For calendar 2013, companies in the S&P 500 are expected to pay at least $300 billion
in dividends.
When an acquisition or merger is not desired by both parties, it can be called a takeover
or hostile takeover.
If a firm’s present suppliers are expensive and unreliable in meeting the firm’s needs for
parts, components, and/or raw materials, the firm should pursue a horizontal integration
strategy.
A differentiation strategy can be especially attractive when the industry has many
different niches and segments, thereby allowing a focuser to pick a competitively
attractive niche suited to its own resources.
Qualitative forecasts are most appropriate when historical data are available and when
the relationships among key variables are expected to remain the same in the future.
Perhaps the greatest advantage of international operations to a firm is the ability to gain
new customers for its products and services, thus increasing revenues.
Strategists are usually found in higher levels of management and have considerable
authority for decision-making in the firm.
Medium-sized firms tend to be divisionally structured, whereas large firms tend to use
an SBU (strategic business unit) or matrix structure.
Keeping informed about the number and the nature of competitors is easier when doing
business internationally.
A characteristic that describes the most competitive companies is adopting the adage,
“whether it’s broke or not, fix it;” in other words, continually strive to improve
everything about the firm.
Dumping banned or flawed products in foreign markets is considered to be an unethical
business practice.
An effective way to gain commitment and achieve desired results is to
A) emphasize that imposing a particular method is more important than achieving
desired results.
B) shift from specific to general issues and concerns.
C) eliminate middle level managers from strategic decisions.
D) switch from long-term to short-term issues and concerns.
E) realize that it’s better to achieve optimal results with an unpopular strategy than to
achieve satisfactory results with a popular strategy.
High corporate tax rates
A) encourage investment in new factories.
B) provide strong incentives to avoid and evade taxes.
C) attract foreign investors.
D) make a nation a desirable location for investment.
E) have been a growing trend since the 1980s.
Standard and Poor’s Industry Surveys include all of the following sections EXCEPT
A) Historic Environment.
B) Industry Trends.
C) How to Analyze a Company.
D) Glossary of Industry Terms.
E) Comparative Company Financial Analysis.
To avoid paying U.S. taxes on income made in other countries, many U.S. companies
are ________ outside the USA but ________ inside the USA.
A) cash-poor; cash-rich
B) cash-rich; cash-poor
C) unincorporated; incorporated
D) cash-poor; incorporated
E) unincorporated; cash-rich
The world population that lives outside of the USA is growing ________ the U.S.
population.
A) 30 percent slower than
B) 70 percent slower than
C) 30 percent faster than
D) 70 percent faster than
E) at the same rate as
What is the term for a historical narrative describing the unique accomplishments of a
group and its leaders?
A) Rite
B) Saga
C) Story
D) Myth
E) Folktale
In order to appeal to its diverse stakeholders, an effective mission statement should be
A) inflammatory.
B) provocative.
C) contentious.
D) reconciliatory.
E) dysfunctional.
Many economists say the current rash of trade constraints will make it ________ for
global economic growth.
A) easier
B) impossible
C) harder
D) more likely
E) less time-consuming
Considerable time and effort should be devoted to assuring objectives are well
conceived because they represent the basis for
A) monitoring progress toward long-term objectives.
B) establishing divisional priorities.
C) allocating resources.
D) evaluating managers.
E) all of the above
The Financial Accounting Standard Board (FASB) Rule 142 deals with
A) illegal inflation of financial projections.
B) hacking issues in MIS.
C) goodwill.
D) how firms conduct R&D.
E) improving marketing policies.
Which strategies aim at improving internal weaknesses by taking advantage of external
opportunities?
A) SO
B) WO
C) SW
D) ST
E) WT
The Fortune 50 includes all of the following EXCEPT
A) the largest retailers.
B) the largest transportation companies.
C) the largest utilities.
D) the largest banks.
E) the largest hospitals.
The act of oversight and direction for an organization is referred to as
A) corporate lawmaking.
B) centralized control.
C) organizational direction.
D) establishing norms.
E) governance.
As indicated in the strategic-management model, a clear ________ is needed before
long-term objectives can be established.
A) short-term objective
B) implementation plan
C) audit policy
D) mission statement
E) evaluation strategy
Which best expresses former Colgate CEO Reuben Mark’s thoughts on vision?
A) It’s becoming less important that a clear mission make sense internationally.
B) It’s essential to drive home different messages in different cultures.
C) Keeping the vision simple will never rally everyone to the corporate banner.
D) Pushing one vision globally is essential.
E) Elevated missions or visions will alienate international markets.
All of the following are basic duties of management EXCEPT
A) staffing.
B) planning.
C) consolidating.
D) organizing.
E) motivating.
All of the following are potential disadvantages to initiating, continuing, or expanding
business across national borders EXCEPT
A) firms confront different social, cultural, and political forces when doing business
internationally, which can make communication in the firm difficult.
B) keeping informed about the number and nature of competitors is more difficult when
doing business internationally.
C) foreign operations can absorb excess capacity, reduce unit costs, and spread
economic risks over a wider number of markets.
D) dealing with two or more monetary systems can complicate international business
operations.
E) foreign operations could be seized by nationalistic forces.
The strategic-management process is becoming more widely used by
A) small firms.
B) nonprofit institutions.
C) governmental organizations.
D) multinational conglomerates.
E) all of the above
Which of the following analytical tools consists of a nine-cell matrix?
A) BCG Matrix
B) Competitive Profile Matrix
C) SPACE Matrix
D) Grand Strategy Matrix
E) Internal-External Matrix