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Quiz sobre Chapter 8 - Organizing to Implement Corporate Diversification, criado por Strategy IO em 14-11-2016.

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Chapter 8 - Organizing to Implement Corporate Diversification

Questão 1 de 46

1

The most common organizational structure for implementing a corporate diversification strategy is the ________ structure.

Selecione uma das seguintes:

  • matrix

  • U-form

  • M-form

  • functional

Explicação

Questão 2 de 46

1

In a multidivisional structure, each business that the firm engages in is managed through a

Selecione uma das seguintes:

  • product line.

  • division.

  • geographic unit.

  • function.

Explicação

Questão 3 de 46

1

The divisions of an M-form organization are true

Selecione uma das seguintes:

  • profit-and-loss centers.

  • functional units.

  • matrix teams.

  • organic structures.

Explicação

Questão 4 de 46

1

The M-form structure is designed to create checks and balances for managers that increase the probability that a diversified firm will be managed in ways consistent with

Selecione uma das seguintes:

  • the interests of all of its stakeholders.

  • an exclusively short-term perspective.

  • an exclusively long-term perspective.

  • the interests of its equity holders.

Explicação

Questão 5 de 46

1

In an agency relationship, the party that delegates decision-making authority to another individual is known as the

Selecione uma das seguintes:

  • stakeholder.

  • principal.

  • agent.

  • stockholder.

Explicação

Questão 6 de 46

1

Two common agency problems include

Selecione uma das seguintes:

  • managers investing some of a firm's capital in managerial perquisites that do not add economic value to a firm and managerial risk aversion.

  • managers not investing enough of a firm's capital in managerial perquisites and managerial risk aversion.

  • managers investing some of a firm's capital in managerial perquisites that do not add economic value to a firm and managerial risk seeking.

  • managers not investing enough of a firm's capital in managerial perquisites and managerial risk seeking.

Explicação

Questão 7 de 46

1

Which component of the M-form structure evaluates the firm's decision making to ensure that it is consistent with the interests of equity holders?

Selecione uma das seguintes:

  • senior executives

  • corporate staff

  • board of directors

  • division general managers

Explicação

Questão 8 de 46

1

A board of directors typically consists of

Selecione uma das seguintes:

  • 10 to 15 individuals drawn from a firm's top management group and from individuals outside the firm.

  • 10 to 15 individuals drawn exclusively from a firm's top management group.

  • 10 to 15 individuals drawn exclusively from individuals outside the firm.

  • 10 to 15 individuals drawn from all stakeholder groups associated with the firm.

Explicação

Questão 9 de 46

1

Which of the following statements regarding outside members of boards of directors is accurate?

Selecione uma das seguintes:

  • Outside directors, as compared to insiders, tend to focus less on monitoring a firm's economic performance than on other measures of firm performance and are more likely than insider members to dismiss CEOs following poor performance.

  • Outside directors, as compared to insiders, tend to focus less on monitoring a firm's economic performance than on other measures of firm performance and are less likely than insider members to dismiss CEOs following poor performance.

  • Outside directors, as compared to insiders, tend to focus more on monitoring a firm's economic performance than on other measures of firm performance and are less likely than insider members to dismiss CEOs following poor performance.

  • Outside directors, as compared to insiders, tend to focus more on monitoring a firm's economic performance than on other measures of firm performance and are more likely than insider members to dismiss CEOs following poor performance.

Explicação

Questão 10 de 46

1

In examining the question of whether the roles of CEO and chairman should be combined, empirical research on this question suggests

Selecione uma das seguintes:

  • that combining these roles is always positively related with firm performance.

  • that separating these roles is always positively related with firm performance.

  • that combining these roles is positively correlated with firm performance when the firm operates in slow-growth and simple competitive environments.

  • that separating these roles is positively correlated with firm performance when the firm operates in slow-growth and simple competitive environments.

Explicação

Questão 11 de 46

1

The ________ is the subcommittee of the board of directors that is responsible for ensuring the accuracy of accounting and financial statements.

Selecione uma das seguintes:

  • audit committee

  • finance committee

  • nominating committee

  • personnel and compensation committee

Explicação

Questão 12 de 46

1

The ________ is a subcommittee of the board of directors that maintains the relationship between the firm and external capital markets.

Selecione uma das seguintes:

  • nominating committee

  • audit committee

  • personnel and compensation committee

  • finance committee

Explicação

Questão 13 de 46

1

Supervision of the board of directors in its monitoring role is the responsibility of

Selecione uma das seguintes:

  • the CEO.

  • the chairman of the board.

  • the chief operating officer.

  • the president.

Explicação

Questão 14 de 46

1

The senior executive (the president or CEO) in an M-form organization has two responsibilities:

Selecione uma das seguintes:

  • budgeting and accounting.

  • budgeting and mission setting.

  • strategy formulation and strategy implementation.

  • strategy formulation and budgeting.

Explicação

Questão 15 de 46

1

Which of the following statements regarding institutional investors is accurate?

