Which of the following is not a way managers generally benefit from acquisitions?
A. |
Social prominence |
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B. |
Shielding against risk |
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C. |
Consolidation of other senior executives |
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D. |
Increased compensation |
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E. |
Political power |
What measure, that depends on how much of a firm’s revenues are attributable to product market activities that have shared technological characteristics, production characteristics, or distribution channels, is used to determine how diversified a firm is at a given time?
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Which of the following is not generally a potential benefit of diversification?
A. |
Economies of scale and scope |
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B. |
Control systems rewarding/penalizing division managers based on business unit objective |
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C. |
Identifying undervalued firms |
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D. |
Economizing on transaction costs |
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E. |
Diversifying shareholder portfolios |
Suppose the cost of producing a 30 second commercial for television is $100,000. If airtime on the evening news costs $200,000 and is viewed by 5 million people, what is the advertising cost per potential customer?
A. |
$.02 per potential customer, or $2.00 per 1000 customers |
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B. |
$.06 per potential customer, or $6.00 per 100 customers |
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C. |
$.03 per potential customer, or $3.00 per 1000 customers |
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D. |
$.04 per potential customer, or $4.00 per 1000 customers |
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E. |
none of the above |