C 9

Chapter 9—Corporate-Level Strategy: Horizontal Integration, Vertical Integration,
and Strategic Outsourcing
TRUE/FALSE
1. A company should first choose a corporate-level strategy and then look at how changes will affect a
company's current business model and strategies.
ANS: F PTS: 1 DIF: Moderate

OBJ: 1 - Discuss how corporate-level strategy can be used to strengthen a company's business model
and business-level strategies NAT: AACSB Analytic | Strategy
KEY: Comprehension
2. Managers use corporate-level strategy to identify which industries a company should compete in to
maximize long-run profitability.
ANS: T PTS: 1 DIF: Easy

KEY: Knowledge
3. Transfer pricing refers when a company is taken advantage of by another company it does business
with after it has made an investement in expensive specialized assets to better meet the needs of the
other company.

OBJ: 4 - Define vertical integration and describe the primary advantages and disadvantages
associated with this corporate-level strategy
NAT: AACSB Reflective Thinking | Strategy KEY: Knowledge
4. An advantage of horizontal integration is that by staying in one industry, a firm can focus its resources
and capabilities on competing successfully in just one area.
ANS: T PTS: 1 DIF: Moderate

OBJ: 2 - Define horizontal integration and discuss the primary advantages and disadvantages
associated with this corporate-level strategy NAT: AACSB Analytic | Strategy
KEY: Knowledge
5. When a company stays inside one industry, the problems of sustaining a successful business model and
strategies over time can be difficult because of changing conditions in the environment.

NAT: AACSB Analytic | Environmental Influence KEY: Knowledge
6. Unfortunately, horizontal integration can not be accomplished by acquisitions or mergers.

KEY: Knowledge
7. Oracle Corp., based in Reno, Nevada, has become the world's largest maker of database software
largely through a strategy of acquisition.
ANS: F PTS: 1 DIF: Difficult

NAT: AACSB Reflective Thinking | Strategy KEY: Application
8. At the time of the merger of Hewlett Packard and Compaq, Dell Computer's competitive advantage
over Hewlett Packard was based on Dell's cost-leadership business model.
ANS: T PTS: 1 DIF: Difficult

9. Horizontal integration can help lower costs when it allows a company to reduce the duplication of
resources.

KEY: Knowledge
10. Product bundling occurs when a firm offers a range of products that are sold together at a single price.

KEY: Knowledge
11. When Citibank offers home mortgages and credit cards to its checking account customers, it is using
horizontal integration strategy.

12. Horizontal integration can lead to low cost advantages but rarely to differentiation advantages.

KEY: Knowledge
13. Horizontal integration almost always increases rivalry in an industry.

NAT: AACSB Analytic | Environmental Influence KEY: Knowledge
14. One outcome of horizontal integration is industry consolidation, leading to more bargaining power
over buyers and suppliers.

KEY: Knowledge
15. Vertical integration is undertaken to support the competitive position of a company's core business.

OBJ: 3 - Explain the difference between a company's internal value chain and the industry value
chain NAT: AACSB Analytic | Creation of Value KEY: Comprehension
16. Competitive bidding makes suppliers reluctant to make investments that tie them closely to their
trading partners.

OBJ: 5 - Describe why, and under what conditions, cooperative relationships such as strategic
alliances and outsourcing may become a substitute for vertical integration
NAT: AACSB Analytic | Strategy KEY: Knowledge
17. A strategic alliance is a substitute for horizontal integration.
ANS: F PTS: 1 DIF: Easy

18. Even though companies may invest in specialized assets to build competitive advantage, it is seldom
necessary that suppliers do so.

NAT: AACSB Analytic | Strategy KEY: Comprehension
19. Vertical integration can strengthen a company's differentiation advantage.

KEY: Knowledge
20. Vertical integration can raise costs if, over time, a company continues to purchase inputs from
company-owned suppliers when independent suppliers can supply the same inputs at lower cost.

KEY: Knowledge
21. The term bureaucratic costs refers to costs associated with the creation and maintenance of the
administrative function in a company.
NAT: AACSB Analytic | Creation of Value KEY: Knowledge
22. Vertical integration can be risky when demand is unpredictable because it is hard to manage the
volume or flow of products along the value-added chain.

