Quizr: Strategic Management Quiz#3, MCQs

Strategic Management Quiz#3, MCQs

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

The Timer has started 10:00

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
Right Answer is the option "A"

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
Right Answer is the option "A" Corrective actions are almost always needed except when (1) external and internal factors have not significantly changed and (2) The firm is progressing satisfactorily toward achieving stated objectives.

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
Right Answer is the option "C" Outbound Logistics: The activities required to get the finished product at the customers: warehousing, order fulfillment, transportation, distribution management

4)

Which of the following is NOT a key financial ratio?
- A) Earnings per share
- B) Production growth
- C) Asset growth
- D) Profit margin
Right Answer is the option "B"

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
Right Answer is the option "B" Controls need to be action-oriented rather than information-oriented

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
Right Answer is the option "D"

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
Right Answer is the option "B"

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
Right Answer is the option "B"

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
Right Answer is the option "A" A divisional structure by geographic area is appropriate for organizations whose strategies need to be tailored to fit the particular needs and characteristics of customers in different geographic areas. This type of structure can be most appropriate for organizations that have similar branch facilities located in widely dispersed areas

10)

All of the following are included in Rumelt's criteria for evaluating strategies EXCEPT:
- A) Consonance
- B) Advantage
- C) Consistency
- D) Clarity
Right Answer is the option "D" Four Criteria (Richard Rummelt): • Consistency • Consonance • Feasibility • Advantage