(MGT490 20353 Spring 2015)Task:Chapter 06 Quiz1.award:10 out of10.00 pointsCasio, a large digital merchandise producer, synthesizes it talents in miniaturization, microprocessor design, materials science, andultrathin precision castings to supply digital watches. It makes use of the identical expertise to supply different non-related merchandise. This skillsetis a _______________.shared activityeconomy of scope core competencystrategic resource2.award:10 out of10.00 pointsA golden parachute is a prearranged contract with managers specifying that, within the occasion of a hostile takeover, the goal firm managers won’t be paid a major severance package deal.True False3.award:10 out of10.00 pointsDiversification initiatives have to be justified by the creation of worth for workers.True False4.award:10 out of10.00 pointsFor a core competence to be a viable foundation for the company strengthening a brand new enterprise unit, there are three necessities. Whichone of the next shouldn’t be one among these necessities?The brand new enterprise should create superior worth.The gathering of competencies ought to be distinctive, in order that they can’t be simply imitated.The brand new enterprise have to be much like current companies to learn from a core competence. The competence should assist the enterprise lose market place relative to its competitors.5.award:10 out of10.00 pointsCorporate restructuring consists of capital and asset restructuring in addition to ________.expertise restructuringprocurement restructuring administration restructuringglobal diversification6.award:10 out of10.00 pointsAcquisitions, based on analysis, normally lead to worth destruction moderately than worth creation. TrueFalse7.award:10 out of10.00 pointsBusiness degree technique addresses two associated points: what companies ought to a company compete in and the way can thesebusinesses be managed in order that they create synergy.True False8.award:10 out of10.00 pointsDivesting of companies can accomplish many various targets, besides ________.offering the agency with elevated money resourcesraising money to assist fund current businessesenabling managers to focus their efforts extra instantly on the core companies of the agency offering the agency with fewer assets to spend on extra enticing alternatives9.award:10 out of10.00 pointsThe Cisco acquisition of Pure Digital Applied sciences, the mum or dad of the Flip video digicam, failed as a result of Cisco was unable to reply quickly tomarket pressures. TrueFalse10.award:10 out of10.00 pointsIn 2012, Hewlett-Packard wrote off $9 billion of the $11 billion it paid for Autonomy, a software program firm that it bought one 12 months earlier.That is an instance of a failed merger. TrueFalse11.award:10 out of10.00 pointsWhich of the next is a motive for merger and acquisition failures?The buying firm pays too low a worth for the frequent inventory of the goal firm.The acquired firm property are built-in into the buying firm enterprise strains. High executives act of their greatest pursuits moderately than these of the shareholders.The acquisition results in worth creation.12.award:10 out of10.00 pointsA drawback of mergers and acquisitions is that they will allow a agency to quickly enter new product markets.True False13.award:10 out of10.00 pointsDiversification initiatives embrace all the following besides ____________________. worker rewardsmergers and acquisitionsstrategic alliancesjoint ventures14.award:10 out of10.00 pointsShaw Industries, a large carpet producer, will increase its management over uncooked supplies by producing a lot of its personal polypropylene fiber, a key enter to its manufacturing course of. That is an instance of utilizing associated diversification to realize worth by leveragecore competencies to realize economies of scope.True False15.award:10 out of10.00 pointsAccording to Michael Porter, there’s a super attract to mergers and acquisitions. It’s the huge play, the dramatic gesture. Withone stroke of the pen you may add billions to measurement, get a entrance web page story, and create pleasure in markets. TrueFalse16.award:10 out of10.00 pointsCompanies use the tactic of ________ to provide shareholders sure rights within the occasion of a takeover by one other agency.scorched earthgolden parachutegreenmail poison capsule17.award:10 out of10.00 pointsRestructuring requires the company workplace to search out both poorly performing companies with unrealized potential or companies in industries on thethreshold of destructive change.True False18.award:10 out of10.00 pointsRelated diversification allows a agency to learn from vertical relationships throughout completely different companies within the diversified company byleveraging core competencies and sharing actions.True False19.award:10 out of10.00 pointsThese sorts of corporations create worth by administration experience in areas corresponding to budgeting, planning, procurement, and humanresource administration.restructured parentcompetitionleveraged20.award:10 out of10.00 pointsRelated diversification allows a agency to learn from economies of scope, that are price will increase which are derived from leveraging corecompetencies.True False21.award:10 out of10.00 pointsWhen a hostile agency buys a big block of excellent goal firm inventory and the goal firm administration feels that a tenderoffer is impending, they provide to purchase the inventory again from the hostile firm at the next worth than the unfriendly firm paid for it.This is called greenmail. TrueFalse22.award:10 out of10.00 pointsAmong the disadvantages of acquisitions are the cheap premiums which are ceaselessly paid to accumulate a enterprise.True False23.award:10 out of10.00 pointsWith unrelated diversification, potential advantages may be gained from vertical or hierarchical relationships; that’s, the creation of synergiesfrom the interplay of the company workplace with the person enterprise models. TrueFalse24.award:10 out of10.00 pointsMetLife was in a position to dramatically broaden its world footprint by buying Alico, a worldwide participant within the insurance coverage enterprise from AIG in 2010 whenAIG was in monetary misery. This reveals that not all diversification strikes erode efficiency. TrueFalse25.award:10 out of10.00 pointsThe downsides or limitations of mergers and acquisitions embrace all the following, EXCEPT:It’s a speedy means to enter new markets and purchase expertise and competences.There may be many cultural points that may doom an in any other case promising acquisition.Difficulties exist in integrating the actions and assets of the acquired agency into on-going operations. Premiums which are hardly ever paid to accumulate a enterprise are costly