1. Diversification can pay off in all of the following situations except:
a. Risk is spread over several (product or country) markets.
b. Core resources are leveraged.
c. The art of post-acquisition integration has been mastered.
d. Commonly shared industry skills are used. ????
e. Firms are organized to minimize the costs.

2. CORPORATE SCOPE" is shape by?
Corporate scope is shaped by:
a. Industry conditions.
b. Firm capabilities.
c. Institutional constraints.
d. Opportunities in both developed and emerging economies.
e. All of the above

3. Issues involved regarding how a board of directors can be established so as to be most effective include:
o a. The insider/outsider mix.
o b. CEO duality.
o c. Board Interlocks.
o d. The Role of Boards of Directors.
o e. All of the above.

4. Conglomeration tends to provide all of the following except:
o a. Product-unrelated diversification.
o b. Financial synergy.
o c. Economies of scale.
o d. Economies of scope.
o e. Internal capital market.

5. Which is true of strategy? :
a. Business strategy has similarities with military strategy.
b. Military principles cannot be completely applied in business.
c. Militaries fight over territories, waters, and air spaces, firms compete in markets.
d. All of the above.
e. None of the above.

6. Those who advocate CSR:
a. Conduct their debate within the constraints of capitalism.
b. Argue that a humane capitalism is an oxymoron and unattainable.
c. Argue that the concepts justice and fairness are simply matters of opinion.
d. Argue that the most important stakeholder is the stockholder.
e. None of the above

7. In regards to family ownership, all of the following are true except:
a. Most small firms in the world are owned and controlled by families. FALSE
b. The vast majority of large corporations throughout continental Europe, Asia, Latin America, and Africa no longer feature concentrated family ownership and control.
c. Family ownership and control may provide better incentives for the firm to focus on long-run performance.
d. Such ownership may also minimize the conflict between owners and professional managers typically encountered in widely owned firms.
e. Family ownership and control may lead to the selection of less qualified managers who happen to be the sons, daughters, and relatives of owners.