c. e. e. 45.) In 2002, World Com was caught for inflating their assets by $11 billion. The CEO was fired, the company went bankrupt, and 30,000 employees lost their jobs. In this scenario, who is the principal? a. employees. b. CEO c. top management team. d. CEO and the top management team. e stockholders. 46.) Which of the below is true? a. Horizontal integration can lead to low cost advantages but rarely differentiation advantages. b. Vertical integration can lead to low cost advantages but rarely differentiation advantages. Horizontal integration promotes investments in specialized assets, promoting low cost advantages. d. Vertical integration promotes investments in specialized assets, promoting low cost advantages. All of the above 47.) Tom is CEO of Tofu-to-Go, a quick service vegan restaurant operating in the United States. He is looking to expand internationally to England, and decides to allow individuals in England to operate under the Tofu- to-Go name, menu, and business processes in exchanged for royalty payments. With this strategy, Tom can expect what kind of advantages? a. Assurance of tight control over quality b. Engagement in global strategic coordination c. Low development costs and risks d. Both A and C All of the above 48.) FC Corporation wants to expand overseas to realize cost economies from increased volume. In which case is FC Corporation able to reap the greatest benefits? a. FC has products that need to be customized to local requirements b. FC has commodity-type products that serve universal needs c. FC has low-weight, high-value products that can be differentiated by global companies d. FC has products that can be economically manufactured in small batches e. FC faces companies competing in industries where they face a large number of multinational competitors 49.) In which of the following cases are bureaucratic costs likely to be the highest? A company with four divisions that pursues related diversification based on sharing resources and capabilities b. A company with four divisions that pursues unrelated diversification based on general organizational competencies A company with four divisions that pursues unrelated diversification based on sharing resources and capabilities d. A company pursuing five simultaneous acquisitions through horizontal integration e. A company outsourcing both its manufacturing and marketing functions 50. Vertical integration is considered risky when a. The demand for products fluctuates frequently b. Moving backward into raw materials c. The company's competitors are also vertically integrated d. All of the above e. A and C only c