BUS 445 Seray quiz questions

__________ is the ratio of Assets to Equity.

Leverage

Which of the following is a primary feature of the five forces model?

It views competition within an industry broadly to include forces such as buyers, suppliers, and the threat of substitutes.

________ are the legal owners of public companies.

Shareholders

Golden Harvest is a restaurant located inside a five-star hotel. It caters mainly to customers who are concerned about quality dining rather than the prices. In this scenario, which of the following will be a part of Golden Harvest's strategic group?

a premium rooftop restaurant in the same city

how does a firm capture its producer surplus for a good or service?

as profit per unit sold

In the aircraft manufacturing industry, at least for large commercial jets, Boeing and Airbus are the only competitors. There is not a significant threat of entry because

entering the aircraft manufacturing industry requires huge capital investments.

O'Ryan Plastics maintains a manufacturing plant overseas. The local government has just been overthrown by a military group that opposes foreign influence in the country. According to the SWOT analysis, the political situation in this location is considered to be an

external threat.

If your company's Contribution Margin is 25%,

you will receive no credit for it on Balance Scorecard.

A strategic group will typically include

firms within the same industry.

If your company's Customer Awareness is 80%,

B. you will receive partial credit for it on Balance Scorecard.

Which of the following statements is true of the balanced-scorecard?

It attempts to provide a holistic perspective on firm performance.

How does a sustainable strategy typically help a firm?

It helps the firm achieve positive results along the social and ecological dimensions.

Which of the following is true of the process of organizing for competitive advantage?

To maintain competitive advantage, companies need to restructure as they grow and the competitive environment changes

All financial parameters are dependent variables.

True

Both Sales and Market Share are dependent variables.

True

W. L. Gore & Associates is organized in such a way that it has no formal job titles, job descriptions, or chains of command. This implies that it has

a decentralized structure.

Organizational and managerial skills that find their expression in a company's structure, routines, and culture are referred to as

capabilities.

n the context of the SWOT matrix, which of the following best exemplifies a firm's internal strength?

increase in a firm's customer loyalty

Economies of scale are cost advantages that accrue for firms with

larger output.

When a firm diversifies into different product lines and geographies, a ________ structure is preferred.

multidivisional

To reduce the amount of time it takes to apply packaging to its finished products, North Star Foods is implementing new equipment at its production plants. By doing this, North Star is addressing a ________ in the value chain analysis.

primary activity

Gladiator Apparel is the market leader in the sportswear industry. Though most of its resources are common to those of its competitors, a few rare resources have helped the company gain and sustain a competitive advantage. Which of the following assets of Gladiator Apparel is most likely to be considered a rare resource that is contributing to its competitive advantage?

the company's design patents

Which of the following statements is true of accounting data?

Accounting data are historical data and thus backward-looking.

Contribution to the margin is an independent variable

False

The tenet behind the triple-bottom-line is that

B. a firm should achieve positive results along the economic, social, and ecological dimensions to gain a sustainable strategy.

Which of the following is not a section of Balance Scorecard?

Business Ethics and Values

Which of the following statements accurately brings out the difference between tangible and intangible resources?

C. Tangible assets can be bought on the open market by anyone with the necessary cash, whereas intangible assets cannot be easily purchased.

Which of the following statements about competitive advantage is true?

Competitive advantage can be assessed by measuring accounting profit, shareholder value, or economic value.

Invoro is a market leader in consumer electronics. If Finolo and Ethver, companies that manufacture televisions, develop the same customer knowledge base and create products with the same customer appeal as Invoro, then

Invoro will have a resource that is valuable but no longer rare.

Which of the following is an advantage offered by a functional structure?

It allows for a higher degree of specialization and deeper domain expertise.

Which of the following real-world scenarios best exemplifies formalization?

McDonald's use of standard operating procedures across the world

________ define appropriate employee attitudes and behaviors.

Norms

________ refers to a firm's resistance to change the status quo that can set the stage for the firm's subsequent failure.

Organizational inertia

The ________ allows the scanning, monitoring, and evaluating of changes and trends in a firm's macro environment.

PESTEL framework

Which one among the following variables is an independent variable?

Plant Utilization

Which one of the following is an element of 'Customer' section of Balance Scorecard?

SG&A Expense

_________ are the lost sales due to not enough products as a percentage of overall sales.

Stock-out Costs

In which of the following situations is the power of suppliers high in an industry?

Suppliers' industry is more concentrated than the industry it sells to.

The balanced-scorecard can accommodate

both short- and long-term performance metrics.

Threadbare Industries is a new high-end textile company that has raised sufficient capital from multiple sources. It is planning to use its capital to purchase certain assets. Which of the following assets will be the most difficult for Threadbare Industries to acquire using its capital?

brand name

Cloud Cones is a fast-growing chain of ice cream shops. It has acquired an edge over its competitors through its ability to provide a wide array of unique flavors and a hip atmosphere in stores. This advantage of Cloud Cones best exemplifies a

core competency.

In a firm's external environment, ________ primarily capture population characteristics related to age, gender, family size, ethnicity, sexual orientation, religion, and socioeconomic class.

demographic trends

A firm incurs $400 to manufacture a television. In the market, customers are willing to pay a maximum of $600 for the television priced at $500. The difference of $200 ($600 minus $400) is the

economic value created.

True Moto Corp. (TMC) is a leading automobile company. The company has been able to sustain its competitive advantage primarily due to its high-quality and efficient electric motors. Most of its competitors have failed to develop similar electric motors at a reasonable price. Which of the following resource attributes listed in the VRIO framework has helped TMC sustain its competitive advantage?

high costs involved in imitation

Quick Market Inc. is a food supply company that wants to sell its products directly to consumers through mail order instead of going through supermarkets and other stores. However, supermarket chains want to make this transaction either illegal or more difficult for Quick Market. To accomplish this, they are using ________ to influence the political process.

lobbying forces

Eon Inc., Electravia Inc., and FC Inc., the three largest firms in the consumer electronics industry, hold close to 85 percent of the industry's market share. These companies mainly compete against each other by providing unique features in their products rather than pricing them low. These firms are interdependent, and each firm must consider the strategic actions of its competitors. Which of the following industry competitive structures does this scenario best illustrate?

oligopoly

BioCure Inc. is a pharmaceutical company that has many breakthroughs in medicine to its credit. Unlike many other pharmaceutical companies, BioCure has a relaxed work environment where employees are free to discuss projects with each other. Employees are encouraged to choose the projects that interest them; communication between team members and their supervisors is open and easy. Because of the company's work culture, its employees feel motivated to work harder and display more entrepreneurial behaviors. In this scenario, BioCure Inc. is most likely an organization that is

organic.

While working a night job at a call center, Eric creates an app called EatOut, which can be used to place orders at restaurants, rate the restaurants, and make reservations. Because he receives good responses for his app, he quits his current job to focus his efforts on EatOut. He creates a start-up called BestApps and hires three people to help him improve EatOut and maintain the servers that run it. In this scenario, BestApps most likely has a ________ structure.

simple

A high percentage of R&D/Revenue ratio indicates a(n)

strong focus on innovation to improve current products and services.

A firm's ________ determines how the work efforts of individuals and teams are orchestrated and how resources are distributed.

structure