MGMT 3352
D
A strategy designed to reduce the scale or scope of a corporation's business is called a _________. a. Differentiation b. Growth c. Stability d. Retrenchment
True
True or False: A low-cost leadership strategy typically requires a company to have a large market share.
True
True or False: A market is efficient if the prices of financial instruments quickly reflect new public information made available to traders.
True
True or False: A negative aspect of a low-cost leadership strategy is low customer loyalty.
False
True or False: A product for which demand increases more relative to an increase in income has an income-elasticity coefficient less than 1.
False
True or False: According to Fisher effect, real interest rate is the sum of the nominal interest rate and the expected rate of inflation over a specific period.
False
True or False: All parties ranging from suppliers and employers to consumers who are affected by a company's activities are called its stockholders.
True
True or False: An excess money supply creates a borrower's market, forcing down interest rates and the cost of borrowing.
True
True or False: An offshore financial center is a territory whose financial sector features very few regulations and few, if any, taxes.
True
True or False: As the unpredictability of exchange rates increases, so does the cost of insuring against the accompanying risk.
False
True or False: Centralized decision making is beneficial when fast-changing national business environments put a premium on local responsiveness.
False
True or False: Companies usually create a single marketing plan to be used in all markets in which they sell their products.
True
True or False: Food and utilities are examples of income-inelastic products.
False
True or False: Increased regulation of national capital markets has been instrumental in the expansion of the international capital market.
False
True or False: Inflation in an economy can be controlled by lowering the interest rates.
True
True or False: Investor confidence in the value of a currency plays an important role in determining its exchange rate.
True
True or False: It is the nature of arbitrage to even out excessive fluctuation by destroying its own profitability.
True
True or False: Low unemployment rates can lead to higher inflation.
True
True or False: Regulations for the purpose of environmental protection generally increase short-term production costs.
True
True or False: Strategy is the set of planned actions that managers take to help a company meet its objectives.
True
True or False: Technical analysis employs charts of past trends in currency prices and other factors to forecast exchange rates.
True
True or False: The Bretton Woods Agreement was an accord among nations to create a new international monetary system based on the value of the U.S. dollar.
True
True or False: The forces of supply and demand determine currency prices.
False
True or False: The practice of insuring against potential losses that result from adverse changes in exchange rates is called currency arbitrage.
False
True or False: The primary disadvantage of the gold standard was that it increased exchange-rate risk.
True
True or False: Today's international monetary system remains in large part a managed float system.
False
True or False: Volatile currency values make it easier for firms to predict future earnings accurately in terms of the home-country currency.
C
Which of the following is a special ability of a company that competitors find extremely difficult to equal? a. Absolute advantage b. Economy of scale c. Core competency d. Comparative advantage
A
Which of the following is considered as a primary activity in an organization? a. Marketing and sales b. Human resource management c. Infrastructure d. Procurement
C
Which of the following strategies works best for an organization that practices mass production and mass-marketing? a. Differentiation strategy b. Retrenchment strategy c. Low-cost leadership strategy d. Focus strategy