Question 1 What does a business model describe?
A revenue and expense model
A rationale of how the company creates, delivers, and captures value
A plan to generate money for the firm
How the company positions itself in the industry
None of the above
Question 2 What is strategic planning?
Any decision that affects the company's ability to complete, its position in the industry, or its viability as a going concern
One person's or one group's attempt at arriving at a strategy
The process by which one develops a strategy to achieve certain purposes
How a company actually competes
The entire set of resulting experiences-at some price-that an organization causes its customers to have
Question 3 Under which condition is a matrix organization not the best one?
Managing international operations
Managing multiple projects
Producing distinct product lines
Managing multiple brands
Managing divisions
Question 4 CEOs looking for vacant CEO jobs are virtually guaranteed high compensation packages because that is what CEO-compensation statistics indicate.
True
False
Question 5 Which of the following is not regulated?
Education
Electric utilities
Computers
Prescription drugs
Airline safety
Question 6 Which of the following is not a strategic decision?
Deciding on a strategy
Change an advertising campaign
Whether to adopt a new technology
How to develop a core competence
Whether to sell the business
Question 7 Every company that does business in the US must have its financial statements audited.
True
False
Question 8 Acquisitions fail for many reasons; which of the following is not one of them?
The acquirer overpaid
Management hubris
Cultures are incompatible
Ignorance about the business
Key personnel leave
Question 9 All US public companies are regulated by the Securities and Exchange Commission (SEC) even though they are in competitive, unregulated industries.
True
False
Question 10 Which of the following is not a type of director in a firm's board of directors?
Outsiders
Related outsiders
Insiders
Related insiders
Independents