Business Policy
Exam Practice Tests
Course Introduction
Business Policy is a capstone course that emphasizes the formulation, implementation, and evaluation of cross-functional decisions to achieve organizational objectives. It integrates knowledge from various business disciplines such as management, marketing, finance, and operations, enabling students to analyze complex business situations and develop strategic solutions. Through case studies and real-world scenarios, students learn to assess internal and external environments, identify strategic alternatives, and understand the ethical and global implications of business decisions. This course prepares students for decision-making roles by cultivating analytical thinking, leadership, and problem-solving skills essential for sustainable competitive advantage in dynamic business environments.
Recommended Textbook
Strategic Management Creating Competitive Advantages 9th Edition by
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12 Chapters
1223 Verified Questions
1223 Flashcards
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Page 2
Gregory G Dess Dr
Chapter 1: Strategic Management: Creating Competitive Advantages
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106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/7454
Sample Questions
Q1) Some benefits of sustainability projects include
A) reducing risks.
B) lagging behind regulations.
C) displeasing communities.
D) ignoring employee morale.
Answer: A
Q2) Social responsibility is the idea that organizations are only accountable to stockholders.
A)True
B)False
Answer: False
Q3) The case for sustainability projects needs to be made on the basis of a more holistic and comprehensive understanding of all the ________ benefits.
A) measurable and unmeasurable
B) financial and physical
C) tangible and intangible
D) measurable and physical
Answer: C
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Chapter 2: Analyzing the External Environment of the Firm:
Creating Competitive Advantages
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) Scenario analysis draws on a range of disciplines and interests.It is a more ________ approach to forecasting.
A) basic
B) fundamental
C) in-depth
D) superficial
Answer: C
Q2) Buyer power will be greater when
A) the products purchased are highly differentiated.
B) it is concentrated or when a buyer group purchases large volumes relative to seller sales.
C) the industry product is very important to the quality of the buyer end products or services.
D) there are high switching costs.
Answer: B
Q3) In the SWOT framework,the Strengths and Weaknesses are external environmental factors to consider.
A)True
B)False
Answer: False
Page 4
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Chapter 3: Assessing the Internal Environment of the Firm
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) Which of the following would be most difficult to assess?
A) the liquidity position of a firm
B) market share growth
C) the legitimacy and reputation of a firm
D) the efficiency with which a firm utilizes its assets
Answer: C
Q2) To be considered strategic resources that contribute competitive advantage,they must have several characteristics.Which of the following is not one of these?
A) rare
B) valuable
C) inexpensive to imitate
D) costly to substitute
Answer: C
Q3) Products and services that are difficult to imitate help firms sustain their profitability.
A)True
B)False
Answer: True
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Chapter 4: Recognizing a Firm's Intellectual Assets: Moving
Beyond a Firm's Tangible Resources
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) The management of intellectual property involves all of the following except A) copyrights and trademark.
B) contracts with confidentiality and non-compete clauses.
C) converting explicit knowledge to tacit knowledge.
D) patents.
Q2) The more reliance a firm has on intellectual capital,the closer its book value will be to its market value.
A)True
B)False
Q3) Protecting company intellectual property can be difficult because employees become disgruntled and patents
A) are expensive.
B) cannot be protected.
C) expire.
D) roll over.
Q4) Sharing knowledge and information throughout the organization can be a means of A) conserving products and services.
B) continuing with outdated products.
C) conserving resources.
D) overusing email.
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Chapter 5: Business-level Strategy: Creating and Sustaining Competitive Advantages
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) A firm can achieve differentiation through all the following means except A) improving brand image.
B) offering lower prices to frequent customers.
C) better customer service.
D) adding additional product features.
Q2) A pitfall of integrated overall cost leadership and differentiation is underestimating the expenses associated with coordinating value-creating activities in the extended value chain.
A)True
B)False
Q3) Outside the flight experience itself,airlines are generating revenue by charging fees for credit cards,frequent-flyer programs,and access to airport lounges.This serves to A) increase competition.
B) expand the profit pool.
C) provide better customer service.
D) satisfy regulators.
Q4) What are the pitfalls of the overall cost leadership strategy? Provide an example for each pitfall and explain why it is a pitfall.
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Chapter 6: Corporate-level Strategy: Creating Value Through Diversification
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) Which of the following is not a way a corporation tries to create shareholder value in using portfolio strategy approaches?
A) Portfolio analysis provides a snapshot of the businesses in the portfolio of the corporation.
B) The expertise and analytical resources in the corporate office provide guidance in determining firm attractiveness for acquisition.
C) The corporate office is not able to provide financial resources to the business units on favorable terms.
D) The corporate office can provide high-quality review and coaching for the individual businesses.
Q2) The antitakeover tactic,________,is when a firm offers to buy shares of their stock from a company (or individual)planning to acquire their firm at a higher price than the unfriendly company paid for it.
A) golden parachute
B) poison pill
C) greenmail
D) scorched earth
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Chapter 7: International Strategy: Creating Value in Global Markets
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) A domestic corporation considering international expansion for the first time typically will follow which of these paths?
A) It will start by implementing a wholly owned foreign subsidiary.