KEY: Comprehension
23. A company seeking to form a long-term strategic alliance needs to enter the agreement with total trust
in its partner to live up to its end of the agreement.

24. Strategic outsourcing is the decision to allow one or more of a company's value chain activities or
functions to be performed by independent companies.

25. Companies that outsource most or all of their value creation activities are often referred to as virtual
corporations.

26. When a company outsources its noncore activities to specialists, it looses its capabilities to
differentiate its final products.

27. Tina’s Technologies is expanding its operations backward into an industry that produces inputs for the
company’s products. Tina’s Technologies is utilizing horizontal integration.

MULTIPLE CHOICE
28. The final part of the strategy formulation process is

a. formulation of business-level strategies.
b. formulation of functional-level strategies.
c. formulation of corporate-level strategies.
d. development of functional-level goals.
e. development of business-level goals.
ANS: C PTS: 1 DIF: Moderate
KEY: Knowledge
29. When a company decides to expand into new industries, it must

a. construct its business models at two levels.
b. secure government approval from the Securities and Exchange Commission (SEC).
c. select a new CEO.
d. all of these choices.
e. none of these choices.
ANS: A PTS: 1 DIF: Moderate
KEY: Knowledge
30. Companies invest in specialized assets because these assets allow them to
a. lower their cost structure.
b. charge excessive prices for their products.
c. better differentiate their products.
d. A and B.
e. A and C.
ANS: E PTS: 1 DIF: Moderate
NAT: AACSB Analytic | Creation of Value KEY: Comprehension
31. Many industries have experienced increased consolidation over the last decade due to an increase in
a. strategic alliances.
b. vertical integration.
c. horizontal integration.
d. franchising.
e. diversification.
KEY: Knowledge
32. Which of the following is a benefit that firms should expect to gain from the use of horizontal
integration?
a. Expanded control over stages of the supply chain
b. Better realization of economies of scale
c. Shared risk with another firm
d. Reduced risk of holdup
e. Reduced investments in noncore activities
ANS: B PTS: 1 DIF: Moderate
KEY: Comprehension
33. Horizontal integration may be thought of as

a. moving into a new unrelated industry.
b. giving control to suppliers.
c. gaining control of distributors.
d. staying inside the industry in which the company currently operates.
e. combining functional units within the company.
ANS: D PTS: 1 DIF: Moderate
KEY: Knowledge
34. Horizontal integration in an industry tends to

a. increase rivalry among firms.
b. reduce rivalry among firms.
c. have little effect on rivalry among firms.
d. reduce the number of consumers buying the products.
KEY: Knowledge
35. Adam's boss tells him that their company is pursuing a strategy of horizontal integration, which means
that the company will
a. acquire one of its suppliers.
b. buy one of its rivals.
c. begin to distribute its own products.
d. reorganize into fewer business units.
e. centralize all of its support functions.
36. When Hewlett Packard and Compaq merged, the combined firm was larger and therefore could
negotiate lower prices from suppliers. This benefit of horizontal integration is called
a. economies of scale.
b. reduction of excess capacity.
c. cross-selling.
d. product bundling.
e. market power.
ANS: E PTS: 1 DIF: Difficult
37. Antitrust authorities

a. favors large companies.
b. reduces industry competition.
c. are concerned with companies' abuse of their market power to raise prices for consumers
above the level that would exist in more competitive situations.
d. tends to raise prices for consumers.
e. enables the achievement of market power.
NAT: AACSB Analytic | Legal Responsibilities KEY: Knowledge
38. When an intermediate manufacturer moves into final assembly, it is pursuing

a. backward integration.
b. forward integration.
c. taper integration.
d. related diversification.
e. unrelated diversification.
ANS: B PTS: 1 DIF: Difficult
chain NAT: AACSB Analytic | Creation of Value KEY: Knowledge
39. Which of the following is not a benefit of vertical integration?

