Business Strategy MCQs (Chapterwise Multiple Choice Questions)

Why are profit margins important?

All of these

It is often a good indicator of how well you are doing in your industry

It can be useful when comparing similar companies to one another

It measures how much of every dollar in sales a company keeps; thus giving you an idea of how profitable you can be based on your expected sales.

Answer & Explanation

Correct Answer: All of these

Note: This Question is unanswered, help us to find answer for this one

Proponents of the emh think technical analysts __________.

Should focus on the relative strength

Should focus on resistance levels

Should focus on support levels

Are wasting their time

Answer & Explanation

Correct Answer: Are wasting their time

Note: This Question is unanswered, help us to find answer for this one

Corporate-level strategy is concerned with ____ and how to manage these businesses.

Whether the firm should invest in global or domestic businesses

What product markets and businesses the firm should be in

Whether the portfolio of businesses should generate immediate above-average returns or should be troubled businesses which will create above-average returns only after restructuring

(whether to integrate backward or forward

Answer & Explanation

Correct Answer: What product markets and businesses the firm should be in

Note: This Question is unanswered, help us to find answer for this one

What is a Cyclical Industry?

An industry that changes over time, either through their own processes of evolution or by outside forces.

An industry in which its costs are fixed throughout the year due to low volatility.

A type of industry that tends to have high and low periods during speciific times

An industry where companies often invest in other competitors or complementary companies in order to profit throughout the entire product life cycle

Answer & Explanation

Correct Answer: A type of industry that tends to have high and low periods during speciific times

Note: This Question is unanswered, help us to find answer for this one

A firm employing a differentiation strategy is focusing on what?

Large market share

Small market share

Customer loyalty

Customer differentiation

Answer & Explanation

Correct Answer: Customer loyalty

Note: This Question is unanswered, help us to find answer for this one

What are some of the possible disadvantages on relying on business cases when making strategic moves in business?

All of these

Reporting Bias

Simplifications

Representative Bias

Answer & Explanation

Correct Answer: All of these

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What should be included in a business plan?

Competitor Analysis

Executive Summary

Market Analysis

All of these

Answer & Explanation

Correct Answer: All of these

Note: This Question is unanswered, help us to find answer for this one

Concept maps work because they _______.

Are colorful and interesting

Can be drawn by almost anyone

Visually demonstrate relationships

Leave out vital information

Answer & Explanation

Correct Answer: Visually demonstrate relationships

Note: This Question is unanswered, help us to find answer for this one

What does the notion of a “learning organization” suggest?

Companies must learn by trial and error

Companies must be successful at collecting and analyzing data to remain successful

Companies must learn how to be successful

Companies must contribute to education-based charities to remain successful

Answer & Explanation

Correct Answer: Companies must be successful at collecting and analyzing data to remain successful

Note: This Question is unanswered, help us to find answer for this one

As a business owner if you notice a large amount of market segmentation occurring you should...

Focus on finding a niche in the market

Put all your eggs in one basket

Leave that market

Have products in each market segmentation to see which technology excels

Answer & Explanation

Correct Answer: Focus on finding a niche in the market

Note: This Question is unanswered, help us to find answer for this one

Business Strategy Quick Quiz

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