1. The directions and methods for growth are interrelated but distinct processes.

Select one:

True

False

2. Which is of these is NOT a method for corporate growth?

Select one:

a.

Strategic alliances.

b.

Mergers.

c.

Acquisitions.

d.

Diversification.

3. Organic growth is a strategy which involves:

Select one:

a.

Building on and developing an organisation's own capabilities.

b.

Organically growing through the use of mergers and acquisitions.

c.

Organically growth through the use of strategic alliances.

d.

All of above.

4. The major disadvantage of organic growth is

Select one:

a.

Poor control over investment costs.

b.

Poor fit with existing organisational culture.

c.

Speed to market and the risk of being outpaced by competitors.

d.

Risk intensive method for highly differentiated products.

5. An acquisition involves

Select one:

a.

One firm having shared ownership ('equity) in the formation a new venture with another firm.

b.

Two firms forming a non-equity alliance, which is often referred to as an 'acquisitive' growth.

c.

One firm taking over ownership ('equity') of another firm, which is often referred to as a 'takeover'.

d.

One firm taking gradual ownership ('equity) of another firm over time, but in a circumstance which never leads to full ownership.

6. A merger involves:

Select one:

a.

When one firm takes over another without the mutual agreement of both parties.

b.

When two firms mutually agree to join together on an equal basis to form a new independent entity.

c.

When two firms share resources and capabilities but do so without equity ownership.

d.

When two firms mutually agree to join together but for only a short contractual period of time.

7. Which of the following is NOT a major advantage of mergers or acquisitions?

Select one:

a.

Speed of entry to new markets.

b.

Access to complementary resources and capabilities.

c.

Potential to remove a dominant competitor.

d.

Low risk as M&A decisions are easy to reverse.

8. A strategic alliance involves:

Select one:

a.

A network of companies that form an oligopoly to compete to decrease the threat of competition.

b.

Two or more companies combining resources and capabilities to form a co-operative entity.

c.

When one firm takes over another without the mutual agreement of both parties.

d.

All of above.

9. Which of the following is NOT a major advantage of strategic alliances.

Select one:

a.

Speed to share resources and capabilities.

b.

Access to complementary resources and capabilities.

c.

Low risk of partner foul play.

d.

Flexible and easier to terminate contract.

10. A joint venture is an

Select one:

a.

Shared equity alliance.

b.

Non-equity alliance.

c.

Contractual alliance.

d.

None of the above.