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Strategic Management Quiz for Business Students

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 regarding topics such as tacit collusion, opportunism, vertical integration, and price leadership. The quiz assesses students' understanding of these strategic management principles.

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19 views2 pages

Strategic Management Quiz for Business Students

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 regarding topics such as tacit collusion, opportunism, vertical integration, and price leadership. The quiz assesses students' understanding of these strategic management principles.

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

Ahram Canadian University

Business Administration School

University/Academy: Ahram Canadian University


Faculty/Institute: Business Administration
Quiz: model 2 Strategic Management ll

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

1) Tacit collusion is more likely when firms produce and sell ________ products or services.
A) similar
B) dissimilar
C) many
D) diverse

2) If one of the suppliers that Digipics purchases its components from purposefully
delivered a batch of its product that was substandard but did not inform Digipics of this,
this would be an example of
A) flexibility.
B) opportunism.
C) uncertainty.
D) vertical integration

3) Which of the explanations of vertical integration is the oldest and has received the
greatest empirical support?
A) opportunism-based
B) flexibility-based
C) firm capabilities-based
D) alliance-based

4) In general, price leaders can be thought of as ________ leaders.


A) Stackelberg
B) Cournot
C) Bertrand
D) Edgeworth

5) Firms may have incentives to cheat on cooperative agreements when maintaining a


collusive agreement has high ________ costs.
A) opportunity
B) strategic
C) signaling
D) social

 Stat whether the following statements are true or false and correct the false
statements. (5 marks)

School of Business Administration – Ahram Canadian University Page 1 of 2


Ahram Canadian University
Business Administration School

1) Bertrand's analysis suggests that the superior profits that can be obtained by colluding
firms are quite robust.

FALSE
(Bertrand's analysis suggests that colluding firms may struggle to sustain superior profits
because price competition can drive prices down to marginal cost, eliminating profits.)

2) A "tough" signal is one where the signaling firm indicates that they will aggressively
respond to cheating..

TRUE

3) If Iron Horse Helmets (IHH) were to contract with a Chinese manufacturing firm to
provide IHH with superior quality helmets for sale in the United States but discovered
that the shipments were actually of inferior quality when they were received, IHH would
be said to be acting opportunistically..

False
(The Chinese manufacturing firm would be acting opportunistically, not Iron Horse
Helmets (IHH).

4) Firms should only bring market exchanges within their boundaries when the cost of
vertical integration is more than the cost of opportunism.

False (Firms should bring market exchanges within their boundaries when the cost of
vertical integration is less than or equal to the cost of opportunism, not more.

5) Firms should not vertically integrate into business activities where they do not possess
the resources necessary to gain competitive advantages.

TRUE

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

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