MGT 498 Wk 4 – Practice: Ch. 8, Corporate Strategy

Amazon’s continued focus on Blank______ is key to its ongoing success.

Multiple choice question.

specific target markets

shareholder profits

innovation

employee perks

______ strategy involves the decisions that senior management makes and the goal-directed actions it takes to gain and sustain competitive advantage in several industries and markets simultaneously.

Multiple choice question.

Transactional

Administrative

Corporate

Transformational

In order for a firm to lower costs, it must Blank______.

Multiple choice question.

grow

lower profits

lower its expectations

increase risks

Which of the following describes economies of scope?

Multiple choice question.

the average cost per unit decreasing as output increases

the savings from producing two or more outputs at less cost than producing each output individually

costs associated with economic exchange

the unique strengths embedded deep within a firm

Companies that transact in the open market incur Blank______.

Multiple choice question.

external transaction costs

dividends

internal transaction costs

staffing costs

Which of the following is an example of the principal-agent problem even when the principal’s goal is to create shareholder value?

Multiple choice question.

a manager making decisions based on what is best for the company

a manager flying first class on all business trips

a manager controlling and limiting business expenses

a manager receiving generous stock options