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Question
Managers of bidding firms continue to engage in merger or acquisition strategies even though they usually do not generate profits for bidding firms in order to
A) ensure survival.
B) generate free cash flow.
C) reduce agency problems.
D) reduce managerial hubris.
Answer
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Related questions
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The ________ consists of broad trends in the context in which a firm operates that can have an impact on a firm's strategic choices.
A) micro-environment
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C) task environment
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________ measures of competitive advantage compare a firm's level of return to its cost of capital instead of to the average level of return in the industry.
A) Economic
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A competitive advantage that lasts a very short period of time is known as a ________ competitive advantage.
A) temporary
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The difference between the perceived benefits gained by a customer who purchases a firm's products or services and the full economic costs of these products or services is known as
A) accounting value.
B) comparative value.
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When a firm is able to create more economic value than rival firms it is said to have a(n)
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________ occurs when a firm adopts organizational policies and practices that are consistent with its strategy.
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The cost of equity is equal to the interest a firm must pay its debt holders in order to induce those debt holders to lend money to the firm.
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Identify the conditions under which a strategic alliance can be rare and discuss the role that complementary resources can play in the rarity of strategic alliances.
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Q:
________ collusion exists when firms coordinate their production and pricing decisions not by directly communicating with each other but by exchanging signals with other firms about their intent to cooperate.
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A) high.
B) low.
C) moderate.
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A firm's ability to learn is known as its
A) competitive position.
B) competitive advantage.
C) distinctive competence.
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Q:
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A) facilitating the development of technology standards.
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In general, contracts are sufficient to resolve all the problems associated with cheating in an alliance.
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