Question 1

In considering the business from the customer perspective using the balanced scorecard, company performance is essential.

Accepted Answer

A) True 
 B)False

Question 2

The best measure of company ability to meet imminent financial obligations is known as the

Accepted Answer

A)  debt ratio.
B)  profit margin.
C)  total asset turnover.
D)  current ratio.E) A) and C)
F) B) and C)

Question 3

The innovation and learning perspective of the balanced scorecard answers which of the following questions?

Accepted Answer

A)  How do customers see us?
B)  What must we excel at?
C)  How do we look to shareholders?
D)  Can we continue to improve and create value?E) A) and C)
F) A) and B)

Question 4

Employees will be able to obtain a proportionately high level of profits they generate (relative to the firm)  if

Accepted Answer

A)  suppliers are loyal to the firm.
B)  their expertise is firm-specific.
C)  the cost to the firm of replacing them is high.
D)  the firm's resources are path dependent.E) B) and C)
F) All of the above

Question 5

Which of the following groups generally is charged with creating value through the process of organizing, coordinating, and leveraging employees as well as other forms of capital such as plant, equipment, and financial capital?

Accepted Answer

A)  unions
B)  boards of directors
C)  managers
D)  stakeholdersE) A) and D)
F) B) and C)

Question 6

Value-chain analysis assumes that the basic economic purpose of a firm is to create value and it is a useful framework for analyzing the strengths and weaknesses of the firm.

Accepted Answer

A) True 
 B)False

Question 7

A marketing department that promises delivery faster than the ability of the production department to produce is an example of a lack of understanding of the

Accepted Answer

A)  interrelationships among functional areas and firm strategies organizational culture and leadership.
B)  organizational culture and leadership.
C)  need to maintain the reputation of the company.
D)  synergy of the business units.E) A) and D)
F) A) and C)

Question 8

Historical comparisons provide information to managers about changes in the competitive position of a firm. Historical comparisons often are misleading

Accepted Answer

A)  if the overall strategy of the firm is the same.
B)  if the firm shows constant growth.
C)  in periods of recession or economic boom.
D)  if the firm's stock is publicly traded.E) B) and C)
F) A) and D)

Question 9

Apple Inc. reported revenues of 171 billion USD and net income of 37 billion USD in 2012. These figures represent a stunning annual growth in revenue and net income of 57 percent and 43 percent, respectively, for the 2011 to 2013 time period. This information indicates the importance of using __________ to evaluate company financial performance.

Accepted Answer

A)  financial ratios
B)  industry norms
C)  historical comparisons
D)  competitor analysisE) B) and D)
F) A) and C)

Question 10

A SWOT analysis alone __________ helps a firm develop competitive advantages that it can sustain over time.

Accepted Answer

A)  usually
B)  often
C)  rarely
D)  regularlyE) A) and B)
F) None of the above

Question 11

An important implication of the balanced scorecard approach is that

Accepted Answer

A)  managers need to recognize that satisfaction of stockholder demands is their primary job.
B)  the emphasis on customer satisfaction and financial goals are only a means to that end.
C)  managers should not look at their job as primarily balancing stakeholder demands.
D)  gains in financial performance must come at a cost of employee satisfaction.E) None of the above
F) C) and D)

Question 12

Frito-Lay uses crowdsourcing to make its Super Bowl ads. This is an example of a primary activity in the value chain.

Accepted Answer

A) True 
 B)False

Question 13

Customer service includes

Accepted Answer

A)  product promotion.
B)  procurement of critical supplies.
C)  product distribution.
D)  parts supply.E) A) and B)
F) A) and C)

Question 14

Which of the following is not a tangible resource?

Accepted Answer

A)  technical and scientific skills
B)  trade secrets, patents, copyrights
C)  state-of-the art machinery
D)  company borrowing capacityE) B) and C)
F) All of the above

Question 15

Modern plant and facilities as well as favorable manufacturing locations are tangible resources.

Accepted Answer

A) True 
 B)False

Question 16

The resource-based view (RBV)  of the firm combines the following two perspectives:

Accepted Answer

A)  the primary and support activities of the firm.
B)  the interrelationships among the primary activities of the firm and corporate management.
C)  the internal analysis of the firm and the external analysis of the industry and competitive environment.
D)  the industry and the competitive environment.E) A) and B)
F) A) and C)

Question 17

FedEx employees take computer-based job competency tests every 6 to 12 months in order to identify areas of individual weakness and provide input to a computer database of employee skills. This is an example of a tangible resource.

Accepted Answer

A) True 
 B)False

Question 18

Information technology (IT) can also play a key role in enhancing the value that a company can provide its customers and, in turn, increasing its own revenues and profits. IT is an activity within the support activities of general administration.

Accepted Answer

A) True 
 B)False

Question 19

Inbound logistics include all activities associated with transforming inputs into the final product form such as machining, packaging, assembly, equipment, testing, printing, and facility operations.