Selecione uma das seguintes:

  • Institutional investors tend to be more interested in maximizing the short-term value of their portfolios than in the long-term performance of firms in those portfolios

  • High levels of institutional ownership are negatively related to the level of R&D in a firm.

  • High levels of institutional ownership have a strong, positive relationship with the level of R&D in a firm.

  • High levels of institutional ownership lead firms to sell strategically unrelated businesses.

Explicação

Questão 16 de 46

1

Which role in the office of the president is responsible for strategy implementation?

Selecione uma das seguintes:

  • chairman of the board

  • chief executive officer

  • chief operating officer

  • chief strategist

Explicação

Questão 17 de 46

1

The primary responsibility of the ________ is to provide information about the firm's external and internal environments to the firm's senior executive.

Selecione uma das seguintes:

  • corporate staff

  • board of directors

  • division general managers

  • shared activity managers

Explicação

Questão 18 de 46

1

The divided loyalties that divisional staff managers have between corporate staff managers and functional managers are potentially the most problematic in ________ staff functions.

Selecione uma das seguintes:

  • marketing

  • accounting

  • logistics

  • production

Explicação

Questão 19 de 46

1

In an M-form organization, the management of day-to-day operations is delegated to

Selecione uma das seguintes:

  • divisional general managers and corporate staff managers.

  • corporate staff managers and functional managers who report to corporate staff managers.

  • divisional general managers and functional managers who report to division general managers.

  • the board of directors and corporate staff managers who report to the board of directors.

Explicação

Questão 20 de 46

1

________ have full profit-and-loss responsibility and typically have multiple functional managers reporting to them.

Selecione uma das seguintes:

  • Division general managers

  • Corporate staff managers

  • Senior executives

  • Shared activity managers

Explicação

Questão 21 de 46

1

When compared to the strategy implementation responsibilities of senior executives in U-form organizations, when implementing strategy, division general managers in M-form organizations

Selecione uma das seguintes:

  • tend to have to deal with less conflict.

  • have to compete for external capital funding.

  • tend to have to deal with substantially more conflict.

  • must cooperate with other divisions to exploit corporate economies of scope.

Explicação

Questão 22 de 46

1

Rather than having profit-and-loss responsibilities, ________ are assigned a budget and manage their operations to that budget.

Selecione uma das seguintes:

  • profit centers

  • cost centers

  • operation centers

  • functional centers

Explicação

Questão 23 de 46

1

When the cost of services from a shared activity is ________ the cost of comparable services provided by a division itself or by an outside supplier than the division, general managers have a strong incentive ________.

Selecione uma das seguintes:

  • less than; to use the services of shared activities

  • greater than; to use the services of shared activities

  • less than; to use the services of an outside supplier

  • equal to; to use the services of an outside supplier

Explicação

Questão 24 de 46

1

________ is an economic measure of divisional performance.

Selecione uma das seguintes:

  • Return on assets

  • Return on a division's sales

  • Economic value added

  • A division's growth rate

Explicação

Questão 25 de 46

1

Which of the following is a weakness of using a hurdle rate as a standard of evaluating the performance of a division?

Selecione uma das seguintes:

  • The process is time-consuming.

  • The process is fraught with political intrigue.

  • This approach lets other firms determine what is and what is not excellent performance for a division within a diversified firm.

  • The use of such a single standard ignores important differences in performance that might exist across divisions.

Explicação

Questão 26 de 46

1

Most accounting measures of divisional performance have a common limitation in that they

Selecione uma das seguintes:

  • have a short-term bias.

  • are costly to implement.

  • are difficult to interpret.

  • have a long-term bias.

Explicação

Questão 27 de 46

1

If a division of a multidivisional firm has adjusted accounting earnings of $10 million, a weighted average cost of capital of 10% and a total capital employed by the division of $50 million, the division has an EVA of

Selecione uma das seguintes:

  • $25 million.

  • $5 million.

  • $15 million.

  • $20 million.

Explicação

Questão 28 de 46

1

When adjusting a division's accounting earnings for use in the economic value added calculations, R&D spending is usually

Selecione uma das seguintes:

  • subtracted from the division's performance.

  • depreciated over the life of the average R&D projected and subtracted from the division's performance.

  • amortized over the life of the average R&D projected and added back to the division's performance.

  • added back into the division's performance.

Explicação

Questão 29 de 46

1

In ________ budgeting, corporate executives create a list of all capital allocation requests from divisions in a firm, rank them from "most important" to "least important" and then fund all the projects a firm can afford, given the amount of capital that is available and no project receives funding simply because it was funded in the past.

Selecione uma das seguintes:

  • cost-plus

  • activity-based

  • zero-based

  • revenue-based

Explicação

Questão 30 de 46

1

In a multidivisional company, one division "sells" its products or services to a second division for a(n) ________, which is set by a firm's corporate management to accomplish corporate objectives.

Selecione uma das seguintes:

  • allocation price

  • transfer cost

  • market price

  • transfer price

Explicação

Questão 31 de 46

1

Under which transfer pricing scheme is the transfer price set equal to the selling division's actual cost of production or set equal to the cost of production if the selling division were operating at maximum efficiency?

