Question 1

Liquidity risk is financial risk due to uncertain liquidity. What can cause this to happen?

Accepted Answer

A) A firm's credit rating falls 
B) A firm experiences sudden unexpected cash outflows 
C) A firm's market experiences a loss in liquidity 
D) All of the above

Question 2

Everyone loves Piggy Brand Bacon products, sold in supermarkets worldwide. Piggy acquires a mail-order steak company and renames it Piggy's Steaks. This could be an example of:

Accepted Answer

A) Marginal analysis 
B) Trying to use the Halo Effect 
C) NPV analysis 
D) Same store sales 
E) Ponzi Scheme

Question 3

Customers, company and competitors are are part of the 5Cs framework. What are the other 2Cs?

Accepted Answer

A) Context 
B) Costs 
C) Collaborators 
D) Capacity 
E) Computer

Question 4

A stock-out is when demand for a good cannot be fulfilled from inventory.

Accepted Answer

A) True 
 B)False

Question 5

Jerry was in the midst of assessing his risk for a project at a well-known real estate firm when the stock market collapsed, sending shockwaves throughout his company and his project. The market crashing can be classified as what type of risk:

Accepted Answer

A) Foreseeable 
B) Internal 
C) Technical 
D) External 
E) Redoubtable

Question 6

Of the choices below, this is the best evaluation criteria for selecting which projects to proceed with:

Accepted Answer

A) Payback Period of the investment 
B) Internal Rate of Return 
C) Net Present Value (NPV) 
D) Example Value 
E) Discount Rate

Question 7

Boris hires an outside vendor to maintain his company's servers. However, he is extremely concerned about uptime. In order to remain profitable, Boris' company needs to have 99 percent uptime. Which of the following would be a clause Boris would want to include in the contract to directly address this requirement?

Accepted Answer

A) Privity 
B) VC 
C) SLA 
D) CPPF 
E) Retainage

Question 8

Managers at Tokyo Manufacturing get together monthly to review ways to improve quality in their respective divisions. What philosophy might this company embrace?

Accepted Answer

A) Just in Time 
B) PMIS 
C) Marginal Analysis 
D) Total Quality Management 
E) Kansei

Question 9

It's been projected that Project X will take 7 years to amortize the project costs and start earning a profit for its company. This demonstrates which concept?

Accepted Answer

A) Net Present Value 
B) Internal Rate of Return 
C) Payback Period 
D) Benefit Cost Ratio 
E) PMIS

Question 10

Which of the following best describes outsourcing?

Accepted Answer

A) Leasing an asset from another business 
B) Management considering stakeholders needs 
C) Purchasing support services from another business 
D) Establishing a close long-term relationship between businesses 
E) A joint venture

Question 11

What are the three Ps of health care? Select all that apply.

Accepted Answer

A) Prescription 
B) Payers 
C) Patients 
D) Providers 
E) Practitioner

Question 12

The word leveraged in the term leveraged buyout (LBO) refers to what?

Accepted Answer

A) Pressure from the board of directors 
B) Debt 
C) Equity 
D) Poor strategic position of targeted company 
E) Inclined plane

Question 13

What is an advantage of using licensing as a method of global expansion?

Accepted Answer

A) Profits are shared equally. 
B) There are always no establishment costs. 
C) There are high levels of direct control. 
D) Low levels of investment are required. 
E) All of the above.

Question 14

Which is not part of the 5-C framework for market analysis?

Accepted Answer

A) Context 
B) Customer 
C) Collaborators 
D) Competitor 
E) Creditor

Question 15

A digital good distributed via the web has a marginal cost of zero.

Accepted Answer

A) True 
 B)False

Question 16

AT&T hires you for a project asking you to help them increase their ARPU. What do they mean by ARPU?

Accepted Answer

A) Average revenue per user 
B) Annual returns per unit 
C) Allowable returns per unit 
D) Annual returns per user 
E) Annual revenue per user

Question 17

Coffin's Coffee sells premium coffee in their stores. It decides to launch a new iced coffee product. What should be a key consideration?

Accepted Answer

A) Economies of scale 
B) Cannibalization 
C) Diversification 
D) A niche market 
E) Maturity phase

Question 18

Which of the following are complimentary goods?

Accepted Answer

A) SUVs and gasoline 
B) Cheeseburgers and ketchup 
C) Bread and butter 
D) Computers and keyboards 
E) All of the above

Question 19

Roger is trying to figuring out pricing for his new product, a rock that looks like a friendly turtle. He decides to price it 30 percent more than the cost of making it, which is $1. Roger is using what type of pricing strategy?

Accepted Answer

A) Value-based pricing 
B) Analyzing willingness to pay 
C) Cost-plus pricing 
D) Dynamic pricing 
E) All of the above

Question 20

Cannibalization is always a bad thing.

Accepted Answer

A) True 
 B)False

Exam 7: Strategy

Liquidity risk is financial risk due to uncertain liquidity. What can cause this to happen?

Everyone loves Piggy Brand Bacon products, sold in supermarkets worldwide. Piggy acquires a mail-order steak company and renames it Piggy's Steaks. This could be an example of:

Customers, company and competitors are are part of the 5Cs framework. What are the other 2Cs?

A stock-out is when demand for a good cannot be fulfilled from inventory.

Jerry was in the midst of assessing his risk for a project at a well-known real estate firm when the stock market collapsed, sending shockwaves throughout his company and his project. The market crashing can be classified as what type of risk:

Of the choices below, this is the best evaluation criteria for selecting which projects to proceed with:

Managers at Tokyo Manufacturing get together monthly to review ways to improve quality in their respective divisions. What philosophy might this company embrace?

It's been projected that Project X will take 7 years to amortize the project costs and start earning a profit for its company. This demonstrates which concept?

Which of the following best describes outsourcing?

What are the three Ps of health care? Select all that apply.

The word leveraged in the term leveraged buyout (LBO) refers to what?

What is an advantage of using licensing as a method of global expansion?

Which is not part of the 5-C framework for market analysis?

A digital good distributed via the web has a marginal cost of zero.

AT&T hires you for a project asking you to help them increase their ARPU. What do they mean by ARPU?

Coffin's Coffee sells premium coffee in their stores. It decides to launch a new iced coffee product. What should be a key consideration?

Which of the following are complimentary goods?

Roger is trying to figuring out pricing for his new product, a rock that looks like a friendly turtle. He decides to price it 30 percent more than the cost of making it, which is $1. Roger is using what type of pricing strategy?

Cannibalization is always a bad thing.