alliances?

They are flexible and easy to initiate and terminate.

Which of the following is NOT true about the members of the board of directors in a public stock company?

They are not responsible to shareholders.

Which of the following is true of the board of directors in a public stock company?

Votes at shareholder meetings determine whose representatives are appointed to the board of directors.

The Mansion Hotel Group purchased Red Brick Hotels for an estimated value of $120 billion. All the hotels previously owned by Red Brick Hotels are now managed by the Mansion Hotel Group and are known as Mansion hotels. What does this scenario best illustrate?

an acquisition

A greater cultural distance between two trading countries:

increases the liability of foreignness

India has been able to carve out a competitive advantage in business process outsourcing (BPO) primarily because:

of an abundance of well-educated, English-speaking young people.

A company that is using extrinsic motivation as an output control mechanism will most likely:

threaten to lay off employees if they do not achieve targets.