Practice Test Questions

What is Management Information Systems (MIS)? a. A computer system that organizes data and creates reports b. An acronym for "Missing in Specific-Data" c. Software that dictates the movements of a business d. Software that inputs data into spreadsheets

A. A computer system that organizes and creates reports

What is Market Development? a. Same stuff, same place, more advertising b. Same stuff, new place, same advertising c. New/improved stuff, same place, same advertising

B. Same stuff, new place, same advertising

(TRUE / FALSE) Most mergers are friendly, yet the number of hostile takeovers are rising

TRUE

Internationa Organization for Standardization (ISO) is voluntary (TRUE / FALSE)?

TRUE

What is a Merger?

When 2 organizations of about equal size unite to form one enterprise

What is an Acquisition?

When a larger company acquires a smaller company or vise versa

What is the central question of competitive advantage?

Why would someone choose your business over another that offers a similar product or service?

Internal Analysis is the process of examining an organization's ________ & __________ a. Threats & Opportunities b. Strengths & Weaknesses c. Worries & Doubts d. HR & Accounting

b. Strengths & Weaknesses

Which is the statement that best describes related (concentric) strategies? a. When you acquire a business where there are no obvious similarities to your core business b. When you acquire a business where there are obvious similarities to your core business c. When you acquire a business where there are similar customers to your core business d. When you acquire a business where there are different customers to your core business

b. When you acquire a business where there are obvious similarities to your core business

In the Portfolio Approach, how do you allocate resorces between 4 corporate areas?

- ROR (rate of return on investment) - What does the future of the business look like - To what extent do we have expertise to manage that type of business

What are the three questions in strategic management?

- Where are we at - Where do we want to go - How are we going to get there

What are Porter's Four Generic Strategies?

1. Differentiation 2. Overall Cost Leadership 3. Focus 4. Combination

What are the three separate fronts of Financial Ratio Analysis?

1. How has the ratio changed over time? 2. How does each ratio compare to industry norms? 3. How does each ratio compare with key competitors?

Name some Intensive Strategies

1. Market Penetration 2. Market Development 3. Product Development

Trends of Boards of Directors.... 1. There are more ________ than ________ 2. Boards are becoming _______ not ______ 3. Boards are becoming more ______ than _______

1. OUTSIDERS than INSIDERS 2. SMALLER not BIGGER 3. ACTIVE than PASSIVE

How long is a Long Term Objective? a. 2 - 5 years b. 6 - 10 years c. In the forseen future d. Yearly

A. 2 - 5 years

Companies are under constant pressure from stockholders to maintain top-line revenues, bottom-line net income, pay higher dividends, and grow 4%. To accomplish this, firms are faced with: a. Build, Borrow, Buy b. Construct, Create, Conforge c. Increase, Improve, Inflate d. Adjust, Aggrandize, Agree

A. Build, Borrow, Buy

What are the two conceptions of strategy? a. Deliberate & Emergent b. Deliberate & Convergent c. Convergent & Conventional d. Emergent & Conventional

A. Deliberate & Emergent

Which of the following is NOT a limitation to the Boston Consulting Group Matrix? a. Easy to classify b. Oversimplification c. Limited Variables d. No Temporal Qualities

A. Easy to Classify

When you acquire a business that is ___________ the consumer in product's value chain is an example of Backward Vertical a. Further Than b. Closer Than c. The Same Level As

A. Further Than

____________ refers to the voluntary standards in the environmental field a. ISO 14000 b. ISO 14001 c. ISO 14002 d. ISO 14003

A. ISO 14000

This involves selling off tangible assets... a. Liquidation b. Divestiture c. Retrenchment

A. Liquidation

What are international (multinational) firms? a. Organizations that do business operations across the national border b. Organizations that buy and sell with other companies across the national border c. Organizations that trade with other companies across the national border d. Organizations that do risky business operations across the national border

A. Organizations that do business operations across the national border

What is Market Penetration? a. Same stuff, same place, more advertising b. Same stuff, new place, same advertising c. New/improved stuff, same place, same advertising

A. Same stuff, same place, more advertising

What is Capital Budgeting another name for? a. The Investment Decision b. The Reporting & Recording Decision c. The Financing Decision d. The Dividend Decision

A. The Investment Decision

What does it mean to Borrow? a. Through Joint Ventures or Strategic Alliances b. Through Retrenchment or Liquidation c. Through the Board of Directors d. Through Liquidation and Divestiture

A. Through Joint Ventures or Strategic Alliances

_________________ answers the basic question, "what do we want to become?" a. Vision Statement b. Mission Statement C. Core Vision Statement

A. Vission Statement

Which is the statement that best describes unrelated (conglomerate) strategies? a. When you acquire a business where there are no obvious similarities to your core business b. When you acquire a business where there are obvious similarities to your core business c. When you acquire a business where there are similar customers to your core business d. When you acquire a business where there are different customers to your core business

A. When you acquire a business where there are no obvious similarities to your core business

This represents a template of factors that we need to continuously monitor and be aware so we can adjust... a. Diversification Strategies b. Remote Environment c. MIS d. Business Analytics

B. Remote Environment

What does EFE do?

