are best described as costs that occur due to political maneuvering by managers
ID: 389743 • Letter: A
Question
are best described as costs that occur due to political maneuvering by managers to control capital and resource allocation and the resulting inefficiencies stemming from suboptimal allocation ofscarce resources. A. Coordination costs B. Fixed costs C. Influence costs D. Opportunity costs 2. If two large movie-theater chains decide to merge, the result is likely a horizontal integration that creates a more favorable industry structure by decreasing competition True or False 3. Because strategic alliances rarely workas well as managers expect they will, why do companies continue to go through with them? a. Govemment entities such as the Federal Trade Commission or the European Union sometimes force companies into strategic alliances b. These alliances have an excellent record of success if managers have enough confidence in the outcome Recent advances in management science have greatly improved the success rate of strategic alliances c. d. Many owners, managers, and business analysts believe they are essential to survive in an industry Braintree Inc., a manufacturer of smart phones, has entered into a 15-year partnership with a software company to develop sophisticated operating systems and innovative mobile applications for its phones. This would mean that both the companies will have to mutually share their resources, knowledge, and capabilities to develop a superior product. What is the relationship between Braintree and the software company best referred to as in this scenario? a. Aleveraged buyout b. A strategic alliance c. An acquisition d. A proprietorship 4. 5. In recent years strategic alliances have declined because of increasing government regulation. True or False Sky Pioneers Inc. manufactures airplane parts. It wants to globalize and is willing to spend a considerable amount to protect its intellectual property. Which of these business ventures makes the most sense for 6. a. b. c. d. Pioneers? Licensing some of its newest designs to overseas competitors Exporting airplane parts to many other countries Acquiring an airplane-parts manufacturer in another country Beginning a Brownfield project in its home countryExplanation / Answer
1. C. Influence costs
This is the cost incurred in order to influence decision making coss made by the management team or leadership.
2. True
Based on this the production is increased by merging
3. B. A strategic alliance
This is an example of straegic alliance in order to improve the products or services offered for the mutual benefit of both the organizations
4. False
Government regulations generally define the way an organization needs to function but does not restrict the aspect of alliance.
5. C. Acquiring an airpane parts manufacturer in another country
As the organization is ready to spend much they can acquire a successful Organization in the country to imporve their image in the country and also penetrate the industry as well.
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