For Practice Only:

Match the following terms with the correct definition A. The combining of two or more companies to form a new company. Strategic fit Network externalities Segmentation Intellectual property Agency problem The tendency for managers/executives to operate companies in their own B interests rather than in the interests of the owners/shareholders. A country's ability to product a particular product at a lower relative cost than other countries A phenomenon that arises when the value of a product to a user depends on the number of other users of the product. The process of disaggregating industries and markets into more narrowly E defined sub-markets on the basis of product characteristics, customer characteristics, or geography The consistency of a firm's strategy with its internal and external environments Intangible goods that have no physical presence and which are creations of G. the mind." The procedures and processes which specify the distribution of rights and H.responsibilities among different participants in an organization, and by which an organization is directed and controlled A system of accountability where each executive is personally responsible to the corporation and its shareholders. A collaborative arrangement between two or more firms involving their pursuit of certain common goals. Comparative advantage v Merger Strategic alliance Stewardship Corporate governance