Question 1

Most successful firms are getting leaner by focusing on their ________,the skills and resources with which they compete best and create the most value for owners.

Accepted Answer

Core competencies are the skills and resources with which a firm competes best and creates the most value for its owners. By focusing on their core competencies, successful firms are able to become leaner and more efficient in their operations. This allows them to better allocate resources to areas where they have a competitive advantage, and to outcompete rivals who may be less focused on their core competencies. Viral marketing, processes, business process management, and the political-legal environment may all be important factors in a firm's success, but they are not the same as core competencies.

Question 2

If Shirley's Subs Inc.purchased Tony's Car Repair Inc. ,this would be

Accepted Answer

This would be a conglomerate merger because Shirley's Subs Inc. and Tony's Car Repair Inc. operate in different industries, and a conglomerate merger involves companies from unrelated business activities merging.

Question 3

Company A and Company F have been in direct competition for many years.Recently,an announcement was made of a merger between the two companies.This would be a

Accepted Answer

The best choice is E, horizontal merger, because Company A and Company F are in direct competition with each other, and a horizontal merger involves the combination of two companies that are in the same or similar industries and compete with each other. A reverse merger involves a private company merging with a public company, a joint venture involves two companies working together on a specific project or goal, a vertical merger involves companies in different stages of the supply chain merging, and a friendly takeover involves one company acquiring another with the approval of the target company's management.

Question 4

A(n)________ is a merger of two firms that have previously had a buyer-seller relationship.

Accepted Answer

A vertical merger is a merger between two firms that have a buyer-seller relationship, where one firm provides goods or services to the other. The aim of this merger is to increase efficiency, reduce costs, and improve supply chain management.

Question 5

________ uses word of mouth and the Internet to market products.

Accepted Answer

Viral marketing is a marketing strategy that relies on customers or users to promote a product or service through word of mouth or sharing on social media or other online platforms. It is called "viral" because, like a virus, it spreads quickly and effectively from person to person. This form of marketing is often very cost-effective and can be very successful if done correctly.

Question 6

The primary objective of an ESOP is to

Accepted Answer

The answer of The primary objective of an ESOP is...

Question 7

PepsiCo created a separate corporation called Yum! Brands Inc.to run its fast-food brands: Pizza Hut,KFC,and Taco Bell.This is an example of a(n)

Accepted Answer

A spinoff occurs when a company creates a new independent company by separating part of its operations, as PepsiCo did with Yum! Brands Inc.

Question 8

BSX Inc.gave shareholders the right to purchase company stock at a 50 percent discount if a group without approval of BSX's board of directors acquired more than 20 percent of the company's shares.This is an example of

Accepted Answer

This is an example of a poison pill, as it is a defensive mechanism used by companies to deter hostile takeovers by making it more difficult and expensive for a potential acquirer to gain a controlling interest in the company. The right to purchase company stock at a 50 percent discount makes the acquisition more costly and less attractive to the acquirer, hence deterring them from pursuing the takeover.

Question 9

When the Organic Trade Association partnered with Free Range Graphics to produce a 5-minute online spoof of the latest Star Wars movie,this was an example of

Accepted Answer

The partnership between the Organic Trade Association and Free Range Graphics to produce a spoof of the latest Star Wars movie was intended to spread virally online and increase brand awareness for the organic industry. This is an example of viral marketing, which relies on social media sharing to reach a large audience.

Question 10

An approach which moves from a department-orientated organization to a process team orientation is called

Accepted Answer

The approach described is known as business process management, which involves reorganizing an organization into cross-functional process teams rather than individual departments. Process improvement, six sigma, outsourcing, and virtual restructuring may all be part of a business process management strategy, but they do not describe the overall shift to a process team orientation.

Question 11

Many companies use ________ to provide secondary services like cafeteria operations for their customers.

Accepted Answer

Outsourcing is when companies hire external organizations to handle non-core functions or services, such as cafeteria operations, allowing them to focus on their main business activities.

Question 12

When one company sells part of its existing business operations to another company,this is called

Accepted Answer

When one company sells part of its existing business operations to another company, it is referred to as divestiture. Outosurcing refers to hiring another company to perform a service or activity that was previously done in-house, intense competition refers to a situation where there are multiple companies competing for market share, a spinoff is when a company creates a separate legal entity for a specific business unit, and a strategic alliance is a partnership between two or more companies to achieve a mutually beneficial goal.

Question 13

When Molson merged with Adolph Coors,this was an example of

Accepted Answer

Molson merging with Adolph Coors is an example of a horizontal merger, as both companies were in the same industry and both produced beer.

Question 14

Everything outside an organization's boundaries that might affect it is which of the following?

Accepted Answer

The external environment refers to everything outside an organization's boundaries that might affect it, including economic, political, social, and technological factors.

Question 15

A corporation may overcome the resistance of a takeover target by implementing which of the following actions?

Accepted Answer

By buying more of the target company's stock, the corporation may increase its ownership percentage and gain more control over the company. This could potentially make it more difficult for other parties to acquire a controlling interest in the target company.

Question 16

A company that cuts and packages paper for photocopiers and printers that merges with a paper mill to reduce the risk of paper shortages is using a(n)

Accepted Answer

A vertical merger is when a company merges with another company that is in a different stage of the same industry's supply chain. In this case, the paper cutting and packaging company is merging with a paper mill, which is the source of their raw material. This will reduce the risk of paper shortages as they can now control the production of their input material.

Question 17

An acquisition takes place when

Accepted Answer

An acquisition takes place when one firm simply buys another.

Question 18

Which of the following is the best description of outsourcing?

Accepted Answer

Outsourcing refers to the practice of paying external firms or parties to provide certain business processes, materials, or resources that were previously handled internally. This strategy can help companies reduce costs, increase efficiency, and focus on core competencies. Choice C is the only option that accurately describes outsourcing.

Question 19

Social media tools serve many purposes in marketing communications.Some companies are using these tools to help in their ________ campaigns.They ask their customers to develop a new flavour,a new design,or a new slogan and to post them on various platforms for prizes and recognition.

Accepted Answer

Crowdsourcing involves engaging a large group of people, often from an online community, to contribute ideas or solutions, such as developing new products or marketing concepts.

Question 20

Stone Inc.has just been through a friendly takeover.This means that

Accepted Answer

The answer of Stone Inc.has just been through a friendly...

Quiz 2: The Environment of Business