Question 1

_____ is best described as a measure of how effectively capital is being used by a firm to generate revenue.

Accepted Answer

A)  Return on revenue 
B)  Risk capital 
C)  Working capital turnover 
D)  Revenue per employee 
A)  Return on revenue 
B)  Risk capital 
C)  Working capital turnover 
D)  Revenue per employee

Question 2

A firm incurs $400 to manufacture a television.In the market, customers are willing to pay a maximum of $600 for the television priced at $500.The difference of $200 ($600 minus $400)is the _____.

Accepted Answer

A)  consumer surplus 
B)  total return to shareholders 
C)  customer lifetime value 
D)  economic value created 
A)  consumer surplus 
B)  total return to shareholders 
C)  customer lifetime value 
D)  economic value created

Question 3

Which of the following statements about competitive advantage is true?

Accepted Answer

A)  Competitive advantage is an absolute measure; it is not relative. 
B)  Competitive advantage is a one-dimensional concept. 
C)  Competitive advantage is permanent and not transitory; once gained by a firm it stays with the firm. 
D)  Competitive advantage can be assessed by measuring accounting profit, shareholder value, or economic value. 
A)  Competitive advantage is an absolute measure; it is not relative. 
B)  Competitive advantage is a one-dimensional concept. 
C)  Competitive advantage is permanent and not transitory; once gained by a firm it stays with the firm. 
D)  Competitive advantage can be assessed by measuring accounting profit, shareholder value, or economic value.

Question 4

Describe the subscription-based business model.

Accepted Answer

The subscription-based model has been tr

Question 5

Which of the following business models has been traditionally used by the magazine and newspaper industry?

Accepted Answer

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

Question 6

What are the advantages of the balanced scorecard?

Accepted Answer

The balanced-scorecard approach is popul

Question 7

True Vibgyor Inc.sells its e-book readers at the cost price of $15 each.However, the company makes its profits when users have to download or buy books online.Which of the following business models is True Vibgyor implementing?

Accepted Answer

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

Question 8

Describe the razor-razor-blade business model.

Accepted Answer

In this business model, the initial prod

Question 9

Discuss the limitations of the economic value creation framework.

Accepted Answer

As with any tool to assess competitive a

Question 10

Explain the freemium business model with the help of an example.

Accepted Answer

Students' answers may vary.The freemium

Question 11

The translation of strategy into action primarily takes place in a firm's _____.

Accepted Answer

A)  mission statement 
B)  executive summary 
C)  business model 
D)  code of conduct 
A)  mission statement 
B)  executive summary 
C)  business model 
D)  code of conduct

Question 12

Economic value creation is best expressed as _____.

Accepted Answer

A)  producer surplus minus consumer surplus 
B)  consumer surplus minus cost of production 
C)  consumer surplus plus firm profit 
D)  producer surplus plus firm profit 
A)  producer surplus minus consumer surplus 
B)  consumer surplus minus cost of production 
C)  consumer surplus plus firm profit 
D)  producer surplus plus firm profit

Question 13

What are the drawbacks of using total return to shareholders and firm market capitalization to measure firm performance?

Accepted Answer

Although measuring firm performance thro

Question 14

Return on risk capital primarily includes:

Accepted Answer

A)  stock price appreciation plus dividends received over a specific period. 
B)  consumer surplus plus firm profit. 
C)  account receivables plus account payables. 
D)  economic value created by a firm plus reservation price. 
A)  stock price appreciation plus dividends received over a specific period. 
B)  consumer surplus plus firm profit. 
C)  account receivables plus account payables. 
D)  economic value created by a firm plus reservation price.

Question 15

In an economic context, what should a firm's strategy focus on?

Accepted Answer

The relationship between consumer and pr

Question 16

Both Vibrant Phones Inc.and Oryxo Inc.incur a cost of $200 to manufacture a single unit of a cell phone.However, Vibrant Phones creates more economic value than what Oryxo does.What does this imply?

