Author: Anonymous

ABC Inc. is a leader in coffee retail stores, including espresso. Recently, the firm decided to expand into the tea market and acquired XYZ Inc. This company produced teas, but its sales had slowed. The managers of ABC convinced themselves that they were able to manage the business of XYZ more effectively even though they had no experience in the tea market. However, this move backfired and the sale of XYZ ‘s teas plummeted. Which of the following terms is often used to describe this scenario?

A candy company called ABC Inc., a flower company, forms an agreement with another flower company called XYZ Inc. Through this agreement, ABC Inc. owns 30 percent of XYZ Inc. However, XYZ Inc does not own any part of ABC Inc. This is an example of:

ABC Inc. is a cell phone manufacturer that wants to expand globally. Few people abroad are familiar with ABC phones. The countries into which the company wants to expand require a high degree of local responsiveness when it comes to phones, and the citizens of those countries already spend plenty of money on phones. Which action should the leaders of ABC take?

Which of the following statements is most accurate regarding shareholders in public stock companies, utilizing the perspective of shareholder capitalism?

A firm’s internal resources are considered to be relevant, in terms of the build-borrow-or-buy framework, when they are

ABC, Inc. is an auto manufacturer that has few job descriptions, limited job titles, and no designated chains of command for its organization. ABC, Inc. would be considered to have:

ABC automobile window company wants XYZ automobile manufacturing company to produce larger cars (minivans, 3 row SUVs) and therefore use more of its windows. XYZ automobile manufacturing company wants the ABC automobile window company to create windows with less wind drag to achieve faster top speeds. What approach could these companies take so that both can serve stockholders well?

Your textbook discussed the reasons that Google acquisitioned many smaller technology-based start-ups. Google’s intent for doing this was:

ABC, Inc. went public in 2008. Now, they have a market capitalization over $500,000,000. Their code of conduct is for what reason?

ABC, Inc. wants to develop competitive advantage, to do so, each primary activity utilized in their value chain must: