A limitation of ROI as a measure of performance is that
A) it is a single comprehensive figure examining only one facet of the firm.
B) it provides disincentive to use existing assets efficiently.
C) it provides an incentive to acquire new assets.
D) it is very sensitive to depreciation policy.
E) it does not provide the basis for common comparison.
Answer:
Which is the MOST commonly used measure of corporate performance (in terms of
profit)?
A) EPS
B) ROE
C) DPS
D) ROI
E) ROVA
Answer:
All of the following are one of the four types of moral relativism EXCEPT
A) naive relativism.
B) role relativism.
C) principled relativism.
D) social group relativism.
E) cultural relativism.
Answer:
Which of the following is NOT one of the limitations of portfolio analysis?
A) It contains value-laden terminology that can lead to self-fulfilling prophecies.
B) It is not difficult: Easy to define product/market segments.
C) It relies too heavily on objective judgments.
D) It suggests the use of standard strategies which may be impractical or may miss
potential opportunities.
E) It provides an illusion of scientific rigor.
Answer:
All of the following reflect activities of a learning organization EXCEPT
A) experimenting with new approaches.
B) learning from its own experiences and past history.
C) solving problems systematically.
D) alienating competitors in the industry.
E) transferring knowledge quickly and efficiently throughout the organization.
Answer:
All of the following represent liquidity ratios EXCEPT
A) cash ratio.
B) inventory to net working capital.
C) quick ratio.
D) gross profit margin.
E) current ratio.
Answer:
Which of the following is NOT descriptive of the purpose of MBO?
A) MBO provides an opportunity for the corporation to connect the objectives of people
at each level to those at the next higher level.
B) MBO operates independently and requires very little supervision or administration.
C) The goals at each level ideally contribute directly towards overall organizational
objectives.
D) MBO provides a potential method of integrating the physical, financial and human
resource plans of an organization as it relates to the goals of the individual.
E) MBO ties the corporate, business, and functional objectives together along with the
strategies used to achieve them.
Answer:
The primary activity of a competitive intelligence unit is to
A) monitor competitors.
B) engage in corporate espionage.
C) survey stakeholders.
D) determine industry R&D statistics.
E) reverse engineer competitors’ products.
Answer:
When Bristol-Myers Squibb purchased 17% of ImClone’s common stock to gain access
to a new drug, it was using which type of integration?
A) full integration
B) long-term contracts
C) backwards integration
D) taper integration
E) quasi integration
Answer:
According to Chandler and others, which factors MUST be closely aligned to avoid the
consequences of poor organizational performance?
A) management, workforce, and customers
B) operations, marketing, and finance
C) strategy, structure, and environment
D) rules, goals, and tasks
E) hierarchy, contacts, and integrators
Answer:
Which of the following is NOT a principle of reengineering identified by Hammer?
A) puts the decision point where the work is performed
B) organizes around outcomes, not tasks
C) treats geographically dispersed resources as though they were centralized
D) links parallel activities
E) captures information once at the source
Answer:
Which of the following is NOT one of the eight dimensions of quality?
A) serviceability
B) durability
C) performance
D) value
E) features
Answer:
Which of the following is an example of a program?
A) Diversify product line to appeal to more people.
B) Increase sales by 10% over last year.
C) Must be #1 wherever we compete.
D) Develop and sell quality appliances worldwide.
E) Reduce final assembly time to three days by having suppliers build plan sections.
Answer:
What responsibility center is judged for effectiveness rather than efficiency?
A) investment center
B) revenue center
C) standard cost center
D) profit center
E) expense center
Answer:
A highly involved board does all of the following EXCEPT
A) tends to be very active.
B) provides advice when necessary.
C) keeps management alert.
D) takes their tasks of initiating and determining strategy very seriously.
E) manage the every day operations of the organization.
Answer:
Which of the following best describes a simple structure?
A) Work is divided into subunits on the basis of such functions as manufacturing,
marketing, finance, and human resources.
B) This is most appropriate for large corporations with many product lines in several
related industries, with employees acting as functional specialists attempting to gain
synergy among divisional activities.
C) This is most appropriate for small, entrepreneur-dominated companies with one or
two product lines that operate in a small niche market, with employees acting as
jack-of-all trades.
D) Employees have two or more superiors, a project manager and a functional manager.
E) This is most appropriate for large corporations with many product lines in several
unrelated industries, with employees acting as functional specialists but with no attempt
at gaining synergy among the divisions.
Answer:
According to a 2011 survey by the Ethics Resource Center, which was NOT cited as
one of the most common questionable behaviors that employees engage in?
