Questions:
1.Which of the following is not a way managers generally benefit from acquisitions?
A. Social prominence
B. Shielding against risk
C. Consolidation of other senior executives
D. Increased compensation
E. Political power
2. What measure, that depends on how much of a firm's revenues are attributable to product market activities that have shared technological characteristics, production characteristics, or distribution channels, is used to determine how diversified a firm is at a given time?
A.Relatedness
B. Rumelt score
C. Conglomerate level
D. Integration level
E. Activity share
3.Which of the following is not generally a potential benefit of diversification?
A. Economies of scale and scope
B. Control systems rewarding/penalizing division managers based on business unit objective
C. Identifying undervalued firms
D. Economizing on transaction costs
E. Diversifying shareholder portfolios
4.Suppose the cost of producing a 30 second commercial for television is $100,000. If airtime on the evening news costs $200,000 and is viewed by 5 million people, what is the advertising cost per potential customer?
A. $.02 per potential customer, or $2.00 per 1000 customers
B. $.06 per potential customer, or $6.00 per 100 customers
C. $.03 per potential customer, or $3.00 per 1000 customers
D. $.04 per potential customer, or $4.00 per 1000 customers
E. none of the above