Economics And Business Quiz: Strategy & Policy

30 Questions | By LeeTraylor | Updated: Mar 21, 2022 | Attempts: 2283

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Economics And Business Quiz: Strategy & Policy - Quiz

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?