Question 1

Support activities provide support for primary activities, but not each other.

Accepted Answer

A) True 
 B)False

Question 2

Accounting is a sort of transformation process that converts daily records of individual transactions into monthly financial reports. The __________ are the inputs, accounting is the operation that adds value, and ___________ are the outputs.

Accepted Answer

A) transaction records; financial statements 
B) financial statements; transaction records 
C) employee records; transaction records 
D) health records; transaction statements

Question 3

Though two teams could have different ages, functional backgrounds, experience, and so on, they could be strategically equivalent and thus substitutes for one another.

Accepted Answer

A) True 
 B)False

Question 4

In value-chain analysis, finance and accounting are considered part of the general administration of a firm.

Accepted Answer

A) True 
 B)False

Question 5

Examples of organizational capabilities are outstanding customer service, excellent product development capabilities, superb innovation processes, and flexibility in manufacturing processes.

Accepted Answer

A) True 
 B)False

Question 6

Financial ratio analysis measures the performance of the firm based on all but which of the following?

Accepted Answer

A) balance sheet 
B) market valuation 
C) income statement 
D) industry comparison

Question 7

Which of the following is not an example of organizational capabilities?

Accepted Answer

A) outstanding customer service 
B) reputation with customers for quality and reliability 
C) innovativeness of products and services 
D) ability to hire, motivate, and retain human capital

Question 8

Amazon Prime is an example of a difficult to imitate capability that gives it competitive advantage over its rivals.

Accepted Answer

A) True 
 B)False

Question 9

An important implication of the balanced scorecard is that managers need not look at their job as primarily balancing stakeholder demands.

Accepted Answer

A) True 
 B)False

Question 10

The three key types of resources that are central to the resource-based view of the firm are

Accepted Answer

A) tangible resources, intangible resources, and organizational structure. 
B) culture, tangible resources, intangible resources. 
C) tangible resources, intangible resources, and organizational capabilities. 
D) tangible resources, intangible resources, and top management.

Question 11

Dell lost its competitive advantage by 2009 in part because it placed its efforts on operational excellence to the exclusion of reinvention.

Accepted Answer

A) True 
 B)False

Question 12

Harley-Davidson sells accessories, clothing, toys and motorcycles. They have a brand image in common which is a tangible resource.

Accepted Answer

A) True 
 B)False

Question 13

A law firm renders services that are specific to client needs and circumstances. This is an example of the transformation process of a service organization.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following would be most difficult to assess?

Accepted Answer

A) the liquidity position of a firm 
B) market share growth 
C) the legitimacy and reputation of a firm 
D) the efficiency with which a firm utilizes its assets

Question 15

A firm that takes on too much long-term debt to finance operations will see an immediate impact on its indicators of _______ financial leverage.

Accepted Answer

A) short-term 
B) long-term 
C) relative 
D) comparable

Question 16

Excellent customer performance results from processes, decisions, and actions that occur only in the marketing efforts of the firm.

Accepted Answer

A) True 
 B)False

Question 17

Strong brands are typically built through consistent, effective marketing, and companies need to weigh the potential for misbehaving customers to thwart their careful efforts.

Accepted Answer

A) True 
 B)False

Question 18

For a resource to provide a firm with potential sustainable advantages it must satisfy only two criteria: rareness and difficulty in substitution.

Accepted Answer

A) True 
 B)False

Question 19

All of the following are examples of socially complex organizational phenomena except

Accepted Answer

A) a firm's culture. 
B) complex physical technology. 
C) interpersonal relations among a firm's managers. 
D) leadership and trust.

Question 20

General administration is sometimes viewed as only _______ but can be a powerful source of competitive advantage.

Accepted Answer

A) income 
B) value 
C) overhead 
D) unimportant

Exam 3: Assessing the Internal Environment of the Firm

Support activities provide support for primary activities, but not each other.

Accounting is a sort of transformation process that converts daily records of individual transactions into monthly financial reports. The are the inputs, accounting is the operation that adds value, and _ are the outputs.

Though two teams could have different ages, functional backgrounds, experience, and so on, they could be strategically equivalent and thus substitutes for one another.

In value-chain analysis, finance and accounting are considered part of the general administration of a firm.

Examples of organizational capabilities are outstanding customer service, excellent product development capabilities, superb innovation processes, and flexibility in manufacturing processes.

Financial ratio analysis measures the performance of the firm based on all but which of the following?

Which of the following is not an example of organizational capabilities?

Amazon Prime is an example of a difficult to imitate capability that gives it competitive advantage over its rivals.

An important implication of the balanced scorecard is that managers need not look at their job as primarily balancing stakeholder demands.

The three key types of resources that are central to the resource-based view of the firm are

Dell lost its competitive advantage by 2009 in part because it placed its efforts on operational excellence to the exclusion of reinvention.

Harley-Davidson sells accessories, clothing, toys and motorcycles. They have a brand image in common which is a tangible resource.

A law firm renders services that are specific to client needs and circumstances. This is an example of the transformation process of a service organization.

Which of the following would be most difficult to assess?

A firm that takes on too much long-term debt to finance operations will see an immediate impact on its indicators of _______ financial leverage.

Excellent customer performance results from processes, decisions, and actions that occur only in the marketing efforts of the firm.

Strong brands are typically built through consistent, effective marketing, and companies need to weigh the potential for misbehaving customers to thwart their careful efforts.

For a resource to provide a firm with potential sustainable advantages it must satisfy only two criteria: rareness and difficulty in substitution.

All of the following are examples of socially complex organizational phenomena except

General administration is sometimes viewed as only _______ but can be a powerful source of competitive advantage.