competitive mcqs Flashcards
(154 cards)
1
Q
The concept that proposes private corporations have responsibilities to society that extend beyond making a profit is known as A) flexible responsibility. B) social responsibility. C) social flexibility. D) managerial responsibility.
A
B) social responsibility.
2
Q
Which one of the following is NOT one of the arguments against social responsibility as used by
economist Milton Friedman?
A) Spending money for social responsibility is spending the stockholder’s money for a general
social interest.
B) Businesses can actually do very little in terms of social responsibility.
C) Spending money on social responsibility is acting from motives other than economic and
may, in the long-run, cause harm to the very society the firm is trying to help.
D) There is one and only one social responsibility of business – to use its resources and engage
in activities designed to increase its profits so long as it stays within the rules of the game.
A
B) Businesses can actually do very little in terms of social responsibility.
3
Q
Who said that the social responsibility of business is a “fundamentally subversive doctrine” and
that the one social responsibility of business is “to use its resources and engage in activities
designed to increase its profits so long as it stays with the rules of the game…”?
A) Adam Smith
B) Edward Freeman
C) Archie Carroll
D) William C. Norris
E) Milton Friedman
A
E) Milton Friedman
4
Q
Economist Milton Friedman has argued that a business’s only responsibility is to
A) maximize profits and stay within the rules of the game.
B) sustain its market share.
C) promote the welfare of society.
D) satisfy its employees.
A
A) maximize profits and stay within the rules of the game.
5
Q
According to Carroll, the responsibility that management of a business organization has to
produce goods and services of value to society so that the firm may repay its creditors and
stockholders is called
A) legal responsibilities.
B) ethical responsibilities.
C) financial responsibilities.
D) economic responsibilities.
A
D) economic responsibilities.
6
Q
According to Carroll, the responsibilities defined by government in laws for management to obey are A) legal responsibilities. B) ethical responsibilities. C) financial responsibilities. D) economic responsibilities
A
A) legal responsibilities.
7
Q
The emphasis of strategic management is on
A) monitoring and evaluating external opportunities and threats in light of a corporation’s
strengths and weaknesses.
B) first line managers.
C) the short-run performance of the corporation.
D) an examination of the organization’s internal environment.
A
A) monitoring and evaluating external opportunities and threats in light of a corporation’s
strengths and weaknesses.
8
Q
The time horizon involved with regard to basic financial planning is usually A) one year. B) one quarter. C) more than five years. D) less than one month.
A
A) one year.
9
Q
difference between basic financial planning and forecast-based planning is
A) the time horizon is shorter in forecast-based planning.
B) forecast-based planning incorporates internal and external information.
C) basic financial planning utilizes consultants with sophisticated techniques.
D) basic financial planning utilizes scenarios and contingency strategies.
A
B) forecast-based planning incorporates internal and external information.
10
Q
In the final phase of strategic management, strategic information is available to
A) people throughout the organization.
B) the top management responsible for decision making.
C) middle management.
D) operational personnel.
A
A) people throughout the organization.
11
Q
When an organization is evaluating its strategic position, which is NOT one of the strategic
questions that an organization must ask itself?
A) Where is the organization now?
B) How can functional and operational areas be improved?
C) If no changes are made, where will the organization be in one year?
D) If the evaluation is negative, what specific actions should management take?
A
B) How can functional and operational areas be improved?
12
Q
Research of the planning practices of companies in the oil industry concludes that the real value
of modern strategic planning is more
A) in the planning.
B) in the strategic thinking and organizational learning.
C) in the resulting written strategic plan.
D) in the formality of the process.
A
B) in the strategic thinking and organizational learning.
13
Q
The regional trade association composed of Argentina, Brazil, Uruguay, and Paraguay is called A) EU. B) ASEAN. C) NAFTA. D) Mercosur.
A
D) Mercosur.
14
Q
Members of the European Union (EU) include all of the following EXCEPT A) Ireland. B) Malaysia. C) Belgium. D) France.
A
B) Malaysia.
15
Q
The integrated internationalization of markets and corporations is called A) normalization. B) economic integration. C) globalization. D) nationalization.
A
C) globalization.
16
Q
All of the following reflect categories of organizational risk as a result of climate change EXCEPT A) regulatory risk. B) supply chain risk. C) sustainability risk. D) reputational risk.
A
C) sustainability risk.
17
Q
The currency used to integrate the monetary systems of the European Union (EU) is called the A) peso. B) dollar. C) euro. D) franc.
A
C) euro.
18
Q
Which theory proposes that once an organization is successfully established in a particular
environmental niche, it is unable to adapt to changing conditions?
A) population ecology
B) institution
C) citizenship
D) strategic choice
A
A) population ecology
19
Q
The ability of an organization to reshape its environment is described by A) population ecology theory. B) theory institution. C) the strategic choice perspective. D) organizational learning theory.
