MBA 701 Module 3 video Quiz | Questions and Answers | 2026
Update | 100% Correct - LSUS. - 94 Questions and Answers
Already Graded A+ Premium Exam Tested And Verified
Subject Area MBA 701 Module 3 video Quiz | Questions and Answers | 2026 Update |
100% Correct - LSUS.
Description Comprehensive examination on MBA 701 Module 3 video Quiz | Questions and
Answers | 2026 Update | 100% Correct - LSUS..
Expected Grade A+
Total Questions 94
Duration 3 hours
Learning Outcomes 1. Demonstrate mastery of core concepts
Accreditation Aligned with US university standards.
Page 1
,1. In an industry with high fixed costs, perishable products, and many competitors of
equal size, the intensity of rivalry is most likely:
Answer: High
High fixed costs pressure firms to maximize capacity utilization, perishable products
require quick sales, and many equal competitors lead to price wars and aggressive
competition, all increasing rivalry intensity.
2. A company with strong cash reserves (strength) but outdated technology
(weakness) faces rapid technological change (threat) and a growing market for
adjacent products (opportunity). Which strategy best uses its strengths to exploit
opportunities while mitigating threats?
Answer: Acquire a tech startup to update capabilities
Acquiring a tech startup leverages cash to quickly close the technology gap (mitigating
threat) and enter adjacent markets (seizing opportunity), while R&D would be slower,
divestiture too drastic, and marketing does not address technology weakness.
3. A company evaluates its divisions using the BCG matrix.
Answer: Division D
Division D has low market growth and low relative market share, classifying it as a
'dog'; dogs are typically recommended for divestiture to free up resources for more
promising units.
4. In Porter's value chain, which of the following is considered a primary activity?
Answer: Inbound logistics
Inbound logistics is a primary activity directly involved in creating value; the others
(HR, technology, infrastructure) are support activities that enable primary activities to
function.
Page 2
, 5. For a core competency to provide sustainable competitive advantage, it must be
valuable, rare, costly to imitate, and non-substitutable. Which of the following best
illustrates a competency that is costly to imitate?
Answer: A highly skilled sales team with localized knowledge
Tacit knowledge embedded in a team (e.g., experienced sales force with customer
relationships) is extremely difficult to replicate due to causal ambiguity and social
complexity, whereas patents, cost advantages, and brand names can often be
circumvented or imitated over time.
6. Company X and Company Y have the following DuPont components:
Answer: Higher asset turnover
Company X's ROE (10% margin × 2.0 turnover × 2.0 multiplier = 40%) exceeds Y's
(15% × 1.5 × 1.5 = 33.75%). The primary driver is X's higher asset turnover (2.0 vs.
1.5), as Y has a higher margin but lower turnover and equity multiplier.
7. A company sells a product for $50 per unit. Variable costs are $30 per unit, and
fixed costs are $200,000. If the company wants a pretax profit of $100,000, how
many units must be sold?
Answer: 15,000
Contribution margin per unit is $50 - $30 = $20. Required sales volume = (Fixed costs +
Target profit) / Contribution margin = ($200,000 + $100,000) / $20 = 15,000 units.
8. Which of the following is a direct cause of the bullwhip effect in supply chains?
Answer: Order batching
Order batching amplifies demand variations as firms place large, infrequent orders,
causing upstream suppliers to experience inflated oscillations. The other options
(collaborative planning, demand reduction, VMI) mitigate the bullwhip effect.
9. A company targets multiple segments with distinct marketing mixes. This is
known as:
Answer: Differentiated marketing
Differentiated marketing involves developing separate marketing programs for each
segment. Undifferentiated uses a single offer for all, concentrated focuses on one
segment, and micromarketing tailors to individuals or local groups.
Page 3
Update | 100% Correct - LSUS. - 94 Questions and Answers
Already Graded A+ Premium Exam Tested And Verified
Subject Area MBA 701 Module 3 video Quiz | Questions and Answers | 2026 Update |
100% Correct - LSUS.
Description Comprehensive examination on MBA 701 Module 3 video Quiz | Questions and
Answers | 2026 Update | 100% Correct - LSUS..
Expected Grade A+
Total Questions 94
Duration 3 hours
Learning Outcomes 1. Demonstrate mastery of core concepts
Accreditation Aligned with US university standards.
Page 1
,1. In an industry with high fixed costs, perishable products, and many competitors of
equal size, the intensity of rivalry is most likely:
Answer: High
High fixed costs pressure firms to maximize capacity utilization, perishable products
require quick sales, and many equal competitors lead to price wars and aggressive
competition, all increasing rivalry intensity.
2. A company with strong cash reserves (strength) but outdated technology
(weakness) faces rapid technological change (threat) and a growing market for
adjacent products (opportunity). Which strategy best uses its strengths to exploit
opportunities while mitigating threats?
Answer: Acquire a tech startup to update capabilities
Acquiring a tech startup leverages cash to quickly close the technology gap (mitigating
threat) and enter adjacent markets (seizing opportunity), while R&D would be slower,
divestiture too drastic, and marketing does not address technology weakness.
3. A company evaluates its divisions using the BCG matrix.
Answer: Division D
Division D has low market growth and low relative market share, classifying it as a
'dog'; dogs are typically recommended for divestiture to free up resources for more
promising units.
4. In Porter's value chain, which of the following is considered a primary activity?
Answer: Inbound logistics
Inbound logistics is a primary activity directly involved in creating value; the others
(HR, technology, infrastructure) are support activities that enable primary activities to
function.
Page 2
, 5. For a core competency to provide sustainable competitive advantage, it must be
valuable, rare, costly to imitate, and non-substitutable. Which of the following best
illustrates a competency that is costly to imitate?
Answer: A highly skilled sales team with localized knowledge
Tacit knowledge embedded in a team (e.g., experienced sales force with customer
relationships) is extremely difficult to replicate due to causal ambiguity and social
complexity, whereas patents, cost advantages, and brand names can often be
circumvented or imitated over time.
6. Company X and Company Y have the following DuPont components:
Answer: Higher asset turnover
Company X's ROE (10% margin × 2.0 turnover × 2.0 multiplier = 40%) exceeds Y's
(15% × 1.5 × 1.5 = 33.75%). The primary driver is X's higher asset turnover (2.0 vs.
1.5), as Y has a higher margin but lower turnover and equity multiplier.
7. A company sells a product for $50 per unit. Variable costs are $30 per unit, and
fixed costs are $200,000. If the company wants a pretax profit of $100,000, how
many units must be sold?
Answer: 15,000
Contribution margin per unit is $50 - $30 = $20. Required sales volume = (Fixed costs +
Target profit) / Contribution margin = ($200,000 + $100,000) / $20 = 15,000 units.
8. Which of the following is a direct cause of the bullwhip effect in supply chains?
Answer: Order batching
Order batching amplifies demand variations as firms place large, infrequent orders,
causing upstream suppliers to experience inflated oscillations. The other options
(collaborative planning, demand reduction, VMI) mitigate the bullwhip effect.
9. A company targets multiple segments with distinct marketing mixes. This is
known as:
Answer: Differentiated marketing
Differentiated marketing involves developing separate marketing programs for each
segment. Undifferentiated uses a single offer for all, concentrated focuses on one
segment, and micromarketing tailors to individuals or local groups.
Page 3
