Question 1

The interaction between a firm and its diverse internal and external stakeholders is best described as a(n)

Accepted Answer

A)  ergonomic relationship. 
B)  cartel arrangement. 
C)  exchange relationship. 
D)  fiduciary responsibility. 
A)  ergonomic relationship. 
B)  cartel arrangement. 
C)  exchange relationship. 
D)  fiduciary responsibility. C

Question 2

The amount of xylene that can be used in household paint is legally limited to 0.03 percent.Anything beyond this amount is hazardous to health and the environment,and considered a legal offense.Consequently,CW Paints Corp.has vouched to make its products as safe as possible.Therefore,it manufactures xylene-free paints even though this increases its costs and reduces the dividends paid to its shareholders in the long run.Which of the following responsibilities is CW Paints Corp.primarily compromising in this scenario?

Accepted Answer

A)  legal responsibilities toward the government 
B)  economic responsibilities toward its shareholders 
C)  philanthropic responsibilities toward the local community 
D)  ethical responsibilities toward the society 
A)  legal responsibilities toward the government 
B)  economic responsibilities toward its shareholders 
C)  philanthropic responsibilities toward the local community 
D)  ethical responsibilities toward the society B

Question 3

Which of the following is an element of good strategy?

Accepted Answer

A)  an explanation of the firm's advantages over competitors 
B)  a guiding policy to address employee satisfaction 
C)  a set of coherent actions to implement the firm's guiding policy 
D)  an approach that underestimates the competition 
A)  an explanation of the firm's advantages over competitors 
B)  a guiding policy to address employee satisfaction 
C)  a set of coherent actions to implement the firm's guiding policy 
D)  an approach that underestimates the competition C

Question 4

Which of the following strategies does Twitter need to implement to increase its competitive advantage?

Accepted Answer

A)  charge no fee to individual users 
B)  increase its user base 
C)  deliver ads in real time 
D)  allow core users to stay always connected 
A)  charge no fee to individual users 
B)  increase its user base 
C)  deliver ads in real time 
D)  allow core users to stay always connected

Question 5

A firm is said to gain a competitive advantage when it can

Accepted Answer

A)  exceed its own previous performances. 
B)  provide products similar to its competitors, but at lower prices. 
C)  perform at the same level as that of its competitors. 
D)  minimize the difference between value creation and cost. 
A)  exceed its own previous performances. 
B)  provide products similar to its competitors, but at lower prices. 
C)  perform at the same level as that of its competitors. 
D)  minimize the difference between value creation and cost.

Question 6

According to AFI strategy framework,in which of the following tasks of strategic management is a firm's vision,mission,and values identified?

Accepted Answer

A)  strategy control 
B)  strategy analysis 
C)  strategy formulation 
D)  strategy implementation 
A)  strategy control 
B)  strategy analysis 
C)  strategy formulation 
D)  strategy implementation

Question 7

In a firm,a strategist's job should be to

Accepted Answer

A)  limit the participation of external stakeholders-customers and suppliers-in value creation. 
B)  isolate the firm's internal stakeholders from its external stakeholders. 
C)  focus solely, in a single-minded manner, on maximizing shareholder wealth. 
D)  understand the complex web of exchange relationships among different stakeholders. 
A)  limit the participation of external stakeholders-customers and suppliers-in value creation. 
B)  isolate the firm's internal stakeholders from its external stakeholders. 
C)  focus solely, in a single-minded manner, on maximizing shareholder wealth. 
D)  understand the complex web of exchange relationships among different stakeholders.

Question 8

Which of the following does not explain why activist investors have more power over a firm than individual investors?

Accepted Answer

A)  Activist investors can buy or sell large numbers of shares at once. 
B)  Activist investors can exercise block-voting rights over individual investors. 
C)  Activist investors can demand seats on company boards. 
D)  Activist investors have more legitimacy than individual investors. 
A)  Activist investors can buy or sell large numbers of shares at once. 
B)  Activist investors can exercise block-voting rights over individual investors. 
C)  Activist investors can demand seats on company boards. 
D)  Activist investors have more legitimacy than individual investors.

Question 9

Which of the following stages in the AFI strategy framework involves designing a business,corporate,and global strategy?

Accepted Answer

A)  strategy control 
B)  strategy implementation 
C)  strategy analysis 
D)  strategy formulation 
A)  strategy control 
B)  strategy implementation 
C)  strategy analysis 
D)  strategy formulation

Question 10

Sun Inc.,a vendor,regularly supplies pallets to Octangle Corp.for its shipping business.Therefore,Sun Inc.is Octangle Corp.'s

Accepted Answer

A)  internal stakeholder. 
B)  stockholder. 
C)  shareholder. 
D)  external stakeholder. 
A)  internal stakeholder. 
B)  stockholder. 
C)  shareholder. 
D)  external stakeholder.