A
C) the strategic choice perspective.
20
Q
According to Alfred Chandler
A) high-tech industries are defined by “paths of learning.”
B) companies spring from an individual entrepreneur’s knowledge, which then evolves into
organizational knowledge.
C) once a corporation has built its learning base to the point where it has become a core company
in its industry, entrepreneurial start-ups are rarely able to successfully enter.
D) organizational knowledge can become a competitive advantage.
E) All of the above
A
E) All of the above
21
Q
The ability of a corporation to shift from one dominant strategy to another is called A) strategy implementation. B) chaos formulation. C) contingency management. D) strategic flexibility.
A
D) strategic flexibility.
22
Q
The task environment
A) includes those elements or groups within an organization’s industry.
B) encompasses the physical working areas of the organization.
C) is an accounting of the many jobs within an organization.
D) is an advisory committee to top-management.
A
A) includes those elements or groups within an organization’s industry.
23
Q
Which one of the following is an example of a narrow scope in a mission? A) transportation (vs railroads) B) computers (vs office equipment) C) health care (vs hospitals) D) real estate (vs apartments)
A
B) computers (vs office equipment)
24
Q
A goal differs from an objective because it A) is open-ended. B) is quantified. C) specifies measurable results. D) is clearly specified.
A
A) is open-ended
25
An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its
behavior to reflect new knowledge and insights is a(n)
A) learning organization.
B) strategically managed corporation.
C) innovative organization.
D) hypercompetitive competitor
A) learning organization.
26
Which of the following is an example of an objective?
A) Diversify product line to appeal to more people.
B) Increase sales by 10% over last year.
C) Pay highest salaries to keep high quality employees.
D) Develop and sell quality appliances worldwide.
B) Increase sales by 10% over last year.
27
Which of the following is an example of a corporate strategy?
A) Diversify product line to appeal to more people.
B) Increase sales by 10% over last year.
C) Pay highest salaries to keep high quality employees.
D) Develop and sell quality appliances worldwide.
A) Diversify product line to appeal to more people.
28
The type of strategy which describes a company's overall direction in terms of its general attitude
toward growth and the management of its various businesses and product lines is
A) functional.
B) operational.
C) business.
D) product.
E) corporate.
E) corporate.
29
```
The type of strategy which achieves corporate and business unit objectives and strategies by
maximizing resource productivity is
A) functional.
B) operational.
C) business.
D) product.
```
A) functional.
30
All of the following reflect activities of a learning organization EXCEPT
A) experimenting with new approaches.
B) learning from its own experiences and past history.
C) solving problems systematically.
D) alienating competitors in the industry.
D) alienating competitors in the industry.
31
A large, multidivisional business has three levels in its hierarchy of strategy:
A) Corporate -- Business -- Functional.
B) Environmental -- Corporate -- Functional.
C) Environmental -- Enterprise -- Corporate.
D) Business -- Divisional -- Functional.
A) Corporate -- Business -- Functional.
32
Which of the following is an example of a policy?
A) Diversify product line to appeal to more people.
B) Increase sales by 10% over last year.
C) Pay highest salaries to keep high quality employees.
D) Develop and sell quality appliances worldwide
C) Pay highest salaries to keep high quality employees.
33
A program is
A) a detailed cost statement in terms of dollars.
B) A system of sequential steps.
C) A statement of the activities needed to accomplish a single-use plan.
C) A statement of the activities needed to accomplish a single-use plan.
34
```
A set of sequential steps or techniques that describe in detail how a particular task or job is to be
done is referred to as
A) a standard operating procedure.
B) a systems operating procedure.
C) a standard operating program.
D) a standard outside procedure.
```
A) a standard operating procedure.
35
The monitoring, evaluating, and disseminating of information from the external and internal
environments to key people within the corporation is referred to as
A) environmental scanning.
B) external scanning.
C) internal scanning.
D) strategy formulation.
A) environmental scanning.
36
The phenomenon that describes corporations as evolving through relatively long periods of
stability punctuated by relatively short bursts of fundamental change is known as
A) revolution.
B) equilibrium.
C) punctuated equilibrium.
D) logical incrementalism.
C) punctuated equilibrium.
37
```
Which of the following is NOT a characteristic of strategic decisions as mentioned in the text?
A) directive
B) consequential
C) rare
D) continuous
```
D) continuous
38
```
9- The S in S.W.O.T. stands for
A) strategies.
B) scanning.
C) strengths.
D) societal.
```
C) strengths.
39
According to Henry Mintzberg, the three most typical approaches to strategic decision-making
are
A) entrepreneurial, adaptive, and planning.
B) entrepreneurial, logical incrementalism, and planning.
C) logical incrementalism, strategic planning, and systematic scanning.
D) environmental scanning, formulation, and implementation
A) entrepreneurial, adaptive, and planning.
