Quiz Chapter 5 (Quiz 5 of 11)

A growing trend is for franchisers to buy out their part of the business from their franchisees.

F

A secondary buyout occurs when a corporation's shares are bought by the company's management and other private investors using borrowed funds.

F

Divestiture is selling all of a company's assets, in parts, for their tangible worth.

F

If a firm's present suppliers are expensive and unreliable in meeting the firm's needs for parts, components, and/or raw materials, the firm should pursue a horizontal integration strategy.

F

While outsourcing manufacturing, tech support, and back-office work is quite common, it is still unheard of for companies to outsource product design.

F

Strategists in governmental organizations operate with far more strategic autonomy than their counterparts in private firms.

False

Gaining ownership or increased control over distributors or retailers is called forward integration strategy.

T

The frequency of cooperative arrangements between rival firms has been increasing

T

An acquisition occurs when a large organization purchases a smaller one or vice versa.

T