a. Facilitating investments in specialized assets
b. Enhancing product quality
c. Improved scheduling
d. Increasing cost structure
e. None of these choices
KEY: Comprehension
40. Vertical integration can be disadvantageous when

a. competitors are vertically integrated.
b. demand is stable.
c. industry technology is changing rapidly.
d. technology is changing slowly.
e. competitors are vertically integrated and industry technology changes rapidly.
KEY: Knowledge
41. The price that one division of a company charges another division for its products, which are the inputs
the other division requires to manufacture its own products refers to:
a. vertical disintegration.
b. vertical integration .
c. transfer pricing.
d. related diversification.
e. none of these.
ANS: C PTS: 1 DIF: Easy
KEY: Knowledge
42. All of the following are benefits of horizontal integration except:

a. Higher cost structure
b. Increased product differentiation
c. Replicated business model
d. Increased bargaining power over suppliers
e. All of these are benefits of horizonatal integration
KEY: Comprehension
43. A company pursuing a strategy of vertical integration may expand its operations
a. backward into an industry that produces inputs for the company's products.
b. forward into an industry that uses, distributes, or sells the company's products.
c. laterally into an industry that competes with the company's products.
d. A and B.
e. A and C.
ANS: D PTS: 1 DIF: Difficult
KEY: Comprehension
44. Under which of the following circumstances is vertical integration hazardous?

a. When the technology involved in different stages of production is changing rapidly
b. When vertical integration involves moving downstream into retailing
c. When the value added by successive stages of production is declining
d. When the industries involved are undergoing rapid expansion
e. When the company's competitors are also following a strategy of vertical integration
ANS: A PTS: 1 DIF: Difficult
KEY: Comprehension
45. Which of the following strategies facilitates the implementation of a just-in-time inventory system?
a. Short-term contracts
b. Vertical integration
c. Unrelated diversification
d. Diversification based on transferring competencies
e. Diversification based on realizing economies of scope
NAT: AACSB Analytic | Operations Management KEY: Comprehension
46. Companies can maintain market discipline over suppliers by

a. outsourcing.
b. demanding hostages.
c. attaining a credible commitment.
d. parallel sourcing.
e. full integration.
47. Credible commitments

a. are believable promises or pledges to support the development of a long-term relationship
between companies.
b. facilitate diversification based on acquisitions and restructuring.
c. facilitate competitive bidding.
d. facilitate vertical integration.
e. reduce the risk of losing proprietary technology to a venture partner and facilitate vertical
integration.
ANS: A PTS: 1 DIF: Easy
48. Another name for long-term cooperative relationships between two or more companies who agree to
commit resources to develop new products is
a. horizontal integration.
b. outsourcing.
c. strategic alliance.
d. joint venture.
e. vertical integration.
ANS: C PTS: 1 DIF: Easy
49. A hospital supply company invests in training for a team of sales associates to learn the details of each
hospital chain's operations. In return, the hospital chain invests in a computer system that supports
supply ordering. The supply company and the hospital chain are working to ensure the success of their
long-term relationship by
a. reducing the risk of losing proprietary technology.
b. making a credible commitment.
c. encouraging competitive bidding.
d. facilitating vertical integration.
e. using parallel sourcing.
50. Vertical integration is based on a company entering industries that add ____ to its core products.
a. costs
b. little or nothing
c. incremental elements
d. shipping expenses
e. value
51. Ownership of retail outlets may be important for a manufacturer if

a. the products produced by the manufacturer are not complex.
b. after-sales service is required for complex products.
c. products are expended in consumption.
d. products are intended for one-time use.
e. products are inexpensive.
52. Which of the following problems is (are) associated with a strategy of vertical integration?
a. An increasing cost structure
b. Manufacturing disadvantages that arise because of rapidly changing technology
c. Marketing disadvantages that arise when demand is unpredictable
d. All of these
e. None of these
KEY: Comprehension
53. To build trust in a cooperative relationship, both firms can

a. rely on competitive bidding.
b. make mutual investments in specialized assets.
c. write short-term contracts that must be renewed frequently.
d. increase their vertical integration.
e. use outsourcing of noncore activities.
54. John's surfboard shop has a long-term relationship with two surfboard makers. John is using
a. parallel sourcing.
b. cross-selling.
c. product bundling.
d. vertical integration.
e. horizontal integration.
55. When there is a minimal need for close long-term cooperation between a company and its suppliers,
which of the following strategies is the most appropriate?
a. Full integration
b. Taper integration
c. Competitive bidding
d. Long-term contracting
e. Diversification based on economies of scope
56. Long-term contracts