40
Board members who are not employed by the corporation, but handle the legal or insurance
needs of the firm and are thus not a true "outsider" are what kind of directors?
A) affiliated directors
B) family directors
C) retired directors
D) management directors
A) affiliated directors
41
```
The variables structure, culture, and resources pertain to the
A) external environment.
B) internal environment.
C) sociocultural forces.
D) task environment.
```
B) internal environment.
42
```
Amazon.com, founded by Jeff Bezos and reflecting his vision, is an example of which mode of
strategic decision-making?
A) adaptive
B) entrepreneurial
C) logical incrementalism
D) planning
```
B) entrepreneurial
43
IBM under CEO Louis Gerstner and his strategic decision to invest in services in 1993, is an
example of which mode of strategic decision-making?
A) adaptive
B) entrepreneurial
C) logical incrementalism
D) planning
D) planning
44
The mode of strategy formulation used when top management has a reasonably clear idea of the
corporation's mission and objectives, but it chooses to develop a series of tentative or partial
strategies instead of developing full-blown strategies is called
A) planning mode.
B) logical incrementalism.
C) entrepreneurial mode.
D) adaptive mode.
B) logical incrementalism.
45
The Strategic Management Model presents the following process of strategy formulation:
A) Objectives -- Policies -- Strategies -- Mission.
B) Mission -- Policies -- Strategies -- Objectives.
C) Policies -- Mission -- Strategies -- Objectives.
D) Vision -Mission -- Objectives -- Strategies -- Policies
D) Vision -Mission -- Objectives -- Strategies -- Policies
46
```
The concept that proposes private corporations have responsibilities to society that extend
beyond making a profit is known as
A) flexible responsibility.
B) social responsibility.
C) social flexibility.
D) managerial responsibility.
```
B) social responsibility.
47
Which one of the following is NOT one of the arguments against social responsibility as used by
economist Milton Friedman?
A) Spending money for social responsibility is spending the stockholder's money for a general
social interest.
B) Businesses can actually do very little in terms of social responsibility.
C) Spending money on social responsibility is acting from motives other than economic and
may, in the long-run, cause harm to the very society the firm is trying to help.
D) There is one and only one social responsibility of business -- to use its resources and engage
in activities designed to increase its profits so long as it stays within the rules of the game.
B) Businesses can actually do very little in terms of social responsibility.
48
```
The principle which proposes that punishment should be determined on a proportional basis to
the "crime" is called
A) compensatory justice.
B) retributive justice.
C) relevant justice.
D) distributive justice.
```
B) retributive justice.
49
```
The principle which argues that wrongs should be compensated in proportion to the offense
suffered is called
A) compensatory justice.
B) retributive justice.
C) relevant justice.
D) distributive justice.
```
A) compensatory justice.
50
Issues in affirmative action such as reverse discrimination are examples of conflicts between
A) compensatory and punitive justice.
B) retributive and distributive justice.
C) distributive and compensatory justice.
D) retributive and compensatory justice.
C) distributive and compensatory justice.
51
According to Cavanagh, using the ________ criterion, to determine if padding an expense
account is ethical or not one would ask if it optimizes the satisfactions of all stakeholders.
A) morality
B) utility
C) rights
D) justice
B) utility
52
Using the Golden Rule and never treating another human being simply as a means but always as
an end are the categorical imperatives of
A) Archie Carroll.
B) L. Kohlberg.
C) Joseph Badaracco.
D) Immanuel Kant.
D) Immanuel Kant.
53
Who said that the social responsibility of business is a "fundamentally subversive doctrine" and
that the one social responsibility of business is "to use its resources and engage in activities
designed to increase its profits so long as it stays with the rules of the game..."?
A) Adam Smith
B) Edward Freeman
C) Archie Carroll
D) William C. Norris
E) Milton Friedman
E) Milton Friedman
54
Economist Milton Friedman has argued that a business's only responsibility is to
A) maximize profits and stay within the rules of the game.
B) sustain its market share.
C) promote the welfare of society.
D) satisfy its employees.
A) maximize profits and stay within the rules of the game.
55
According to Carroll, the responsibility that management of a business organization has to
produce goods and services of value to society so that the firm may repay its creditors and
stockholders is called
A) legal responsibilities.
B) ethical responsibilities.
C) financial responsibilities.
D) economic responsibilities.
D) economic responsibilities.
56
According to Carroll, the responsibilities defined by government in laws for management to obey
are
A) legal responsibilities. B) ethical responsibilities.
C) financial responsibilities.
D) economic responsibilities.
A) legal responsibilities. B) ethical responsibilities.
57
According to Carroll, the responsibility that management of a business organization assumes
which are purely voluntary obligations are
A) legal responsibilities.
B) ethical responsibilities.
C) financial responsibilities.
D) economic responsibilities.
E) discretionary responsibilities.
E) discretionary responsibilities.
