Q#1: Strategy formulation stage includes all of the following EXCEPT:
(A) Vision and mission
(B) Strength and weakness
(C) Opportunities and threats
(D) Annual objectives
Answer: (D) Annual objectives
Q#2: All of the following would represent possible threats to the ABC Company EXCEPT:
(A) Entrance of new competitors
(B) Improved buyer or supplier relationships
(C) New or revised regulations
(D) Slow industry/market growth
Answer: (B) Improved buyer or supplier relationships
Q#3: Exclusive access to high grade natural resources is an example of which of the following?
(A) Strength
(B) Weakness
(C) Opportunity
(D) Threat
Answer: (A) Strength
Q#4: Which of the following environment includes all those factors which affect the organization and itself affected by the organization?
(A) External environment
(B) Social environment
(C) Task environment
(D) Internal environment
Answer: (D) Internal environment
Q#5: Which of the following deals with the management of inputs, transformations and outputs that vary across industries and markets?
(A) Marketing
(B) Finance
(C) Operations
(D) Distribution
Answer: (C) Operations
Q#6: Intuition is based on all of the following factors EXCEPT:
(A) Past experiences
(B) Judgments
(C) Uncertainties
(D) Feelings
Answer: (C) Uncertainties
Q#7: In adapting to change an organization must monitor which of the following?
(A) Ongoing processes
(B) Internal and external events
(C) Timely changes
(D) All of the given options
Answer: (D) All of the given options
Q#8: All of the following statements are true about a firm’s mission statement EXCEPT:
(A) A mission statement does not directly contribute positively to financial performance
(B) A mission statement directly contributes positively to financial performance
(C) A mission statement should not provide useful criteria for selecting strategies
(D) Primary reason is not to attract customers
Answer: (B) A mission statement directly contributes positively to financial performance
Q#9: Which of the following is an example of a narrow mission?
(A) We sell packaged pineapples
(B) The firm deals in beverages
(C) Stationery is our product
(D) Company manufactures food items
Answer: (A) We sell packaged pineapples
Q#10: Which of the following statement is TRUE about a Vision statement of a company?
(A) It concentrates on future
(B) It defines the customers
(C) It identifies critical processes
(D) It informs about performance level
Answer: (A) It concentrates on future
Q#11: A statement that presents a firm’s big picture, desired end-state is called:
(A) Corporate philosophy statement
(B) Company creed
(C) Vision statement
(D) Mission statement
Answer: (C) Vision statement
Q#12: All of the following fall under Pricing decisions EXCEPT:
(A) Discounts
(B) Credit terms
(C) Markups
(D) Dealer relations
Answer: (D) Dealer relations
Q#13: Financial ratios are helpful in analyzing the relationship among which of the following?
(A) All assets and liabilities
(B) Profits and costs
(C) All functional areas of business
(D) Sales and profitability
Answer: (C) All functional areas of business
Q#14: “True measure of a good strategist is ability to solve problems” refers to:
(A) Managing by objectives
(B) Managing by extrapolation
(C) Managing by crisis
(D) Managing by subjectives
Answer: (C) Managing by crisis
Q#15: A system of several rites connected with a single occasion is:
(A) Myth
(B) Ceremonial
(C) Saga
(D) Legend
Answer: (B) Ceremonial
Q#16: Which category of ratios measures ability to meet short-term obligations?
(A) Profitability
(B) Leverage
(C) Liquidity
(D) Activity
Answer: (C) Liquidity
Q#17: Which directs developing new products before competitors?
(A) Marketing
(B) Opportunity analysis
(C) Research and development
(D) Management
Answer: (C) Research and development
Q#18: All of the following are outputs of a system EXCEPT:
(A) Tables
(B) Charts
(C) Data
(D) Graphs
Answer: (C) Data
Q#19: Defensive strategies include all EXCEPT:
(A) Retrenchment
(B) Acquisition
(C) Divestiture
(D) Liquidation
Answer: (B) Acquisition
Q#20: Statement describing why organization exists is called:
(A) Strategy
(B) Vision statement
(C) Mission statement
(D) Functional tactics
Answer: (C) Mission statement