a. are preferable to short-term contracts when there is a minimal need for cooperation.
b. are preferable to vertical integration when it is not feasible to exchange hostages.
c. generally result in lower prices than does competitive bidding.
d. achieve exactly the same outcomes as vertical integration, but they incur higher
bureaucratic costs.
e. are a low-cost alternative to vertical integration when it is possible to build cooperative
relationships with suppliers.
57. Outsourcing occurs when a firm

a. buys one of its rivals.
b. merges with one of its suppliers.
c. enters into a joint venture with a rival.
d. hires another firm to perform value creation activities.
e. enters into contracts with two suppliers simultaneously.
ANS: D PTS: 1 DIF: Easy
58. In which of the following is a firm most likely to lose direct control over value creation activities?
a. Merger
b. Acquisition
c. Vertical integration
d. Strategic alliance
e. Outsourcing
NAT: AACSB Analytic | Creation of Value KEY: Comprehension
59. Outsourcing
a. eliminates the need for a value chain.
b. reduces the firm's dependence on its value chain.
c. reorders the steps in a firm's value chain.
d. moves some value chain activities outside the firm.
e. strengthens the firm's capabilities in each value chain function.
NAT: AACSB Analytic | Creation of Value KEY: Knowledge
60. When technology in an industry is changing rapidly, a company pursuing a strategy of vertical
integration may find itself
a. locked into an old, inefficient technology.
b. able to sell its products at continually lower prices.
c. increasing returns on its assets.
d. all of these choices.
NAT: AACSB Technology | Information Technologies KEY: Knowledge
61. A strategy of vertical integration may be a risky strategy for a company to pursue when demand is
a. predictable.
b. stable.
c. unpredictable.
d. steadily increasing.
e. rapidly increasing.
KEY: Knowledge
62. Strategic alliances are

a. short-term agreements between two companies to jointly develop new products.
b. short-term agreements between two companies to jointly market new products.
c. short-term partnerships between two companies.
d. long-term commitments between two companies to share research and development
activities.
e. long-term agreements between two or more companies to jointly develop products that
benefit all companies involved in the alliance.
63. Under a competitive bidding strategy, independent component suppliers compete with each other to be
the company that will be chosen to supply
a. a particular part for a particular manufacturer.
b. all of the parts for a particular manufacturer.
c. a particular part for all manufacturers in the industry.
d. all parts for all manufacturers in the industry.
64. In 1999, Glaxo Wellcome and SmithKline Beecham came together to create a single firm
known as GlaxoSmithKline. This is an example of a(n)
a. merger.
b. acquisition.
c. reverse takeover.
d. parallel sourcing policy.
e. credible commitment.
65. Google bought Clever Sense, a mobile app company. This is an example of a(n)
a. parallel sourcing policy.
b. strategic outsource.
c. strategic alliance.
d. merger.
e. acquisition.
ANS: E PTS: 1 DIF: Difficult
66. Rachel is a new mom who was shopping for products to use on her baby. She noticed that the company
Johnson & Johnson often packaged together baby shampoo, baby lotion, and other similar products
such as bottles and baby wipes. Johnson & Johnson is utilizing which of the following?
a. Product bundling
b. Cross-selling
c. Hostage taking
d. Strategic outsourcing
e. Parallel sourcing
67. GM typically solicits bids from global suppliers to produce a particular component and awards a 1-
year contract to the supplier that submits the lowest bid. At the end of the year, a contract is once again
put out for competitive bid, and once again the lowest cost supplier is most likely to win the bid. GM
is using which of the following?
a. Strategic outsourcing
b. Competitive bidding
c. Long-term contracting
d. Strategic alliance
e. Hostage taking
ESSAY
68. What is the relationship between a company's corporate-level strategy and its business model?
ANS:
Corporate-level strategies drive a company's business model over time and ultimately help determine
the kinds of business and functional-level strategies that it uses to maximize long-run profitability. The
link between corporate strategy and profitability should be underscored.
To increase profitability, a corporate strategy should enable a company, or one or more of its business
divisions, or units, to perform one or more value chain activities or functions at either a lower cost or
in a way that allows for differentiation. In addition, corporate strategy may have a positive impact on
profitability if it helps a company achieve a better competitive position in the marketplace.
Thus, a company's corporate-level strategies should be chosen to promote the success of a company's
business model and to help achieve sustainable competitive advantage at the business level.
PTS: 1 DIF: Difficult

