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- 1. Multiple ChoiceTwo or more firms agree to form as a new organization, losing original identitiesMergerJoint ventureAcquisitionFranchise
- 2. Multiple ChoiceOne company buys a controlling interest in another firmHorizontal integrationAcquisitionMergerInternal growth
- 3. Multiple ChoiceTwo or more businesses split costs, risks, control and rewards of a projectStrategic allianceFranchiseJoint ventureMerger
- 4. Multiple ChoiceA synonym for 'acquisition'Internal growthVertical integrationMergerTakeover
- 5. Multiple ChoicePepsiCo acquiring Quaker Oats Company represents which type of integration?LateralBackward verticalForward verticalConglomeration
- 6. Multiple ChoiceAn organisation that operates in two or more countries, with head office in a home countryGlobalisationMulti National CompanyStrategic allianceConglomerate
- 7. Multiple ChoiceRefers to the combined effect being greater than the sum of the individualsFirst mover advantageDiversificationFlexibilitySynergy
- 8. Multiple ChoiceTo combine or unite to form one organizationRedundancyFranchiseConglomerateAmalgamation
- 9. Multiple ChoiceWhen a business buys up a firm operating in the same stage of productionHorizontal integrationVertical integrationLateral integrationInternal growth
- 10. Multiple ChoiceGrowth type when a business grows using its own resources to increase scale of its operationsVerticalExternalOrganicLateral
- 11. Multiple ChoiceJoint ventures, mergers and acquisitions are all examples of what type of growth?InternalExternalOrganicBranding
- 12. Multiple ChoiceAll of the following are examples of internal economies of scale EXCEPTSkilled labourFinancialTechnicalManagement
- 13. Multiple ChoiceAll of the following are examples of external economies of scale EXCEPTTechnologicalPurchasingImproved transportationRegional specialisation
- 14. Multiple ChoiceAn increase in the average costs of production as a firm grows is referred to asEconomies of scaleDiseconomies of scaleBad businessCost push inflation
- 15. Multiple ChoiceA benefit of an organization being small isBrand recognitionLower pricesGreater choiceGreater motivation
- 16. Multiple ChoiceWhich of the following is a benefit to an organisation being large?Cost controlMarket leader statusGovernment aidFlexibility
- 17. Multiple ChoiceWhich of the following is NOT a benefit to mergers and acquisitions?Greater market shareSynergyDiversificationRedundancies
- 18. Multiple ChoiceIn a franchise agreement, the franchisee benefits from all of these EXCEPTLow risk with tested ideaTraining and advise from HQLarge scale advertisingShares profits with franchisor
- 19. Multiple ChoiceMicrosoft purchasing Nokia's hand-held division last year for $7.2Bn represents a/anVertical acquisitionOrganic growth strategyConglomerateAcquisition
- 20. Multiple ChoiceJoint ventures have advantages including all of these EXCEPTCulture clashSpreading of costs and risksEntry to foreign marketsCompetitive advantage
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