Pass ACCA, ACCA Malaysia, ACCA PJ, ACCA Course, ACCA P3, Micheal, Experienced Lecturer

1. QUIZ 2: CORPORATE STRATEGY
Michael Mainwaring
(Note: in this test diversification refers to diversification across industries rather than product or
market diversification)
21 PORTER’S 3 TESTS AND JSW’S 3 TESTS OF STRATEGY ARE INTERCHANGEABLE. T F
22 DIVERSIFICATION ACROSS INDUSTRIES DIVERSIFIES SHAREHOLDER RISK. T F
23 PORTFOLIO MANAGEMENT STYLES CAN NEVER ADD VALUE TO SHAREHOLDERS. T F
24 A RESTRUCTURING STYLE CAN BE VIEWED AS A PARENTAL DEVELOPER STYLE. T F
25 SYNERGY STYLES REQUIRE AN INTERVENTIONIST CORPORATE HQ. T F
26 PARENTAL DEVELOPER STYLES REQUIRE AN INTERVENTIONIST CORPORATE HQ. T F
27 DIVERSIFICATION ACROSS INDUSTRIES ALWAYS DESTROYS SHAREHOLDER VALUE. T F
28 WHERE CAPITAL MARKETS ARE EFFICIENT, CONGLOMERATES WILL BE EXPOSED TO
BREAK UP BIDS.
T F
29 DIVERSIFICATION ACROSS INDUSTRIES CAN BE HANDLED BY JOINT VENTURES. T F
30 THE BCG IS BASED ON THE EXPERIENCE CURVE PLUS THE LIFE CYCLE MODEL. T F
31 THE BCG MATRIX INCORPORATES SYNERGY WITHIN ITS ANALYSIS T F
32 THE BCG MATRIX REQUIRES THAT QUESTION MARKS BE TURNED INTO STARS. T F
33 STARS ARE VERY LIKELY TO BE CASH GENERATORS. T F
34 A SUBSIDIARY MAKING NET PROFIT WILL BE A CASH GENERATOR. T F
35 VERTICAL INTEGRATION ENABLES FIRMS TO EXCHANGE DATA ACROSS THE SUPPLY
CHAIN
T F
36 VERTICAL INTEGRATION WILL TYPICALLY GENERATE LESS SYNERGY THAN HORIZONTAL T F
37 THE NEED FOR VERTICAL INTEGRATION DECLINES AS MARKET EFFICIENCY INCREASES T F
38 EFFECTIVE DIVISIONALISATION AVOIDS MARKET COMPETITION BETWEEN DIVISIONS T F
39 CORE COMPETENCES AND CAPABILITIES REFER TO SYNERGY BETWEEN SUBSIDIARIES T F
40 FIRMS WITH SURPLUS CASH THAT CANNOT BE INVESTED PROFITABLY IN ITS EXISTING
BUSINESSES SHOULD CONSIDER DIVERSIFYING INTO NEW INDUSTRIES
T F
Please email your answer to accasuccess88@gmail.com for marking.