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MBA 620 Midterm Exam Actual Exam Newest
2026/2027 Complete Questions And Correct Detailed
Answers (Verified Answers) |Brand New Version!!
If the price elasticity of demand is greater than 1, demand is:
A. Perfectly inelastic
B. Elastic
C. Unit elastic
D. Inelastic
ANSWER : B. Elastic
Which leadership style emphasizes rewards and punishments to achieve
compliance? A. Transformational
B. Transactional
C. Democratic
D. Laissez-faire
ANSWER : B. Transactional
A firm using differentiation strategy should focus most on:
A. Efficiency in production
B. Standardization of processes
C. Innovation and brand image
D. Reducing overhead costs
ANSWER : C. Innovation and brand image
The learning curve concept suggests that as cumulative production
increases:
A. Costs per unit increase
B. Costs per unit decrease
C. Productivity declines
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D. Margins remain constant
ANSWER : B. Costs per unit decrease
Which financial ratio measures how efficiently assets are used to
generate sales? A. Return on equity
B. Asset turnover
C. Debt-to-equity ratio
D. Gross margin
ANSWER : B. Asset turnover
A joint venture between two firms from different countries primarily
aims to:
A. Maximize tax loopholes
B. Enter new markets and share risks
C. Avoid cultural adaptation
D. Eliminate all competition
ANSWER : B. Enter new markets and share risks
Which strategy in the Ansoff Matrix involves selling existing products
to new markets? A. Market penetration
B. Diversification
C. Market development
D. Product development
ANSWER : C. Market development
When an organization anticipates external changes and adjusts
proactively, it demonstrates:
A. Reactive strategy
B. Adaptive strategy
C. Defensive strategy
D. Crisis management
ANSWER : B. Adaptive strategy
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Which accounting concept recognizes expenses when incurred, not when
paid? A. Cash basis
B. Accrual basis
C. Matching principle
D. Revenue principle
ANSWER : B. Accrual basis
Scenario planning in strategic management is primarily used to:
A. Forecast a single outcome
B. Explore multiple possible futures
C. Avoid all risks
D. Predict competitor pricing only
ANSWER : B. Explore multiple possible futures
Which best describes a firm’s vision statement?
A. Short-term operational plan
B. Long-term aspiration of what the organization seeks to become
C. Mission translated into annual budgets
D. Description of products and services offered
ANSWER : B. Long-term aspiration of what the organization seeks to
become
A “first mover advantage” usually comes from:
A. Waiting for competitors to test the market
B. Entering the market early and building brand recognition
C. Delaying product launches to minimize risk
D. Using price wars to dominate later
ANSWER : B. Entering the market early and building brand recognition
Which measure indicates the risk-return tradeoff of an investment?
A. Beta coefficient
B. Liquidity ratio
MBA 620 Midterm Exam Actual Exam Newest
2026/2027 Complete Questions And Correct Detailed
Answers (Verified Answers) |Brand New Version!!
If the price elasticity of demand is greater than 1, demand is:
A. Perfectly inelastic
B. Elastic
C. Unit elastic
D. Inelastic
ANSWER : B. Elastic
Which leadership style emphasizes rewards and punishments to achieve
compliance? A. Transformational
B. Transactional
C. Democratic
D. Laissez-faire
ANSWER : B. Transactional
A firm using differentiation strategy should focus most on:
A. Efficiency in production
B. Standardization of processes
C. Innovation and brand image
D. Reducing overhead costs
ANSWER : C. Innovation and brand image
The learning curve concept suggests that as cumulative production
increases:
A. Costs per unit increase
B. Costs per unit decrease
C. Productivity declines
,2 | Page
D. Margins remain constant
ANSWER : B. Costs per unit decrease
Which financial ratio measures how efficiently assets are used to
generate sales? A. Return on equity
B. Asset turnover
C. Debt-to-equity ratio
D. Gross margin
ANSWER : B. Asset turnover
A joint venture between two firms from different countries primarily
aims to:
A. Maximize tax loopholes
B. Enter new markets and share risks
C. Avoid cultural adaptation
D. Eliminate all competition
ANSWER : B. Enter new markets and share risks
Which strategy in the Ansoff Matrix involves selling existing products
to new markets? A. Market penetration
B. Diversification
C. Market development
D. Product development
ANSWER : C. Market development
When an organization anticipates external changes and adjusts
proactively, it demonstrates:
A. Reactive strategy
B. Adaptive strategy
C. Defensive strategy
D. Crisis management
ANSWER : B. Adaptive strategy
, 3 | Page
Which accounting concept recognizes expenses when incurred, not when
paid? A. Cash basis
B. Accrual basis
C. Matching principle
D. Revenue principle
ANSWER : B. Accrual basis
Scenario planning in strategic management is primarily used to:
A. Forecast a single outcome
B. Explore multiple possible futures
C. Avoid all risks
D. Predict competitor pricing only
ANSWER : B. Explore multiple possible futures
Which best describes a firm’s vision statement?
A. Short-term operational plan
B. Long-term aspiration of what the organization seeks to become
C. Mission translated into annual budgets
D. Description of products and services offered
ANSWER : B. Long-term aspiration of what the organization seeks to
become
A “first mover advantage” usually comes from:
A. Waiting for competitors to test the market
B. Entering the market early and building brand recognition
C. Delaying product launches to minimize risk
D. Using price wars to dominate later
ANSWER : B. Entering the market early and building brand recognition
Which measure indicates the risk-return tradeoff of an investment?
A. Beta coefficient
B. Liquidity ratio
