BSG Final Exam Version 2 (New 2024/ 2025 Update) Questions and Verified Answers| 100% Correct| Grade A
QUESTION
A major conflict of interest
... [Show More] between top executives and owners, is that top executives wish to diversify the firm in order to ____, while owners wish to diversify the firm to ____.
a. generate free cash flows, reduce the risk of total firm failure
b. increase the price of the firm's stock, increase the dividends paid out from free cash flows
c. reduce the risk of total firm failure, reduce their total portfolio risk
d. reduce their employment risk, increase the company's value
Answer:
d. reduce their employment risk, increase the company's value
QUESTION
Managerial employment risk is the
a. risk that managers will behave opportunistically.
b. risk undertaken by managers to earn stock options.
c. managers' risk of job loss, loss of compensation, and/or loss of reputation.
d. risk managers will not find a new top management position if they should be dismissed.
Answer:
c. managers' risk of job loss, loss of compensation, and/or loss of reputation
QUESTION
The top management team at Sierra Infusion is concerned about the declining performance of firms in their industry. The team members are becoming concerned about the security of their jobs at Sierra Infusion. At a meeting over dinner, the top management team agrees to go to the board of directors with a proposal for
a. increased diversification of Sierra Infusion.
b. the addition of outside directors to the board.
c. increased shareholder participation in decision making.
d. greater concentration on Sierra's core industry.
Answer:
a. increased diversification of Sierra Infusion.
QUESTION
The market for corporate control serves as a means of governance when
a. the firm is overpriced in the market.
b. internal controls have failed.
c. the corporation has greatly exceeded performance expectations.
d. the top management team's interests and the owners' interests are aligned.
Answer:
b. internal controls have failed.
.
QUESTION
Corporate governance is all of the following EXCEPT
a. mechanisms used to determine and control the strategic direction and performance of organizations.
b. a means to establish and maintain harmony between owners and top managers whose interests may conflict.
c. ensuring that top managers' interests are aligned with the interests of stockholders.
d. resolve conflicts among corporate employees.
Answer:
d. resolve conflicts among corporate employees.
QUESTION
T or F? Collusion is a form of cooperative strategy.
Answer:
T
QUESTION
T or F? Firms who are competitors can form cooperative strategies
Answer:
T
QUESTION
T or F? If a large Asian cosmetics firm was to engage in a 50-50 partnership with a large American chemical company to form a new company focused on creating advanced skin care products, this would be considered a joint venture.
Answer:
T
QUESTION
T or F? Strategic alliances are cooperative strategies between firms that combine their resources and capabilities to create a competitive advantage
Answer:
T
QUESTION
T or F? Being (and having) a trustworthy partner increases the probability of alliance success
Answer:
T
BSG Final Exam Version 2 (New 2024/ 2025 Update) Questions and Verified Answers| 100% Correct| Grade A
QUESTION
A major conflict of interest between top executives and owners, is that top executives wish to diversify the firm in order to ____, while owners wish to diversify the firm to ____.
a. generate free cash flows, reduce the risk of total firm failure
b. increase the price of the firm's stock, increase the dividends paid out from free cash flows
c. reduce the risk of total firm failure, reduce their total portfolio risk
d. reduce their employment risk, increase the company's value
Answer:
d. reduce their employment risk, increase the company's value
QUESTION
Managerial employment risk is the
a. risk that managers will behave opportunistically.
b. risk undertaken by managers to earn stock options.
c. managers' risk of job loss, loss of compensation, and/or loss of reputation.
d. risk managers will not find a new top management position if they should be dismissed.
Answer:
c. managers' risk of job loss, loss of compensation, and/or loss of reputation
QUESTION
The top management team at Sierra Infusion is concerned about the declining performance of firms in their industry. The team members are becoming concerned about the security of their jobs at Sierra Infusion. At a meeting over dinner, the top management team agrees to go to the board of directors with a proposal for
a. increased diversification of Sierra Infusion.
b. the addition of outside directors to the board.
c. increased shareholder participation in decision making.
d. greater concentration on Sierra's core industry.
Answer:
a. increased diversification of Sierra Infusion.
QUESTION
The market for corporate control serves as a means of governance when
a. the firm is overpriced in the market.
b. internal controls have failed.
c. the corporation has greatly exceeded performance expectations.
d. the top management team's interests and the owners' interests are aligned.
Answer:
b. internal controls have failed.
.
QUESTION
Corporate governance is all of the following EXCEPT
a. mechanisms used to determine and control the strategic direction and performance of organizations.
b. a means to establish and maintain harmony between owners and top managers whose interests may conflict.
c. ensuring that top managers' interests are aligned with the interests of stockholders.
d. resolve conflicts among corporate employees.
Answer:
d. resolve conflicts among corporate employees.
QUESTION
T or F? Collusion is a form of cooperative strategy.
Answer:
T
QUESTION
T or F? Firms who are competitors can form cooperative strategies
Answer:
T
QUESTION
T or F? If a large Asian cosmetics firm was to engage in a 50-50 partnership with a large American chemical company to form a new company focused on creating advanced skin care products, this would be considered a joint venture.
Answer:
T
QUESTION
T or F? Strategic alliances are cooperative strategies between firms that combine their resources and capabilities to create a competitive advantage
Answer:
T
QUESTION
T or F? Being (and having) a trustworthy partner increases the probability of alliance success
Answer:
T [Show Less]