Question 1

Which of the following are switching costs? Select all that apply:

Accepted Answer

A) The time it takes to learn a new software program 
B) Fee for cancelling mobile phone service 
C) Search costs 
D) Emotional attachment 
E) Cannibalization 
A) The time it takes to learn a new software program 
B) Fee for cancelling mobile phone service 
C) Search costs 
D) Emotional attachment 
E) Cannibalization A,B,C,D

Question 2

Low-on-Cash Inc. decides to use factoring to improve cash flow. This strategy would involve which of the following?

Accepted Answer

A) Selling accounts receivable to a collection agency or a bank 
B) Selling goods on credit but with a specified date for payment 
C) Selling the factors of production for cost, plus a small mark-up 
D) Selling unused factory equipment to make up for the short-fall in cash flow 
A) Selling accounts receivable to a collection agency or a bank 
B) Selling goods on credit but with a specified date for payment 
C) Selling the factors of production for cost, plus a small mark-up 
D) Selling unused factory equipment to make up for the short-fall in cash flow A

Question 3

Reducing inventory levels reduces risk.

Accepted Answer

A) True 
 B)False  True

Question 4

Boris wants to figure out how much more his company should invest into the quality of a certain product. What tool would be most effective for this exercise?

Accepted Answer

A) Five Forces analysis 
B) Generic strategies 
C) MECE 
D) Razor and Blades 
E) Marginal analysis 
A) Five Forces analysis 
B) Generic strategies 
C) MECE 
D) Razor and Blades 
E) Marginal analysis

Question 5

What is Pareto's Law?

Accepted Answer

A) 80 percent of the effects come from 20 percent of the causes. 
B) Work expands to fill the time available for its completion. 
C) Anything that can go wrong will go wrong. 
D) Never attribute to malice that which can be adequately explained by stupidity. 
A) 80 percent of the effects come from 20 percent of the causes. 
B) Work expands to fill the time available for its completion. 
C) Anything that can go wrong will go wrong. 
D) Never attribute to malice that which can be adequately explained by stupidity.

Question 6

What is MECE?

Accepted Answer

A) Miminal Exceptions Consulting Excellence Framework 
B) Mutual Exclusive Collectively Exhaustive 
C) A key six sigma principle 
D) STAR 
A) Miminal Exceptions Consulting Excellence Framework 
B) Mutual Exclusive Collectively Exhaustive 
C) A key six sigma principle 
D) STAR

Question 7

You are a consultant brought into help Bo's Television, a global conglomerate. ScreenMaster is a separate company that makes the screens for Bo's TVs. If Bo's acquired Screenmaster, this would be an example of what?

Accepted Answer

A) Conflict of interest 
B) Horizontal integration 
C) Transfer pricing 
D) Vertical integration 
E) Cost-based accounting 
A) Conflict of interest 
B) Horizontal integration 
C) Transfer pricing 
D) Vertical integration 
E) Cost-based accounting

Question 8

Which of the following can you use a Monte Carlo simulation to model? Select all that apply:

Accepted Answer

A) Cost 
B) Probability of success 
C) Project duration 
D) Quality of inputs 
E) Stock returns 
A) Cost 
B) Probability of success 
C) Project duration 
D) Quality of inputs 
E) Stock returns

Question 9

Price elasticity is a measure of how much the supply or demand of a good changes if the price changes.

Accepted Answer

A) True 
 B)False

Question 10

Sales at ABC Party Supply have fallen off significantly over the past three years. Which of following is least applicable to this situation?

Accepted Answer

A) ABC's market is mature. 
B) ABC's products are obsolete. 
C) Substitutions are on the rise. 
D) Costs are rising. 
E) All of the above 
A) ABC's market is mature. 
B) ABC's products are obsolete. 
C) Substitutions are on the rise. 
D) Costs are rising. 
E) All of the above

Question 11

A number of highly trained workers from a large domestic airline have been reclassified owing to major technological changes in the operations of the airline. These employees have been told that the work they performed in the past is no longer required.
Which of the concepts below best describes this situation?

Accepted Answer

A) De-skilling 
B) Globalization 
C) Inertia of managers 
D) Resistance to change 
E) Planned obsolesce 
A) De-skilling 
B) Globalization 
C) Inertia of managers 
D) Resistance to change 
E) Planned obsolesce

Question 12

A problem with risk management at large firms is that it is often:

Accepted Answer

A) Completely ignored 
B) Siloed 
C) Too frequent 
D) Too aggressive 
E) All of the above 
A) Completely ignored 
B) Siloed 
C) Too frequent 
D) Too aggressive 
E) All of the above

Question 13

What are three areas of synergies? Select 3 answers:

Accepted Answer

A) Revenue 
B) Inventory 
C) Quality 
D) Cost 
E) Management 
A) Revenue 
B) Inventory 
C) Quality 
D) Cost 
E) Management

Question 14

Ted is negotiating a 10-year contract with the U.S. government to provide educational services. The government wants a fixed price project. However, Ted is extremely concerned about the possibility of inflation given the increase in government spending. Ted should suggest what time of contract?

