Which of the following is generally not considered a common motive for exiting businesses?
A. Changing strategy or focus
B. Desire to achieve economies of scale
C. Lack of fit with the parent's other businesses
Discarding unwanted businesses from prior acquisitions
E. All of the above
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Which of the following is true about a voluntary bust-up?
A. Parent ceases to exist
B. Cash infusion to the parent
C. Parent stock is exchanged for subsidiary stock
D. New shares issued to the public
E. Parent remains in control
Which of the following is not a typical question that must be addressed in defining scope?
A. Which products are included
B. Which products are excluded
C. How are profits are losses to be allocated
D. Who receives rights to distribute, manufacture, acquire, or license or purchase future products developed by the alliance
E. Which partner will sell which products in which markets
Which one of the following is not a characteristic of a corporate legal structure?
A. Unlimited liability
B. Double taxation
Continuity of ownership
D. Managerial autonomy
Ease of raising money
Which of the following is not a motivation for establishing an alliance?
A. Risk sharing
B. Gaining access to new markets
C. Gaining access to a new technology
D. Achieving maximum control
Entering into a foreign market
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