58
The term "social responsibility," according to Carroll, can be viewed as a combination of an
A) organization's ethical and discretionary responsibilities.
B) organization's legal and ethical responsibilities.
C) organization's economic and ethical responsibilities.
D) organization's financial and economic responsibilities.
E) organization's legal and discretionary responsibilities.
A) organization's ethical and discretionary responsibilities.
59
Carroll's four responsibilities listed in order of priority are
A) legal, economic, ethical, and discretionary.
B) legal, ethical, discretionary, and economic.
C) economic, legal, ethical, and discretionary.
D) economic, ethical, discretionary, and legal.
E) ethical, economic, legal, and discretionary.
C) economic, legal, ethical, and discretionary.
60
Society generally expects firms to work with employees and the company to plan for layoffs.
This is an example of which of Carroll's responsibilities?
A) economic
B) legal
C) justice
D) ethical
D) ethical
61
```
Providing day-care centers to employees is an example of which of Carroll's responsibilities?
A) economic
B) legal
C) justice
D) ethical
E) discretionary
```
E) discretionary
62
Friedman's position on social responsibility
A) proposes that a lack of social responsibility results in increased government regulations.
B) appears to be losing traction with business executives.
C) suggests that a lack of social responsibility reduces a firm's efficiency.
D) explains why firms are using their socially responsibility actions for competitive advantage.
B) appears to be losing traction with business executives.
63
```
As societal values evolve, it is likely that the ________ responsibilities of today may become the
________ responsibilities to tomorrow.
A) economic; ethical.
B) legal; ethical.
C) discretionary; ethical.
D) discretionary; economic.
```
C) discretionary; ethical.
64
Being socially responsibility
A) provides a company with a more positive overall reputation.
B) has opened doors in local communities.
C) has enhanced the company's reputation with consumers.
D) has resulted in cost savings to firms.
E) all of the above.
E) all of the above.
65
Which of the following is NOT one of the examples provided as an organizational benefit
received from being socially responsible?
A) They can attract outstanding employees who prefer working for a responsible firm.
B) They are more likely to be welcomed into a foreign country.
C) They are more likely to attract capital infusions from investors who view reputable companies
as desirable long-term investment.
D) They are guaranteed to maximize resource productivity and reduce the average
payback period of investment.
D) They are guaranteed to maximize resource productivity and reduce the average
payback period of investment.
66
```
The relationship among the board of directors, top management, and shareholders is referred to
as
A) corporate synergy.
B) corporate management.
C) corporate governance.
D) corporate strategy.
```
C) corporate governance.
67
According to a recent Harris Poll what percentage of U.S. adults believe that U.S. corporations
owe something to their workers and the communities in which they operate and that they should
sometimes sacrifice some profit for making things better for their workers and communities?
A) 95%
B) 5%
C) 50%
D) 75 %
A) 95%
68
```
In order for a business to be sustainable, it must satisfy which of Carroll's responsibilities?
A) economic
B) legal
C) ethical
D) discretionary
E) all of the above
```
E) all of the above
69
The Dow Jones Sustainability Index includes
A) environmental, economic, and quality sustainability.
B) industry, environmental, and economic sustainability.
C) environmental, economic, and social sustainability.
D) ethical, economic, and social sustainability.
C) environmental, economic, and social sustainability.
70
The first step in stakeholder analysis is to
A) identify primary stakeholders.
B) monitor what all the stakeholders want.
C) identify the stakeholders with an indirect stake in the corporation.
D) estimate the effect on each stakeholder group from any particular strategic decision.
A) identify primary stakeholders.
71
```
All of the following are considered primary stakeholders EXCEPT
A) customers.
B) governments.
C) employees.
D) shareholders.
```
B) governments.
72
```
All of the following are considered secondary stakeholders EXCEPT
A) governments.
B) competitors.
C) suppliers.
D) trade associations.
```
C) suppliers.
73
Board members who are not employed by the corporation, but handle the legal or insurance
needs of the firm and are thus not a true "outsider" are what kind of directors?
A) affiliated directors
B) family directors
C) retired directors
D) management directors
A) affiliated directors
74
Which of the following statements is true concerning secondary stakeholders?
A) Secondary stakeholders are those who have only an indirect stake in the corporation, but who
are affected by corporate activities.
B) Secondary stakeholders usually include non-governmental organizations (like Greenpeace)
and trade associations.
C) Because the corporation's relationship with each of these stakeholders is usually not covered
by any written or verbal agreement, there is room for misunderstanding.
D) Aside from competitors, secondary stakeholders are not usually monitored by the corporation
in any systematic fashion.
E) all of the above
E) all of the above
75
Which of the following companies was cited by the text as an example of a company which does
its best to consider its responsibilities to its primary and secondary stakeholders when making
strategic decisions?
A) McDonald's
B) Johnson & Johnson
C) Maytag
D) Microsoft
B) Johnson & Johnson
76
The Ethics Resource Center found that the percentage of employees who had engaged in one or
more unethical and/or illegal actions during the past year was
A) less than 1%.
