Subject: Business    / Management

1. When there is little fit between astrategic alternative under study and the corporate culture, which of thefollowing would NOT be one of the considerations taken into account?<?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />

A. Takea chance on bypassing the culture by implementing the strategic alternative

B. Manage around the culture

C. Try to change the culture to fit thestrategy

D. Change the strategy to fit the culture

E. Ignore the corporate culture

Answer: __________

2. MichaelE. Porter advises that a division with strong marketing abilities, product engineering, creative flair, strong capabilityin basic research, and a corporate reputation for quality or technologicalleadership should use a __________ strategy to enhance its prospects forsuccess.

A. focus

B. differentiation

C. overall cost leadership

D. vertical growth

Answer: __________

3. Anorganization skilled at creating, acquiring, and transferring knowledge andmodifying its behavior to reflect new knowledge and insights is a<?xml:namespace prefix = st1 ns = “urn:schemas-microsoft-com:office:smarttags” />:

A. learningorganization.

B. strategicallymanaged corporation.

C. contingencymanagement entity.

D. logicalincrementalism company.

Answer: __________

4. Whatstrategic planning process does research suggest to be the best formultidivisional corporations operating in a relatively stable environment?

A. Top-downstrategic planning

B. Bottom-upstrategic planning

C. Concurrentstrategic planning

D. Functionalarea strategic planning

Answer: __________

5. A linked setof value-creating activities beginning with basic materials provided bysuppliers and ending with distributors getting the final product into the handsof the ultimate consumer is called a:

A. value chain.

B. continuum ofsustainability.

C. strategiccapability.

D. fullyintegrated activity set.

E. strategicgroup.

Answer: __________

6. Pricereductions, promotion cutbacks, and competitor dropouts characterize the__________ stage of the business life cycle.

A. introduction

B. growth

C. maturity

D. decline

E. closing

Answer: __________

7. Exxon, BP,and Amoco are popular brands of gasoline. These large companies produce essentially the same product and sell itat essentially the same price. As such,these companies are part of the following industry structure type: __________________.

A. pure monopoly

B. purecompetition

C. pureoligopoly

D. monopolisticcompetition

E. differentiatedoligopoly

Answer: __________

8. When oneunit of a company sells a product to another unit, the price charged is the__________ price.

A. delivered

B. transfer

C. uniform

D. transaction

Answer: __________

9. A stocktrading company that had its offices in the WorldTradeCenter in 2001 could haveused a(n) __________ to make different assumptions about market events, such asfuture bull markets, bear markets, day trader legislation, dot-com companiesdriving the market, etc. There is little chance that it would have assumed adeadly terrorist attack.

A. SWOT analysis

B. societalaudit

C. industryforecast

D. scenarioanalysis

E. competitiveanalysis

Answer: __________

10. Voice of thecustomer (VOC) measurements can be collected using:

A. complaintforms.

B. customershopping habits.

C. valueanalyses.

D. servicevendor analyses.

E. demographicanalysis.

Answer: __________

11. The followinginformation pertains to Voyager Company: total assets $50,000; total currentliabilities $10,000; total expenses $60,000; total liabilities $15,000; totalrevenues $80,000. If invested capital isdefined as total assets, the return on investment is:

A. 160 percent.

B. 25 percent.

C. 57 percent.

D. 40 percent.

Answer: __________

12. Bull Companymanufactures a part for its production cycle. The costs per unit of this part are: direct material $3; direct labor $5; variablefactory overhead $4; and fixed factory overhead $2. The fixed factory overhead costs areunavoidable. Assuming no other use ofthe facilities, the highest price that Bull Company should pay for this part ina make-buy decision is:

A. $12.

B. $14.

C. $8.

D. $11.

Answer: __________

13. The primarydifference between variable and absorption costing is the accounting for:

A. beginninginventory costs.

B. fixedmanufacturing overhead.

C. selling andadministrative costs.

D. variablemanufacturing overhead.

Answer: __________

14. Which of thefollowing is NOT a major benefit of budgeting?

A. It compelsmanagers to think ahead.

B. It providesdefinite expectations that are the best framework for judging subsequent


C. It aidsmanagers in coordinating their efforts, so that the objectives of theorganization as

a wholematch the objectives of its parts.

D. It allowsmanagers to operate day-to-day, reacting to current events rather than planning

for thefuture.

Answer: __________

15. The mostcommon treatment of end-of-year immaterial factory overhead variances is to:

A. ignore them.

B. allocate thevariances among inventories and cost of goods sold.

C. capitalizethe variances as a cost of finished goods inventory.

D. close thevariances to cost of goods sold in the current period.

Answer: __________

16. Jeffery believes that his actions strongly affect theresults achieved in his organization. As the result, Jeffery is described ashaving a __________, which tends to make Jeffery __________.

A. low internal locus of control; highly self-motivated andactive politically

B. high internal locus of control; eager for information andlikely to seek leadership


C. strong belief in Theory X; dogmatic

D. strong belief in Theory Y; highly autocratic

E. charismatic leadership style; most comfortable when hiswork situation is highly


Answer: __________

17. _______ conversation refers to people talking across boundariesand hierarchical levels about the group o organization’s vision, criticalstrategic themes, and the values that can help achieve desired outcomes.

A. Purpose-directed

B. Strategic

C. Empowered

D. Leader

E. Group

Answer: __________

18. Sam, a chief information officer, spent two yearsdeveloping a web-based purchasing system that has been operating verysuccessfully for several months. Under his former boss, it was to be the modelfor a broader web-based system to meet several corporate needs. Tom, the newexecutive vice president, and Sam’s new boss, doesn’t understand technology,believes that the Internet is a fad, and that Sam shouldn’t waste timeexpanding web-based systems to other corporate needs. Sam is very frustrated byTom’s decision. To address this issue, Sam needs to:

A. lead with love.

B. lead with fear.

C. develop his ownemotional intelligence.

D. expand his own capacity for leadership.

E. try to shift Tom’s mental model.

Answer: __________

19. Sally is a leader who assesses the situation and adapts herbehavior and style to match her followers’ needs, maturity, training, andcohesion. She can best be described as:

A. task oriented.

B. relationshiporiented.

C. focused on extroversion.

D. using the contingency approach.

E. using the path-goal theory.

Answer: __________

20. Which of the following theories places emphasis on thecharacteristics of the follower in determining the leadership style used?

A. Contingency Theory

B. Follower Theory

C. Path-Goal Theory

D. Situational Theory

Answer: __________

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