51) What category of ratios measures a firm’s ability to meet maturing short-term obligations?
A) Leverage
B) Activity
C) Profitability
D) Growth
E) Liquidity
52) According to Roger Schroeder, which of the following is not a basic function of production management?
A) Transportation
B) Inventory
C) Capacity
D) Workforce
E) Quality
53) Which country has the highest average hourly pay for auto workers?
A) Japan
B) Germany
C) Canada
D) France
E) U.S.
54) ________ has been successful in determining R&D budget allocations.
A) Financing as many project proposals as possible
B) Budgeting for R&D about what competitors spend
C) Using the percentage of sales method
D) Deciding how many successful new products are needed
E) All of the above have been used
55) Which of the following ties all business functions together and provides the
basis for all managerial decisions?
A) Marketing
B) Management
C) Workforce
D) Information
E) Technology
56) Which of the following is the first step in developing an IFE Matrix?
A) Identifying the organization’s functions of business
B) Summing the weighted scores for each variable
C) Identifying the organization’s strengths and weaknesses
D) Determining the lead strategist
E) Determining the organization’s structure
57) The IFE Matrix should be ________ in multidivisional firms.
A) all-inclusive
B) constructed only for the major divisions
C) revised monthly
D) constructed for each division
E) developed before the EFE Matrix
58) Which of these strategies is effective when the number of suppliers is small
and the number of competitors is large?
A) Conglomerate diversification
B) Forward integration
C) Backward integration
D) Concentric diversification
E) Horizontal diversification
59) Which strategy seeks to increase market share of present products or services
in present markets through greater marketing efforts?
A) Backward integration
B) Market penetration
C) Forward integration
D) Market development
E) Product development
60) All of the following situations are conducive to market development except
A) when an organization competes in a high-growth industry.
B) when new untapped or unsaturated markets exist.
C) when an organization is very successful at what it does.
D) when an organization’s basic industry is becoming rapidly global in scope.
E) when an organization has excess production capacity.
61) Which strategy should an organization use if it competes in a no-growth or a
slow-growth industry?
A) Backward integration
B) Retrenchment
C) Unrelated diversification
D) Related diversification
E) Divestiture
62) Which of the following is not an example of when an organization should use
an unrelated diversification strategy?
A) When revenues derived from an organization’s current products or services
would increase significantly by adding the new unrelated, products.
B) When the new products have counter-cyclical sales patterns compared to an
organization’s present products.
C) When an organization competes in a highly competitive and/or a no-growth
industry.
D) When an organization’s present channels of distribution can be used to market the new products to current customers.
E) When the organization has a temporary management team.
63) Which chapter of the bankruptcy code applies to municipalities?
A) Chapter 9
B) Chapter 12
C) Chapter 8
D) Chapter 13
E) Chapter 7
64) The Family Farmer Bankruptcy Act of 1986 created
A) Chapter 13.
B) Chapter 9.
C) Chapter 8.
D) Chapter 7.
E) Chapter 12.
65) Under which strategy would you offer products or services to a wide range of
customers at the lowest price available on the market?
A) Low-cost
B) Differentiation
C) Best-value
D) Low-cost focus
E) Best-value focus
66) Under which condition would a differentiation strategy be especially effective?
A) When the industry has many different niches and segments, thereby allowing
a company to pick a competitively attractive niche suited to its own resources.
B) When technological change is fast paced and competition revolves around
rapidly evolving product features.
C) When few, if any, other rivals are attempting to specialize in the same target
segment.
D) When industry leaders do not consider the niche to be crucial to their own
success.
E) When the target market niche is large, profitable and growing
67) Which of the following is not a reason joint ventures fail?
A) The venture may benefit the partnering companies but may not benefit the
customers who then complain about poorer service or criticize the companies
in other ways.
B) The venture may begin to compete more with one of the partners than the
other.
C) Stakeholders from both partners are equally satisfied.
D) Managers who must collaborate daily in operating the venture are not in-
volved in forming or shaping the venture.
E) The venture may not be supported equally by both partners.
68) What was the largest acquisition completed in 2007?
A) CVS acquiring Caremark Rx
B) AT&T acquiring BellSouth Corp
C) Linde acquiring BOC Group
D) Johnson & Johnson acquiring Pjizen Consumer Healthcare
E) Porsche acquiring Volkswagon
69) Which section of the SWOT Matrix involves matching internal strengths with
external opportunities?
A) The ST cell
B) The WT cell
C) The WO cell
D) The SW cell
E) The SO cell
70) Which strategies aim at improving internal weaknesses by taking advantage of
external opportunities?
A) ST
B) WO
C) SO
D) WT
E) SW
71) How many cells are in a SWOT Matrix?
A) Eight
B) Nine
C) Two
D) Four
E) Six
72) Which of the following is not a step of a SWOT Matrix?
A) Match strengths with external opportunities and record the resultant SO strategies in the appropriate cell.
B) List the firm’s key external threats.
C) Match internal weaknesses with external threats and record the resultant WT
strategies.
D) List the firm’s external opportunities.
E) List the firm’s external weaknesses.
73) Which of these is not a SPACE Matrix quadrant?
A) Aggressive
B) Defensive
C) Conservative
D) Competitive
E) Offensive
74) In the SPACE analysis, what does a (+6, +3) strategy profile portray?
A) A strong industry
B) A stable environment
C) A weak industry
D) An unstable environment
E) A weak financial position
75) For what type of company is the BCG Matrix ideal for analyzing?
A) All companies
B) Large companies
C) Companies with more than one division
D) Companies with annual sales of less than $1 million
E) Companies with annual sales greater than $1 million