B) 21%.
C) 48%.
D) 76%.
C) 48%.
77
```
The relationship among the board of directors, top management, and shareholders is referred to
as
A) corporate synergy.
B) corporate management.
C) corporate governance.
D) corporate strategy.
```
C) corporate governance.
78
According to a survey by the Ethics Resource Center, which was NOT cited as one of the most
common questionable behaviors that employees engage in?
A) cutting corners on quality
B) covering up incidents
C) abusing or lying about sick days
D) surfing the web on company time
D) surfing the web on company time
79
As opposed to rule-based countries, relationship-based countries tend to
A) be more transparent and have a higher degree of corruption.
B) be more transparent and have a lower degree of corruption.
C) be less transparent and have a lower degree of corruption.
D) be less transparent and have a higher degree of corruption.
D) be less transparent and have a higher degree of corruption.
80
Of the six values measured by the Allpot-Vernon-Lindzey Study of Values test, both U.S. and
British executives consistently score highest on ________ values and lowest on ________
values.
A) religious and theoretical; economic and social
B) religious and economic; political and social
C) economic and political; social and religious
D) social and religious; aesthetic and political
C) economic and political; social and religious
81
Rule-based governance
A) is generally found in developing nations.
B) relies on publicly verifiable information.
C) relies on implicit agreement.
D) is inherently nontransparent.
B) relies on publicly verifiable information.
82
Which of the following is an example of a mission statement?
A) Diversify product line to appeal to more people.
B) Increase sales by 10% over last year.
C) Pay highest salaries to keep high quality employees.
D) Develop and sell quality appliances worldwide.
D) Develop and sell quality appliances worldwide.
83
Which of the following is one of the most common reasons given by surveyed executives for
bending the rules to attain their objectives?
A) organizational performance required it
B) rules were ambiguous or out of date
C) everyone does it
D) pressure from others
E) all of the above
E) all of the above
84
Vice President Sherron Watkins used the ________ analogy to explain why executives at Enron
engaged in unethical and illegal actions.
A) borrowing earnings
B) Napoleon complex
C) Moral relativism
D) Frogs in boiling water
D) Frogs in boiling water
85
Some people claim that morality is relative to some personal, social, or cultural standard and that
there is no method for deciding whether one decision is better than another. This is called
A) ethical relativity.
B) moral philosophy.
C) comparative ethics.
D) cultural imperialism.
E) moral relativism.
E) moral relativism.
86
All of the following reasons provide rationale for unethical behavior EXCEPT
A) the impact of cultural norms and values.
B) differences in values between business people and key stakeholders.
C) ambiguous rules.
D) agreement among stakeholders and business people about what is ethical.
D) agreement among stakeholders and business people about what is ethical.
87
```
All of the following are one of the four types of moral relativism EXCEPT
A) naive relativism.
B) principled relativism.
C) role relativism.
D) social group relativism.
```
B) principled relativism.
88
Role relativism is based on the belief that
A) morality is relative to a particular culture.
B) all moral decisions are deeply personal and each person should be allowed to interpret
situations and act on his own moral values
C) social roles carry with them certain obligations.
D) morality is simply a matter of following the norms of an individual's peer group.
C) social roles carry with them certain obligations.
89
```
"When in Rome, do as the Romans do" reflects which type of moral relativism?
A) naive relativism
B) role relativism
C) principled relativism
D) cultural relativism
```
D) cultural relativism
90
```
Blindly following orders reflects which type of moral relativism?
A) naive relativism
B) role relativism
C) principled relativism
D) cultural relativism
```
B) role relativism
91
```
According to Kohlberg, the first level of moral development, characterized by concern for self, is
called
A) principled.
B) conventional.
C) essential.
D) preconventional.
```
D) preconventional.
92
```
According to Kohlberg, the second level of moral development, characterized by considerations
of society's laws and norms, is called
A) principled.
B) conventional.
C) essential.
D) preconventional.
```
B) conventional.
93
According to Kohlberg, the third level of moral development, characterized by a person's
adherence to an internal moral code, is called
A) principled.
B) conventional.
C) essential.
D) preconventional.
A) principled.
94
```
According to Kohlberg, in what stage of moral development do the majority of people in the
U.S. occupy?
A) principled stage
B) conventional stage
C) essential stage
D) preconventional stage
```
B) conventional stage
95
A code of ethics was important for two reasons. The first reason is that it clarifies company
expectations of employee conduct in various situations, and the second reason is
A) to reduce the burden on the judicial system.
B) that it makes clear that the company expects its people to recognize the ethical
dimensions in decision and actions.
C) to promote a high level of societal norms.
D) that it encourages individuals to strive for good citizenship and corporations to contribute
positively to society.
