30) An arrangement whereby the firm owns, or seeks to own, multiple stages of a
ID: 381786 • Letter: 3
Question
30) An arrangement whereby the firm owns, or seeks to own, multiple stages of a vaue selling, and delivering a product or service is termed as_ A) vertical integration B) horizontal integration C) decentralization chain for producing 31) A firm that owns the activities performed in a single stage of Its value chain is demonstrating A) centralization C) horizontal integration D) reverse integration 32) Which of the following is a characteristic of an equity joint venture? A) simple management structure C) easy to terminate D) lesser exposure to political risk 33) AlnlkI merger is a special type of acquisition in which two companies join to form a larger firm. B) acquisition C) wholly owned direct investment D) greenfield investment 34) hospital, airport, or other facility in exchange for compensation. is an arrangement in which a contractor supplies managerial know-how to operate a hotel, A) Build-operate-transfer B) Management contract C) Leasing D) Exporting 35) Which of the following statements is true of infringement of intellectual property? A) The most commonly counterfeited goods include heavy machinery and computer manufacturing 8) It amounts to piracy and takes the form of production and distribution of counterfeit goods. C) It is the ability to control important intellectual property before it reaches competitors. ocoueeiting anpicy can be particularly troublesome in advanced economies because of subjective ethical standards. 36) In a system franchising agreement, the franchisor provides A) down-payment plus royalty B) production and marketing methods C) lump-sum payment D) sale of related productsExplanation / Answer
PLEASE FIND BELOANSWERS TO FIRST 5 QUESTIONS :
30. An arrangement whereby the firm owns, or seeks to own multiple stages of value chain for producing , selling an delivering a product or service is termed as VERTICAL INTEGRATION
31. A firm that owns the activities performed in a single chain of a value chain is demonstrating CENTRALIZATION
32. An equity joint venture is a type of joint venture in which two or more parties set up a separate legal company to act as the vehicle for carrying out the project. This new company would usually be located in the same country as one of the two partner companies, with the purpose of mutually establishing an activity with its own objectives: marketing and distribution, research, manufacturing, etc. The joint venture contract establishes all the agreements needed to start up and manage the Joint Venture. Thus there will a a separate management structure for the new company formed in the form of equity joint venture.
It is not essential to form an equity joint venture company for purpose of knowledge transfer since that can be done through license agreement also .
SIMPLE MANAGEMENT STRUCTURE IS A CHARACTERISITCS OF EQUITY JOINT VENTURE
A MERGER IS A SPECIAL TYPE OF ACQUISITION IN WHICH TWO COMPANIES JOIN TO FORM A LARGER FIRM
ANSWER : B) MANAGEMENT CONTRACT
SIMPLE MANAGEMENT STRUCTURE IS A CHARACTERISITCS OF EQUITY JOINT VENTURE
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