1) Corporate strategy is the direction of an organization as a whole. a) Yes b) No 2) Vertical integration is a growth strategy. a) Yes b) No 3) The expansion into other geographical location is called ... a) Vertical Integration b) Horizontal Integration 4) When a textile producer open a shirt manufacturing business, the strategy is called ... a) forward integration b) backward integration 5) Benefits of horizontal integration is variety of products. a) Yes b) No 6) High capital investment is the pitfall of vertical integration. a) Yes b) No 7) One of the international entry options for horizontal growth is through acquisition. a) Yes b) No 8) Diversifying into an industry unrelated to its current one is known as ... a) concentric diversification b) conglomerate diversification 9) One of the benefits of diversification is it enable the business organization to ... a) spread the risk b) increase in complexities 10) Stability strategy means the organization might not make any changes at all. a) Correct b) Incorrect 11) This strategy emphasizes the improvement of operational efficiency when the corporation’s problems are persistent. a) Turnaround b) Liquidation 12) BCG Matrix helps managers to assess potential cash generation and cash expenditures for further actions. a) Yes b) No 13)  What is missing? a) Cat b) Dog c) Tiger d) Chicken 14) A ______ is a transaction involving two or more corporations in which both companies exchange stock in order to create one new corporation. a) liquidation b) merger 15) The higher labor skills and technology available in developed countries combine with the lower-cost labor available in developing countries. This international entry option is known as ... a) production sharing b) management contract

Corporate Strategy

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