EarlGorilla2519
1. _________________acquisition increases a firm’s market power by…
1. _________________acquisition increases a firm’s market power by exploiting cost-based and revenue based
synergies
O A. Unrelated acquisitions
O B. Globalization
O C. Horizontal acquisition
O D. Retrenchment
2. Uber’s challenges in China include
O A. Strong local competition
O B. CEO Kalancik’s personality was not a fit with Chinese culture
0 C. Mis-steps due to lack of local knowledge
O D. All of the above
O E. A&C
3. Cadbury’s success in its acquisition of Adams can be attributed to
O A. Primarily on achieving on the base case (improvement in Adam’s performance) and secondly on
achieving cost synergies.
O B. Primarily on achieving cost synergies with minor improvements in the Base case (improvement in
Adam’s performance)
O C. Primarily on achieving Cost and Revenue synergies with little improvement in the Base case
(improvement in Adam’s performance)
O D. Primarily on achieving on the base case (improvement in Adam’s performance) and secondly on
achieving significant revenue synergies.
O E. Primarily on achieving its targets and projections on all three sources of value creation: improving the
Base case (Adam’s performance) and realizing revenue synergies and cost synergies.
4. The Cadbury’s Adams acquisition is most likely to fit more of the characteristics of a(n)
O A. Overcapacity M&A
O B. Geographic Roll-Up M&A
O C. R&D M&A
O D. Transformative M&A
O E. Product or Market Extension M&A
5. Acquisitions are a better option than an alliance when
O A. Availability of capital is an issue because they are less costly
O B. The scope encompasses the entire value chain and you need to integrate
O C Flexibility is necessary
O D. All of the above
O E. None of the above
6. In spite of supposed network size, taxi app companies like Uber, Lyft and Didi have found it
difficult to be consistently profitable. Why?
O A. Low switching costs for participants reduces network effects
O B. Same Side network effects are negative
O C. Cross side network effects are positive
O D. A& B
O E. None of the above
O F. All the above
7. Successful platforms facilitate economic transactions by
O A. Minimizing the search costs for finding the ‘right’ economic partner
O B. Reducing the transaction costs (uncertainty and risk) in transacting with the economic partner
O C. Providing the lowest price for the transaction
O D. B& C
O E. A& B
O F. A, Band C
8. The Eliminate-Reduce-Raise-Create and Value Curve frameworks
O A. Help identify how you can avoid head-on competition with existing firms in an industry
O B. Help identify how you can create network effects in your industry
O C. Can be used only for in-house innovation
O D. Help determine whether to use acquisitions or alliances to enter the industry
9. According to the assigned reading, in order to be successful multi-sided platforms should
O A. Price all participants on all sides equally to prevent defections
O B. Should subsidize all sides equally to prevent defections
O C. Not bother about pricing because it is irrelevant to their success
O D. Charge the side that can extract value more or has less price sensitivity
10. In order to be successful, platform based businesses need to focus on all of the factors listed below
except
O A. How to monetize (Pricing structure).
O B. Determining how to structure the interactions between the participants.
O C. Increasing the number of participants on all sides of the platform.
O D. Providing entry into foreign market.
