A leveraged buyout occurs when a firm’s management and other private investors use
borrowed funds to buy out the firm’s shareholders.
The percentage-of-sales method should be used for projecting the cost of goods sold
and the expense items in the income statements.
Public enterprises generally cannot diversify into unrelated businesses or merge with
other firms.
The percentage of persons age 65 or older will reach 20 percent in the United States in
2018.
History has proven that the lower the trust and confidence of people in the ethics of an
institution or society, the greater its economic strength.
As many managers and employees as possible should be involved in the process of
performing an external audit.
In terms of number of employees, restructuring usually involves increasing the size of
the firm.
To see and appreciate the world from the perspective of others has become a matter of
survival for business.
A firm should pursue defensive strategies if the coordinates of a SPACE directional
vector are (+2, +3).
Undesirable conduct such as distorting the records can be a result of overemphasis on
achieving objectives.
During the 2012 Super Bowl, a 30-second advertisement cost about $3 million.
Simply having a code of ethics
A) will ensure ethical business behavior.
B) eliminates the need for periodic ethics workshops.
C) is all that is necessary to sensitize people to workplace circumstances in which ethics
issues may arise.
D) is insufficient to guarantee that employees behave in an ethical manner.
E) secures an ethics culture in the workplace.
Which of the following nations has the highest corporate tax rate?
A) Ireland
B) The USA
C) Great Britain
D) France
E) Germany
Which analytical tool determines the relative attractiveness of various strategies based
on the extent to which key external and internal critical success factors are capitalized
upon or improved?
A) BCG Matrix
B) SPACE Matrix
C) SWOT Matrix
D) IE Matrix
E) QSPM
Subdividing a market into distinct subsets of customers according to their needs and
buying habits is known as
A) market penetration.
B) product diversification.
C) market segregation.
D) market segmentation.
E) positioning.
What is NOT one of the basic ways a divisional structure can be organized?
A) By geographic area
B) By product
C) By customer
D) By process
E) By cost
What term is defined as the product of multiplying the weights by the Attractiveness
Scores in each row of the QSPM?
A) Total Attractiveness Scores
B) Sum Total Scores
C) Weighted Scores
D) Total Weighted Scores
E) Factors
A systematic and ethical process for gathering and analyzing information about the
competition’s activities and general trends to further a business’ own goals is called
A) unethical business practices.
B) artificial intelligence.
C) competitive intelligence.
D) industrial espionage.
E) competitive advantage.
Which stage of the strategy-formulation framework contains the IFE Matrix?
A) Input stage
B) Analysis stage
C) Matching stage
D) Decision stage
E) Output stage
Mintzberg’s notion of “crafting” strategies
A) is consistent with the view that strategic management is more a science than an art.
B) contends that firms need to assess their environments, do research, evaluate
alternatives, analyze, and then choose a course of action.
C) suggests that strategic decision making be based primarily on holistic thinking,
intuition, creativity, and imagination.
D) reject strategies that result from subjective imagination in favor of objective
analysis.
E) insists on formality.
Which of the following variables is NOT directly affected by market segmentation?
A) Product
B) Place
C) Process
D) Promotion
E) Price