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CA Inter Strategic Choices — practice questions — page 3

Explore 80 free Strategic Choices questions in CA Inter Strategic Management. Open each question or exercise to read its content, reference answers and available explanation.

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Strategic Choices questions and exercises with answers

Showing questions 61–80 of 80.

Divestitures generate funds because the firm exchanges a business for:Read the answer and worked solution →A firm's break-up value exceeds its market value when:Read the answer and worked solution →Regulators may force a divestiture mainly to:Read the answer and worked solution →Turnaround management is a process dedicated to:Read the answer and worked solution →Which of these is a turnaround technique?Read the answer and worked solution →In turnaround, the replacement technique means replacing the:Read the answer and worked solution →Which turnaround technique seeks revenue through new products and markets?Read the answer and worked solution →Retrenchment in turnaround means short-term actions to:Read the answer and worked solution →Turnaround assignments typically last:Read the answer and worked solution →Turnaround analysis uses root cause analysis and which strategic tool?Read the answer and worked solution →A joint venture is formed when firms pool resources into a:Read the answer and worked solution →A firm may form a joint venture to access a:Read the answer and worked solution →Partners in a strategic alliance generally remain:Read the answer and worked solution →Unlike a joint venture, a strategic alliance does not:Read the answer and worked solution →A horizontal strategic alliance links firms that are:Read the answer and worked solution →Which arrangement grants a brand name and concept to a paying operator?Read the answer and worked solution →Paying for the right to use another firm's technology is:Read the answer and worked solution →Which tasks are typically outsourced?Read the answer and worked solution →Companies cooperating unofficially to control prices form a:Read the answer and worked solution →Differentiation relies on resources that rivals find:Read the answer and worked solution →

Worked practice questions

Divestitures generate funds because the firm exchanges a business for:

  1. Unlisted shares
  2. Cash payment
  3. Patent rights
  4. Fresh debt
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Correct answer: B. Cash payment

The sale of a unit brings in cash that can repay debt or fund other projects.

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A firm's break-up value exceeds its market value when:

  1. Separate parts sell for more
  2. Book values fall below debts
  3. Equity equals share capital
  4. Dividends are cut sharply
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Correct answer: A. Separate parts sell for more

If separate liquidation values add up to more than the firm's market value, selling the parts is worth more than keeping the whole.

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Regulators may force a divestiture mainly to:

  1. Raise tax collections
  2. Create competition
  3. Boost share prices
  4. Reduce exports
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Correct answer: B. Create competition

Authorities may require a sale of assets so that rivals can compete in the market.

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