Accepted Answer

A) True 
 B)False

Question 20

In assessing its primary activities, an airline would examine

Accepted Answer

A)  employee training programs.
B)  baggage handling.
C)  criteria for lease versus purchase decisions.
D)  the effectiveness of its lobbying activities.E) B) and D)
F) B) and C)

Exam 3: Assessing the Internal Environment of the Firm

Information technology (IT) can also play a key role in enhancing the value that a company can provide its customers and, in turn, increasing its own revenues and profits. IT is an activity within the support activities of general administration.

Correct Answer
verified

A marketing department that promises delivery faster than the ability of the production department to produce is an example of a lack of understanding of the

Correct Answer
verified

Which of the following groups generally is charged with creating value through the process of organizing, coordinating, and leveraging employees as well as other forms of capital such as plant, equipment, and financial capital?

Correct Answer
verified

Correct Answer
verified

In considering the business from the customer perspective using the balanced scorecard, company performance is essential.

Correct Answer
verified

The resource-based view (RBV) of the firm combines the following two perspectives:

Correct Answer
verified

Value-chain analysis assumes that the basic economic purpose of a firm is to create value and it is a useful framework for analyzing the strengths and weaknesses of the firm.

Correct Answer
verified

The innovation and learning perspective of the balanced scorecard answers which of the following questions?

Correct Answer
verified

Inbound logistics include all activities associated with transforming inputs into the final product form such as machining, packaging, assembly, equipment, testing, printing, and facility operations.

Correct Answer
verified

A SWOT analysis alone __________ helps a firm develop competitive advantages that it can sustain over time.

Correct Answer
verified

In assessing its primary activities, an airline would examine

Correct Answer
verified

Which of the following is not a tangible resource?

Correct Answer
verified

Modern plant and facilities as well as favorable manufacturing locations are tangible resources.

Correct Answer
verified

Customer service includes

Correct Answer
verified

An important implication of the balanced scorecard approach is that

Correct Answer
verified

FedEx employees take computer-based job competency tests every 6 to 12 months in order to identify areas of individual weakness and provide input to a computer database of employee skills. This is an example of a tangible resource.

Correct Answer
verified

Historical comparisons provide information to managers about changes in the competitive position of a firm. Historical comparisons often are misleading

Correct Answer
verified

Frito-Lay uses crowdsourcing to make its Super Bowl ads. This is an example of a primary activity in the value chain.

Correct Answer
verified

The best measure of company ability to meet imminent financial obligations is known as the

Correct Answer
verified

Employees will be able to obtain a proportionately high level of profits they generate (relative to the firm) if

Correct Answer
verified

Exam 3: Assessing the Internal Environment of the Firm

Information technology (IT) can also play a key role in enhancing the value that a company can provide its customers and, in turn, increasing its own revenues and profits. IT is an activity within the support activities of general administration.

Correct AnswerverifiedShow Answer

A marketing department that promises delivery faster than the ability of the production department to produce is an example of a lack of understanding of the

Correct AnswerverifiedShow Answer

Which of the following groups generally is charged with creating value through the process of organizing, coordinating, and leveraging employees as well as other forms of capital such as plant, equipment, and financial capital?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In considering the business from the customer perspective using the balanced scorecard, company performance is essential.

Correct AnswerverifiedShow Answer

The resource-based view (RBV) of the firm combines the following two perspectives:

Correct AnswerverifiedShow Answer

Value-chain analysis assumes that the basic economic purpose of a firm is to create value and it is a useful framework for analyzing the strengths and weaknesses of the firm.

Correct AnswerverifiedShow Answer

The innovation and learning perspective of the balanced scorecard answers which of the following questions?

Correct AnswerverifiedShow Answer

Inbound logistics include all activities associated with transforming inputs into the final product form such as machining, packaging, assembly, equipment, testing, printing, and facility operations.

Correct AnswerverifiedShow Answer

A SWOT analysis alone __________ helps a firm develop competitive advantages that it can sustain over time.

Correct AnswerverifiedShow Answer

In assessing its primary activities, an airline would examine

Correct AnswerverifiedShow Answer

Which of the following is not a tangible resource?

Correct AnswerverifiedShow Answer

Modern plant and facilities as well as favorable manufacturing locations are tangible resources.

Correct AnswerverifiedShow Answer

Customer service includes

Correct AnswerverifiedShow Answer

An important implication of the balanced scorecard approach is that

Correct AnswerverifiedShow Answer

FedEx employees take computer-based job competency tests every 6 to 12 months in order to identify areas of individual weakness and provide input to a computer database of employee skills. This is an example of a tangible resource.

Correct AnswerverifiedShow Answer

Historical comparisons provide information to managers about changes in the competitive position of a firm. Historical comparisons often are misleading

Correct AnswerverifiedShow Answer

Frito-Lay uses crowdsourcing to make its Super Bowl ads. This is an example of a primary activity in the value chain.

Correct AnswerverifiedShow Answer

The best measure of company ability to meet imminent financial obligations is known as the

Correct AnswerverifiedShow Answer

Employees will be able to obtain a proportionately high level of profits they generate (relative to the firm) if

Correct AnswerverifiedShow Answer

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