Formulation, implementation, and evaluation of strategy activities occur at three
hierarchical levels in a large organization: corporate, divisional or strategic business
unit, and functional.
A low value of the dollar means lower exports and higher imports.
All the methods for determining a business’ worth can be grouped into three basic
approaches: what a firm earns, what a firm spends, and what a firm will bring in the
market.
Strengths, weaknesses, opportunities, cost and threats should continually be monitored
for change because it is not really a question of whether these factors will change, but
rather when they will change and in what ways.
The cash account is used as the plug figure in projected balance sheets.
Time spent with the family and the quality of relationships are more important in some
cultures than the personal achievement and accomplishments espoused by the
traditional U.S. manager.
Anything the firm does especially well compared to rival firms could be considered a
competitive advantage.
The first step in the controlling function of management is to
A) take corrective actions.
B) restrict the number of breaks employees take.
C) evaluate expense reports.
D) establish performance standards.
E) measure individual and organizational performance.
Strategy analysis and choice largely involves making ________ decisions based on
________ information.
A) long-term; short-term
B) subjective; objective
C) short-term; long-term
D) subjective; short-term
E) objective; subjective
Which method of determining a firm’s net worth divides the market price of the firm’s
stock by the annual earnings per share, and multiplies this number by the firm’s average
net income for the past five years?
A) Debt/equity method
B) Current ratio method
C) Price-earnings ratio method
D) Long-term asset method
E) Outstanding shares method
Which of the following is NOT true regarding stock issuances?
A) They are always better than debt for raising capital.
B) Their effect on stock price is a concern.
C) They can require a company to share future earnings with all new shareholders.
D) Dilution of ownership is a special concern.
E) All of the above statements are true.
Which of the following is NOT true regarding European workers and workplaces?
A) Most European workers are unionized.
B) Most European workers enjoy more frequent vacations and holidays than U.S.
workers.
C) Guaranteed permanent employment is typically a part of employment contracts in
Europe.
D) Many Europeans respond enthusiastically to pay-for-performance, commission
salaries, and objective measurement reward systems.
E) Many Europeans find the notion of team spirit difficult to grasp.
________ are the individuals primarily responsible for ensuring that high ethical
principles are espoused and practiced in an organization.
A) Non-management employees
B) Mid-level managers
C) Shareholders
D) Strategists such as CEOs and business owners
E) Governmental regulatory bodies
A total weighted score of ________ in an EFE Matrix indicates that the firm’s strategies
are NOT capitalizing on opportunities or avoiding external threats.
A) 0.0
B) 1.0
C) 2.5
D) 3.3
E) 4.0
What is the cornerstone of effective strategy evaluation?
A) Adequate and timely feedback
B) Quality and quantity of managers
C) Smaller ratio of top- to lower-level management
D) Evaluation preceding implementation stage
E) Punitive corrective actions
In the process of developing a mission statement, it is important to involve
A) as few managers as possible.
B) as many managers as possible.
C) upper-level management only.
D) lower-level management only.
E) the board of directors only.
Japan is suffering from a decline in overall economic production
A) due to its growing population.
B) related to the declining age of its workforce.
C) because of a surge in the number of its taxpaying workers.
D) since worker productivity increases are not able to offset declines in number of
workers.
E) because more and more women are working outside the home.
Special natural environment issues include all of the following EXCEPT
A) ozone depletion.
B) destruction of animal habitats.
C) pollution control.
D) spreading computer viruses.
E) developing biodegradable products and packages.
What category of ratios measures a firm’s ability to meet maturing short-term
obligations?
A) Profitability
B) Liquidity
C) Leverage
D) Activity
E) Growth
Which of the following is a corrective action a company might take to correct
unfavorable variances?
A) Divesting a division
B) Revising objectives
C) Raising capital with stock or debt
D) Allocating resources differently
E) All of the above
Which group would be classified as stakeholders?
A) Governments
B) Creditors
C) Suppliers
D) Employees
E) All of the above
It has become ________, since uniform standards defining environmentally responsible
company actions are rapidly being incorporated into our legal landscape.
A) more and more difficult for firms to make “green” claims when their actions are not
substantive or even true
B) increasingly easy for firms to get away with placing “green” terminology on their
products without any oversight
C) customary for firms to use terms like “organic,” “green,” or “earth-friendly” when
their products don’t warrant it
D) more common for consumers to be cynical about corporate environmental claims
E) impossible for firms to omit “green” terminology from their labels
An area on a perceptual map without ideal points indicates a
A) market segment.
B) demand void.
C) vacant niche.
D) multidimensional scale.
E) product reposition.
What effect do trends in the dollar’s value have on companies in different industries and
in different locations?
A) Significant and equal
B) Marginal and equal
C) Significant and unequal
D) Insignificant and unequal
E) No significant impact
What are educated assumptions about future trends and events called?
A) Wild guesses
B) Forecasts
C) Facts
D) Statistics
E) Premonitions
A pattern of behavior developed by an organization as it learns to cope with its
problems of external adaptation and internal integration, and that has worked well
enough to be considered valid and to be taught to new members as the correct way to
perceive, think, and feel is called
A) dysfunctional behavior.
B) groupthink.
C) behavior modification.
D) organizational culture.
E) internal audit effect.