Question 27 1 pts Ways to \"game\" the budgeting process include delaying sales

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Question 27

1 pts

Ways to "game" the budgeting process include

   delaying sales if just short of a target

   accelerating expenses if just short of a target

   delaying sales once a target is met

   delaying expenses costs once a target is met

Question 28

1 pts

Which of the following is FALSE about firms organized along functional lines?

   Workers find it difficult to develop functional expertise

   Workers can easily share information within their division

   They foster the exploitation of economies of scale

   None of the above

Question 29

1 pts

Which of the following is a feature of an M-Form organization?

   divisions have difficulty responding to changes in customer demand

   it is difficult to maintain customer relationships

   coordination across divisions is simple and does not take much management time

   employee evaluation is hampered by managers often having different skill sets than those the manage       

Question 30

Antitrust enforcement of vertical relationships is generally focused on

   The dominant firm using vertical contracts to extend market power to other levels of the supply chain

   Vertical contracts that increase the intensity of competition

   Vertical contracts that help consumers

   All of the above

Question 31

1 pts

Vertical contracts that aim to decrease retailer prices typically

   Benefit the consumer and the manufacturer but hurt the retailer

   Benefit the manufacturer and retailer but hurt the consumer

   Benefits the consumers, manufacturers and retailers

   Hurts all the manufacturers, consumers and retailers

Question 34

1 pts

Vertical integration can sometimes be used to

   Avoid paying higher taxes

   Reward the retailer for undertaking the risk inherent in introducing a new product

   Serve as a “signal” of the manufacturer’s belief of the likely success of his product

   All of the above

Question 35

1 pts

An acquisition will not be profitable

   In any circumstances

   As long as you paid lower than the company’s discounted future profits

   Without a synergy that makes the company more valuable to you than to the current owner

   None of the above

Question 38

1 pts

Purchasing a profitable supplier increases profit only if

   You pay equal to the value of the company’s inventory

   You pay higher than the value of the company’s future profits

   You pay lower than the value of the company’s discounted future profits

   You pay lower than the value of the company’s undiscounted future profits

Explanation / Answer

27 Delaying sales if just short of a target will not help

Delaying expenses costs once a target is met is not required

Organizations delay expenses costs once a target is met; organizations can also accelerate expenses by writing off as much as in the current quarter to improve EPS from the next quarter

Accelerating expenses if just short of a target will not help

c) Delaying sales once a target is met

28. a) Workers find it difficult to develop functional expertise

It helps in developing economies of scale; developing functional expertise, and, sharing information within the division

29. M-Form

Multidivisional organizational form

d) Employee evaluation may be hampered by those having different skill sets those who manage

30. a) Dominant firms using contracts to extend market power

31 c) Benefit the consumer, manufacturer, and, retailer

Consumers gain from lower prices; manufacturers & retailers gain from higher sales

34. a) Avoid paying higher taxes

Vertical integration can be with firms in countries with lower taxes & regulation

35 None of the above

The organization may be as valuable rather than more valuable; can be profitable if the acquisition is made paying lower than the organization's future profits

38. c) Lower than the value of the company's discounted future profits

The firm will not make profits if it pays lower than undiscounted future profits, or, higher than future profits; or, only equal to the value of the inventory. For profitability, it is the profits that need to be considered

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