Resource-Based View, Competitive Strategy & Strategic Alliances | MCQ
1. Which of the following is a characteristic of inimitable resources?
A) Easily available in the market
B) Difficult to copy by competitors
C) Can be bought instantly
D) Does not contribute to competitive advantage
✅ Answer: B) Difficult to copy by competitors
2. What is the primary test of inimitability?
A) How long a resource lasts
B) How difficult it is to copy
C) How many competitors use it
D) How much profit it generates
✅ Answer: B) How difficult it is to copy
3. Which of the following is NOT a type of inimitability?
A) Path dependency
B) Casual ambiguity
C) Economic deterrence
D) Market saturation
✅ Answer: D) Market saturation
4. Physical uniqueness in RBV refers to resources that:
A) Cannot be easily replicated
B) Are widely available
C) Have no impact on competition
D) Are intangible in nature
✅ Answer: A) Cannot be easily replicated
5. What is an example of path dependency as a source of competitive advantage?
A) A company that developed unique expertise over decades
B) A company that buys a widely available raw material
C) A startup entering a new market
D) A company switching to a cost leadership strategy
✅ Answer: A) A company that developed unique expertise over decades
6. Economic deterrence occurs when:
A) A company makes a large investment that discourages competitors
B) A firm outsources its operations to a third party
C) Competitors easily copy a firm’s technology
D) A company reduces its costs to gain market share
✅ Answer: A) A company makes a large investment that discourages competitors
7. Which of the following tests assesses whether a firm retains the profits generated by a resource?
A) Test of durability
B) Test of appropriability
C) Test of inimitability
D) Test of substitutability
✅ Answer: B) Test of appropriability
8. What is the key focus of the Resource-Based View (RBV)?
A) Market competition
B) External industry factors
C) Internal firm resources and capabilities
D) Short-term cost reduction
✅ Answer: C) Internal firm resources and capabilities
9. According to the RBV, a firm achieves competitive advantage if its resources are:
A) Valuable, rare, inimitable, and non-substitutable (VRIN)
B) Expensive, flexible, scalable, and standardized
C) Large, well-marketed, and easily accessible
D) Imitable, non-valuable, and widely available
✅ Answer: A) Valuable, rare, inimitable, and non-substitutable (VRIN)
