Question 1

Illustrate market capitalization.

Accepted Answer

Students' answers may vary.
Market capit

Question 2

Accounting data focus mainly on tangible assets, which are no longer the most important.Elaborate on this statement.

Accepted Answer

Accounting data focus mainly on tangible

Question 3

_____ indicates how fast a firm is collecting the credit amount extended by a firm to its customers.

Accepted Answer

A)  Payables turnover 
B)  Receivables turnover 
C)  Assets turnover 
D)  Inventory turnover 
A)  Payables turnover 
B)  Receivables turnover 
C)  Assets turnover 
D)  Inventory turnover

Question 4

Which of the following statements is true of the balanced scorecard?

Accepted Answer

A)  It is a more or less a one-dimensional metric of measuring competitive advantages of a firm. 
B)  It is one of the traditional approaches of measuring firm performance. 
C)  Its primary focus is to base a firm's strategic goals entirely on external performance dimensions. 
D)  It attempts to provide a holistic perspective on firm performance. 
A)  It is a more or less a one-dimensional metric of measuring competitive advantages of a firm. 
B)  It is one of the traditional approaches of measuring firm performance. 
C)  Its primary focus is to base a firm's strategic goals entirely on external performance dimensions. 
D)  It attempts to provide a holistic perspective on firm performance.

Question 5

What do you mean by total return to shareholders?

Accepted Answer

Investors are primarily interested in a

Question 6

_____ indicates how much a firm benefits from interest-free loans extended by its suppliers and creditors.

Accepted Answer

A)  Payables turnover 
B)  Receivables turnover 
C)  Assets turnover 
D)  Inventory turnover 
A)  Payables turnover 
B)  Receivables turnover 
C)  Assets turnover 
D)  Inventory turnover

Question 7

The market capitalization of a public company is $5 billion.Each share of the company is traded at $200.What do you infer from this financial data?

Accepted Answer

A)  The firm's number of outstanding shares is 25 million. 
B)  The firm pays an annual dividend of 10 percent. 
C)  The firm's total return to shareholder is $5 billion. 
D)  The firm's economic value created is $5 billion. 
A)  The firm's number of outstanding shares is 25 million. 
B)  The firm pays an annual dividend of 10 percent. 
C)  The firm's total return to shareholder is $5 billion. 
D)  The firm's economic value created is $5 billion.

Question 8

What do you mean by fixed asset turnover and inventory turnover?

Accepted Answer

Managers break down working capital turn

Question 9

After trying on a dress, a consumer assesses it to be worth a maximum of $100 and is willing to pay that amount for the dress.However, the dress was priced at $80.What is the amount, $100, referred to as?

Accepted Answer

A)  The producer surplus 
B)  The firm's cost (
C)  in manufacturing the dress 
C)  The consumer surplus 
D)  The value (V) the consumer attaches to the dress 
A)  The producer surplus 
B)  The firm's cost (
C)  in manufacturing the dress 
C)  The consumer surplus 
D)  The value (V) the consumer attaches to the dress

Question 10

Blue Ego Inc.is a market leader in the cell phone industry.To gain competitive advantage, the company has a post on its official site requesting its suppliers and customers to contribute ideas about the kinds of features and technology they think should be included in the next smartphone.This has helped the company reduce the burden of innovation on its employees, effectively meet customers' needs, and also include the larger community in product development.This process best exemplifies:

Accepted Answer

A)  offshoring. 
B)  product diversification. 
C)  crowdsourcing. 
D)  horizontal integration. 
A)  offshoring. 
B)  product diversification. 
C)  crowdsourcing. 
D)  horizontal integration.

Question 11

What pricing options does a firm have when the difference between V, the consumer's willingness to pay, and C, the cost to produce the good or service, is large?

Accepted Answer

A large difference between V, the consum

Question 12

_____ denotes the dollar amount a consumer would attach to a good or service.

Accepted Answer

A)  Utility 
B)  Value 
C)  Consumer surplus 
D)  Economic contribution 
A)  Utility 
B)  Value 
C)  Consumer surplus 
D)  Economic contribution

Question 13

Which of the following is NOT an advantage of the balanced scorecard approach to assess firm performance?

Accepted Answer

A)  It allows managers to communicate and link the strategic vision to responsible parties within an organization. 
B)  It helps managers to implement feedback and organizational learning in order to modify and adapt strategic goals when indicated. 
C)  It provides a concise report that tracks chosen metrics and measures and compares them to target values. 
D)  It is a tool which can be effectively used by managers for both strategic implementation and strategic formulation. 
A)  It allows managers to communicate and link the strategic vision to responsible parties within an organization. 
B)  It helps managers to implement feedback and organizational learning in order to modify and adapt strategic goals when indicated. 
C)  It provides a concise report that tracks chosen metrics and measures and compares them to target values. 
D)  It is a tool which can be effectively used by managers for both strategic implementation and strategic formulation.

Question 14

What is risk capital?

Accepted Answer

From the shareholders' perspective, the

Question 15

Which of the following businesses is required by law to make its data available to the public?

Accepted Answer

A)  A restaurant owned and managed by an individual proprietor 
B)  A premium salon owned by two business partners 
C)  A carpet manufacturing unit runs solely by a third-generation entrepreneur 
D)  A software company with over 300 shareholders 
A)  A restaurant owned and managed by an individual proprietor 
B)  A premium salon owned by two business partners 
C)  A carpet manufacturing unit runs solely by a third-generation entrepreneur 
D)  A software company with over 300 shareholders

Question 16

Which of the following is NOT true of risk capital?