Question 11

Which of the following is an example of competitive parity?

Accepted Answer

A)  A firm manufactures higher-quality wall clocks than its competitors 
B)  A firm provides wall clocks that its consumers value more than other wall clocks 
C)  A firm sells wall clocks at a lower price than its competitors 
D)  A firm produces wall clocks at the same rate as its competitors 
A)  A firm manufactures higher-quality wall clocks than its competitors 
B)  A firm provides wall clocks that its consumers value more than other wall clocks 
C)  A firm sells wall clocks at a lower price than its competitors 
D)  A firm produces wall clocks at the same rate as its competitors

Question 12

If SA Pharmaceuticals obtains an 18 percent return on invested capital,which of the following will help determine if it has a competitive advantage over other pharmaceutical companies?

Accepted Answer

A)  comparing the return to the return on invested capital obtained by other firms in the industry 
B)  assessing the value based on the shareholders' expectations of return on their capital 
C)  evaluating the liquidity ratios for other pharmaceutical companies 
D)  comparing the value to the history of the firm's return of investment over a number of years 
A)  comparing the return to the return on invested capital obtained by other firms in the industry 
B)  assessing the value based on the shareholders' expectations of return on their capital 
C)  evaluating the liquidity ratios for other pharmaceutical companies 
D)  comparing the value to the history of the firm's return of investment over a number of years

Question 13

Due to several black swan events in the past,the

Accepted Answer

A)  shareholders of public companies have become more confident in investing their resources in businesses. 
B)  need for corporate governance and transparency has reduced within various industries. 
C)  nations around the globe have explicitly appreciated and accepted capitalism as an economic system. 
D)  implicit trust relationship between the corporate world and society at large has deteriorated. 
A)  shareholders of public companies have become more confident in investing their resources in businesses. 
B)  need for corporate governance and transparency has reduced within various industries. 
C)  nations around the globe have explicitly appreciated and accepted capitalism as an economic system. 
D)  implicit trust relationship between the corporate world and society at large has deteriorated.

Question 14

The first step in stakeholder impact analysis involves

Accepted Answer

A)  formulating a stakeholder strategy to balance the different needs of various stakeholders. 
B)  identifying the opportunities and threats the stakeholders present. 
C)  describing the economic, legal, ethical, and philanthropic responsibilities of the firm toward the society. 
D)  identifying the stakeholders that currently have, or potentially can have, a material effect on a company. 
A)  formulating a stakeholder strategy to balance the different needs of various stakeholders. 
B)  identifying the opportunities and threats the stakeholders present. 
C)  describing the economic, legal, ethical, and philanthropic responsibilities of the firm toward the society. 
D)  identifying the stakeholders that currently have, or potentially can have, a material effect on a company.

Question 15

Managers use the AFI strategy framework primarily to

Accepted Answer

A)  help their business achieve and sustain competitive parity. 
B)  minimize the wealth of their shareholders. 
C)  help reduce the economic contribution of their business. 
D)  explain and predict differences in firm performance. 
A)  help their business achieve and sustain competitive parity. 
B)  minimize the wealth of their shareholders. 
C)  help reduce the economic contribution of their business. 
D)  explain and predict differences in firm performance.

Question 16

Which of the following statements accurately describes firm effects?

Accepted Answer

A)  They attribute firm performance to the industry in which the firm competes. 
B)  They attribute firm performance to the actions managers take within a chosen industry. 
C)  They refer to the value-creation potential of a large, diversified enterprise. 
D)  They refer to the external circumstances surrounding all the firms in an industry. 
A)  They attribute firm performance to the industry in which the firm competes. 
B)  They attribute firm performance to the actions managers take within a chosen industry. 
C)  They refer to the value-creation potential of a large, diversified enterprise. 
D)  They refer to the external circumstances surrounding all the firms in an industry.

Question 17

Which of the following statements about strategy is not true?

Accepted Answer

A)  Grandiose statements of desire, on their own, are not strategy. 
B)  Strategy is as much about deciding what not to do, as it is about deciding what to do. 
C)  Strategy is about creating superior value, while containing the cost to create it. 
D)  Operational effectiveness and competitive benchmarking should be treated as strategy. 
A)  Grandiose statements of desire, on their own, are not strategy. 
B)  Strategy is as much about deciding what not to do, as it is about deciding what to do. 
C)  Strategy is about creating superior value, while containing the cost to create it. 
D)  Operational effectiveness and competitive benchmarking should be treated as strategy.