10. Which resource characteristic is most critical for long-term sustainable competitive advantage?
A) Substitutable
B) Imitable
C) Inimitable
D) Short-lived
✅ Answer: C) Inimitable
11. What are the four grand corporate strategic alternatives?
A) Stability, Expansion, Retrenchment, Combination
B) Cost leadership, Differentiation, Focus, Innovation
C) Vertical integration, Horizontal integration, Diversification, Divestment
D) None of the above
✅ Answer: A) Stability, Expansion, Retrenchment, Combination
12. Which strategy focuses on expanding the company’s activities?
A) Retrenchment strategy
B) Stability strategy
C) Growth strategy
D) Pause/proceed with caution strategy
✅ Answer: C) Growth strategy
13. Which of the following is an example of retrenchment strategy?
A) Mergers and acquisitions
B) Selling off a business unit
C) Expanding into international markets
D) Increasing R&D investment
✅ Answer: B) Selling off a business unit
14. A company following an inside-out strategy focuses on:
A) Adapting to external market trends
B) Leveraging its internal strengths to create strategy
C) Copying competitors' strategies
D) Ignoring internal capabilities
✅ Answer: B) Leveraging its internal strengths to create strategy
15. Which framework analyzes the competitive forces in an industry?
A) PEST Analysis
B) SWOT Analysis
C) Porter’s Five Forces
D) Ansoff Matrix
✅ Answer: C) Porter’s Five Forces
16. What is a strategic alliance?
A) A merger between two companies
B) A temporary agreement between two firms for mutual benefit
C) A government regulation on business partnerships
D) A hostile takeover of one firm by another
✅ Answer: B) A temporary agreement between two firms for mutual benefit
17. Which of the following is NOT a type of strategic alliance?
A) Joint venture
B) Licensing agreement
C) Cost leadership strategy
D) Equity partnership
✅ Answer: C) Cost leadership strategy
18. What is one key benefit of a strategic alliance?
A) It eliminates competition completely
B) It allows partners to leverage each other’s strengths
C) It guarantees increased market share
D) It is always legally binding
✅ Answer: B) It allows partners to leverage each other’s strengths
19. Which company is known for its fully integrated global value chain?
A) Apple
B) ECCO A/S
C) Tesla
D) Google
✅ Answer: B) ECCO A/S
20. What is ECCO’s approach to value chain management?
A) Full control from raw materials to finished products
B) Outsourcing all production to third parties
C) Avoiding international markets
D) Relying solely on branding without manufacturing
✅ Answer: A) Full control from raw materials to finished products
21. What is the primary goal of competitive strategy?
A) To increase product variety
B) To outperform rivals and gain a competitive advantage
C) To reduce workforce size
D) To increase advertising spend
✅ Answer: B) To outperform rivals and gain a competitive advantage
22. Which of the following is a key element of Porter’s Generic Strategies?
A) Horizontal integration
B) Cost leadership
C) Environmental scanning
D) Diversification
✅ Answer: B) Cost leadership
23. The "Differentiation" strategy focuses on:
A) Offering the lowest price in the market
B) Making products unique and valued by customers
C) Mass production at low cost
D) Competing based solely on operational efficiency
✅ Answer: B) Making products unique and valued by customers
24. Which strategy is best for firms operating in a niche market?
A) Cost Leadership
B) Focus Strategy
C) Vertical Integration
D) Retrenchment
✅ Answer: B) Focus Strategy
25. A company that minimizes costs across its value chain to gain a market advantage is using:
A) Differentiation strategy
B) Focus strategy
C) Cost leadership strategy
D) Retrenchment strategy
✅ Answer: C) Cost leadership strategy
26. Which of the following is NOT a reason companies form strategic alliances?
A) To share resources and expertise
B) To eliminate all competitors
C) To enter new markets
D) To reduce costs through synergies
✅ Answer: B) To eliminate all competitors
27. What is a joint venture?
A) A company fully acquiring another
B) A long-term agreement between competitors
C) A separate entity formed by two or more firms for a shared objective
D) A temporary distribution contract
✅ Answer: C) A separate entity formed by two or more firms for a shared objective
28. What is an example of a successful strategic alliance?
A) Apple acquiring Beats Electronics
B) Starbucks partnering with Pepsi for bottled coffee distribution
C) Google launching Android
D) Amazon competing with Walmart
✅ Answer: B) Starbucks partnering with Pepsi for bottled coffee distribution
29. One of the biggest challenges in strategic alliances is:
A) Increased competition
B) Lack of trust and coordination between partners
C) Legal ownership disputes
D) High initial investment
✅ Answer: B) Lack of trust and coordination between partners
30. What is a licensing agreement in strategic alliances?
A) One company grants another the rights to use its technology or brand
B) A short-term business contract
C) A full merger between two companies
D) A hostile takeover strategy
✅ Answer: A) One company grants another the rights to use its technology or brand
31. Who developed the concept of the value chain?
A) Henry Mintzberg
B) Michael Porter
C) Clayton Christensen
D) Peter Drucker
✅ Answer: B) Michael Porter
32. The value chain consists of which two major types of activities?
A) Primary and Support activities
B) Internal and External activities
C) Tangible and Intangible activities
D) Customer and Supplier activities
✅ Answer: A) Primary and Support activities
33. Which of the following is a primary activity in Porter’s Value Chain?
A) HR Management
B) Procurement
C) Inbound Logistics
D) Technology Development
✅ Answer: C) Inbound Logistics
34. Which support activity in the value chain deals with recruiting, training, and retaining employees?
A) Operations
B) Human Resource Management
C) Firm Infrastructure
D) Procurement
✅ Answer: B) Human Resource Management
35. What is the purpose of value chain analysis?
A) To determine the best pricing strategy
B) To understand how a company creates value and gains competitive advantage
C) To analyze competitors’ financial performance
D) To create a global expansion strategy
✅ Answer: B) To understand how a company creates value and gains competitive advantage
