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Model 5

The document is a quiz from the Business Administration School at Ahram Canadian University, focusing on strategic management concepts. It includes multiple-choice questions and true/false statements related to economic profits, vertical integration, collusion, and opportunism. The quiz assesses understanding of key strategic management principles and their implications in business contexts.

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53 views3 pages

Model 5

The document is a quiz from the Business Administration School at Ahram Canadian University, focusing on strategic management concepts. It includes multiple-choice questions and true/false statements related to economic profits, vertical integration, collusion, and opportunism. The quiz assesses understanding of key strategic management principles and their implications in business contexts.

Uploaded by

hm4345689
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Ahram Canadian University

Business Administration School

University/Academy: Ahram Canadian University


Faculty/Institute: Business Administration
Quiz: model 5 Strategic Management ll

 Choose the correct answer with the following questions: (5 marks)

1) Firms with homogeneous resources and capabilities that cooperate to reduce


competition below a perfect competition level can generate economic profits, but in doing
so reduce social welfare in a phenomenon called ________ loss.
A) abnormal
B) ethical
C) collusion
D) dead weight

2) If Digipics were to begin manufacturing lenses for the cameras they assembled, this
would be an example of
A) backward vertical integration.
B) a strategic alliance.
C) forward vertical integration.
D) opportunism

3) According to ________ of when vertical integration creates value, vertical integration is


valuable when it reduces threats from a firm's suppliers or buyers due to any transaction-
specific investments a firm has made.
A) firm capability explanations
B) opportunity-based explanations
C) flexibility-based explanations
D) opportunism-based explanations

4) ________ collusion is illegal in most developed countries.


A) Any
B) Explicit
C) Tacit
D) Strategic

5) ________ exists when a firm is unfairly exploited in an exchange.


A) Competitive advantage
B) Business level strategy
C) Opportunism
D) Corporate level strategy

School of Business Administration – Ahram Canadian University Page 1 of 3


Ahram Canadian University
Business Administration School

 Stat whether the following statements are true or false and correct the false
statements. (5 marks)
1) The economic profits generated by the strategies of cost leadership, product
differentiation, and flexibility can be thought of as efficiency profits.

True

2) Collusion is the ability of a group of firms to work together to increase competition in


their market or industry.

False (reduce)

3) The threat of opportunism is the least when a party to an exchange has made
transaction-specific investments.

False (The threat of opportunism is the greatest when a party to an exchange has made
transaction-specific investments, not the least.

4) Explicit collusion is legal in most developed economies.

False (illegal)

5) A transaction-specific investment is any investment in an exchange that has significantly


more value in the current exchange than it does in alternative exchanges

True

School of Business Administration – Ahram Canadian University Page 2 of 3


Ahram Canadian University
Business Administration School

School of Business Administration – Ahram Canadian University Page 3 of 3

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