A firm may acquire capabilities through:

Select one:

a. Importation of technologies

b. Internal or external sources

c. Technology transfer

d. Transfer of key executives across its divisions

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Companies prefer to grow organically because:

Select one:

a. Research suggests internal new product development is almost certain to be successful

b. It can control its investment costs and innovative development will fit with its existing culture

c. It will be the quickest method to get the new product to market

d. It can ensure that the new product will gain advantage through differentiation

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A strategic alliance is:

Select one:

a. A situation where strategic orientations are shared and accepted within the whole organisation, achieving an alliance between the internal stakeholders

b. A relationship between players in the industry for the purposed of R&D

c. A cooperative relationship between rivals involving the sharing of resources in pursuit of common goals

d. A cooperative relationship between firms involving the sharing of resources in pursuit of common goals

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When considering foreign entry strategies the text asks 5 questions. Which of these factors belong on that list?

Select one:

a. The product tradability, barriers to trade, and the existence transaction costs

b. The firm or country-based attribute of a firm's competitive advantage, and the appropriability of the returns by that firm

c. The ownership of a large set of resources and capabilities to establish a competitive advantage overseas

d. All of the above

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Establishing a relationship with a local firm can be an excellent way to access country-specific resources. The type of relationship to establish depends on:

Select one:

a. The resources and capabilities needed

b. The power of the local firm targeted

c. The availability of worldwide activities of the firm that enters a foreign market

d. The cultural compatibility with the local firm targeted

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Strategic international alliances result in:

Select one:

a. Mixed success.

b. Strong success.

c. Failures.

d. Many different situations that cannot be categorized.

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What is the empirical evidence on merger and acquisition performance?

Select one:

a. The shareholders of the acquired firm gain

b. The shareholders of acquiring firms rarely gain significantly, and often lose

c. A and B are both true

d. A and B are both false

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Acquisitions are more likely to succeed and create value when:

Select one:

a. The financial gains from synergy greatly exceed those of the premium payment

b. A high premium is paid to satisfy the acquired company's shareholders

c. Two CEO posts are created for each of the companies - acquirer and acquired

d. It results from a hostile bid and the existing management in the acquired company are dismissed

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For a merger to add value to both sets of shareholders realistic synergies must be identified and achieved. This implies

Select one:

a. The buyer must have intimate knowledge of the company being bought

b. The company being bought must have detailed knowledge about the acquirer

c. Both A and B are true

d. Neither A nor B really matters, as everything depends on postmerger integration in the end

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Post acquisition integration of two businesses is primarily concerned with:

Select one:

a. Sorting out due diligence and the transfer of legal contracts

b. Giving presentations to banks and investors

c. Plans to integrate organisation systems and culture

d. Relocating to new headquarters.