Business

SET#1 QUESTIONS

1. (p. 3) Which of the following is an element of a firm’s remote external environment?

A. Competition

B. Suppliers

C. Government agencies

D. Economic and social conditions

Difficulty: Easy

Learning Objective: 1

2. (p. 3) Which of the following is NOT a part of a firm’s immediate external environment?

A. Technological development

B. Competitors

C. Suppliers

D. Government agencies

Difficulty: Easy

Learning Objective: 1

3. (p. 3) The immediate external environment includes:

A. Competitors

B. S. B. U. s

C. Divisions

D. Management

Difficulty: Easy

Learning Objective: 1

4. (p. 3) The _______ comprises economic and social conditions, political priorities and technological developments, all of which must be anticipated, monitored, assessed and incorporated into the executive’s decision making.

A. Remote external environment

B. Task environment

C. Operating environment

D. Internal environment

Difficulty: Easy

Learning Objective: 1

5. (p. 3) The set of decisions and actions resulting in the formulation and implementation of plans designed to achieve a company’s objectives is defined as:

A. Strategic policy

B. Business policy

C. Strategic management

D. Tactics

Difficulty: Medium

Learning Objective: 2

6. (p. 3) Strategic management compromises nine critical tasks. Which of the following is NOT one of the tasks?

A. Development of annual objectives compatible with grand strategies

B. Assessment of the company’s external environment

C. Selection of a particular set of long-term objectives and grand strategies

D. Evaluate the success of the strategic process

Difficulty: Medium

Learning Objective: 2

7. (p. 4) Strategic management involves the _____, directing, _____ and controlling of a company’s strategy-related decisions and actions.

A. Financing; marketing

B. Planning; financing

C. Marketing; planning

D. Planning; organizing

Difficulty: Medium

Learning Objective: 2

8. (p.4) Large-scale, future-oriented plans, for interacting with the competitive environment to achieve company objectives refers to its

A. Strategy

B. Goals

C. Competitive analysis

D. Dynamic policies

Difficulty: Easy

Learning Objective: 2

9. (p. 4) A strategy is a company’s

A. Game plan

B. Pricing policy

C. Value statement

D. Long-term objective

Difficulty: Easy

Learning Objective: 2

10. (p. 4) A(n) _____ reflects a company’s awareness of how, when and where is should compete, against whom it should compete and for what purpose it should compete.

A. Vision

B. Organizational structure

C. Strategy

D. Long-term objective

Difficulty: Medium

Learning Objective: 2

11. (p. 4) Strategic issues require which level of management decisions?

A. Operative

B. Top

C. Front-line

D. Middle

Difficulty: Easy

Learning Objective: 2

12. (p. 5) Strategic decisions ostensibly commit the firm for

A. 1-2 years

B. The short term

C. 3-4 years

D. A long time, typically five years

Difficulty: Medium

Learning Objective: 2

13. (p. 4-5) Some business decisions are strategic and therefore deserve strategic management attention. Which of the following is one of the six strategic issue dimensions?

A. Requires front-line employee decisions

B. Is not likely to have a significant impact on long-term prosperity of the firm

C. Necessitates considering factors in the firm’s external environment

D. Is spontaneous

Difficulty: Medium

Learning Objective: 3

14. (p. 5) Which of the following applies to strategic issues?

A. Consider only the firm’s internal environment

B. Are future oriented

C. Concern allocation of insignificant amounts of company resources

D. Do not have long-term impact on the firm’s prosperity

Difficulty: Easy

Learning Objective: 3

15. (p. 5) Strategic decisions are based on what managers _____, rather than on what they _____.

A. Forecast; know

B. React to; anticipate

C. Know; forecast

D. Compromise with; analyze

Difficulty: Hard

Learning Objective: 3

16. (p. 5) In a turbulent and competitive free enterprise environment, a firm will succeed only if it takes a(n) ____ stance towards change.

A. Reactive

B. Anti-regulatory or anti-government

C. Proactive

D. Vision and not mission

Difficulty: Medium

Learning Objective: 3

17. (p. 6) Typically how many strategic decision levels are in the corporate decision-making hierarchy?

A. 5 or more

B. 4

C. 3

D. 2

Difficulty: Easy

Learning Objective: 4

18. (p. 6) To a large extent, attitudes at the corporate level reflect the concerns of

A. Stockholders and society at large

B. Top managers

C. The CEO

D. The federal government

Difficulty: Medium

Learning Objective: 4

19. (p. 6) The top of the decision-making hierarchy comprises all of these EXCEPT

A. Board of directors

B. Front-line managers

C. The CEO

D. Administrative officers

Difficulty: Easy

Learning Objective: 4

20. (p. 6) In a multi-business firm, ______ -level executives determine the businesses in which the firm should be involved.

