10.

Which of the following DECREASES the likelihood that an acquisition will be successful?

Engage in an alliance with the target prior to pursuing the transaction

Pursue friendly takeovers versus hostile takeover

Seek firms with divergent skills and cultures

Finance the acquisition with equity versus debt

11.

In which of the following is a firm with a patented technology LEAST likely to appropriate the gains from the innovation?

Necessary distribution networks are characterized by intense rivalry among several players

Distributors are highly dependent on the technology

Necessary distribution networks are tightly held by a single firm (not the innovator)

The firm may forward integrate into distribution

12.

Which of the following leads to high transaction costs in an exchange?

Specialized assets

Fixed assets

Generalized assets

Human assets

13.

In which of the following is a firm LEAST likely to diversify?

When a single business firm's market share is close to 90

When firms cannot easily differentiate in their focal market

When an expansion of capacity increases economies of scope

When firms seek to smooth earnings