36. What is backward integration?
A) Acquiring suppliers to control the supply chain
B) Expanding into new markets
C) Merging with competitors
D) Franchising a business model
✅ Answer: A) Acquiring suppliers to control the supply chain
37. Which corporate strategy involves acquiring businesses that are unrelated to the firm’s core operations?
A) Vertical integration
B) Horizontal integration
C) Conglomerate diversification
D) Market penetration
✅ Answer: C) Conglomerate diversification
38. Which business model generates revenue through subscription-based access to services?
A) Transactional model
B) Subscription model
C) Freemium model
D) Advertising model
✅ Answer: B) Subscription model
39. A company following the franchising strategy:
A) Owns all its stores and manages operations centrally
B) Expands by licensing its brand and business model to franchisees
C) Focuses only on online sales
D) Operates under a government contract
✅ Answer: B) Expands by licensing its brand and business model to franchisees
40. A blue ocean strategy focuses on:
A) Competing in highly saturated markets
B) Creating new market space and reducing competition
C) Price wars with competitors
D) Cost-cutting across all operations
✅ Answer: B) Creating new market space and reducing competition
41. Which of the following is NOT a characteristic of a strategic decision?
A) Long-term focus
B) Affects the entire organization
C) Easily reversible
D) Requires significant resource allocation
✅ Answer: C) Easily reversible
42. Strategic decisions are usually made by:
A) Frontline employees
B) Middle management
C) Top executives and board of directors
D) Customers and stakeholders
✅ Answer: C) Top executives and board of directors
43. The Ansoff Matrix is used to:
A) Develop pricing strategies
B) Identify growth opportunities
C) Optimize operational efficiency
D) Analyze competitive forces
✅ Answer: B) Identify growth opportunities
44. In the Ansoff Matrix, market penetration focuses on:
A) Selling new products to new markets
B) Increasing sales of existing products in existing markets
C) Developing new products for existing customers
D) Expanding into unrelated industries
✅ Answer: B) Increasing sales of existing products in existing markets
45. When a company enters a new market with a completely new product, it is following which Ansoff strategy?
A) Market penetration
B) Product development
C) Market development
D) Diversification
✅ Answer: D) Diversification
46. Which of the following best defines a business model?
A) A company’s advertising strategy
B) The way a company creates, delivers, and captures value
C) The financial statements of a company
D) A company’s brand positioning strategy
✅ Answer: B) The way a company creates, delivers, and captures value
47. The "Freemium" business model involves:
A) Offering free services with premium paid features
B) Providing all services free of cost
C) Charging a single upfront payment
D) Selling physical products only
✅ Answer: A) Offering free services with premium paid features
48. A company that continuously improves its business model through experimentation follows:
A) The traditional approach
B) Business model innovation
C) Financial re-engineering
D) Static strategy formulation
✅ Answer: B) Business model innovation
49. What is a "disruptive innovation"?
A) A minor change in existing processes
B) A technology or business model that creates a new market and displaces established competitors
C) A competitor’s marketing campaign
D) A new financial regulation affecting businesses
✅ Answer: B) A technology or business model that creates a new market and displaces established competitors
50. Which company is an example of disruptive innovation?
A) Apple’s launch of the iPhone
B) Toyota increasing car production
C) McDonald’s introducing a new burger
D) Samsung launching a new TV model
✅ Answer: A) Apple’s launch of the iPhone
51. Strategic implementation is primarily concerned with:
A) Defining business goals
B) Translating strategies into actions
C) Analyzing competitors
D) Conducting financial audits
✅ Answer: B) Translating strategies into actions
52. Which of the following is a key challenge in strategy implementation?
A) Lack of external competition
B) Resistance to change from employees
C) Over-dependence on government policies
D) Avoiding innovation
✅ Answer: B) Resistance to change from employees
53. Balanced Scorecard is a tool used for:
A) Financial forecasting
B) Measuring organizational performance across multiple dimensions
C) Conducting mergers and acquisitions
D) Cost-cutting strategies
✅ Answer: B) Measuring organizational performance across multiple dimensions
54. The four key perspectives of the Balanced Scorecard include:
A) Financial, Customer, Internal Processes, and Learning & Growth
B) Product, Price, Promotion, and Place
C) Operations, Marketing, HR, and Sales
D) Quality, Efficiency, Costs, and Revenues
✅ Answer: A) Financial, Customer, Internal Processes, and Learning & Growth
55. Which leadership style is most effective for strategy implementation?
A) Autocratic leadership
B) Transformational leadership
C) Passive leadership
D) Bureaucratic leadership
✅ Answer: B) Transformational leadership
56. What is the primary goal of mergers and acquisitions (M&A)?
A) To improve organizational efficiency and market reach
B) To reduce employee workload
C) To increase advertising spend
D) To eliminate all competitors
✅ Answer: A) To improve organizational efficiency and market reach
57. Which type of merger occurs when two companies in the same industry and at the same stage of production join together?
A) Vertical merger
B) Horizontal merger
C) Conglomerate merger
D) Reverse merger
✅ Answer: B) Horizontal merger
58. A company acquiring its supplier is an example of:
A) Vertical integration
B) Horizontal integration
C) Market penetration
D) Conglomerate diversification
✅ Answer: A) Vertical integration
59. What is due diligence in the M&A process?
A) A company’s employee evaluation process
B) A financial and operational investigation before an acquisition
C) A marketing campaign strategy
D) A supply chain restructuring method
✅ Answer: B) A financial and operational investigation before an acquisition
60. Which of the following is a common reason for merger failure?
A) Overestimation of synergies
B) Lack of customer demand
C) Government subsidies
D) Increased employee salaries
✅ Answer: A) Overestimation of synergies
61. Blue Ocean Strategy encourages companies to:
A) Enter highly competitive markets
B) Create new, uncontested market space
C) Follow traditional industry norms
D) Focus only on cost reduction
✅ Answer: B) Create new, uncontested market space
62. In Blue Ocean Strategy, companies focus on:
A) Making competition irrelevant
B) Competing aggressively in price wars
C) Outsourcing all business processes
D) Avoiding innovation
✅ Answer: A) Making competition irrelevant
63. Sustainable competitive advantage is achieved when:
A) A company’s unique position is difficult for competitors to imitate
B) A company cuts costs aggressively
C) A company invests only in short-term strategies
D) A company changes its strategy frequently
✅ Answer: A) A company’s unique position is difficult for competitors to imitate
64. Which of the following is NOT a source of sustainable competitive advantage?
A) Strong brand reputation
B) Unique intellectual property
C) Easily imitable technology
D) Superior customer relationships
✅ Answer: C) Easily imitable technology
65. First-mover advantage refers to:
A) The benefit a company gains by being the first to enter a market
B) A company’s ability to copy competitors
C) Late-stage market entry
D) Competing on cost alone
✅ Answer: A) The benefit a company gains by being the first to enter a market
66. Corporate strategy primarily focuses on:
A) Operational efficiency
B) Managing multiple business units and defining overall direction
C) Product marketing strategies
D) Employee performance appraisals
✅ Answer: B) Managing multiple business units and defining overall direction
67. Which of the following is an example of a corporate-level strategy?
A) Choosing a pricing model for a product
B) Deciding to enter a new industry
C) Selecting a promotional campaign
D) Hiring a new project manager
✅ Answer: B) Deciding to enter a new industry
68. Which of the following is NOT a corporate-level strategy?
A) Diversification
B) Market penetration
C) Operational restructuring
D) Divestment
✅ Answer: C) Operational restructuring
69. Which type of corporate strategy involves selling off parts of the business that are no longer profitable or strategic?
A) Expansion
B) Diversification
C) Divestment
D) Market penetration
✅ Answer: C) Divestment
70. The primary role of a strategic leader is to:
A) Handle daily operational tasks
B) Set long-term vision and align organizational goals
C) Focus only on financial reporting
D) Avoid risk-taking
✅ Answer: B) Set long-term vision and align organizational goals
71. Which model describes the three stages of change: Unfreeze, Change, and Refreeze?
A) Kotter’s 8-Step Model
B) Lewin’s Change Management Model
C) McKinsey 7S Framework
D) Porter’s Five Forces
✅ Answer: B) Lewin’s Change Management Model
72. Kotter’s 8-Step Change Model begins with:
A) Generating short-term wins
B) Communicating the vision
C) Establishing a sense of urgency
D) Empowering employees for action
✅ Answer: C) Establishing a sense of urgency
73. What is the primary reason why change initiatives fail?
A) Strong financial performance
B) Resistance from employees
C) Lack of advertising
D) High customer demand
✅ Answer: B) Resistance from employees
74. In change management, "quick wins" refer to:
A) Short-term achievements that build momentum
B) Complete business transformation
C) Cost-cutting measures
D) Eliminating competition
✅ Answer: A) Short-term achievements that build momentum
75. The ADKAR Model focuses on:
A) Organizational restructuring
B) Individual change management
C) Market entry strategies
D) Cost reduction methods
✅ Answer: B) Individual change management
76. Digital transformation primarily focuses on:
A) Automating all manual tasks
B) Integrating digital technologies to improve business performance
C) Eliminating the need for employees
D) Reducing customer engagement
✅ Answer: B) Integrating digital technologies to improve business performance
77. Which of the following is NOT a driver of digital transformation?
A) Customer expectations
B) Emerging technologies
C) Government regulations
D) Reducing employee salaries
✅ Answer: D) Reducing employee salaries
78. Cloud computing is an essential part of digital transformation because:
A) It increases storage costs
B) It enhances scalability, agility, and data security
C) It reduces internet connectivity
D) It eliminates the need for innovation
✅ Answer: B) It enhances scalability, agility, and data security
79. Artificial Intelligence (AI) contributes to digital transformation by:
A) Improving decision-making and process automation
B) Reducing cybersecurity risks
C) Replacing all human employees
D) Eliminating customer service departments
✅ Answer: A) Improving decision-making and process automation
80. Which technology is the foundation of blockchain-based digital transformation?
A) Centralized database
B) Distributed ledger
C) Traditional server-based networks
D) Cloud computing
✅ Answer: B) Distributed ledger
81. A multinational corporation (MNC) is defined as a company that:
A) Operates only in its home country
B) Has significant operations in multiple countries
C) Focuses only on exporting goods
D) Avoids global expansion
✅ Answer: B) Has significant operations in multiple countries
82. Which strategy involves tailoring products and services to meet the unique needs of different markets?
A) Standardization strategy
B) Localization strategy
C) Cost leadership strategy
D) Vertical integration strategy
✅ Answer: B) Localization strategy
83. A company that follows a global standardization strategy focuses on:
A) Adapting products for each local market
B) Offering the same products worldwide with minimal variation
C) Avoiding international markets
D) Setting up multiple headquarters in every country
✅ Answer: B) Offering the same products worldwide with minimal variation
84. The primary risk of expanding into international markets is:
A) Increased brand recognition
B) Currency fluctuations and political instability
C) Enhanced innovation capabilities
D) More diversified revenue streams
✅ Answer: B) Currency fluctuations and political instability
85. The term "born global" refers to companies that:
A) Expand internationally from the early stages of their business
B) Wait for at least 10 years before entering foreign markets
C) Focus only on domestic growth
D) Rely solely on government funding for expansion
✅ Answer: A) Expand internationally from the early stages of their business
86. The primary goal of mergers and acquisitions (M&A) is to:
A) Increase employee count
B) Enhance market share, synergies, and financial performance
C) Reduce brand value
D) Avoid competitive markets
✅ Answer: B) Enhance market share, synergies, and financial performance
87. A horizontal merger occurs when:
A) Two firms at different stages of the supply chain merge
B) Two firms in the same industry and at the same level merge
C) A company acquires a supplier
D) A company expands internationally
✅ Answer: B) Two firms in the same industry and at the same level merge
88. Which of the following is a key risk associated with M&A?
A) Cultural integration challenges
B) Decreased market expansion
C) Reduction in brand awareness
D) Lower revenue opportunities
✅ Answer: A) Cultural integration challenges
89. A hostile takeover occurs when:
A) A company acquires another with the target’s approval
B) A company aggressively acquires another without the target’s consent
C) Two companies agree to merge voluntarily
D) A government intervenes in a merger
✅ Answer: B) A company aggressively acquires another without the target’s consent
90. The due diligence process in M&A involves:
A) Skipping financial analysis
B) Conducting detailed financial, legal, and operational analysis before acquisition
C) Merging companies without review
D) Ignoring regulatory compliance
✅ Answer: B) Conducting detailed financial, legal, and operational analysis before acquisition
Section 18: Business Ethics & Corporate Social Responsibility (CSR)
91. Business ethics primarily deal with:
A) Increasing sales at any cost
B) Moral principles and values in business decisions
C) Avoiding all risks in business
D) Maximizing profits unethically
✅ Answer: B) Moral principles and values in business decisions
92. Corporate Social Responsibility (CSR) refers to:
A) A company’s voluntary commitment to social and environmental causes
B) Mandatory government compliance laws
C) Strategies to increase only shareholder wealth
D) Reducing taxes through unethical means
✅ Answer: A) A company’s voluntary commitment to social and environmental causes
93. Which of the following is an example of ethical business practice?
A) False advertising
B) Transparent reporting of financial data
C) Bribing government officials
D) Exploiting workers in developing countries
✅ Answer: B) Transparent reporting of financial data
94. The triple bottom line in CSR includes:
A) Profit, people, planet
B) Employees, profits, shareholders
C) Marketing, sales, supply chain
D) Revenue, competition, expansion
✅ Answer: A) Profit, people, planet
95. Whistleblowing in a corporate context refers to:
A) Reporting unethical or illegal activities within an organization
B) Supporting unethical practices
C) Spreading false information about competitors
D) Avoiding compliance regulations
✅ Answer: A) Reporting unethical or illegal activities within an organization
96. Corporate governance ensures:
A) Ethical management, transparency, and accountability
B) Elimination of business regulations
C) Maximum control by executives without oversight
D) Complete disregard for shareholder interests
✅ Answer: A) Ethical management, transparency, and accountability
97. The key responsibility of a company’s board of directors is to:
A) Focus only on daily operational tasks
B) Oversee the strategic direction and management of the company
C) Avoid interacting with shareholders
D) Ignore ethical concerns
✅ Answer: B) Oversee the strategic direction and management of the company
98. Risk management involves:
A) Identifying, assessing, and mitigating business risks
B) Eliminating all risks completely
C) Focusing only on financial risks
D) Avoiding risk-related discussions
✅ Answer: A) Identifying, assessing, and mitigating business risks
99. What is an example of financial risk?
A) New competitors entering the market
B) Cybersecurity threats
C) Market fluctuations affecting investments
D) Employee absenteeism
✅ Answer: C) Market fluctuations affecting investments
100. Enterprise Risk Management (ERM) is designed to:
A) Integrate risk management into an organization’s strategy and operations
B) Focus only on compliance risks
C) Ignore operational risks
D) Avoid risk analysis
✅ Answer: A) Integrate risk management into an organization’s strategy and operations
101. Porter’s Five Forces framework helps businesses:
A) Analyze industry competition and external threats
B) Avoid competition altogether
C) Develop only short-term strategies
D) Ignore supplier and buyer influence
✅ Answer: A) Analyze industry competition and external threats
102. A cost leadership strategy focuses on:
A) Offering the lowest prices in the industry while maintaining profitability
B) Charging premium prices for niche markets
C) Avoiding cost reductions
D) Eliminating customer service
✅ Answer: A) Offering the lowest prices in the industry while maintaining profitability
103. Differentiation strategy aims to:
A) Make a product unique and superior in the market
B) Compete solely on price
C) Reduce product quality
D) Follow competitors without innovation
✅ Answer: A) Make a product unique and superior in the market
104. Market penetration strategy involves:
A) Expanding existing products into new markets
B) Selling more of existing products in current markets
C) Developing completely new products
D) Divesting from a market
✅ Answer: B) Selling more of existing products in current markets
105. Which of the following is an example of a blue ocean strategy?
A) Entering a highly competitive market with similar products
B) Creating a new market space with innovative products
C) Copying competitors' strategies
D) Reducing investment in R&D
✅ Answer: B) Creating a new market space with innovative products
106. The primary goal of strategic management is to:
A) Improve operational efficiency only
B) Create and sustain a competitive advantage
C) Focus only on short-term profitability
D) Avoid market expansion
✅ Answer: B) Create and sustain a competitive advantage
107. SWOT analysis helps organizations:
A) Identify strengths, weaknesses, opportunities, and threats
B) Eliminate all competition
C) Focus only on internal weaknesses
D) Avoid external market changes
✅ Answer: A) Identify strengths, weaknesses, opportunities, and threats
108. A company that follows a diversification strategy:
A) Expands into unrelated business areas
B) Focuses on a single product category
C) Avoids entering new markets
D) Reduces investment in R&D
✅ Answer: A) Expands into unrelated business areas
109. The BCG Matrix classifies business units into:
A) Stars, Cash Cows, Question Marks, and Dogs
B) High and Low Risk categories
C) Primary and Secondary businesses
D) Market leaders and followers
✅ Answer: A) Stars, Cash Cows, Question Marks, and Dogs
110. A company’s vision statement primarily focuses on:
A) Short-term financial targets
B) The long-term direction and aspirations of the organization
C) Daily operational tasks
D) Cost-cutting measures
✅ Answer: B) The long-term direction and aspirations of the organization
111. Organizational behavior studies:
A) How individuals and teams behave in organizations
B) Only financial decision-making
C) External economic policies
D) The supply chain process
✅ Answer: A) How individuals and teams behave in organizations
112. Which leadership style focuses on inspiring and motivating employees towards a vision?
A) Transactional leadership
B) Transformational leadership
C) Laissez-faire leadership
D) Autocratic leadership
✅ Answer: B) Transformational leadership
113. Emotional intelligence in leadership refers to:
A) The ability to recognize and manage emotions in oneself and others
B) Ignoring employees’ concerns
C) Making decisions based only on logic
D) Avoiding feedback
✅ Answer: A) The ability to recognize and manage emotions in oneself and others
114. The Hawthorne Effect suggests that:
A) Employees perform better when they feel observed and valued
B) Higher salaries always improve motivation
C) Teamwork reduces productivity
D) Organizational structure does not impact performance
✅ Answer: A) Employees perform better when they feel observed and valued
115. A matrix organizational structure is characterized by:
A) Employees reporting to multiple managers or departments
B) A rigid hierarchy with clear reporting lines
C) Lack of coordination between teams
D) No direct leadership roles
✅ Answer: A) Employees reporting to multiple managers or departments
116. Digital transformation involves:
A) Integrating digital technology into all areas of a business
B) Avoiding technology adoption
C) Reducing innovation in business processes
D) Eliminating customer engagement
✅ Answer: A) Integrating digital technology into all areas of a business
117. Which of the following is an example of disruptive innovation?
A) A new software update for an existing product
B) A low-cost, radically new product that changes an industry
C) Incremental improvements in customer service
D) A minor adjustment in supply chain logistics
✅ Answer: B) A low-cost, radically new product that changes an industry
118. Artificial intelligence (AI) in business helps with:
A) Automating repetitive tasks and improving decision-making
B) Replacing all human jobs
C) Reducing cybersecurity measures
D) Eliminating the need for leadership
✅ Answer: A) Automating repetitive tasks and improving decision-making
119. The Internet of Things (IoT) refers to:
A) Interconnected devices that collect and exchange data
B) A new form of social media
C) Traditional telecommunication networks
D) A cloud computing service
✅ Answer: A) Interconnected devices that collect and exchange data
120. A key risk of digital transformation is:
A) Cybersecurity threats and data privacy issues
B) Increased employee engagement
C) Reduced customer interactions
D) Higher manual paperwork
✅ Answer: A) Cybersecurity threats and data privacy issues
121. Corporate governance refers to:
A) The system of rules, practices, and processes by which a company is directed and controlled
B) The government’s control over private businesses
C) The internal HR policies of a company
D) Only financial reporting practices
✅ Answer: A) The system of rules, practices, and processes by which a company is directed and controlled
