Strategic Management Quiz#3, MCQs

NOTE: Attempt all Questions to see the Result at the bottom of this page.

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  1. 1)

    Retained earnings are obtained by subtracting which of the two items?

    • A) Dividends from Net Income
    • B) EBIT from Net Income
    • C) Taxes from EBIT
    • D) Interest Expense from EBIT

  2. 2)

    While evaluating a strategy, corrective actions are almost always needed EXCEPT:

    • A) When external and internal factors have not significantly changed
    • B) When the firm is not progressing satisfactorily toward objectives
    • C) When the firm has not achieved the stated organizational goals
    • D) When there are differences between desired results and achieved results

  3. 3)

    Outbound logistics includes which one of the following?

    • A) Receiving, storing, inventory control, transportation planning
    • B) Machining, packaging, assembly, equipment maintenance, testing
    • C) Activities required to get the finished product at the customers
    • D) Activities that maintain and enhance the product's value

  4. 4)

    Which of the following is NOT a key financial ratio?

    • A) Earnings per share
    • B) Production growth
    • C) Asset growth
    • D) Profit margin

  5. 5)

    Which of the following statement is TRUE about ‘Controls’ used in strategy evaluation stage?

    • A) They are strategy-oriented
    • B) They are action-oriented
    • C) They are control-oriented
    • D) They are information-oriented

  6. 6)

    In BCG matrix, the size of circle corresponding to a division represents what?

    • A) Relative market share of that division
    • B) Financial strength of that division
    • C) Relative market growth of that division
    • D) Revenue generated by that division

  7. 7)

    If the capital and human resources of a firm are necessary to manage expanded operations and it also has excess production capacity, which would be an effective strategy for the firm to pursue?

    • A) Market Penetration
    • B) Market Development
    • C) Divestiture
    • D) Retrenchment

  8. 8)

    Which of the following is TRUE about Strategy formulation?

    • A) It manages forces during the action
    • B) It requires good intuitive and analytical skills
    • C) It is primarily an operational process
    • D) It requires special motivation and leadership skills

  9. 9)

    Identify a situation in which a divisional structure by geographic area is considered to be most appropriate.

    • A) Organizations have similar branch facilities located in widely dispersed areas
    • B) An organization offers only a limited number of products or services
    • C) Strict control and attention to product lines are needed
    • D) An organization has many skilled managers

  10. 10)

    All of the following are included in Rumelt's criteria for evaluating strategies EXCEPT:

    • A) Consonance
    • B) Advantage
    • C) Consistency
    • D) Clarity