A. Business

B. Functional

C. Corporate

D. Operative

Difficulty: Medium

Learning Objective: 4

21. (p. 6) At Office Supply, Inc., ____ -level managers would be responsible for determining whether the company should be involved in home furnishings or electronic appliance businesses, where as ____ -level managers would be responsible for determining how the firm will compete in the selected product-market arena.

A. Business; corporate

B. Corporate; functional

C. Functional; business

D. Corporate; business

Difficulty: Hard

Learning Objective: 4

22. (p. 6) In the middle of the decision-making hierarchy is the _____ level.

A. Corporate

B. Functional

C. Business

D. Strategic

Difficulty: Medium

Learning Objective: 4

23. (p. 6) Who determines the basis on which a company can compete in the selected product-market arena?

A. Functional-level strategic managers

B. Corporate-level strategic managers

C. Business-level strategic managers

D. Operational managers supervising operative

Difficulty: Medium

Learning Objective: 4

24. (p. 6) Which of these managers tries to identify and secure the most profitable and promising market segment?

A. Functional managers

B. Corporate managers

C. Business managers

D. Operative

Difficulty: Medium

Learning Objective: 4

25. (p. 6) The functional level of decision making is characterized by:

A. The board of directors deriving corporate goals

B. Managers of product, geographic and functional areas

C. The CEO developing a company profile

D. Business managers interpreting the mission into operational objectives

Difficulty: Medium

Learning Objective: 4

26. (p. 6) Which strategic level is typically responsible for developing annual objectives and short-term strategies?

A. Functional level

B. Corporate level

C. Business level

D. Board of Directors level

Difficulty: Medium

Learning Objective: 4

27. (p. 6) Which of the following is NOT a level in the decision-making hierarchy of a firm?

A. Business

B. Corporate

C. Operative

D. Functional

Difficulty: Medium

Learning Objective: 4

28. (p. 6) Functional managers are typically responsible for which of the following?

A. Annual objectives

B. Tactics

C. Corporate goals

D. Mission

Difficulty: Medium

Learning Objective: 4

29. (p. 6) Whereas corporate and business-level managers center their attention on _____, managers at functional-level center their attention on ____.

A. Operational issues; strategic issues

B. Doing things right; doing the right things

C. Entrepreneurial mode; adaptive mode

D. Doing the right things; doing things right

Difficulty: Hard

Learning Objective: 4

30. (p. 6) Decisions at which level of management tend to be more value-oriented and conceptual?

A. Functional

B. Corporate

C. Operative

D. Business

Difficulty: Medium

Learning Objective: 4

31. (p. 7) Dividend policies are decided at the

A. Corporate level

B. Business level

C. Functional level

D. Operational level

Difficulty: Medium

Learning Objective: 4

32. (p. 7) Which level of decisions encompasses greater risk, cost and profit potential?

A. Business

B. Lower echelon

C. Corporate

D. Functional

Difficulty: Medium

Learning Objective: 4

33. (p. 8) Corporate-level decisions are characterized by:

A. Decreased risk

B. Doing things right

C. Short-time horizons

D. Greater profit

Difficulty: Hard

Learning Objective: 4

34. (p. 7) Decisions concerning plant location, distribution channels, geographic coverage and market segmentation are typically made at:

A. The corporate level

B. The business level

C. The functional level

D. The front-line operational level

Difficulty: Medium

Learning Objective: 4

35. (p. 8) The degree to which participation, responsibility, authority and discretion in decision-making are specified is called:

A. Informality

B. Formality

C. Functional tactic

D. Dynamic mode

Difficulty: Medium

Learning Objective: 4

36. (p. 8) Which of these is usually positively correlated with the cost, comprehensiveness, accuracy and success of planning?

A. Greater formality

B. Functional structure

C. Organizational matrix

D. Functional tactics

Difficulty: Medium

Learning Objective: 4

37. (p. 8) According to Henry Mintzberg, very large firms typically use the _____ mode of strategic management.

A. Adaptive

B. Entrepreneurial

C. Informal

D. Planning

Difficulty: Medium

Learning Objective: 4

38. (p. 8) Henry Mintzberg identified a mode which he associates with medium-sized firms in relatively stable environments. This is referred to as a(n) ____ mode.

A. Entrepreneurial

B. Adaptive

C. Business

D. Planning

Difficulty: Medium

Learning Objective: 4

39. (p. 8) Firms that are basically under the control of a single individual and produce a limited number of products/services are referred to as following ______ mode.

A. Entrepreneurial

B. Intrapreneurial

C. Managerial

D. Corporate

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