KEY: Synthesis
69. Compare the benefits and risks associated with horizontal and vertical integration. Under what
circumstances would a firm prefer one over the other?
ANS:
Horizontal integration has many of the same benefits and risks as vertical integration. For example,
both risk the inability to blend two different organizational cultures, both can lead to lower costs, and
so on. One area of difference is that horizontal integration is always with rivals, while vertical
integration is with buyer or supplier firms. Therefore, the nature of the integration, implementation,
and anticipated cost savings is different. Another difference is that vertically integrated firms face the
risk of high operating costs relative to outside suppliers or buyers due to lack of competitive pressure.
A third difference is that the bureaucratic costs of vertical integration are likely to be higher because of
the need for close coordination between business units that are connected in the same supply chain,
which is not a concern for a horizontally integrated firm.
Mergers are more common than acquisitions when the two firms are of approximately equal size,
although there have been acquisitions between equals, and smaller firms have even acquired larger
ones. An acquisition requires cash or some other form of payment to meet the purchase price, while a
merger is a mere blending of assets and so may be preferable for cash-poor companies. Also, a merger
is always friendly, while an acquisition may be either friendly or hostile. When one party is reluctant to
enter into the deal, acquisition would be the preferred method.
associated with this corporate-level strategy | 4 - Define vertical integration and describe the primary
advantages and disadvantages associated with this corporate-level strategy
NAT: AACSB Analytic | Strategy KEY: Analysis
70. How can strategic outsourcing strengthen a company's business model and increase its profitability?
ANS:
Strategic outsourcing is the decision to allow one or more of a company's value chain activities or
functions to be performed by independent companies that are specialists in those activities. Companies
generally outsource noncore activities.
Strategic outsourcing can help strengthen a company's business model and increase its profitability in
several ways. First, outsourcing can help reduce a company's cost structure. Outsourcing reduces costs
when the price that it pays to an independent company to perform one or more of its value chain
activities is lower than the cost of performing the activities itself. Second, outsourcing can help a
company enhance its differentiation. This occurs when the independent firm performs an activity at a
higher level of quality than the company performs the activity. Finally, outsourcing allows companies
to focus their energies and company resources on performing those core activities that have the most
potential to create value and competitive advantage.

KEY: Synthesis
71. Consider the case of a manufacturing firm that purchases subassemblies from a supplier, creates a
finished product, and then sells that product to a wholesale distributor. What advantages might this
firm gain from forward integration? From backward integration? What potential pitfalls of vertical
integration might the firm face?
ANS:
Forward integration would allow the manufacturing firm to own its distributors, which could enable it
to realize higher profits because it will be able to capture the profits that were previously going to the
distributor. Also, the vertically integrated firm will be larger and therefore can more easily build
barriers to entry, limit competition, and charge higher prices. The firm may also find that it can invest
more readily in specialized assets, which protect product quality, enabling differentiation and higher
prices. A final benefit would be the increased ease of scheduling and coordination, and the increased
opportunities for organizational learning.
Backward integration would require the firm to build its own subassemblies. The benefits of backward
integration are the same as those found in forward integration. However, whether the firm chooses
forward or backward integration, it must consider some potential pitfalls. First, by owning more value
creation activities, the firm's complexity is increasing, which will increase bureaucratic costs. Second,
the buyer or supplier business units may be less motivated to keep expenses low because they have a
guaranteed seller or buyer for their output. Third, ownership of the additional steps in the process locks
the firm into technology, capacity, cost, and other choices, whereas the nonintegrated firm is free to
choose other suppliers, other technology, other quantities, and so on, through purchasing agreements.

