ADM Quiz 3

What are educated assumptions about future trends and events called? a. Forecasts b. Wild guesses c. Premonitions d. Facts e. Statistics

a. Forecasts

What level of bargaining power do consumers have when the products being purchased are standard or undifferentiated? a. High b. Marginal c. Negative d. Low e. Negligible

a. High

According to Michael Porter, five competitive forces create vital opportunities and threats to organizations: 1) rivalry among competing firms, 2) potential entry of new competitors, 3) potential development of substitute products, 4) bargaining power of suppliers, and 5) bargaining power of consumers. a. True b. False

a. True

An effective CI program allows all areas of a firm to access consistent and verifiable information in making decisions. a. True b. False

a. True

Forecasts are educated assumptions about future trends and events. a. True b. False

a. True

U.S. households are making more and more purchases online. a. True b. False

a. True

What is the range for a firm's total weighted score in an External Factor Evaluation Matrix? a. 0 to 10 b. 1 to 4 c. 1 to 5 d. 0 to 4 e. 0 to 5

b. 1 to 4

A forward integration strategy is used by firms to gain control or ownership of suppliers. a. True b. False

b. False

In response to the so-called Obamacare legislation, many U.S. businesses are transitioning to having a larger percentage of their workforce being comprised of full-time employees rather than part-time workers. a. True b. False

b. False

The trend toward an older America is bad news for restaurants, hotels, airlines and home builders. a. True b. False

b. False

There are now more American households consisting of married couples with children than of people living alone or with unrelated people. a. True b. False

b. False

Many economists say the current rash of trade constraints will make it _____ for global economic growth. a. less time-consuming b. impossible c. harder d. more likely e. easier

c. harder

Without assumptions, planning would be a. intuitive. b. inexpensive. c. impossible. d. easier. e. difficult.

c. impossible.

Market commonality can be defined as a. the extent to which the type of a firm's internal resources are comparable to a rival. b. the extent to which the amount of a firm's internal resources are comparable to a rival. c. the number and significance of markets that a firm competes in with rivals. d. the number and significance of points in common a firm has with its rivals. e. none of the above

c. the number and significance of markets that a firm competes in with rivals.

What happens when interest rates rise? a. Discretionary income increases. b. The demand for discretionary goods increases. c. Discretionary income increases and the demand for discretionary goods decreases. d. The demand for discretionary goods decreases. e. Discretionary income is unchanged.

d. The demand for discretionary goods decreases.