INTG BUS POLICY/STRATEGY - Week 5

_______ precisely indicates how much of a firm's sales is converted into profits

return on revenue

Return on risk capital primarily includes

stock price appreciation plus dividends received over a specific period

A company's total asset base consists of its current assets plus plant, property, and equipment (PPE).

FALSE

A competitive advantage goes to the firm that maximizes the difference between the cost of producing a good and the retail price that consumer pay

FALSE

A firm will always see its stock price appreciate when it demonstrates measurable growth

FALSE

A manager's only responsibility is to monitor and assess the performance of his or her firm

FALSE

Once a firm chooses a business model, it must stick with it for the life of the firm

FALSE

Which of the following expressions accurately describes markets cap?

It is the product of the number of outstanding shares and share price

Which of the following is a disadvantage of the balanced-scoregard approach?

It provides limited guidance about which metrics to choose

_____ are best described as the value of the best forgone alternative use of the resource employed

Opportunity costs

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

Strong four on innovation to improve current products and services

Which of the following is an advantage of a triple-bottom-line approach?

The approach takes an integrative and holistic view in assessing a company's performance

The balanced-scorecard can accommodate

bother short-and long-term performance metrics

In an economic context, strategy for producers is primarily about

capturing the economic value created as much as possible

Economic value creation is best expressed as

consumer surplus plus firm profit

Which of the following competitively important assets is typically exclude from a firm's balance sheet?

customer experience

____ is best described as the difference between a buyer's willingness to pay for a product or service and a firm's total cost to produce it

economic value created

Competitive advantage goes to the firm that achieves the

largest economic value created

The ratio COGS/Revenue indicates how efficiently a company can

produce a good

From an investors' or shareholders' perspective, the measure of competitive advantage that matters most is the

return on risk capital

____ are the legal owners of public companies

shareholders

During the process of formulating an effective business model, a firm's managers should first

transform their strategy of how to compete into a blueprint of actions and initiatives

A defining characteristic of the subscription-based business model is that the

user pays for access to a product or service whether he or she uses it during the payment term or not

A defining characteristic of the pay-as-you-go business model is that the

users pay for only the services they consume

______ denotes the dollar amount a consumer would attach to a good or service

value