B) It will implement a low-risk, low-control strategy such as exporting.
C) It will license or franchise its operations.
D) It will form a joint venture with a reputable foreign producer.
Q2) ________ are fees that a multinational receives from a foreign licensee in return for its use of intellectual property (trademark,patent,trade secret,technology).
A) Transfer prices
B) Dividends
C) Royalties
D) Intra-corporate inflows
Q3) Which of the following is not a source of political risk in many countries?
A) the presence of social unrest
B) the presence of the rule of law
C) the presence of military turmoil
D) the presence of violent conflict
Q4) What is a beachhead strategy and how does it contribute to a company's decision to internationalize?
Page 9
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Chapter 8: Entrepreneurial Strategy and Competitive Dynamics
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94 Verified Questions
94 Flashcards
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Sample Questions
Q1) ________ is a value required when an opportunity is attractive long enough for it to be successfully developed and deployed.
A) Value creating
B) Durable
C) Achievable
D) Affordable
Q2) According to the textbook,which of the following is not a common new entry strategy?
A) imitative new entry
B) adaptive new entry
C) pioneering new entry
D) proactive new entry
Q3) Southwest Airlines began its no frills,no meals strategy in the late 1960s as a direct assault on the major carriers of the day.What type of competitive action does this represent?
A) A strategic action because it includes a refinement of an existing strategy.
B) A tactical action because it is a refinement of an existing strategy.
C) A strategic action because it was a breakthrough innovative offer.
D) A guerrilla offensive because it is fast and will surprise its rivals.
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Q4) Explain what a pioneering new entry means and when it is appropriate to use it.
Chapter 9: Strategic Control and Corporate Governance
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91 Verified Questions
91 Flashcards
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Sample Questions
Q1) Individual rationality ________ organizational rationality.
A) is a good indicator of B) will ensure
C) is often the opposite of D) does not always guarantee
Q2) Rule-based controls are least appropriate in organizations with which one of the following characteristics?
A) Environments are stable and predictable.
B) Employees are highly skilled and independent.
C) There is consistency in product and service.
D) The risk of malfeasance is extremely high.
Q3) Ritz-Carlton hotels employees meet each day for 15 minutes to share stories about how they went the extra yard to meet customer needs.What is the intended outcome of these activities?
A) Stories help build a customer-centric culture.
B) Storytime gives employees an opportunity to vent their frustrations.
C) Storytime demonstrates to employees the importance of articulating explicit goals and objectives.
D) Storytime gives management more control over employees.
Q4) When would single-loop control systems be most appropriate?
Page 11
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Chapter 10: Creating Effective Organizational Designs
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86 Verified Questions
86 Flashcards
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Sample Questions
Q1) A strategy of related diversification requires a need to reorganize only around product lines.This leads to a divisional structure.
A)True
B)False
Q2) Ambidextrous organizational designs are useful for firms that wish to create modest,incremental innovations at the same time as dramatic,breakthrough innovation.This is done by maintaining adaptability and alignment of values and coordination across organizational activities.
A)True
B)False
Q3) A virtual organization may be most appropriate for firms
A) whose strategies require merging technologies.
B) whose product life cycles are just beginning.
C) who have no need to get to market quickly with new offers.
D) who have no need to meet competitive pressures.
Q4) In a simple structure where the owner manager makes most of the important decisions,extensive rules and regulations are used to maintain order.
A)True
B)False
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Chapter 11: Strategic Leadership: Creating a Learning
Organization and an Ethical Organization
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104 Verified Questions
104 Flashcards
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Sample Questions
Q1) Expert power is derived from
A) organizationally conferred decision-making authority.
B) manager access, control, and distribution of information that is not freely available to everyone in an organization.
C) referent power.
D) leader capability and knowledge in a particular field.
Q2) Which of the following does not explain why organizations are prone to inertia and slow to change?
A) personal time constraints
B) political barriers
C) vested interests in the status quo
D) entry barriers
Q3) Poor organizational design by leaders can result in all the following except
A) lack of understanding of responsibility and accountability among managers.
B) inadequate or inappropriate budgeting and control systems.
C) reward systems that do not motivate individuals toward desired organizational goals.
D) teams, systems, and organizational processes that facilitate implementation.
Q4) What are the five key elements of a learning organization and why are they important?
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Chapter 12: Managing Innovation and Fostering Corporate
Entrepreneurship
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93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/7465
Sample Questions
Q1) MiO,brought the Kraft Heinz Company many new awards including the 2011 Walmart Innovation of the Year Award and the 2012 Gold Medal Edison Innovation Award.What kind of innovation did MiO represent?
A) incremental innovation
B) technology innovation
C) process innovation
D) product innovation
Q2) Which kind of risk taking requires that a company borrow heavily or commit a large portion of its resources in order to grow?
A) business risk taking
B) financial risk taking
C) personal risk taking
D) technological risk taking
Q3) The innovation dilemma known as "seeds versus weeds" refers to
A) choosing to pursue radical rather than incremental innovations.
B) choosing to pursue product rather than process innovations.
C) promoting organizational stars onto innovation teams rather than involving all employees in innovation efforts.
D) choosing to pursue investment in one innovative idea over another.
Page 14
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