Question

17. Each of the following is considered a factor endowment in porter's diamond model except:
a) Technological know how
b) Non - competitive local supply base
c) Managerial sophistication
d) Inexpensive talented labor
e) Infrastructure

22. When a company decides to expand into new industries, it must:
a) selected a new CEO and reappoint the board of directors
b) Ascertain if a "Genuine Business Opportunity" exists
c) halt marketing activities in the current industry to avoid being associated with one specific industry
d) create one common business model for all the industries rather than each business unit
e) avoid talking about ways of increasing profitability in the business model.

25. Which of the following is NOT a potential problem associated with vertical integration?
a) A reduction in operating leverage
b) The acquisition lacks an incentive to innovate
c) An inability to optimize the acquisitions scale of operators
d) The acquisition may have obstacle technology
e) Control of the acquisitions scheduling priorities

35. Corporate raiders, who's actions are often a benefit to shareholders, activities are driven by?
a) The profit motive
b) A desire to be awarded stock options
c) A desire to bring about social justice
d) An opportunity to deal in self-dealing
e) The opportunity for on-the-job consumption

39. One problem associated with a vertical organization structure is that information passed from one level to the next can be deliberately distorted.
a) True
b) False

Answer 1

17. Factors endowment in porter's diamond model doesn't include Managerial sophistication. All other mentioned factor are included.

Hence option C is correct.

22. The company must ascertain if a "Genuine Business Opportunity" exists in the new industry.

25.The acquisition may have obstacle technology

35. The goal of a corporate raider is to affect profitable change in the company's share price and sell their shares for a profit later.

Thus option A is correct.

39. False.