MKTG 3420 ch 12

The act of investigating prior to signing contracts is called _____. a. due diligence b. strategic fit c. relational capability d. hubristic motive

a

The second phase in an alliance dissolution is _____. a. going public b. imitation c. strategizing d. uncoupling

a

Which is the best-case scenario for an equity-based alliance? a. High tacitness and high importance to direct organizational monitoring and control b. Low potential as real options and low influence of formal institutions c. High tacitness and low influence of formal institutions d. Low tacitness and high importance to direct organizational monitoring and control

a

Which of the following alliances is an equity-based alliance? a. Strategic investment b. Licensing c. Turnkey projects d. Co-marketing

a

Which of the following occurs in the uncoupling stage of an alliance dissolution? a. Last minute salvage b. New relationships c. Reconciliation d. Mediation by third parties

a

Which of the following stakeholders has the most concern over short-term revenue falling during mergers and acquisitions? a. Investors b. Top management c. Middle management d. Customers

a

____ refers to overconfidence in one's capabilities. a. Hubris b. Fringe c. Decoupling d. Andon

a

At which stage in the formation of alliance must a firm decide whether to take a contract or an equity approach? a. Stage 1 b. Stage 2 c. Stage 3 d. Stage 4

b

In the context of acquisitions, which of the following is a resource-based issue faced by synergistic motives? a. Herd behavior b. Enhancement of market power and scale economies c. Chasing fads of M&As d. Self-interested actions

b

In the context of the motives for acquisition, from a resource-based view, the most important _____ rationale is to leverage superior resources. a. managerial b. synergistic c. hubristic d. collusive

b

Pre-acquisition analysis often focuses on strategic fit, which is the effective matching of ____ strategic capabilities. a. competitive b. complementary c. relational d. collaborative

b

The combination of operations and management of two firms to establish a new legal entity is called a(n) _____. a. joint venture b. merger c. contractual alliance d. acquisition

b

Which is one of the four phases in an alliance dissolution? a. Imitation b. Going public c. Strategizing d. Opportunism

b

Which of the following alliances is a contractual alliance? a. Strategic investment b. Franchising c. Cross-shareholding d. Joint venture

b

Which of the following is a disadvantage of alliances? a. Lack of learning race b. Partner opportunism c. Value as real options d. Scale up and scale down of investments

b

Who benefits the most from the acquisition premium valued during an acquisition? a. The shareholders of the acquiring firm b. The shareholders of the target firm c. The opportunistic partner d. The partner who possesses hard-to-imitate capabilities

b

A(n) ____ is an investment in real operations as opposed to financial capital. a. real account b. hubris c. real option d. foreign direct investment

c

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. a. joint venture b. merger c. acquisition d. contractual alliance

c

At stage 1 in the formation of an alliance, a firm must _____. a. check the degree of tacitness b. evaluate institutional constraints c. decide whether growth can be achieved through market transactions d. choose between a contract or an equity approach

c

In a non-equity-based alliance, which of the following should be high for possible upgrading to equity-based relationships? a. Degree of tacitness b. Importance of direct organizational monitoring and control c. Potential as real option d. Influence of formal institutions

c

In an alliance, keeping critical skills and technologies not meant to be shared a secret helps prevent _____. a. proxy fight b. corporate raider c. opportunism d. hostile takeover

c

In the context of acquisitions, the similarity in cultures, systems, and structures between firms is called _____. a. strategic fit b. acquisition premium c. organizational fit d. relational capability

c

Which of the following reasons for cross-border acquisition failure is associated with pre-acquisition? a. Failure to address multiple stakeholder groups' concerns b. Poor organizational fit c. Nationalistic concerns against foreign takeovers (political and media levels) d. Clashes of organizational cultures

c

_____ alliances are based on ownership or financial interest between the firms. a. Contractual b. Hubristic c. Equity-based d. Synergistic

c

_____ are associations between firms that are based on contracts and do not involve the sharing of ownership. a. Joint ventures b. Cross-shareholdings c. Non-equity based alliances d. Strategic investments

c

A non-equity based alliance is also called a _____. a. cross-border alliance b. synergistic alliance c. hubristic alliance d. contractual alliance

d

In the context of equity-based alliances, _____ involves both firms investing in each other. a. strategic fit b. acquisition premium c. strategic investment d. cross-shareholding

d

In which type of equity-based alliance does one firm invest in another? a. Hubristic investment b. Cross-shareholding c. Licensing d. Strategic investment

d

The ability to successfully manage interfirm relationships is called _____. a. hubristic capability b. synergistic capability c. contractual capability d. relational capability

d

The difference between the acquisition price and the market value of target firms is called _____. a. acquisition equity b. acquisition cost c. acquisition value d. acquisition premium

d

The institution-based view driving alliances and acquisitions focuses on _____ concerns. a. value b. rarity c. learning by doing d. antitrust

d

The set of informal institutions that stresses the cognitive pillar lays emphasis on _____. a. establishing wholly owned subsidiaries b. granting more liberal policies c. copying reputable organizations to ensure a low-cost way to gain legitimacy d. the internalized taken-for-granted values and beliefs that guide firm behavior

d

Which is the best-case scenario for a non-equity-based alliance? a. High tacitness and low influence of formal institutions b. Low potential as real options and low influence of formal institutions c. High tacitness and high importance of direct organizational monitoring and control d. Low tacitness and low importance of direct organizational monitoring and control

d

Which of the following motives for acquisition faces the resource-based issue of access to complementary resources? a. Collaborative b. Hubristic c. Managerial d. Synergistic

d

With respect to the motives for acquisition, _____ motives add value. a. collusive b. hubristic c. managerial d. synergistic

d