STR

02) What category of ratios includes return on total assets and return on stockholders' equity? A) Leverage B) Activity C) Profitability D) Growth E) Liquidity

C

100) Which of the three finance/accounting decisions concerns determining the best capital structure for the firm and includes examining various methods by which the firm can raise capital? A) Investment B) Dividend C) Financing D) Capital budgeting E) Implementation

C

89) All of the following are key questions that can reveal internal strengths and weaknesses in the management department except: A) Is the organization's structure appropriate? B) Are reward and control mechanisms effective? C) Are the organization's products positioned well among competing products? D) Does the firm use strategic management concepts? E) Do managers delegate authority well?

C

93) Selling includes all of these marketing activities except: A) advertising. B) dealer relations. C) customer analysis. D) publicity. E) sales promotion.

C

94) Collecting and evaluating information on competitors is essential for successful A) internal analysis. B) strategy evaluation. C) strategy formulation. D) strategy implementation. E) strategy management.

C

82) Which management function includes breaking tasks into jobs, combining jobs to form departments and delegating authority? A) Motivating B) Staffing C) Organizing D) Controlling E) Planning

C organizing

65) ________ exemplifies the complexity of relationships among the functional areas of business. A) Government audit B) External audit C) Financial ratio analysis D) Environmental scanning E) Distribution strategy

Financial Ratio Analysis

07) According to Roger Schroeder, which of the following is not a basic function of production management? A) Capacity B) Inventory C) Workforce D) Transportation E) Quality

d

65) According to the comprehensive strategic-management model, which step needs to be completed immediately following the establishment of long-term objectives? A) Developing vision and mission statements B) Performing external audits C) Performing internal audits D) Generating, evaluating, and selecting strategies E) Measuring and evaluating performance

d

95) What marketing function includes test marketing? A) Selling products/services B) Pricing C) Customer analysis D) Product/service planning E) Distribution

d

79) Which function of management includes areas such as job design, job specification, job analysis and unity of command? A) Planning B) Organizing C) Motivating D) Staffing E) Controlling

organizing

78) Which of the following does the text call an up-front investment in success? A) Planning B) Organizing C) Motivating D) Staffing E) Controlling

planning

101) 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

B

83) Which function of management is concerned with span of control and chain of command? A) Planning B) Organizing C) Controlling D) Directing E) Evaluating

B organizing

104) All of these are pitfalls an organization should avoid in strategic planning except: A) using plans as a standard for measuring performance. B) using strategic planning to gain control over decisions and resources. C) failing to involve key employees in all phases of planning. D) too hastily moving from mission development to strategy formulation. E) being so formal in planning that flexibility and creativity are stifled.

a

118) The IFE Matrix should be ________ in multidivisional firms. A) constructed for each division B) all-inclusive C) constructed only for the major divisions D) developed before the EFE Matrix E) revised monthly

a

67) During what stage of strategic management are a firm's specific internal strengths and weaknesses determined? A) Formulation B) Implementation C) Evaluation D) Feedback E) Goal-setting

a

68) An important activity in ________ is taking corrective action. A) strategy evaluation B) strategy implementation C) strategy formulation D) strategy leadership E) all of the above

a

87) Usually, external opportunities and threats are A) uncontrollable by a single organization. B) controlled by governments. C) not as important as internal strengths and weaknesses. D) key functions in strategy implementation. E) key functions in strategy exploitation.

a

99) Which of these is the allocation and reallocation of capital and resources to projects, products, assets and divisions of an organization? A) Investment decision B) Dividend decision C) Financing decision D) Restructuring decision E) Strategic decision

a

106) The times-interest-earned ratio would be classified as a(n) A) activity ratio. B) leverage ratio. C) profitability ratio. D) liquidity ratio. E) growth ratio.

b

71) Which phase of strategic management is called the action phase? A) Strategy formulation B) Strategy implementation C) Strategy evaluation D) Allocating resources E) Measuring performance

b

96) Which of the following is not included in the strategic management model? A) Measure and evaluate performance B) Perform internal research to identify customers C) Establish long-term objectives D) Implement strategies E) Develop mission and vision statements

b

76) What is the essential bridge between the present and the future that increases the likelihood of achieving desired results? A) Motivating B) Planning C) Controlling D) Staffing E) Organizing

b planning

117) Which of the following is the first step in developing an IFE Matrix? A) Determining the organization's structure B) Summing the weighted scores for each variable C) Identifying the organization's strengths and weaknesses D) Identifying the organization's functions of business E) Determining the lead strategist

c

69) What step in the strategic development process involves mobilizing employees and managers to put strategies into action? A) Formulating strategy B) Strategy evaluation C) Implementing strategy D) Strategic advantage E) Competitive advantage

c

71) To perform an external audit, a company first must A) get an approval from the Securities and Exchange Commission. B) perform an internal audit. C) gather competitive intelligence and information about external trends. D) hire a consultant to develop a comprehensive strategic plan. E) all of the above

c

103) What category of ratios measures how effectively a firm can maintain its economic position in the growth of the economy and industry? A) Profitability B) Liquidity C) Leverage D) Activity E) Growth

e

116) The initial step to implementing value chain analysis is A) attaching a cost to each discrete activity. B) establishing costs in terms of time. C) establishing costs in terms of money. D) converting the cost data into information by looking for competitive cost strengths and weaknesses. E) dividing a firm's operations into specific activities or business processes.

e

7) Which function of management includes all of those activities undertaken to ensure actual operations conform to planned operations? A) Planning B) Organizing C) Motivating D) Staffing E) Controlling

e

72) ________ is not a strategy-implementation activity. A) Taking corrective actions B) Establishing annual objectives C) Devising policies D) Allocating resources E) Motivating employees

e

88) The first step in the controlling function of management is to A) take corrective actions. B) restrict breaks employees take. C) evaluate expense reports. D) establish performance standards. E) measure individual and organizational performance.

establish performance standards