Management Theory Quiz Questions

50 Questions | By Xtmmadhatter | Updated: Mar 21, 2022 | Attempts: 397

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1.

According to J.C Collins and J.L. Porras, a well conceived vision consists of two major components:
- A.
  
  A 10-30 year BHAG and vivid descriptions
- B.
  
  Core values and core purpose
- C.
  
  Core ideology and envisioned future
- D.
  
  Core values and vivid descriptions
- E.
  
  Core purpose and vivid descriptions
2.

According to Henry Mintzberg, very large firms typically ______ mode of strategic management.
- A.
  
  Adaptive
- B.
  
  Entrepreneurial
- C.
  
  Corporate
- D.
  
  Planing
- E.
  
  Business
3.

The ideal strategic management team includes decision makers from:
- A.
  
  All three company levels (the corporate, business, and functional)
- B.
  
  Just the corporate level
- C.
  
  Just the corporate and business level
- D.
  
  Just the functional and corporate level
- E.
  
  Just the top management
4.

Which of the following is a generic strategy option?
- A.
  
  Integration
- B.
  
  Diversification
- C.
  
  Differentiation
- D.
  
  Retrenchment
- E.
  
  Concentration
5.

Market development is an example of a:
- A.
  
  Generic strategy
- B.
  
  Grand strategy
- C.
  
  Functional level strategy
- D.
  
  SBU strategy
- E.
  
  BHAG
6.

A strategy is a company's
- A.
  
  "game plan"
- B.
  
  Pricing policy
- C.
  
  Net income
- D.
  
  Long-term objective
- E.
  
  Short-term objective
7.

Strategic issues:
- A.
  
  Require large amounts of the firm's resources
- B.
  
  Often affect the firm's long-term prosperity
- C.
  
  Usually have multifunctional or multibusiness consequences
- D.
  
  Are future oriented
- E.
  
  All of the above
8.

An accurate assessment of the impact of strategy formulation on organizational performance requires not only financial evaluation criteria bu also nonfinancial evaluation criteria. This statement is:
- A.
  
  True
- B.
  
  False
9.

Broad, precedent-setting decisions that guide or substitute for repetitive or time-sensitive managerial decision making are called:
- A.
  
  Goals
- B.
  
  Strategies
- C.
  
  Objectives
- D.
  
  Policies
- E.
  
  Game plans
10.

_____ is are concerned with tracking a strategy as it is being implemented, detecting problems or changes in its underlying premises, and making necessary adjustments.
- A.
  
  Postaction control
- B.
  
  Strategic control
- C.
  
  Internal analysis
- D.
  
  Functional tactics
- E.
  
  Strategy formulation
11.

The results that an organization seeks over a multiyear period are its _____.
- A.
  
  Grand strategies
- B.
  
  Long-term objectives
- C.
  
  Long-term strategies
- D.
  
  Short term goals
- E.
  
  Functional tactics
12.

The general plan of major actions through which a firm intends to achieve its long-term objectives is called its:
- A.
  
  Corporate plan
- B.
  
  Action plan
- C.
  
  Grand strategy
- D.
  
  Mission statement
- E.
  
  Functional tactic
13.

______ are detailed statements of the 'means' of activities that will be used to achieve short-term objectives and establish competitive advantage.
- A.
  
  Generic strategies
- B.
  
  Policies
- C.
  
  Functional tactics
- D.
  
  Grand strategies
- E.
  
  Mission statements
14.

A ________ manager's principal responsibility is to implement or execute the firm's strategic plans.
- A.
  
  Functional level
- B.
  
  Corporate level
- C.
  
  Business level
- D.
  
  Organizational level
- E.
  
  SBU level
15.

______ is defined as the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company's objectives.
- A.
  
  Strategic policy
- B.
  
  Business policy
- C.
  
  Strategic management
- D.
  
  A functional tactic
- E.
  
  None of the above
16.

An implication of viewing strategic management as a process is that strategy formulation and implementation are:
- A.
  
  Sequential
- B.
  
  Simultaneous
- C.
  
  Random
- D.
  
  Partial
- E.
  
  Reversible
17.

All business firms exist in an open system. They affect and are affected by external conditions that are largely beyond their control. This statement is:
- A.
  
  True
- B.
  
  False
18.

Compared to business-level and functional-level decisions, corporate-level decisions:
- A.
  
  Tend to be more value oriented
- B.
  
  Tend to be more conceptual
- C.
  
  Tend to be less concrete
- D.
  
  All of the above
- E.
  
  None of the above
19.

______ level decisions involve action-oriented operational issues and are relatively short range and low risk
- A.
  
  Corporate
- B.
  
  Functional
- C.
  
  Business
- D.
  
  Board
- E.
  
  Stockholder
20.

Which of the following is not an economic goal that guides the strategic direction of almost every business organization?
- A.
  
  Survival
- B.
  
  Growth
- C.
  
  Profitability
- D.
  
  Market share
- E.
  
  None of the above
21.

Competitors are an example of
- A.
  
  Inside stakeholders
- B.
  
  Outside stakeholders
- C.
  
  Inside stockholders
- D.
  
  Outside stockholders
- E.
  
  None of the above
22.

In combination, the cost of agency problems and the cost of actions taken to minimize agency problems, are called:
- A.
  
  Corporate and social responsibility costs
- B.
  
  Agency costs
- C.
  
  Organizational costs
- D.
  
  Moral hazard problem costs
- E.
  
  Adverse selection costs
23.

As a business grows or is forced by competitive pressures to alter its product-market- technology.
- A.
  
  The mission statement should remain unchanged
- B.
  
  Redefining the mission statement may be necessary
- C.
  
  Redefining the mission statement is mandatory
- D.
  
  The mission statement remains unaffected
- E.
  
  None of the above
24.

No matter how profit is measured of defined, _______ is the clearest indication of a firm's ability to satisfy the principle claims and desires of employees and stockholders
- A.
  
  Profit over the long term
- B.
  
  Profit over the short term
- C.
  
  Return on investment
- D.
  
  The number of lawsuits brought against the firm
- E.
  
  The price to earnings ration of the firm's common stock
25.

Which of the following is usually an assumed goal of a corporation?
- A.
  
  Growth
- B.
  
  Variety of product
- C.
  
  Short-term profits
- D.
  
  Asset proliferation
- E.
  
  Growth through acquisition