Selecione uma das seguintes:

  • exchange autonomy

  • mandated full cost

  • mandated market based

  • dual pricing

Explicação

Questão 32 de 46

1

Which of the following statements regarding CEO compensation is accurate?

Selecione uma das seguintes:

  • Differences in CEO cash compensation are very responsive to differences in firm performance.

  • If a substantial percentage of a CEO's compensation comes in the form of stock and stock options in the firm, changes in compensation are closely linked with changes in firm performance.

  • If a substantial percentage of a CEO's compensation comes in the form of stock and stock options in the firm, changes in compensation are not closely linked with changes in firm performance.

  • If a substantial percentage of a CEO's compensation comes in the form of salary, changes in compensation can be expected to be closely linked with changes in firm performance.

Explicação

Questão 33 de 46

1

A(n) ________ occurs when a large, typically diversified firm divests itself of a business in which it has historically been operating and the divested business operates as an independent unit.

Selecione uma das seguintes:

  • harvest

  • liquidation

  • initial public offering

  • corporate spin-off

Explicação

Questão 34 de 46

1

A business unit within a diversified firm may be sold to the public through a(n)

Selecione uma das seguintes:

  • corporate spin-off.

  • liquidation.

  • IPO.

  • harvest strategy.

Explicação

Questão 35 de 46

1

Which of the following is not a reason that diversified firms might spin off businesses?

Selecione uma das seguintes:

  • Management may require specific skills that are not present.

  • Anticipated economies of scope may not be realized.

  • Funding may be needed for other businesses.

  • The business is too related to other firm businesses.

Explicação

Questão 36 de 46

1

Transfer pricing should equal

Selecione uma das seguintes:

  • selling price.

  • opportunity cost.

  • total cost.

  • marginal cost.

Explicação

Questão 37 de 46

1

Which organizational structure is SpandoCorp using?

Selecione uma das seguintes:

  • U-form

  • matrix

  • M-form

  • functional

Explicação

Questão 38 de 46

1

Grace McKenna is best described as a(n) ________ in SpandoCorp.

Selecione uma das seguintes:

  • senior executive

  • corporate staff member

  • division general manager

  • institutional investor

Explicação

Questão 39 de 46

1

Wells Tucker's position in SpandoCorp is best described as

Selecione uma das seguintes:

  • a division general manager.

  • a member of the corporate staff.

  • the senior executive.

  • a member of the board of directors.

Explicação

Questão 40 de 46

1

Kelly Rae's position is SpandoCorp is best described as a(n)

Selecione uma das seguintes:

  • institutional investor.

  • senior executive.

  • division general manager.

  • member of the board of directors.

Explicação

Questão 41 de 46

1

If Todd Hienz were the chief operating officer for SpandoCorp, his responsibilities would include

Selecione uma das seguintes:

  • supervision of the board of directors in its monitoring role.

  • strategy implementation.

  • strategy formulation.

  • strategy control.

Explicação

Questão 42 de 46

1

If SpandoCorp wanted to measure the performance of its divisions with a method that would minimize any potential short-term bias, it should use a(n)

Selecione uma das seguintes:

  • hurdle rate based measure of divisional performance.

  • divisional budget based measure of performance.

  • economic value added measure of divisional performance.

  • measure of performance based on the average level of profitability of firms in a division's industry.

Explicação

Questão 43 de 46

1

If SpandoCorp used a ________ budgeting process, it would assume that no project would receive funding for the future simply because it was funded in the past and would require each project to stand on its own merits each year to be included in a list of important projects that the firm can afford to fund.

Selecione uma das seguintes:

  • zero-based

  • cost plus

  • dynamic

  • traditional

Explicação

Questão 44 de 46

1

If the bulk materials division of SpandoCorp sold its reams of Spandex to the military division and set the transfer price of these reams equal to the bulk materials actual cost of production, SpandoCorp would be using the ________ transfer pricing scheme.

Selecione uma das seguintes:

  • exchange autonomy

  • mandated full cost

  • mandated market based

  • dual pricing

Explicação

Questão 45 de 46

1

If SpandoCorp's board of directors wanted to ensure that changes in the CEO's compensation would be closely linked to changes in the firm's performance, it should

Selecione uma das seguintes:

  • use a compensation package that includes only a salary for the CEO.

  • use a compensation package that includes a salary and a cash bonus for the CEO.

  • use a compensation package the includes a salary, a cash bonus and stock options that represent only a relatively small percentage of the CEO's total compensation package.

  • use a compensation package that includes a salary and stock options that represent a relatively substantial percentage of the CEO's total compensation package.

Explicação

Questão 46 de 46

1

If SpandoCorp decides to use the method of allocating capital where each project receives funding on its merit and not because it received funding the previous year, it is using

Selecione uma das seguintes:

  • zero-based budgeting.

  • corporate budgeting.

  • centralized budgeting

  • coordinated budgeting.

Explicação

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