B) that it makes clear that the company expects its people to recognize the ethical
96
Managers who want to improve ethical behavior should take actions such as
A) communicate the code of ethics in training programs.
B) emphasize the code of ethics in performance appraisal systems.
C) follow a code of ethical behavior themselves.
D) communicate the code of ethics in policies and procedures.
E) all of the above
E) all of the above
97
Specific changes reported by CEOs in a survey by the Business Roundtable Institute for
Corporate Ethics included all of the following EXCEPT
A) enhanced internal reporting and communications.
B) ethics hotlines.
C) improved compliance procedures.
D) decreased number of whistleblowers.
D) decreased number of whistleblowers.
98
Ethics is defined as
A) formal codes that permit or forbid certain behaviors.
B) a general rule of conduct of personal behavior, based on religious or philosophical grounds.
C) consensually accepted standards of behavior for an occupation, trade, or profession.
D) imposing one's morality upon another.
C) consensually accepted standards of behavior for an occupation, trade, or profession.
99
```
Employees who report illegal or unethical behavior on the part of others are known as
A) stakeholders.
B) whistleblowers.
C) moral relativists.
D) retaliators.
```
B) whistleblowers.
100
```
Which company cancelled contracts with 23 factories that did not meet its child-labor standards
for suppliers?
A) Levi Strauss
B) Gap International
C) Motorola
D) Enron
```
B) Gap International
101
Morality is defined as
A) formal codes that permit or forbid certain behaviors.
B) a general rule of conduct of personal behavior, based on religious or philosophical
grounds.
C) consensually accepted standards of behavior for an occupation, trade, or profession.
D) imposing one's morality upon another.
B) a general rule of conduct of personal behavior, based on religious or philosophical
102
78) Law is defined as
A) formal codes that permit or forbid certain behaviors.
B) a general rule of conduct of personal behavior, based on religious or philosophical grounds.
C) consensually accepted standards of behavior for an occupation, trade, or profession.
D) imposing one's morality upon another.
A) formal codes that permit or forbid certain behaviors.
103
```
Which of the following is NOT a characteristic of strategic decisions as mentioned in the text?
A) directive
B) consequential
C) rare
D) continuous
```
D) continuous
104
```
Which of the following is NOT a major force in the societal environment?
A) political-legal forces
B) labor forces
C) economic forces
D) technological forces
```
B) labor forces
105
```
All of the following are technological breakthroughs already having a significant impact on
many industries EXCEPT
A) growing health consciousness.
B) alternative energy sources.
C) genetically altered organisms.
D) smart, mobile robots.
```
A) growing health consciousness.
106
```
Which societal force includes demographic trends?
A) political-legal forces
B) labor forces
C) economic forces
D) technological forces
E) sociocultural forces
```
E) sociocultural forces
107
```
Which of the following is NOT one of the eight sociocultural trends mentioned in the text?
A) Increasing environmental awareness.
B) Growth of the seniors market.
C) Decline of the mass market.
D) Increasing food consumption.
```
D) Increasing food consumption.
108
```
Which is the largest of the current US generations?
A) Baby Boomers
B) Woofies
C) Silent Generation
D) Gen X
```
A) Baby Boomers
109
```
A company with significant assets and activities in multiple countries is known as a(n) ________.
A) multinational corporation
B) repatriated corporation
C) transferable corporation
D) duplicate corporation
```
A) multinational corporation
110
```
When strategic managers have a willingness to reject unfamiliar as well as negative information
it is referred to as
A) strategic paralysis.
B) corporate inertia.
C) management indifference.
D) strategic myopia.
```
D) strategic myopia.
111
The issues priority matrix used in environmental scanning is composed of two axis or
dimensions which are labeled
A) importance to the industry and likelihood of occurrence.
B) industry growth rate and probable competitive position.
C) probability of occurrence and probable impact on the corporation.
D) probable industry attractiveness and business strength/competitive position.
C) probability of occurrence and probable impact on the corporation.
112
What are the key environmental trends that are judged to have a medium to high probability of
occurrence and a medium to high probability of impact on the corporation?
A) external strategic factors
B) scenarios
C) industry forces
D) strategic issues
A) external strategic factors
113
```
Industry analysis is primarily concerned with a corporation's
A) societal environment.
B) task environment.
C) sociocultural environment.
D) economic environment.
```
B) task environment.
114
58) According to Porter, the corporation is most concerned with
A) the intensity of competition within its industry.
B) the aggregate level of demand for a product line.
C) a market's position on its life cycle.
D) the amount of pressure from the societal environment.
A) the intensity of competition within its industry.
115
```
In addition to Porter's Five Forces, another force added in the text is
A) bargaining power of unions.
B) other stakeholders.
C) threat of prospects.
D) threat of shareholders.
```
B) other stakeholders.
116
The emphasis of strategic management is on
A) monitoring and evaluating external opportunities and threats in light of a corporation's
strengths and weaknesses.
