Economics And Business Quiz: Strategy & Policy

30 Questions | Total Attempts: 1869

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Economics And Business Quiz: Strategy & Policy

Economics and business are quite interesting to study as they are living subjects. The quiz below tests your knowledge of different business conditions and policy-related issues. All the best in the quiz as you gain more knowledge.


Questions and Answers
  • 1. 
    The size of pricing and differentiation advantages between competitors decreases in which stage of the market life cycle?
    • A. 

      Introduction

    • B. 

      Growth

    • C. 

      Maturity

    • D. 

      Decline

  • 2. 
    Outback Steakhouse has developed a sophisticated quantitative model and found that there were positive relationships between employee satisfaction, customer satisfaction, and financial results. According to the text, this is an example of _____________________.
    • A. 

      Zero-sum relationship among stakeholders

    • B. 

      Stakeholder symbiosis

    • C. 

      Rewarding stakeholders

    • D. 

      Emphasizing financial returns

  • 3. 
    Crowdsourcing can be defined as _______________________.
    • A. 

      Using surveys to get supplier input.

    • B. 

      Using multiple sources for a firm's raw material inputs.

    • C. 

      Tapping the latent talent of the online crowd.

    • D. 

      Addressing strategic issues directly with managers and employees.

  • 4. 
    Interest rate increases have a ____________ impact on the residential home construction industry and a _______________ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items. 
    • A. 

      Positive; negligible

    • B. 

      Negative; negligible

    • C. 

      Negative; positive

    • D. 

      Positive; negative

  • 5. 
    Examples of ___________ include: “to be the happiest place on earth” (Disney), and “restoring patients to full life” (Medtronic).
    • A. 

      Vision statements

    • B. 

      Mission statements

    • C. 

      Strategic objectives

    • D. 

      Operational objectives

  • 6. 
    All of the following are types of information that a firm is required to disclose except _______________.
    • A. 

      Quarterly and annual filings of financial information

    • B. 

      Stock trading by insiders

    • C. 

      Details of new products under development

    • D. 

      Details of executive compensation packages

  • 7. 
    Recently, a knowledge worker’s loyalty to his or her employing firm has __________ compared to his or her loyalty to his or her profession and colleagues.
    • A. 

      Increased

    • B. 

      Decreased

    • C. 

      Remained the same

    • D. 

      No correlation when

  • 8. 
    According to the text, all of the following might make it difficult for entrepreneurial firms to effectively pursue a strategy of differentiation except ________________________.
    • A. 

      Incumbent firms are constantly seeking opportunities to specialize in market niches.

    • B. 

      Differentiation strategies are often too expensive to enact.

    • C. 

      It may be difficult for a young firm to establish a strong brand identity.

    • D. 

      Implementing superior new technologies may be challenging for entrepreneurial firms.

  • 9. 
    The sale of Boeing’s commercial aircraft and Microsoft’s operating systems in many countries enable these companies to benefit from _____________.
    • A. 

      Higher prices in their domestic markets.

    • B. 

      Economies of scale.

    • C. 

      Optimizing the location for many activities in their value chain.

    • D. 

      Reducing their exposure to currency risks.

  • 10. 
    To illustrate interrelationships among different segments of the general environment: The persistence of large U.S. trade deficits (_____________) has led to greater demand for protectionist measures, such as trade barriers and quotas (____________). These measures lead to higher prices for U.S. consumers and fuel inflation (_____________).
    • A. 

      Macroeconomic, sociocultural, political/legal

    • B. 

      Macroeconomic, political/legal, macroeconomic

    • C. 

      Macroeconomic, technological, macroeconomic

    • D. 

      Macroeconomic, global, macroeconomic

  • 11. 
      _____________ may be time consuming and, therefore, firms may forfeit the benefits of speed that growth through _____________ and _____________ can provide.
    • A. 

      Strategic alliances; joint ventures, internal development

    • B. 

      Internal development; mergers; acquisitions

    • C. 

      Strategic alliances; mergers; joint ventures

    • D. 

      Mergers; internal development; strategic alliances

  • 12. 
    Which of the following is not one of the functions of reward and incentive systems?
    • A. 

      They represent a poor means of influencing an organization’s culture

    • B. 

      They focus efforts on high-priority tasks

    • C. 

      They motivate high levels of individual and collective task performance

    • D. 

      They represent an effective control mechanism

  • 13. 
    ABC, Incorporated desires to have the most qualified people in every position throughout its organization. This is an example of a concern for _______________.
    • A. 

      Developing human capital

    • B. 

      Developing social networks

    • C. 

      Decreasing labor intensive training

    • D. 

      Leveraging organizational structure

  • 14. 
    Which of the following statements about the introduction stage of the market life cycle is true?
    • A. 