Accepted Answer

A)  Vibrant Phones and Oryxo have achieved a competitive parity. 
B)  Oryxo has a competitive advantage over Vibrant Phones. 
C)  Vibrant Phones sells its products at a better price than Oryxo. 
D)  Oryxo's offering has greater total perceived consumer benefits than Vibrant Phones's offering. 
A)  Vibrant Phones and Oryxo have achieved a competitive parity. 
B)  Oryxo has a competitive advantage over Vibrant Phones. 
C)  Vibrant Phones sells its products at a better price than Oryxo. 
D)  Oryxo's offering has greater total perceived consumer benefits than Vibrant Phones's offering.

Question 17

Define value.How is it captured?

Accepted Answer

Value denotes the dollar amount (V)a con

Question 18

What are the three financial ratios that constitute return on revenue?

Accepted Answer

Return on revenue is broken do

Question 19

From an investors' or shareholders' perspective, the measure of competitive advantage that matters most is the _____.

Accepted Answer

A)  return on risk capital 
B)  economic value created 
C)  consumer surplus 
D)  inventory turnover 
A)  return on risk capital 
B)  economic value created 
C)  consumer surplus 
D)  inventory turnover

Question 20

Which of the following is an external performance metric?

Accepted Answer

A)  Return on revenue 
B)  Fixed assets turnover 
C)  Inventory turnover 
D)  Total return to shareholders 
A)  Return on revenue 
B)  Fixed assets turnover 
C)  Inventory turnover 
D)  Total return to shareholders

_____ is best described as a measure of how effectively capital is being used by a firm to generate revenue.

A firm incurs $400 to manufacture a television.In the market, customers are willing to pay a maximum of $600 for the television priced at $500.The difference of $200 ($600 minus $400)is the _____.

Which of the following statements about competitive advantage is true?

Describe the subscription-based business model.

Which of the following business models has been traditionally used by the magazine and newspaper industry?

What are the advantages of the balanced scorecard?

True Vibgyor Inc.sells its e-book readers at the cost price of $15 each.However, the company makes its profits when users have to download or buy books online.Which of the following business models is True Vibgyor implementing?

Describe the razor-razor-blade business model.

Discuss the limitations of the economic value creation framework.

Explain the freemium business model with the help of an example.

The translation of strategy into action primarily takes place in a firm's _____.

Economic value creation is best expressed as _____.

What are the drawbacks of using total return to shareholders and firm market capitalization to measure firm performance?

Return on risk capital primarily includes:

In an economic context, what should a firm's strategy focus on?

Both Vibrant Phones Inc.and Oryxo Inc.incur a cost of $200 to manufacture a single unit of a cell phone.However, Vibrant Phones creates more economic value than what Oryxo does.What does this imply?

Define value.How is it captured?

What are the three financial ratios that constitute return on revenue?

From an investors' or shareholders' perspective, the measure of competitive advantage that matters most is the _____.

Which of the following is an external performance metric?

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

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

_____ is best described as a measure of how effectively capital is being used by a firm to generate revenue.

A firm incurs $400 to manufacture a television.In the market, customers are willing to pay a maximum of $600 for the television priced at $500.The difference of $200 ($600 minus $400)is the _____.

Which of the following statements about competitive advantage is true?

Describe the subscription-based business model.

Which of the following business models has been traditionally used by the magazine and newspaper industry?

What are the advantages of the balanced scorecard?

True Vibgyor Inc.sells its e-book readers at the cost price of $15 each.However, the company makes its profits when users have to download or buy books online.Which of the following business models is True Vibgyor implementing?

Describe the razor-razor-blade business model.

Discuss the limitations of the economic value creation framework.

Explain the freemium business model with the help of an example.

The translation of strategy into action primarily takes place in a firm's _____.

Economic value creation is best expressed as _____.

What are the drawbacks of using total return to shareholders and firm market capitalization to measure firm performance?

Return on risk capital primarily includes:

In an economic context, what should a firm's strategy focus on?

Both Vibrant Phones Inc.and Oryxo Inc.incur a cost of $200 to manufacture a single unit of a cell phone.However, Vibrant Phones creates more economic value than what Oryxo does.What does this imply?

Define value.How is it captured?

What are the three financial ratios that constitute return on revenue?

From an investors' or shareholders' perspective, the measure of competitive advantage that matters most is the _____.

Which of the following is an external performance metric?

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