Whole-firm lbos tend to result in all the following negative outcomes except:

50.Compared with downsizing, __________ has (have) a more positive effect on firmperformance.

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51.The term "leveraged" in leveraged buyouts refers to the:

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52.Whole-firm LBOs tend to result in all the following negative outcomes EXCEPT:a. risk-averse management.b. failure to invest in R&D.c. large debt and increased financial risk.d. inefficient operations.

53.Whole-firm LBOs tend to result in all the following negative outcomes EXCEPT:

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54.International strategy refers to a(n):

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55.Raymond Vernon states that the classic rationale for international diversification is to:

(A) Management buyout(B) Leveraged buyout(C)Downscoping(D) DownsizingAnswer :(D)ll3.may be necessary because acquisitions create a situation in which the newlyformed form has duplicate organizational functions such as sales, manufacturing, distribution,and humanresource management.(A) Management buyout(B)Leveraged buyout(C)Downsizing(D) DownscopingAnswer :(C)ll4.refers to a divestiture, spin-off, or some other means of eliminating businessesthat

are unrelated to a firm's core business.(A) Downsizing(B) Hostile takeovers(C) Shakeouts(D) DownscopingAnswer :(D)ll5.Failing toappropriately will result in too many employees doing the sameworkand prevent the new firm from realizing the cost synergies it anticipated.(A)downsize(B)spin-off(C)downscope(D)buyoutAnswer :(A)ll6.An investor is analyzing two firms in the same industry. She is looking for long-termperformance from her investment. Both firms are basically identical except one firm isinvolved in substantial downsizing and the other firm is undertaking aggressive downscoping.The investorshould invest in the:(A)downscoping firm because the higher debt load will discipline managers to act inshareholders'best interests.(B)downscopingfirmbecauseofreduceddebtcostsandtheemphasisonstrategiccontrolsderivedfromfocusingonthefirm'scorebusinesses.(C) downsizing firm because it will be making decisions based on tactical strategies.(D)downsizing firm because it is eliminating employees who are essentially "dead weight"and aredragging down the firm's profitability.Answer :(B)ll7.Compared with downsizing,has (have) a more positive effect on firm performance.(A) reconfiguring(B) downscoping(C) leveraged buyouts

(D) acquisitionsAnswer :(B)ll8.A leveraged buyout refers to:(A) a firm restructuring itself by selling off unrelated units of the company's portfolio.(B)a firm pursuing its core competencies by seeking to build a top management team thatcomesfrom a similar background.(C)arestructuringactionwherebyapartybuysalloftheassetsofabusiness,financedlargelywithdebt,andtakesthefirmprivate.(D)an action where the management of the firm and/or an external party buys all of theassets of abusiness financed largely with equity.Answer :(C)llP.The term "leverage" in leveraged buyouts refers to the:(A) firm's increased concentration on the firm's corecompetencies.(B)amountofnewdebtincurredinbuyingthefirm.(C) fact that the employees are purchasing the firm for which they work.(D) process of removing the firm's stock from public trading.Answer :(B)lfi0.Whole-firm LBOs tend to result in all the following negative outcomes EXCEPT:(A) large debt and increased financial risk.(B) failure to invest in RðD.(C)risk-aversemanagement.(D)inefficient operations.Answer :(D)lfil.After a leveraged buyout,typically occur(s).