Allows strategists to summarize and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information

What does the competitive profile matrix do?

Allows us to compare our company to competitors

Export of Goods & Services from the US account for ______% GDP a. 7% b. 13% c. 24% d. 32%

B. 13%

For each recommendation, you need how many recommendations? a. 2 financial and non-financial metrics b. 3 financial and nonfinancial metrics c. 4 financial and nonfinancial metrics d. 5 financial and non-financial metrics

B. 3 financial and nonfinancial metrics

How long is a Strategic Objective? a. 2 - 5 years b. 6 - 10 years c. In the forseen future d. Yearly

B. 6 - 10 years

What is the Environmental Management System (EMS)? a. A community or organization is required to put in place and implement a series of strategies and goals b. A community or organization is required to put in place and implement a series of practices and procedures c. A community or organization is required to remove and organize a series of strategies and goals d. A community or organization is required to remove and organize a series of practices and procedures

B. A community or organization is required to put in place and implement a series of practices and procedures

What is the MIS technique called that is designed to analyze huge volumes of data to help executives make decisions; something called predictive analytics, machine learning, or data mining. a. Business Venture b. Business Analytics c. Charting Data d. Data Perception

B. Business Analytics

When you acquire a business that is ___________ the consumer in product's value chain is an example of Forward Vertical a. Further Than b. Closer Than c. The Same Level As

B. Closer Than

_________________ can be Related & Unrelated a. Competitive Strategies b. Diversification Strategies c. Integration Strategies d. Defensive Strategies

B. Diversification Strategies

When a corporation sells off a business as an ongoing haul it is called... a. Liquidation b. Divestiture c. Retrenchment

B. Divestiture

What does it mean to Build? a. Grow externally b. Grow internally c. Grow slowly d. Grow rapidly

B. Grow internally

_________ refers to standards in fields such as environmental auditing, environmental performance evaluation, pollution prevention, environmental labeling, and life cycle assessment. a. ISO 14000 b. ISO 14001 c. ISO 14002 d. ISO 14003

B. ISO 14001

Which of the following are not a key to formulating strategies? a. Internal strengths and weaknesses b. Internal threats and opportunities c. External opportunities and threats d. External strengths and weaknesses e. Strategy formulation f. Mission

B. Internal threats & opportunities AND D. External strengths & weaknesses

________ is a declaration of an organizations reason for being. It answers the basic question "What is our business?" a. Vision Statement b. Mission Statement C. Core Vision Statement

B. Mission Statement

The name of individuals and groups of individuals who have a special stake or claim on the company... a. Stakekeepers b. Stakeholders c. Stakers d. Investors

B. Stakeholders

According to James Van Horne, Finance and Accounting activities can be categorized into 3 division areas. Which of the following does NOT belong? a. The Investment Decision b. The Reporting & Recording Decision c. The Financing Decision d. The Dividend Decision

B. The Reporting & Recording Decision

______________ specifies a firm's commitment to integrity, fairness, discipline, equal employment opportunity, teamwork, accountability, continuous improvement, or other exemplary attributes. a. Vision Statement b. Mission Statement C. Core Vision Statement

C. Core Vision Statement

Strategic Management is the are and science of ______, ______, and _________ cross-functional decisions that enable an organization to meet its objectives. Which of the following does not belong? a. Formulating b. Evaluating c. Deciding d. Implementing

C. Deciding

Which of the following is NOT a financial ratio: a. Liquidity b. Leverage c. Accountability d. Activity e. Profitability f. Growth

C. Accountability

This strategy aims to target a new market where competition is not yet present. a. Killer Whale Strategy b. Jon Vidu's Strategy c. Blue Ocean Strategy d. Circle Strategy

C. Blue Ocean Strategy

Which of these are NOT put in place ahead of time to monitor in order to know the effectiveness of a company... a. Metrics b. Measures c. Control Groups d. Benchmarks

C. Control Groups

What does the Boston Consulting Group Matrix do? a. Designed to enhance a multinational firm's efforts to formulate competitive advantage b. Designed to enhance a multinational firm's efforts to find strengths and weaknesses c. Designed to enhance a multinational firm's efforts to formulate strategies d. Designed to enhance a multinational firm's efforts to focus on what is most important

C. Designed to enhance a multinational firm's efforts to formulate strategies

What is considered the BEST measure of a firm's competitive position and overall attractiveness to investors? a. Profitability b. Net income c. Financial Condition d. Communication

C. Financial Condition

A Core Vision Statement is ________ & _________ a. Vigilant & Changing b. Fixed & Changing c. Fixed & Unchanging d. Viglinant & Unchanging

