Growth and Survival of Firms Quiz by Shubhrata Shrestha | Jun 29, 2025 | 0 comments Growth and Survival of Firms Quiz 1. What type of integration involves a company merging with another at the same stage of production? A) Backward integration B) Vertical integration C) Horizontal integration D) Conglomerate integration None 2. One major reason firms choose to diversify is to: A) Increase fixed costs B) Spread risk C) Lower wages D) Improve employee satisfaction None 3. A conglomerate merger takes place between firms that are: A) In the same industry at the same stage B) In the same supply chain C) In unrelated industries D) In joint ventures None 4. The principal-agent problem can lead to: A) More efficient decision-making B) Better shareholder returns C) Managers acting in their own interests D) Lower corporate taxes None 5. Which of the following is NOT a reason for external growth? A) Increase market share B) Achieve economies of scale C) Avoid brand recognition D) Access new technology None 6. Vertical integration may help a firm to: A) Control its supply chain B) Enter unrelated markets C) Increase competition D) Reduce employee turnover None 7. What is a condition for a successful cartel? A) A large number of small firms B) High barriers to entry C) Perfect competition D) Transparent demand None 8. Organic growth is also known as: A) Internal growth B) Lateral expansion C) Strategic alliance D) Reverse integration None 9. A cartel agreement typically aims to: A) Lower product quality B) Increase firm competition C) Fix prices and limit output D) Encourage consumer choices None 10. A manager choosing to increase sales volume over profit is an example of: A) Profit maximization B) Principal-agent problem C) Vertical integration D) Cartel strategy None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