Accepted Answer

A) Inflatable 
B) Floater 
C) Bonded adjustment 
D) Fixed price with economic adjustment 
E) Treasury 
A) Inflatable 
B) Floater 
C) Bonded adjustment 
D) Fixed price with economic adjustment 
E) Treasury

Question 15

Which of the following situations is most likely to be a razor and blade strategy?

Accepted Answer

A) Coke and Pepsi 
B) Breakfast sandwich and coffee 
C) Hamburger with cheese 
D) Video game system and cartridges 
E) Ordering contact lenses online 
A) Coke and Pepsi 
B) Breakfast sandwich and coffee 
C) Hamburger with cheese 
D) Video game system and cartridges 
E) Ordering contact lenses online

Question 16

Which of the following is not part of basic value chain model?

Accepted Answer

A) Customer service 
B) Product delivery 
C) Operations 
D) Procurement 
E) COGS 
A) Customer service 
B) Product delivery 
C) Operations 
D) Procurement 
E) COGS

Question 17

Leveraged buyouts (LBOs) are not collateralized.

Accepted Answer

A) True 
 B)False

Question 18

Different technological platforms, systems and products are moving towards performing the same functions. What is this phenomenon referred to as?

Accepted Answer

A) Confluence 
B) Co-radiation 
C) Cooperation 
D) Convergence 
E) Synergy 
A) Confluence 
B) Co-radiation 
C) Cooperation 
D) Convergence 
E) Synergy

Question 19

How did famous management thinker Joseph Juran define quality?

Accepted Answer

A) Achieving six sigma 
B) Zero defect manufacturing 
C) Value for cost 
D) Fitness for use 
E) Successful scope verification 
A) Achieving six sigma 
B) Zero defect manufacturing 
C) Value for cost 
D) Fitness for use 
E) Successful scope verification

Question 20

Great Skin Inc. has decided to enter the market for women's razors. What type of pricing framework is most likely to apply?

Accepted Answer

A) Break-even pricing 
B) Competition-based pricing 
C) Cost-based pricing 
D) Market pricing 
A) Break-even pricing 
B) Competition-based pricing 
C) Cost-based pricing 
D) Market pricing

Which of the following are switching costs? Select all that apply:

Low-on-Cash Inc. decides to use factoring to improve cash flow. This strategy would involve which of the following?

Reducing inventory levels reduces risk.

Boris wants to figure out how much more his company should invest into the quality of a certain product. What tool would be most effective for this exercise?

What is Pareto's Law?

What is MECE?

You are a consultant brought into help Bo's Television, a global conglomerate. ScreenMaster is a separate company that makes the screens for Bo's TVs. If Bo's acquired Screenmaster, this would be an example of what?

Which of the following can you use a Monte Carlo simulation to model? Select all that apply:

Price elasticity is a measure of how much the supply or demand of a good changes if the price changes.

Sales at ABC Party Supply have fallen off significantly over the past three years. Which of following is least applicable to this situation?

A problem with risk management at large firms is that it is often:

What are three areas of synergies? Select 3 answers:

Ted is negotiating a 10-year contract with the U.S. government to provide educational services. The government wants a fixed price project. However, Ted is extremely concerned about the possibility of inflation given the increase in government spending. Ted should suggest what time of contract?

Which of the following situations is most likely to be a razor and blade strategy?

Which of the following is not part of basic value chain model?

Leveraged buyouts (LBOs) are not collateralized.

Different technological platforms, systems and products are moving towards performing the same functions. What is this phenomenon referred to as?

How did famous management thinker Joseph Juran define quality?

Great Skin Inc. has decided to enter the market for women's razors. What type of pricing framework is most likely to apply?

Accounting

Bonus

Economics

Facts to Know in Economics

Fast Math

Management

Filters

Exam 7: Strategy

Which of the following are switching costs? Select all that apply:

Low-on-Cash Inc. decides to use factoring to improve cash flow. This strategy would involve which of the following?

Reducing inventory levels reduces risk.

Boris wants to figure out how much more his company should invest into the quality of a certain product. What tool would be most effective for this exercise?

What is Pareto's Law?

What is MECE?

You are a consultant brought into help Bo's Television, a global conglomerate. ScreenMaster is a separate company that makes the screens for Bo's TVs. If Bo's acquired Screenmaster, this would be an example of what?

Which of the following can you use a Monte Carlo simulation to model? Select all that apply:

Price elasticity is a measure of how much the supply or demand of a good changes if the price changes.

Sales at ABC Party Supply have fallen off significantly over the past three years. Which of following is least applicable to this situation?

A problem with risk management at large firms is that it is often:

What are three areas of synergies? Select 3 answers:

Ted is negotiating a 10-year contract with the U.S. government to provide educational services. The government wants a fixed price project. However, Ted is extremely concerned about the possibility of inflation given the increase in government spending. Ted should suggest what time of contract?

Which of the following situations is most likely to be a razor and blade strategy?

Which of the following is not part of basic value chain model?

Leveraged buyouts (LBOs) are not collateralized.

Different technological platforms, systems and products are moving towards performing the same functions. What is this phenomenon referred to as?

How did famous management thinker Joseph Juran define quality?

Great Skin Inc. has decided to enter the market for women's razors. What type of pricing framework is most likely to apply?

Accounting

Bonus

Economics

Facts to Know in Economics

Fast Math

Management

Filters