A) cutting corners on quality
B) misusing company time
C) lying to employees
D) engaging in abusive behavior
E) violating Internet use policies
Answer:
Because of the belief that accounting-based numbers such as ROI, ROE, and EPS are
not reliable indicators of a corporation’s economic value, which method of corporate
performance is now preferred?
A) shareholder value
B) basic earning power
C) price/earnings ratio
D) profit margin on sales
E) return on assets
Answer:
A corporate strategy that cuts across divisional boundaries to build synergy across
business units and to improve the competitive position of one or more business units is
called
A) vertical strategy.
B) horizontal strategy.
C) hierarchical strategy.
D) portfolio strategy.
E) pyramid strategy.
Answer:
FedEx stipulates specific employee behaviors including how a driver dresses to how
keys are held when approaching a customer’s door. This is an example of a
A) program.
B) budget.
C) procedure.
D) policy.
E) control.
Answer:
The type of strategy which emphasizes the improvement of the competitive position of
a corporation’s products or services in a particular industry or market segment served by
a business unit is
A) functional.
B) operational.
C) business.
D) environmental.
E) corporate.
Answer:
Which of the following is NOT descriptive of the matrix structure?
A) People from functional units are often assigned on a temporary basis to product
units.
B) Although employees often work on one or more product units, they maintain only
one direct supervisor.
C) The matrix structure is very useful when the external environment is very uncertain.
D) The matrix structure can produce conflicts revolving around duties, authority, and
resource allocation.
E) The matrix structure was developed to combine the stability of functional structure
with the flexibility of the product form.
Answer:
An MNC uses which international strategy for entering a foreign market by purchasing
another company already operating in the area developing synergistic benefits gained
from acquiring strong complementary product lines and a good distribution network?
A) licensing
B) joint ventures
C) production sharing
D) exporting
E) acquisitions
Answer:
Which of the following terms best describes a system in which items are normally
processed sequentially, but the work and sequence of the process vary?
A) continuous system
B) debt capacity
C) chronological processing
D) operating leverage
E) intermittent system
Answer:
Which of the following is NOT one of the examples provided as an organizational
benefit received from being socially responsible?
A) They can attract outstanding employees who prefer working for a socially
responsible firm.
B) They are more likely to be welcomed into a foreign country.
C) They are more likely to attract capital infusions from investors who view reputable
companies as desirable long-term investments.
D) They are guaranteed to maximize resource productivity and reduce the average
payback period of investment.
E) Their environmental concerns may enable them to charge premium prices and gain
brand loyalty.
Answer:
What has been the most popular method of teaching strategy and policy for years?
A) lecture
B) case analysis
C) team teaching
D) group presentations
E) student teaching
Answer:
Avon is an example of a company that demonstrated having a diverse workforce
A) can be a competitive advantage.
B) can lower productivity.
C) can be an effective IT strategy.
D) can hinder quality.
E) hinders growth.
Answer:
A goal differs from an objective because it
A) is open-ended.
B) is quantified.
C) specifies measurable results.
D) is clearly specified.
E) provides a time horizon.
Answer:
According to the text, a complete package for an executive working in another country
costs
A) $50,000 to $75,000 annually.
B) $100,000 to $200,000 annually.
C) $150,000 to 250,000 annually.
D) $200,000 to $500,000 annually.
E) $300,000 to $1 million annually.
Answer:
Society generally expects firms to work with employees and the company to plan for
layoffs. This is an example of which of Carroll’s responsibilities?
A) economic
B) legal
C) justice
D) ethical
E) discretionary
Answer:
The comparison of the expected cost of production against the actual cost of production
typically occurs in the
A) investment center.
B) revenue center.
C) standard cost center.
D) profit center.
E) expense center.
Answer:
Strategic management is that set of managerial decisions and actions that determine the
long-run performance of a corporation. Which one of the following is NOT one of the
basic elements of the strategic management process?
A) strategy formulation
B) strategy implementation
C) statistical process control
D) evaluation and control
E) environmental scanning
Answer:
Walmart, as a discount retailer, is an example of a company following which of Porter’s
competitive strategies?
A) differentiation
B) cost leadership
C) differentiation focus
D) competitive advantage
E) cost focus
Answer:
What is the activity that occurs in the last stage of international development?
A) The company invests in production facilities in key countries.
B) The company exports, but trade is minor and handled by an export department.
C) The company establishes its own export division with sales offices in other
countries.
D) The company operates in a global industry and establishes worldwide HR, R&D,
and financing strategies thereby denationalizing its operations.
E) The company establishes local operating divisions in host countries to better serve
individual country markets.
Answer: