Business Policy Exam Preparation Guide
Course Introduction
Business Policy is a capstone course that integrates knowledge from various functional areas of business to analyze and resolve complex organizational challenges. The course focuses on strategic management processes, including strategy formulation, implementation, and evaluation, in the context of dynamic business environments. Students learn to assess internal and external factors affecting organizational performance, develop strategic alternatives, and make decisions that align with long-term objectives. Emphasis is placed on case studies, decision-making frameworks, and real-world applications to prepare students for leadership roles in business strategy and policy development.
Recommended Textbook
Strategic Management Concepts and Cases 16th Edition by Fred R. David
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11 Chapters
1321 Verified Questions
1321 Flashcards
Source URL: https://quizplus.com/study-set/1473
Page 2
Chapter 1: The Nature of Strategic Management
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123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/29313
Sample Questions
Q1) The act of strengthening employees' sense of effectiveness by encouraging and rewarding them for participating in decision-making and exercising initiative and imagination is referred to as
A) authoritarianism.
B) proaction.
C) empowerment.
D) transformation.
E) delegation.
Answer: C
Q2) What are enduring statements of purpose that distinguish one business from other similar firms?
A) Policies
B) Mission statements
C) Objectives
D) Rules
E) Employee conduct guidelines
Answer: B
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Page 3
Chapter 2: The Business Vision and Mission
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) A firm's philosophy in a mission statement addresses the question, "What is the firm's distinctive competence?"
A)True
B)False
Answer: False
Q2) AT&T's mission statement focuses on telephones rather than on communication.
A)True
B)False
Answer: False
Q3) According to Drucker, a business' mission is the foundation for all of the following EXCEPT
A) priorities.
B) strategies.
C) plans.
D) employee wage rates.
E) work assignments.
Answer: D
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Page 4
Chapter 3: The External Assessment
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115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/29317
Sample Questions
Q1) A weak dollar means
A) lower exports and higher imports.
B) lower exports and lower imports.
C) lower exports and no effect on imports.
D) higher exports and higher imports.
E) higher exports and lower imports.
Answer: E
Q2) The critical success factors in a Competitive Profile Matrix and EFE Matrix include
A) internal but not external issues.
B) external but not internal issues.
C) both internal and external issues.
D) neither internal or external issues.
E) only non-quantifiable data.
Answer: C
Q3) The increase in high tech manufacturing base in the United States is reflected in the sharp increase in labor union membership in the last decade.
A)True
B)False
Answer: False
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Page 5
Chapter 4: The Internal Assessment
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123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/29318
Sample Questions
Q1) Synergy
A) is the 2 + 2 = 5 effect.
B) can result in powerful competitive advantages.
C) can be developed by an organization through planning.
D) exists when everyone pulls together as a team that knows what it wants to achieve.
E) all of the above
Q2) A form of customer analysis is administering customer surveys.
A)True
B)False
Q3) All of the following are basic activities of management EXCEPT A) staffing.
B) planning.
C) consolidating.
D) organizing.
E) motivating.
Q4) Motivation can explain why some people work hard and others do not.
A)True
B)False
Q5) Explain the resource-based view and its relation to strategic management.
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Chapter 5: Strategies in Action
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123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/29319
Sample Questions
Q1) In order to exploit common use of a well-known brand name, most companies favor related diversification strategies.
A)True
B)False
Q2) Market penetration, market development, and product development are intensive strategies.
A)True
B)False
Q3) Public enterprises generally cannot diversify into unrelated businesses or merge with other firms.
A)True
B)False
Q4) Which strategy would be effective when the stockholders of a firm can minimize their losses by selling the organization's assets?
A) Integration
B) Differentiation
C) Diversification
D) Cost leadership
E) Liquidation
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Chapter 6: Strategy Analysis and Choice
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119 Verified Questions
119 Flashcards
Source URL: https://quizplus.com/quiz/29320
Sample Questions
Q1) Forward integration would be an appropriate strategy for which of the following types of divisions in the Boston Consulting Group (BCG) Matrix?
A) Dogs
B) Failures
C) Question Marks
D) Cat
E) Star
Q2) All of the following are principles of good organizational governance, as established by BusinessWeek, EXCEPT
A) each director attends at least 75 percent of all meetings.
B) the audit, compensation and nominating committees are made up solely of outside directors.
C) each director owns a large equity stake in the company.
D) at least three directors are current or former company executives.
E) the CEO is not also the Chairperson of the Board.
Q3) Strategy analysis and choice largely involves making subjective decisions based on objective information.
A)True
B)False
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Page 8
Chapter 7: Implementing Strategies: Management, Operations,
and Human Resource
Issues
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116 Verified Questions
116 Flashcards
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Sample Questions
Q1) Horizontal consistency is less important than vertical consistency in developing annual objectives, but it still contributes to improved objectives.
A)True
B)False
Q2) The focus of restructuring is changing the way work is actually carried out.
A)True
B)False
Q3) Undesirable conduct such as distorting the records can be a result of overemphasis on achieving objectives.
A)True
B)False
Q4) Organizational change today should be viewed as a project or event rather than as a continuous process.
A)True
B)False
Q5) Conflict is highly unusual in well-run organizations.
A)True
B)False
Q6) Explain the nature and role of ESOPs in strategic management.
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Chapter 8: Implementing Strategies: Marketing,
Financeaccounting, Rd, and Mis
Issues
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117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/29322
Sample Questions
Q1) The percentage-of-sales method should be used for projecting the cost of goods sold in the income statements.
A)True
B)False
Q2) Multidimensional scaling is used in
A) determining the size of a new building.
B) determining the size of a new department.
C) evaluating the amount of high-tech equipment a firm needs.
D) perceptual mapping.
E) market segmentation.
Q3) Seemingly minor ethical and questionable actions can catapult these days into huge public relations problems for companies as a result of the monumental online social and business communications.
A)True
B)False
Q4) Name three finance and accounting activities especially important in strategy implementation.
Q5) The only costs involved in going public are the initial costs. A)True
B)False
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Chapter 9: Strategy Review, Evaluation, and Control
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122 Verified Questions
122 Flashcards
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Sample Questions
Q1) The strategy-evaluation process should
A) dominate decisions.
B) be complex.
C) be cumbersome.
D) foster mutual understanding and trust.
E) be highly restrictive.
Q2) Financial ratios are used to compare a firm's performance over different time periods, to compare the firm's performance to industry averages, and to compare a firm's performance with
A) overall business standards.
B) projected goals.
C) the performance of suppliers.
D) non-financial ratios.
E) the performance of competitors.
Q3) Small organizations require a more elaborate and detailed strategy-evaluation system, than large organizations do, because they are still evolving.
A)True
B)False
Q4) What are the three particular challenges that all strategists face today?
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Chapter 10: Business Ethics, Social Responsibility, and Environmental Sustainability
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117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/29314
Sample Questions
Q1) Ralph Nader believes that big firms like ExxonMobil have an obligation to help society cure its many ills.
A)True
B)False
Q2) Why should companies have policies addressing workplace romance?
Q3) A document that discloses to shareholders information about a firm's labor practices, product sourcing, energy efficiency, environmental impact, and business ethics practices is known as
A) a code of ethics.
B) a sustainability report.
C) an EMS.
D) ISO 14000.
E) green terminology.
Q4) The ISO 14000 family of standards concerns the extent to which a firm minimizes harmful effects on the environment caused by its activities and continually monitors and improves its own environmental performance.
A)True
B)False
Page 12
Q5) Discuss a code of business ethics and its role in an organization.
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Chapter 11: Global and International Issues
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126 Verified Questions
126 Flashcards
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Sample Questions
Q1) Since the 1980s, most countries, including the United States, have been steadily lowering their corporate tax rates.
A)True
B)False
Q2) In the United States, an amicable relationship is typically required before conducting business.
A)True
B)False
Q3) Explain some of the forces leading companies to pursue international operations.
Q4) Organizations that conduct business operations across national borders are called international firms or multinational corporations.
A)True
B)False
Q5) Approximately what percent of the world's population lives in the United States?
A) 5
B) 10
C) 15
D) 85
E) 95
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