Question 18

Which of the following responsibilities results from a society's mere expectations of a business and not because the society and the shareholders mandatorily require the business to demonstrate it?

Accepted Answer

A)  economic responsibilities 
B)  legal responsibilities 
C)  contract responsibilities 
D)  philanthropic responsibilities 
A)  economic responsibilities 
B)  legal responsibilities 
C)  contract responsibilities 
D)  philanthropic responsibilities

Question 19

While creating its AFI strategy framework,the Kowalski Candy Company decided what markets the firm should compete in.By doing this,what type of strategy did the company devise?

Accepted Answer

A)  business strategy 
B)  corporate strategy 
C)  global strategy 
D)  ethical strategy 
A)  business strategy 
B)  corporate strategy 
C)  global strategy 
D)  ethical strategy

Question 20

BlueStainless Corp.has been able to gain and sustain a competitive advantage due to its strong relationship with its employees,customers,suppliers,and local communities.The company believes in lifetime employment and ensures that its employees grow along with the company.Investors are more than satisfied with the returns on their investments.Also,3 percent of the company's profit is spent on community development.With initiatives like these,customers feel privileged to associate themselves with BlueStainless products.This scenario best illustrates the implementation of a

Accepted Answer

A)  strategic analysis. 
B)  stakeholder strategy. 
C)  wild card event. 
D)  black swan event. 
A)  strategic analysis. 
B)  stakeholder strategy. 
C)  wild card event. 
D)  black swan event.

The interaction between a firm and its diverse internal and external stakeholders is best described as a(n)

Which of the following is an element of good strategy?

Which of the following strategies does Twitter need to implement to increase its competitive advantage?

A firm is said to gain a competitive advantage when it can

According to AFI strategy framework,in which of the following tasks of strategic management is a firm's vision,mission,and values identified?

In a firm,a strategist's job should be to

Which of the following does not explain why activist investors have more power over a firm than individual investors?

Which of the following stages in the AFI strategy framework involves designing a business,corporate,and global strategy?

Sun Inc.,a vendor,regularly supplies pallets to Octangle Corp.for its shipping business.Therefore,Sun Inc.is Octangle Corp.'s

Which of the following is an example of competitive parity?

If SA Pharmaceuticals obtains an 18 percent return on invested capital,which of the following will help determine if it has a competitive advantage over other pharmaceutical companies?

Due to several black swan events in the past,the

The first step in stakeholder impact analysis involves

Managers use the AFI strategy framework primarily to

Which of the following statements accurately describes firm effects?

Which of the following statements about strategy is not true?

Which of the following responsibilities results from a society's mere expectations of a business and not because the society and the shareholders mandatorily require the business to demonstrate it?

While creating its AFI strategy framework,the Kowalski Candy Company decided what markets the firm should compete in.By doing this,what type of strategy did the company devise?

Strategic Leadership: Managing the Strategy Process

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

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation and Entrepreneurship

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 1: What Is Strategy

The interaction between a firm and its diverse internal and external stakeholders is best described as a(n)

Which of the following is an element of good strategy?

Which of the following strategies does Twitter need to implement to increase its competitive advantage?

A firm is said to gain a competitive advantage when it can

According to AFI strategy framework,in which of the following tasks of strategic management is a firm's vision,mission,and values identified?

In a firm,a strategist's job should be to

Which of the following does not explain why activist investors have more power over a firm than individual investors?

Which of the following stages in the AFI strategy framework involves designing a business,corporate,and global strategy?

Sun Inc.,a vendor,regularly supplies pallets to Octangle Corp.for its shipping business.Therefore,Sun Inc.is Octangle Corp.'s

Which of the following is an example of competitive parity?

If SA Pharmaceuticals obtains an 18 percent return on invested capital,which of the following will help determine if it has a competitive advantage over other pharmaceutical companies?

Due to several black swan events in the past,the

The first step in stakeholder impact analysis involves

Managers use the AFI strategy framework primarily to

Which of the following statements accurately describes firm effects?

Which of the following statements about strategy is not true?

Which of the following responsibilities results from a society's mere expectations of a business and not because the society and the shareholders mandatorily require the business to demonstrate it?

While creating its AFI strategy framework,the Kowalski Candy Company decided what markets the firm should compete in.By doing this,what type of strategy did the company devise?

Strategic Leadership: Managing the Strategy Process

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

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation and Entrepreneurship

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