BSG Exam Review (New 2024/ 2025 Update) Questions and Verified Answers| 100% Correct | Grade A
QUESTION
Market commonality is concerned with the
... [Show More] number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to
each
Answer:
True
QUESTION
Firms with __________ market commonality and __________ resource similarity are
direct and mutually acknowledged competitor
Answer:
high/high
QUESTION
According to my lecture, Apple's newly emerging competitor
Answer:
Tesla
QUESTION
Related linked firms share more resources and assets between their businesses than do
related constrained firms
Answer:
False
QUESTION
A firm uses a corporate-level diversification strategy for a variety of reasons, all of which
have to do with ways to create value
Answer:
False
QUESTION
On average there is a(n) ______ relation between the level of diversification and firm
performance
Answer:
inverted u shape
QUESTION
All of the following are considered generic business-level strategies EXCEPT
Answer:
Product diversification
QUESTION
One reason for an acquisition is to increase market power
Answer:
True
QUESTION
In a(n) __________, two or more firms create a legally independent company to share
some of their resources to create a competitive advanta
Answer:
Joint venture
QUESTION
According to the build-borrow-buy model, which strategy is most risky?
Answer:
M&A
QUESTION
The majority of acquisitions increase short-term value for the acquiring firm.
Answer:
False
QUESTION
In a large number of family-owned firms, ownership and managerial control are not
separate
Answer:
True
QUESTION
The primary role of the board of directors is to monitor and control top-level executives
to protect owners' interests.
Answer:
True
QUESTION
The separation of the positions of CEO and chairperson of the board of directors reduces
the power of the CEO over firm governance practice
Answer:
True
QUESTION
Corporate governance is all of the following EXCEPT
Answer:
resolving conflicts among corporate employees
QUESTION
Invention is defined as the adoption of a similar innovation by different firm
Answer:
False
QUESTION
A successful __________ innovation will be less risky but less profitable than a successful __________ innovation
Answer:
Incremental; novel(disruptive)
QUESTION
The development of the original personal computer (PC) was a(n) __________innovation at the time, whereas adding a different kind of whitening agent to a soap
detergent is an example of a(n) __________ innovatio
Answer:
Novel (disruptive); incremental
QUESTION
Big firms (e.g., GM or IBM) often suffer from the innovator's dilemma.
Answer:
True [Show Less]