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BP - Q1 - Week 1 2019

Total questions: 20

Worksheet time: 11mins

Name
Class
Date
1.

Every fast food hamburger restaurant chain wants you to believe their product is the best because it is stored or prepared uniquely. Each of these is pursuing a ________.

a)

low cost leadership strategy

b)

differentiation strategy

c)

focus strategy

d)

quality strategy

2.

Patrick expects that each person he hires for his online business to be involved in studying trends involving new technology, competitors, and customers. These employees are involved in ________.

a)

external analysis

b)

internal analysis

c)

customer analysis

d)

industry analysis

3.

________ are positive trends in the external environment.

a)

Strengths

b)

Threats

c)

Weaknesses

d)

Opportunities

4.

In ________, the organization becomes its own supplier so it can control its inputs.

a)

concentrated integration

b)

backward vertical integration

c)

forward vertical integration

d)

horizontal integration

5.

In ________, a company grows by combining with competitors.

a)

concentrated integration

b)

horizontal integration

c)

vertical integration

d)

lateral integration

6.
Which of the following is an example of horizontal integration between two businesses?
a)
An oil company and an insurance company merge
b)
A shoe shop buys out a shoe factory
c)
A steel firm takes over a coal mine that supplies coal
d)
Coca-Cola takes over a small soft drink business
7.
One of the reasons for vertical integration between two businesses could be to:
a)
diversify into a completely different industry
b)
reduce competitors supplying the same product
c)
control the supply of raw material
d)
obtain higher market share
8.
a)
Horizontal Integration
b)
Vertical Integration
c)
Monopoly
d)
Laissez-Faire
9.
a)
Vertical Integration
b)
Horizontal Integration
c)
Trust
d)
Corporation
10.

A merger is...

a)

A method of Internal growth

b)

A friendly deal where two businesses join together

c)

A forced and sometimes hostile deal where one firm buys a share of the other business

11.

HORIZONTAL integration occurs when...

a)

firms in the same industry and at the same stage of the production process combine to form a larger business.

b)

when a firm expands by combining with an existing business in the same industry but at a different stage of the production process.

c)

Involves take over or merger with another firm in an unrelated industry.

12.

Vertical integration occurs when...

a)

firms in the same industry and at the same stage of the production process combine to form a larger business.

b)

when a firm expands by combining with an existing business in the same industry but at a different stage of the production process.

c)

Involves take over or merger with another firm in an unrelated industry.

13.

Lateral integration or Diversification occurs when...

a)

firms in the same industry and at the same stage of the production process combine to form a larger business.

b)

when a firm expands by combining with an existing business in the same industry but at a different stage of the production process.

c)

take over or merger with another firm in an unrelated industry.

14.

BMW Purchasing the MINI is an example of....

a)

Vertical integration

b)

Horizontal Integration

c)

Diversification

15.

Apple buying a company that creates microchips for phones and computers is an example of...

a)

Vertical integration

b)

Horizontal Integration

c)

Diversification

16.

Mcdonalds buying a cattle farm would be an example of...

a)

Vertical integration

b)

Horizontal integration

c)

Diversification

17.

If Samsung purchased a fruit farm this would be an example of....

a)

Vertical integration

b)

Horizontal integration

c)

Diversification

18.

Disney and Pixar joining together is an example of...

a)

Vertical integration

b)

Horizontal integration

c)

Diversification

19.
In order to be a parent company in a merger, what is the minimum percentage of the merger you need to own?
a)
100%
b)
51%
c)
65%
d)
75%
20.
Two tour operators merging can save costs on supplies. This is known as
a)
Economies of scale
b)
Facts of life
c)
Society of business
d)
Financial measurement