B) first line managers.
C) the short-run performance of the corporation.
D) an examination of the organization's internal environment.
A) monitoring and evaluating external opportunities and threats in light of a corporation's
strengths and weaknesses.
117
The collective strength of the interaction of potential entrants, buyers, substitutes, suppliers, firm
rivalry, and other stakeholders determine
A) the level of government action in an industry.
B) the probable industry attractiveness and business strength position.
C) the ultimate profit potential in the industry measured in terms of long-run return on
invested capital.
D) the aggregate level of demand for a product line.
C) the ultimate profit potential in the industry measured in terms of long-run return on
118
```
According to Porter's model, a strong or high force is likely to reduce profits and can be regarded
as a(n)
A) benefit.
B) opportunity.
C) advantage.
D) threat.
```
D) threat.
119
```
According to Porter's model, a low force can enable the company to earn greater profits and can
be regarded as a(n)
A) benefit.
B) opportunity.
C) advantage.
D) threat.
```
B) opportunity.
120
Which of the following is NOT descriptive of the "threat of new entrants"?
A) Depends on the presence of entry barriers.
B) Have a desire to gain market share.
C) Depends on the reaction of existing competitors.
D) Does not impact industry attractiveness.
D) Does not impact industry attractiveness.
121
```
Which barrier to entry uses brand identification to force new entrants to spend heavily to
overcome existing customer loyalty?
A) rivalry among existing firms
B) switching costs
C) capital requirements
D) product differentiation
```
D) product differentiation
122
Which barrier to entry uses cost advantages associated with large size?
A) rivalry among existing firms
B) switching costs
C) cost disadvantages independent of size
D) capital requirements
E) economies of scale
E) economies of scale
123
Which barrier to entry is demonstrated by Microsoft's MS-DOS operating system?
A) government policy
B) switching costs
C) cost disadvantages independent of size
D) capital requirements
C) cost disadvantages independent of size
124
```
Intel was able to gain a significant cost advantage over its competitors in the production and sale
of microprocessors because of
A) capital requirements.
B) product differentiation.
C) switching costs.
D) economies of scale.
```
D) economies of scale.
125
Which of the following is NOT descriptive of intense rivalry among firms?
A) slow industry growth
B) high fixed costs
C) high exit barriers
D) few competitors or competitors that are roughly equal in size and power
E) product offerings that are highly differentiated
E) product offerings that are highly differentiated
126
Which of the following is NOT descriptive of "threat of substitute products or services"?
A) Substitute products appear to be different, but satisfy the same need as another product.
B) If the cost of switching is low, substitutes may have a strong effect on an industry.
C) Identifying substitutes is relatively easy since they look similar.
D) Possible substitute products or services may not appear to be easily substitutable.
C) Identifying substitutes is relatively easy since they look similar.
127
```
A sugar company that is worried that consumers may buy artificial sweetener instead of sugar is
concerned about the
A) threat of new entrants.
B) rivalry among existing firms.
C) threat of substitute products.
D) bargaining power of suppliers.
```
C) threat of substitute products.
128
```
When General Motors considers making its own automotive parts, Delphi Automotive Supply
Company would be concerned with the
A) bargaining power of suppliers.
B) bargaining power of buyers.
C) rivalry among existing competitors.
D) threat of substitutes.
```
B) bargaining power of buyers.
129
Which of the following is NOT descriptive of a high level of bargaining power of suppliers?
A) Substitutes are readily available.
B) The product or service is unique.
C) The supplier industry is dominated by a few companies, but sells too many.
D) The purchasing industry buys only a small portion of the supplier group's goods and services.
A) Substitutes are readily available.
130
Other software companies could not compete with Microsoft based on the hesitation of
consumers to try a new software. Which of Porter's forces does this reflect?
A) threat of new entrants
B) bargaining power of buyers
C) threat of substitutes
D) bargaining power of suppliers
D) bargaining power of suppliers
131
```
A relationship that illustrates the term complementor is
A) Microsoft and Intel.
B) General Motors and Ford.
C) Hewlett Packard and Compaq.
D) Gateway and Dell.
```
A) Microsoft and Intel.
132
According to the text, the strength of each of the six driving forces of industry competition varies
according to the
A) effectiveness of the strategic planning.
B) stage of industry evolution.
C) industry growth rate and competitive position.
D) changes in the political environment.
B) stage of industry evolution.
133
In a fragmented industry
A) no firm has large market share.
B) prices drop as new competitors enter the market.
C) economies of scale are used to reduce costs.
D) companies integrate to further reduce costs.
E) all of the above.
E) all of the above.
134
The U.S. major home appliance industry, including the companies of Maytag, Whirlpool,
General Electric, and Electrolux, is an example of an industry
A) that has evolved from an oligopoly to a monopoly.
B) in which each company maintained a distinct product line.
C) that was once fragmented, but now is consolidated.
