Reference no: EM133503835
Questions
1. 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
2. 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
3. Which of the following leads to high transaction costs in an exchange?
Specialized assets
Fixed assets
Generalized assets
Human assets
4. 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