Chapter 12 - Exam
22.Which is the best-case scenario for an equity-based alliance?
a.High tacitness and high importance to direct organizational monitoring and control
31.____ refers to overconfidence in one's capabilities.
a.Hubris
34.Which of the following stakeholders has the most concern over short-term revenue falling during mergers and acquisitions?
a.Investors
26.Which of the following occurs in the uncoupling stage of an alliance dissolution?
a.Last minute salvage
2.Which of the following alliances is an equity-based alliance?
a.Strategic investment
12.The act of investigating prior to signing contracts is called _____.
a.due diligence
28.The second phase in an alliance dissolution is _____.
a.going public
33.In the context of acquisitions, which of the following is a resource-based issue faced by synergistic motives?
b. Enhancement of market power and scale economies
3.Which of the following alliances is a contractual alliance?
b.Franchising
27.Which is one of the four phases in an alliance dissolution?
b.Going public
14.Which of the following is a disadvantage of alliances?
b.Partner opportunism
20.At which stage in the formation of alliance must a firm decide whether to take a contract or an equity approach?
b.Stage 2
17.Who benefits the most from the acquisition premium valued during an acquisition?
b.The shareholders of the target firm
18.Pre-acquisition analysis often focuses on strategic fit, which is the effective matching of ____ strategic capabilities.
b.complementary
8.The combination of operations and management of two firms to establish a new legal entity is called a(n) _____.
b.merger
29.In the context of the motives for acquisition, from a resource-based view, the most important _____ rationale is to leverage superior resources.
b.synergistic
6._____ alliances are based on ownership or financial interest between the firms.
c.Equity-based
35.Which of the following reasons for cross-border acquisition failure is associated with pre-acquisition?
c.Nationalistic concerns against foreign takeovers (political and media levels)
4._____ are associations between firms that are based on contracts and do not involve the sharing of ownership.
c.Non-equity based alliances
24.In a non-equity-based alliance, which of the following should be high for possible upgrading to equity-based relationships?
c.Potential as real option
9.A(n) ____ is the transfer of the control of operations and management from one firm to another with the former becoming a unit of the latter.
c.acquisition
21.At stage 1 in the formation of an alliance, a firm must _____.
c.decide whether growth can be achieved through market transactions
25.In an alliance, keeping critical skills and technologies not meant to be shared a secret helps prevent _____.
c.opportunism
16.In the context of acquisitions, the similarity in cultures, systems, and structures between firms is called _____.
c.organizational fit
13.A(n) ____ is an investment in real operations as opposed to financial capital.
c.real option
23.Which is the best-case scenario for a non-equity-based alliance?
d.Low tacitness and low importance of direct organizational monitoring and control
7.In which type of equity-based alliance does one firm invest in another?
d.Strategic investment
32.Which of the following motives for acquisition faces the resource-based issue of access to complementary resources?
d.Synergistic
15.The difference between the acquisition price and the market value of target firms is called _____.
d.acquisition premium
10.The institution-based view driving alliances and acquisitions focuses on _____ concerns.
d.antitrust
5.A non-equity based alliance is also called a _____.
d.contractual alliance
1.In the context of equity-based alliances, _____ involves both firms investing in each other.
d.cross-shareholding
19.The ability to successfully manage interfirm relationships is called _____.
d.relational capability
30.With respect to the motives for acquisition, _____ motives add value.
d.synergistic
11.The set of informal institutions that stresses the cognitive pillar lays emphasis on _____.
d.the internalized taken-for-granted values and beliefs that guide firm behavior