C. Fixed & Unchanging

If a merger or acquisition is not desired by both parties, a _________ will happen. This is the opposite of a friendly merger. a. Aggressive Takeover b. Bitter Takeover c. Hostile Takeover d. Truculent Takeover

C. Hostile Takeover

Backward Vertical, Forward Vertical, and Horizontal are examples of: a. Competitive Strategies b. Diversification Strategies c. Integration Strategies d. Defensive Strategies

C. Integration Strategies

What is Product Development? a. Same stuff, same place, more advertising b. Same stuff, new place, same advertising c. New/improved stuff, same place, same advertising

C. New/improved stuff, same place, same advertising

Which of the following is not a level to a strategy? a. Functional b. Corporate c. Private d. Business

C. Private

This is when we modify organizational structure or process in order to save money... a. Liquidation b. Divestiture c. Retrenchment

C. Retrenchment

What is the Environment? a. Political, and socio-cultural factors b. External factors c. Surroundings in which an organization operates d. Internal factors than an employee works in

C. Surroundings in which an organization operates

When you acquire a business that is ________ the product's value chain is an example of Horizontal a. Further Than b. Closer Than c. The Same Level As

C. The Same Level As

What is the BEST definition of globilization? a. The process of acquiring businesses world wide b. The process of selling products and services world wide c. The process of doing business worldwide d. The process of trading products and services worldwide

C. The process of doing business worldwide

What is another name for Mission Statement? a. Vigilant Statement b. Business Statement c. Final Statement d. Creed Statement

D. Creed Statement

What is the heart of MIS? a. The People b. Good Communication c. Expertise d. Database

D. Database

What can we use if we are not performing well? a. Competitive Strategies b. Diversification Strategies c. Integration Strategies d. Defensive Strategies

D. Defensive Strategies

What is the most widely used method for determining an organization's strengths and weaknesses in the investment, financing, and dividend areas? a. Financial Gains Analysis b. Financial Analysis c. Financial Strategic Analysis d. Financial Ratio Analysis

D. Financial Ratio Analysis

_________ & __________ refer to firms buying others to grow a. Joint Ventures & Strategic Alliances b. Retrenchment & Liquidation c. Liquidation & Divestiture d. Merger & Acquisition

D. Merger & Acquisition

The organization is a collection of businesses that may be balanced by increasing investment in some while reducing investment in others. This is known as... a. Internal Analysis b. Divestiture c. Equity d. Portfolio Approach

D. Portfolio Approach

What are the building blocks of competitive advantage? a. Quality, price, advertising, value b. Quality, price, advertising, stock c. Quality, price, customer responsiveness, advertising d. Quality, price, customer responsiveness, value

D. Quality, price, customer responsiveness, value

Which of the following is not included in global strategy: a. Designing b. Producing c. Marketing d. Restoring

D. Restoring

What reveals how a firm's operations impact the natural environment: a. OSHA b. FIMA c. Environmental Report d. Sustinability Report

D. Sustainability Report

Strategic Objectives, Long Term Objectives, and Annual Objectives are examples of: a. Objectives b. Tentative Objectives c. Logical Objectives d. Time Objectives

D. Time Objectives

How long is an Annual Objective? a. 2 - 5 years b. 6 - 10 years c. In the forseen future d. Yearly

D. Yearly

TRUE/FALSE The following are examples of remote environment: Economic ____ Political ____ Capital ______ Socio-cultural ______ Religious Beliefs ______ Technological _______

Economic - TRUE Political - TRUE Capital - False Socio-cultural - TRUE Religious Beliefs - False Technological - TRUE

Divestiture only applies to single-business corporations (TRUE / FALSE)?

FALSE Divestiture only applies to MULTI-business corporations

What are the basics for strategic decisions?

Intuition + Analysis

What occurs when 2 or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity and have shared equity ownership in the new equity?

Joint Venture

What are some of the reasons that Joint Ventures struggle?

Managers must collaborate daily, may not benefit customers who complain, could support unequally, may begin to compete more with one of the partners than the other

When measuring the effectiveness of a company, there are ________ & __________ measurements. (explain what they are)

Quantitative Measurements - Financial Qualitative - Nonfinancial

The following are examples of Environment ( True / False ) Social Setting ______ Air ______ Who is President ______ Land ______ The HR Depatement ______

Social Setting - FALSE Air - TRUE Who is President - FALSE Land - TRUE The HR Department - FALSE

What does the acronym SMART stand for?

Specific Measurable Agreed Upon Realistic Time Bound

What does SWOT analysis stand for?

Strengths, Weaknesses, Opportunities, Threats

(TRUE / FALSE) Cyber threats are more of a people threat than a technology threat...

TRUE

What is the biggest threat facing firms?

Too many people in too many organizations have too much access to too much information not needed to do their particular job

What does EFE Matrix stand for? a. Environmental Factor Evaluation b. Education For Employment c. Environmental Factor Elements d. External Factor Evaluation

d. External Factor Matrix