Reference no: EM132224653

TRUE OR FALSE

1) The book value of a firm is, generally, synonymous with it’s strategic value.

2) A company targeted for acquisition must have a current record of profitability to be of strategic value to a potential acquiring company.

3) A core strategy of the CEO should be to focus on continually driving costs down to maintain and/or improve margins

4) Moving second into a market place carries less risk in terms of market growth and sustainability in early stage 2 than it is in early stage 3 of a product life cycle.

5) The passage of the Sarbane’s Oxley act as concentrated more responsibility for corporate governance in the role of the CEO and less into independent boards of directors.

6) In a related business strategy for acquisition and or growth, three key elements are personal competency, value chain economies, and market perception

7) In an unrelated business strategy for acquisition and/or growth, three key elements are the targeted business distress, the size of the expected contribution, and the returns on investment

8) A complete (forward and backward) value chain for a beer prices are like Budweiser would be denied as well processes and activities from the beer processing plant to the customer

9) Basic questions are for is a must answer are which customers to serve, what are the customers needs, and what court competencies does the firm process to satisfy those needs.

10) Selling of the Samsung notebook primarily over the Internet represents a frontal strategy for competing with Apple iPad retail stores selling by using a similar channel for marketing and distribution

11) Smaller increases in the company is gross margin following up on cycle of a particular product school, generally, signals maturation of the product and business cycle times

12) Show Horse board of directors take a hands on approach to matters like board committee assignments and continues operational improvements in the company

13) Johnson and Johnson is in The baby shampoo products business. Neutrogena Is in the skin care products business. Neutrogena is a poor candidate for a business related acquisition strategy by Johnson & Johnson.

14) Campbell Soup’s temporary reduction of the number of its soup Varieties is in response to the actions of a low-cost competitor is an example of a later stage two or early stage III strategy

15) A pro folio of Aquafina water, Lipton’s, Gatorade, and all sport would imply and unrelated diversification strategy

16) A useful benchmark for ascertaining a bare minimum expected investment return u.S.investments would be the risk-free rate a return associate with the U.S. T bills

17) The upper strategic level of a company, typically, includes the CEO, CFO, the executive team, the Board of Directors and it’s advisors, department head, and the middle managers

18) In McCormick net sales are are growing at 7% annually, then sales will double in nine years on a compounded basis

19) Identifying that and complementary value chain factors of Yankee candle which rug doctor had targeted for acquisition would not be part of the due diligence activities a rug doctor

20) Based on market cap, debt, and cash reserves, cognex will be more likely a takeover target then would be irobot

21) Under various sec, and NYSE, and other exchange regulations, the enterprise risk of a company should be identified in the 10 Q filing but not in the 10K filing

22) The power exerted by the AARP on auto insurance rates offered to senior citizen is a good example of supplier force under the porters five forces model

23) The offering a free samples by Costco in a store locations as opposed to not purchasing newspaper advertising inserts indicates a high cost promotional strategy

24) Typically, forward integration by a manufacturer has the characteristic of moving away from the customer and towards producing its own supplies and inputs

25) Orlopp turkey farm relies on moroni breeding stock as its sole provider. breeding stock interruption caused by moroni birds stock is a good example of buyer forces under porters five forces model

26) A central tenet of Adam’s smith wealth of Nations is that individuals will act in their own self interest

27) McDonald’s should consider outsourcing it’s bakery goods production when it identifies processors that can produce these bakery goods at a materially low-cost than McDonald’s can

28) The principal focus of a Board of Directors is to manage the resources of the company on a day today basis

29) Two of the main tenents of crossing “the leader ship threshold” into an executive position are risk taking and personal awareness

30) If the Ruiz family was to take Ruiz foods public with the help of an investment banker and Ruiz foods was initiating the creation of a board of directors, the primary question that Mr. Ruiz would want answered by the prospective board member is what is your past experience

31) Ever greening a budget or a plan involves adding an additional year to the planning horizon when the current year ends

32) As a result of a from swot analysis of its own R&D capacity, acquisitions may substitute for the product innovation within that particular firm

33) Typically, layoffs in the acquired company after it is acquired should be expected

34) Subordinated notes are highly attractive to low risk orientated, institutional investors

35) Class a shares offered by Google have the advantage of greater voting rights than both class B and C shares

36) Senior management has proposed a leveraged recapitalization early in stage two of a company’s business cycle which would allow the company to incur debt in order to pay out larger management bonuses. In a formal report commissioned by the lead director, the company’s investment banker has proposed to the audit committee that the company not use debit or cash was a purpose. Under the prudent man rule, management is most likely to win board approval

37) Inventory is both a financial and strategic asset and a financial And strategic liability

38) Property, plan equipment purchased on January 1, 2003 for 30 million and depreciate it in a straight line bases over a five-year period, has a current book value of 6 million

39) The ABC company increase its capital expenditure significantly in 2017, and, therefore, it lowered related depreciation expenses, thereby enhancing net income for 2017

40) Small gross margin decreases signify a lull in the growth of the company and Largely be ignored in terms of life cycle considerations

41) Raiding another company’s executive ranks is strictly prohibited by the foreign corrupt practices act, and is, generally, considered an unlawful “Geurilla attack”

42) In terms of preparation for leadership, formal eduction is a higher priority than is vision

43) Telco was purchased by Schneider electric, a French company. The value assigned to the amount of the purchase price above the book value could logically be attributed to Goodwill

44) One of the principal ways of leveraging assets is to borrow for a revolving credit line on the discounted value of the inventory

45) Accounts Receivable aging schedules provide insight into the revenue risk to the firm

46) Your uncle Harry’s for coffee. Friend number one says that he made $100,000 last year on an investment of 100,000. Friend number two says that he made twice as much -I.e., 200,000 on an investment of 300,000. A friend number three says out in a strategic sounds friend number two is more profitable

47) With respect to public companies and their primary stakeholders, the director’s primary role Should be on maximizing shareholder value

48) In recent years, the quickest path to succeeding to a CEO position in one’s own company has been through a finance expertise career track