122. The primary responsibility of a company’s Board of Directors is to:
A) Manage day-to-day operations
B) Ensure strategic direction and protect shareholder interests
C) Focus only on financial profits
D) Avoid stakeholder engagement
✅ Answer: B) Ensure strategic direction and protect shareholder interests
123. Which principle is NOT a fundamental part of corporate governance?
A) Transparency
B) Accountability
C) Insider trading
D) Ethical behavior
✅ Answer: C) Insider trading
124. Business ethics primarily deals with:
A) Moral principles guiding business decisions
B) Maximizing short-term profits
C) Avoiding legal compliance
D) Ignoring social responsibility
✅ Answer: A) Moral principles guiding business decisions
125. ESG (Environmental, Social, and Governance) factors are used to:
A) Assess a company's ethical and sustainability performance
B) Increase operational inefficiencies
C) Avoid regulatory compliance
D) Reduce innovation
✅ Answer: A) Assess a company's ethical and sustainability performance
126. The primary objective of financial management is to:
A) Maximize shareholder wealth
B) Minimize taxes only
C) Ignore financial risks
D) Focus only on short-term profits
✅ Answer: A) Maximize shareholder wealth
127. The balance sheet of a company shows:
A) Financial position at a specific point in time
B) Revenues and expenses over a period
C) Cash inflows and outflows
D) Marketing expenses only
✅ Answer: A) Financial position at a specific point in time
128. The cost of capital is:
A) The return required by investors for providing capital
B) The cost of raw materials
C) The amount spent on marketing
D) The profit margin of a company
✅ Answer: A) The return required by investors for providing capital
129. Working capital management focuses on:
A) Managing short-term assets and liabilities
B) Long-term investment decisions
C) Only increasing sales
D) Avoiding cash flow analysis
✅ Answer: A) Managing short-term assets and liabilities
130. The price-to-earnings (P/E) ratio helps investors:
A) Evaluate a company’s stock price relative to its earnings
B) Determine the number of employees in a company
C) Measure a company’s market share
D) Analyze supply chain efficiency
✅ Answer: A) Evaluate a company’s stock price relative to its earnings
131. The 4Ps of marketing stand for:
A) Product, Price, Place, Promotion
B) People, Process, Performance, Profit
C) Price, Product, Partnership, Packaging
D) Promotion, Publicity, People, Planning
✅ Answer: A) Product, Price, Place, Promotion
132. Market segmentation helps businesses:
A) Identify and target specific customer groups
B) Offer the same product to everyone
C) Ignore consumer preferences
D) Increase production costs
✅ Answer: A) Identify and target specific customer groups
133. A brand’s unique selling proposition (USP) is:
A) A distinct feature that differentiates it from competitors
B) The company’s pricing strategy
C) The total advertising budget
D) A generic marketing message
✅ Answer: A) A distinct feature that differentiates it from competitors
134. In digital marketing, SEO (Search Engine Optimization) is used to:
A) Improve a website’s visibility on search engines
B) Reduce digital advertising costs
C) Create new physical store locations
D) Eliminate competition
✅ Answer: A) Improve a website’s visibility on search engines
135. Customer Relationship Management (CRM) systems help businesses:
A) Manage interactions with customers and improve relationships
B) Reduce the importance of customer service
C) Focus only on internal operations
D) Decrease brand engagement
✅ Answer: A) Manage interactions with customers and improve relationships
136. Operations management focuses on:
A) Efficient production and delivery of goods and services
B) Only financial performance
C) Reducing marketing expenses
D) Ignoring process improvements
✅ Answer: A) Efficient production and delivery of goods and services
137. Just-in-Time (JIT) inventory management aims to:
A) Reduce inventory costs by receiving goods only when needed
B) Increase stock levels significantly
C) Delay production processes
D) Increase warehouse expenses
✅ Answer: A) Reduce inventory costs by receiving goods only when needed
138. Total Quality Management (TQM) focuses on:
A) Continuous improvement and customer satisfaction
B) Increasing production time
C) Reducing employee engagement
D) Ignoring quality standards
✅ Answer: A) Continuous improvement and customer satisfaction
139. Six Sigma is a methodology used to:
A) Improve process quality and reduce defects
B) Increase operational complexity
C) Avoid customer feedback
D) Reduce workforce productivity
✅ Answer: A) Improve process quality and reduce defects
140. The bullwhip effect in supply chain management occurs when:
A) Demand fluctuations create inefficiencies across the supply chain
B) Suppliers always have accurate demand forecasts
C) Retailers maintain stable inventory levels
D) Transportation costs remain constant
✅ Answer: A) Demand fluctuations create inefficiencies across the supply chain
