Making or Buying Strategy MCQs
Making or Buying Strategy MCQs
The following Making or Buying Strategy MCQs have been compiled by our experts through research, in order to test your knowledge of the subject of Making or Buying Strategy. We encourage you to answer these multiple-choice questions to assess your proficiency.
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1: Which of the following forms of governance does Transaction Costs Economics (TCE) consider?
A. Hierarchical
B. Diagonal
C. Linear
D. Triangular
2: Horizontal integration occurs:
A. When a firm competes with another
B. When a firm outsources to another
C. When a firm is dissolved
D. When a firm acquires or merges with another
3: Vertical integration occurs:
A. When a firm competes with another
B. When a firm outsources to another
C. When a firm moves into activities that were previously undertaken by a supplier or a customer
D. When a firm acquires or merges with another
4: Outsourcing occurs when:
A. Activities that were previously undertaken by the firm are moved to outside suppliers
B. Firms take over sourcing things themselves that they previously bought
C. A firm undergoes innovation
D. None of the above
5: The alternative to market transactions in TCE is:
A. Barter
B. Gifts
C. Employment contracts
D. Potlatch
6: According to TCE, the boundary of the firm is _______.
A. Defined by real estate
B. Defined by geography
C. Defined by economic considerations concerning make or buy, internalizing or externalizing activities
D. None of the above
7: The ‘father’ of TCE is:
A. Karl Marx
B. Hamish McTaggart
C. Ronald Coase
D. Henry Mintzberg
8: TCE postulates that human actors are characterized by ______, _______ and ______.
A. Creativity/opportunism/strategic foresight
B. Bounded rationality/bounded business units/unbounded energy
C. Bounded rationality/opportunistic behaviour/feasible foresight
D. None of the above
9: What is TCEs’ key question?
A. Whether transactions should be coordinated within a firm or across markets
B. Whether rationality is bounded enough
C. Whether to invest more in innovation
D. All of the above
10: Bounded rationality means:
A. We never have perfect knowledge and hence can never be perfectly rational
B. We are irrational by nature
C. We cannot be rational because we are forgetful
D. Gaining advantage by being economical with, or even distorting, what we take to be the truth
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Making or Buying Strategy MCQs