chain NAT: AACSB Analytic | Strategy KEY: Evaluation
72. Strategic alliances and outsourcing are two alternatives to vertical integration. What are the advantages
and disadvantages of each compared to vertical integration? What can managers do to eliminate or
reduce the risks?
ANS:
Compared to vertical integration, strategic alliances allow the firm to reduce its bureaucratic costs
because the firm no longer has to manage the entire set of complex activities. Also, strategic alliances
enable the firm to remain flexible¾for example, by renegotiating the contract terms. This means the
firm is not locked into choices about technology, capacity, and so on. Thus, strategic alliances provide
the advantages of vertical integration¾closer coordination, investment in specialized assets, and so
on¾but with lower costs and increased flexibility. The major disadvantages of strategic alliances are
the potentially higher costs of allowing the partner to profit and the possibility of losing control over
scheduling, proprietary know-how, and other items.
Outsourcing will reduce costs when the price paid to a specialist company is less than performing the
function internally. Specialists can control their cost structure (and therefore offer their services at
attractive prices) because of economies of scale, learning effects, location scale, and other efficiencies
not available to the client company. Secondly, outsourcing will afford the client company greater
ability to differentiate its final products if the quality of the activity is greater than the quality that
could be achieved internally. Higher quality products with lower defect rates, for example, translate
into reliability, a key factor in differentiation. Thirdly, outsourcing allows managers to focus their
energies and the company's resources on core activities. The pitfalls to outsourcing include the risk of
overdependence on the specialist (sometimes leading to holdup, an extreme effect of bargaining
power), and the loss of critical information (such as customer complaints). Compared to vertical
integration, outsourcing requires much less outlay of resources, affords greater flexibility and less
complexity, and keeps an organization on track with its core business.
To reduce or eliminate risks, managers considering the use of strategic alliances or outsourcing can
take actions that align the interests of the parties more closely. For example, the parties can exchange
hostages by the use of mutual investments in specialized assets, also called credible commitments.
This will ensure that each party can inflict some costs on the other, lessening the chance that either will
do so. Market discipline, in the form of a willingness to renegotiate contractual agreements or switch
to a different partner altogether, also reduces the chances of one firm taking advantage of the other.
Another way to accomplish market discipline is through the use of parallel sourcing so that the firm
uses two or more partners, signaling its independence from both. Finally, any action that serves to
build trust, encourage cooperation, improve communication, support personal friendships, and so on,
will increase the chances that the firms will act in a way that enhances the benefits for both.

NAT: AACSB Analytic | Strategy KEY: Evaluation

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Chapter 9—Corporate-Level Strategy: Horizontal Integration, Vertical Integration,

and Strategic Outsourcing

ANS: F PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Easy

ANS: F PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Easy

6. Unfortunately, horizontal integration can not be accomplished by acquisitions or mergers.

ANS: F PTS: 1 DIF: Moderate

ANS: F PTS: 1 DIF: Difficult

ANS: T PTS: 1 DIF: Difficult

ANS: T PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Easy

ANS: F PTS: 1 DIF: Difficult

ANS: F PTS: 1 DIF: Moderate

13. Horizontal integration almost always increases rivalry in an industry.

ANS: F PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Moderate

17. A strategic alliance is a substitute for horizontal integration.

ANS: F PTS: 1 DIF: Easy

ANS: F PTS: 1 DIF: Moderate

19. Vertical integration can strengthen a company's differentiation advantage.

ANS: T PTS: 1 DIF: Easy

ANS: T PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Moderate

ANS: F PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Moderate

ANS: T PTS: 1 DIF: Easy

ANS: F PTS: 1 DIF: Moderate

ANS: F PTS: 1 DIF: Difficult

28. The final part of the strategy formulation process is

29. When a company decides to expand into new industries, it must

33. Horizontal integration may be thought of as

34. Horizontal integration in an industry tends to

37. Antitrust authorities

38. When an intermediate manufacturer moves into final assembly, it is pursuing

39. Which of the following is not a benefit of vertical integration?

40. Vertical integration can be disadvantageous when

42. All of the following are benefits of horizontal integration except:

44. Under which of the following circumstances is vertical integration hazardous?

46. Companies can maintain market discipline over suppliers by

47. Credible commitments

51. Ownership of retail outlets may be important for a manufacturer if

53. To build trust in a cooperative relationship, both firms can

56. Long-term contracts

57. Outsourcing occurs when a firm

62. Strategic alliances are

PTS: 1 DIF: Difficult

PTS: 1 DIF: Difficult

PTS: 1 DIF: Difficult

PTS: 1 DIF: Difficult

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