Quiz 5 of 11

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

False

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

False

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.

False

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

False

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

False

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

True

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

True

Selling a division or part of an organization is called divestiture.

True

The frequency of cooperative arrangements between rival firms has been increasing.

True