D) that has experienced consistent, increasing sales.
C) that was once fragmented, but now is consolidated.
135
```
An industry dominated by a few large firms, all of which struggle with product differentiation, is
known as
A) multidomestic.
B) consolidated.
C) global.
D) indigenous.
```
B) consolidated.
136
```
In which type of international industry do corporations tailor their products to the specific needs
of consumers in a particular country?
A) consortium industry
B) global industry
C) indigenous industry
D) multidomestic industry
```
D) multidomestic industry
137
Which type of international industry manufactures and sells the same products with only minor
adjustments made for individual countries around the world?
A) consortium industry
B) global industry
C) indigenous industry
D) multidomestic industry
B) global industry
138
```
Which of the following is an example of a global industry?
A) retailing
B) banking
C) tires
D) insurance
```
tires
139
The two factors that tend to determine whether an industry will be primarily multidomestic or
primarily global are (1) the pressure for coordination within the MNCs operating in that industry
and (2):
A) the pressure for local responsiveness on the part of individual country markets.
B) the power of the local country governments to restrict MNC actions.
C) the need for brand management in the various MNCs operating within that industry.
D) the importance of differentiating with integrating mechanisms in regional cooperatives.
A) the pressure for local responsiveness on the part of individual country markets.
140
When the pressure for coordination is strong and the pressure for local responsiveness is weak
for multinational corporations within a particular industry, the industry will tend to become
A) global.
B) consolidated.
C) multidomestic.
D) risky.
A) global.
141
When the pressure for local responsiveness is strong and the pressure for coordination is weak
for multinational corporations in an industry, the industry will tend to become
A) global.
B) consolidated.
C) multidomestic.
D) risky.
C) multidomestic.
142
```
What is a set of business units or firms that "pursue similar strategies with similar resources"?
A) strategic group
B) collective collaboration
C) cooperative
D) integral association
```
A) strategic group
143
```
Which of the following is NOT one of the general strategic types?
A) initiators
B) reactors
C) analyzers
D) prospectors
```
A) initiators
144
Which strategic orientation is demonstrated by companies that have a limited product line and
focuses on improving the efficiency of their existing operations?
A) initiators
B) reactors
C) analyzers
D) prospectors
E) defenders
E) defenders
145
A company that operates in at least two different product-market areas in which one product is
stable and the other one is variable, reflects which strategic orientation?
A) initiators
B) reactors
C) analyzers
D) prospectors
C) analyzers
146
Companies with fairly broad product lines that focus on product innovations and market
opportunities, reflect which strategic orientation?
A) initiators
B) reactors
C) analyzers
D) prospectors
D) prospectors
147
Which of the following is an example of a mission statement?
A) Diversify product line to appeal to more people.
B) Increase sales by 10% over last year.
C) Pay highest salaries to keep high quality employees.
D) Develop and sell quality appliances worldwide.
D) Develop and sell quality appliances worldwide.
148
```
Corporations that lack a consistent strategy-structure-culture relationship reflect which strategic
orientation?
A) initiators
B) reactors
C) analyzers
D) prospectors
```
B) reactors
149
To succeed in a hypercompetitive industry, companies must be willing to
A) cut prices below marginal costs.
B) pursue market share instead of profits.
C) operate in the ethical gray zone.
D) cannibalize their own successful product lines.
D) cannibalize their own successful product lines.
150
```
A table which summarizes the key success factors within a particular industry is called a(n)
A) EFAS Table.
B) IFAS Table.
C) SFAS Table.
D) TOWS Matrix.
E) industry matrix.
```
E) industry matrix.
151
```
A formal program of gathering information on a company's competitors is referred to as
A) statistical modeling.
B) competitive intelligence.
C) competitive strategy.
D) quantitative forecasting.
```
B) competitive intelligence.
152
Which of the following is true in regards to competitive intelligence?
A) The Economic Espionage Act makes it illegal to steal any material that a business has taken
"reasonable efforts" to keep secret.
B) The Society of Competitive Intelligence Professionals urges strategists to stay within the law
and to act ethically when searching for information.
C) The Society of Competitive Intelligence Professionals states that illegal activities are foolish
because the vast majority of worthwhile competitive intelligence is available publicly via annual
reports, web sites, and libraries.
D) A number of firms hire consultants with questionable reputations who do what is necessary to
get information when the selected methods do not meet SPIC ethical standards or are illegal.
E) all of the above
E) all of the above
153
```
The primary activity of competitive intelligence is to
A) monitor competitors.
B) engage in corporate espionage
C) survey stakeholders
D) determine industry R & D statistics
```
A) monitor competitors.
154
A study of nearly 500 of the world's largest corporations indicated which of the following to be
the most widely practiced form of forecasting?
A) statistical modeling
B) scenario-writing
C) delphi technique
D) brainstorming
E) trend extrapolation
D) brainstorming