      It produces relatively large, positive cash flows.

    • B. 

      Strong brand recognition seldom serves as an important switching cost.

    • C. 

      Market share gains by pioneers are usually easily sustained for many years

    • D. 

      Products or services offered by pioneers may be perceived as differentiated simply because they are new.

  • 15. 
    Which of the following examples demonstrates how successful organizations manage their primary activities?
    • A. 

      By employing JIT inventory systems, Hewlett Packard has been able to cut lead time from five days to one

    • B. 

      Motorola has revised its compensation system to reward employees who learn a variety of skills

    • C. 

      National Steel improved its efficiency by consolidating, reducing the number of job classifications, and broadening worker responsibilities.

    • D. 

      Walmart implemented a sophisticated information system that resulted in reduced inventory carrying costs and shortened customer response times.

  • 16. 
    Netflix CEO Reed Hastings made this important observation about dealing with rivals:
    • A. 

      “In a highly competitive marketplace, firms must be paranoid about the multitude of potential rivals.”

    • B. 

      “You can afford to ignore rivals in small markets, but you can never ignore rivals in large markets, such as online video companies like YouTube.”

    • C. 

      “There are tens and maybe hundreds of start-ups who think that they are going to eat Netflix’s lunch. The challenge for a management team is to figure out which are real threats and which aren’t.”

    • D. 

      “Netflix’s position is so strong that I don’t worry about new entrants.”

  • 17. 
    Appreciation of the U.S. dollar will have the following impact on McDonald’s:
    • A. 

      Lower sales abroad because foreign customers cannot afford McDonald’s products.

    • B. 

      More transfer of ingredients from the U.S. to branches abroad to take advantage of the higher dollar.

    • C. 

      Lower profits, because foreign profits will be reduced when measured in dollars.

    • D. 

      No impact at all.

  • 18. 
    Cirrus aircraft, a leading manufacturer of small airplanes, sees a market opportunity and has decided to double its plant capacity over the next 2 years. What type of competitive action does this represent?
    • A. 

      A tactical action because the move is an attempt to fill a gap in service

    • B. 

      A strategic action because such a large plant expansion will require a major commitment of resources.

    • C. 

      A strategic action because the firm can easily reverse the action at any time, thus giving Cirrus more strategic flexibility.

    • D. 

      Botch B & C above.

  • 19. 
    Which of the following is not one of the characteristics of a contemporary control system?
    • A. 

      It is a key catalyst for an ongoing debate about underlying data, assumptions, and action plans.

    • B. 

      It must focus on constantly changing information that is strategically important.

    • C. 

      It circumvents the need for face-to-face meetings among superiors, subordinates, and peers.

    • D. 

      It generates information that is important enough to demand regular and frequent attention.

  • 20. 
    The least effective way to retain human capital is _______________.
    • A. 

      Encouraging employee identification with organizational missions and goals.

    • B. 

      Requiring employees to sign agreements that prevent them from working for competitors in the future

    • C. 

      Providing employees with a challenging and stimulating work environment

    • D. 

      Providing employees with financial and non-financial rewards and incentives

  • 21. 
    Divesting businesses can accomplish many different objectives. These include __________.
    • A. 

      Enabling managers to focus their efforts more directly on the firm’s core businesses.

    • B. 

      Providing the firm with more resources to spend on more attractive alternatives.

    • C. 

      Raising cash to help fund existing businesses.

    • D. 

      All of the above.

  • 22. 
          Although general administration is often viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following except ______________.
    • A. 

      Negotiating and maintaining ongoing relations with regulatory bodies.

    • B. 

      Effective information systems contributing significantly to a firm’s overall cost leadership strategy.

    • C. 

      Marketing expertise increasing a firm’s revenues and enabling it to enter new markets.

    • D. 

      Top management providing a key role in collaborating with important customers.

  • 23. 
    High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?
    • A. 

      Global

    • B. 

      Multidomestic

    • C. 

      Transnational

    • D. 

      Overall cost leadership

  • 24. 
    One of the reasons the Internet is eroding sustainable competitive advantage is __________.
    • A. 

      Incumbent firms are entering market segments that they previously considered to be too small.

    • B. 

      Nearly all competitors will have greater access to tools for managing costs making it hard for any one to achieve an advantage.

    • C. 

      Differentiators have been able to preserve the unique advantages that have always been the hallmark of their success.

    • D. 

      Firms are ignoring opportunities to offer high-end services in niche markets.

  • 25. 
    Informational control systems ask ______________.
    • A. 

      Is the organization “doing things right”?

    • B. 

      Is the organization “doing the right things”?

    • C. 

      Are rules and regulations being followed as information is processed?

    • D. 

      Is the organization’s environment a necessary and sufficient condition for success?