Accepted Answer

A)  From the shareholders' perspective, the measure of competitive advantage is primarily based on return on their risk capital. 
B)  Risk capital invested in a firm can be legally recovered if the firm goes bankrupt. 
C)  A person who provides capital to a firm gets equity shares in return. 
D)  Return on risk capital includes stock price appreciation plus dividends received over a specific period. 
A)  From the shareholders' perspective, the measure of competitive advantage is primarily based on return on their risk capital. 
B)  Risk capital invested in a firm can be legally recovered if the firm goes bankrupt. 
C)  A person who provides capital to a firm gets equity shares in return. 
D)  Return on risk capital includes stock price appreciation plus dividends received over a specific period.

Question 17

When using the balanced scorecard approach to assess a firm's performance, which of the following is NOT a key question that managers need to answer?

Accepted Answer

A)  How do customers view us? 
B)  How do we reduce the economic value created? 
C)  What core competencies do we need? 
D)  How do shareholders view us? 
A)  How do customers view us? 
B)  How do we reduce the economic value created? 
C)  What core competencies do we need? 
D)  How do shareholders view us?

Question 18

_____ precisely indicates how much of a firm's sales is converted into profits.

Accepted Answer

A)  Break-even price 
B)  Working capital turnover 
C)  Return on revenue 
D)  Inventory turnover 
A)  Break-even price 
B)  Working capital turnover 
C)  Return on revenue 
D)  Inventory turnover

Question 19

Photohome is a file hosting service that allows users to store up to 5GB of data with no restrictions or charges.However, users have to pay a fee for advanced features on the cloud storage system and additional storage space.Which of the following business models does this best illustrate?

Accepted Answer

A)  Subscription-based 
B)  Freemium 
C)  Pay-as-you-go 
D)  Razor-razor-blade 
A)  Subscription-based 
B)  Freemium 
C)  Pay-as-you-go 
D)  Razor-razor-blade

Question 20

During the process of formulating an effective business model, a firm's managers should first:

Accepted Answer

A)  transform their strategy of how to compete into a blueprint of actions and initiatives. 
B)  implement their strategy at corporate, strategic business unit, and functional levels. 
C)  implement their blueprint of actions and initiatives through structures, processes, culture, and procedures. 
D)  evaluate the firm's strategy already in effect and take corrective actions if necessary. 
A)  transform their strategy of how to compete into a blueprint of actions and initiatives. 
B)  implement their strategy at corporate, strategic business unit, and functional levels. 
C)  implement their blueprint of actions and initiatives through structures, processes, culture, and procedures. 
D)  evaluate the firm's strategy already in effect and take corrective actions if necessary.

Illustrate market capitalization.

Accounting data focus mainly on tangible assets, which are no longer the most important.Elaborate on this statement.

_____ indicates how fast a firm is collecting the credit amount extended by a firm to its customers.

Which of the following statements is true of the balanced scorecard?

What do you mean by total return to shareholders?

_____ indicates how much a firm benefits from interest-free loans extended by its suppliers and creditors.

The market capitalization of a public company is $5 billion.Each share of the company is traded at $200.What do you infer from this financial data?

What do you mean by fixed asset turnover and inventory turnover?

After trying on a dress, a consumer assesses it to be worth a maximum of $100 and is willing to pay that amount for the dress.However, the dress was priced at $80.What is the amount, $100, referred to as?

What pricing options does a firm have when the difference between V, the consumer's willingness to pay, and C, the cost to produce the good or service, is large?

_____ denotes the dollar amount a consumer would attach to a good or service.

Which of the following is NOT an advantage of the balanced scorecard approach to assess firm performance?

What is risk capital?

Which of the following businesses is required by law to make its data available to the public?

Which of the following is NOT true of risk capital?

When using the balanced scorecard approach to assess a firm's performance, which of the following is NOT a key question that managers need to answer?

_____ precisely indicates how much of a firm's sales is converted into profits.

Photohome is a file hosting service that allows users to store up to 5GB of data with no restrictions or charges.However, users have to pay a fee for advanced features on the cloud storage system and additional storage space.Which of the following business models does this best illustrate?

During the process of formulating an effective business model, a firm's managers should first:

What Is Strategy

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers and Acquisitions

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

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Exam 5: Competitive Advantage, Firm Performance, and Business Models

Illustrate market capitalization.

Accounting data focus mainly on tangible assets, which are no longer the most important.Elaborate on this statement.

_____ indicates how fast a firm is collecting the credit amount extended by a firm to its customers.

Which of the following statements is true of the balanced scorecard?

What do you mean by total return to shareholders?

_____ indicates how much a firm benefits from interest-free loans extended by its suppliers and creditors.

The market capitalization of a public company is $5 billion.Each share of the company is traded at $200.What do you infer from this financial data?

What do you mean by fixed asset turnover and inventory turnover?

After trying on a dress, a consumer assesses it to be worth a maximum of $100 and is willing to pay that amount for the dress.However, the dress was priced at $80.What is the amount, $100, referred to as?

What pricing options does a firm have when the difference between V, the consumer's willingness to pay, and C, the cost to produce the good or service, is large?

_____ denotes the dollar amount a consumer would attach to a good or service.

Which of the following is NOT an advantage of the balanced scorecard approach to assess firm performance?

What is risk capital?

Which of the following businesses is required by law to make its data available to the public?

Which of the following is NOT true of risk capital?

When using the balanced scorecard approach to assess a firm's performance, which of the following is NOT a key question that managers need to answer?

_____ precisely indicates how much of a firm's sales is converted into profits.

Photohome is a file hosting service that allows users to store up to 5GB of data with no restrictions or charges.However, users have to pay a fee for advanced features on the cloud storage system and additional storage space.Which of the following business models does this best illustrate?

During the process of formulating an effective business model, a firm's managers should first:

What Is Strategy

Strategic Leadership: Managing the Strategy Process

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers and Acquisitions

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters