36.
The difference between the price charged for a product and the cost to manufacture it is
referred to as the
37.
_____ denotes the dollar amount a consumer would attach to a good or service.
38.
The value a consumer attaches to a product or service is captured in the
39.
After trying on a dress, a consumer assesses it to be worth a maximum of $100 and is
willing to pay that amount for the dress. However, the dress was priced at $80. What is the
amount, $100, referred to as?
40.
How does a firm capture its producer surplus for a good or service?
41.
Nicki paid $900 for a camera that she thought was worth $1100 for all the features
included in it. For the consumer electronics firm selling the camera, however, the cost of
producing the camera was only $350. What is the consumer surplus in this scenario?
42.
Economic value creation is best expressed as
43.
Osion Electronics Inc. incurs a cost of $350 to produce one unit of a cell phone. The
company’s management has priced the product at $600 in the market. Considering the
technological advancement of the cell phone, customers perceive its value to be around
$800. What is the economic value created in this scenario?
44.
By selling a laptop at $1,000 for which consumers are willing to pay up to $1,200, a
consumer electronics firm makes a profit of $400 per unit. In this scenario, the amount
$600, that is ($1200 – $1000) + $400, is the
45.
Which of the following is
not
an accurate expression of the economic value created per
unit of a product sold?
46.
In an economic context, strategy for producers is primarily about
47.
Competitive advantage goes to the firm that achieves the
48.
In order to achieve a competitive advantage, a firm should be able to
49.
The cost of capital to create a product is a fixed cost because it is
50.
_____ are best described as the value of the best forgone alternative use of the resources
employed.
51.
Genevieve is a recent fashion graduate. She started her own apparel store with an
investment of $300,000. In the first year she made a profit of $60,000. If she had taken up
a job as a fashion editor for a magazine, she would have earned $50,000 as salary per
year. Also, she could have invested her capital, $300,000, in treasury bonds and earned an
interest of $12,000. Thus, the amount $62,000 ($50,000 + $12,000) would be Genevieve’s
52.
Andrew invested $200,000 in the shares of a company. At the end of a year, he had earned
$7,000 as dividends on his shares along with a $1,000 appreciation in the overall value of
his shares. However, if Andrew had invested the same amount on an asset, like gold, the
appreciation in its value would have earned him $10,000 at the end of the year. In this
scenario, which of the following is Andrew’s opportunity cost?
53.
When GD Inc. declared a dividend of $20,000,000, its market value increased from $8
billion to $8.5 billion. However, it lost a chance to reinvest $20,000,000 in the research and
development of a new product which would have earned a profit of $200 million. Thus, this
$200 million is referred to as GD Inc.’s
54.
Which of the following is an advantage of applying the economic value creation
perspective to assess a firm’s performance?
55.
Which of the following is
not
a limitation of the economic value creation framework?
56.
When using the balanced-scorecard approach to assess a firm’s performance, which of
the following is
not
a key question that managers need to answer?
57.
Which of the following frameworks used to measure competitive advantage relies on both
an internal and an external view of a firm?
58.
Which of the following statements is true of the balanced-scorecard?
59.
Which of the following is an advantage of the balanced-scorecard?
60.
Which of the following is
not
an advantage of the balanced-scorecard approach to assess
firm performance?
61.
Which of the following approaches to assess competitive advantage is based on the view
that noneconomic factors can have a significant impact on a firm’s financial performance?
62.
Which of the following statements is true of the triple-bottom-line?
63.
The tenet behind the triple-bottom-line is that
64.
How does a sustainable strategy typically help a firm?
65.
Using the _____ approach, managers audit their company’s fulfillment of its social and
ecological obligations to stakeholders such as employees, customers, suppliers, and
communities as conscientiously as they track its financial performance.
66.
Which of the following is an advantage of a triple-bottom-line approach?
67.
The top management at Parallela Pharma Inc., through rigorous testing, ensures that the
company develops and sells drugs that are free of harmful side effects. Also, the company
ensures that the chemical waste generated in the manufacturing process is kept to a bare
minimum and is disposed of according to the regulations of the Environmental Protection
Agency. The management assesses its overall performance based on these dimensions.
Thus, the managers at Parallela Pharma are applying the _____ approach to measure firm
performance.
68.
Janet is the CEO of Far Sight Inc., which uses a triple-bottom-line approach. As a result,
Janet will tend to
69.
Which of the following is the
most
accurate characterization of stakeholder theory?