2026/2027 LATEST GBA EXAM
PRACTICE QUESTIONS AND ANSWERS
A company's strategy consists of the action plan management is taking to:
A. stake out a unique market position and achieve superior profitability.
B. compete against rivals and establish a transitory competitive advantage.
C. concentrate on improving the existing product offering irrespective of the changing
and turbulent markets.
D. develop a more appealing business model than rivals.
E. identify its strategic vision, its strategic objectives, and its strategic intent. -
ANSWER-A
The objectives of a well-crafted strategy require management to strive to:
A. match rival businesses' products and quality dimensions in the marketplace.
B. build profits for short-term success.
C. realign the market to provoke change in rival companies.
D. develop lasting success that can support growth and secure the company's future
over the long term.
E. re-create their business models regularly. - ANSWER-D
FaberRoad, a respected courier brand, is fast losing its market share to competitors
who do overnight deliveries of packages or offer lower prices. Which strategy would
best address the current state of FaberRoad and help it regain its market?
A. Employing night delivery drivers at a high cost and maintenance charges
B. Developing radio tags that could be attached to packages to allow for real-time
tracking by customers' PCs and mobile phones
C. Diversifying the different types of packages that can be transported and enabling
booking through calls
D. Acquiring small transportation companies with cheaper trucks and tempos,
rebranding, and using them for deliveries - ANSWER-B
A company achieves a competitive advantage when it:
A. provides buyers with superior value compared to rival sellers or offers the same
value at a lower cost.
B. has a profitable business model.
C. is able to maximize shareholder wealth.
D. is consistently able to achieve both its strategic and financial objectives.
E. has a strategy well-matched to its business model. - ANSWER-A
, Giving customers more value for the money by satisfying their expectations on key
quality features, performance, and/or service attributes while beating their price
expectations is a:
A. best-cost provider strategy.
B. focused low-cost strategy.
C. focused differentiation strategy.
D. broad differentiation strategy.
E. low-cost provider strategy. - ANSWER-A
Which of the following is NOT typically a trigger to an evolving strategy?
A. The need to keep strategy in step with changing circumstances, market conditions,
and changing customer needs and expectations
B. The proactive efforts of company managers to fine-tune and improve one or more
pieces of the strategy
C. The need to abandon some strategy features that are no longer working well
D. The need to respond to the newly initiated actions and competitive moves of rival
firms
E. The need to respond to short-term swings in the stock market - ANSWER-E
To which of the following firms is the term "repeatedly evolving strategy" MOST
applicable?
A. A government agency that makes plans for a set period of time and implements them
phase by phase through the tenure
B. A mobile company, established in a saturated market, that aims at quarterly release
of new products
C. A new cosmetics manufacturer in a market that replicates the products of a
competitor at a moderate quality and lower price
D. A nationalized bank that lends at a lower interest rate but a zero processing fee in a
market crowded with privatized banks running at high cost
E. A firearms regulatory agency, set up by the government, that publishes industry
standards for safety, reliability, and quality of arms and ammunition - ANSWER-B
It is normal for a company's strategy to end up being:
A. a blend of offensive actions on the part of managers to improve the company's
profitability and defensive moves to counteract changing market conditions.
B. a combination of conservative moves to protect the company's market share and
somewhat more risky initiatives to set the company's product offering apart from rivals.
C. a close imitation of the strategy employed by the recognized industry leader.
D. a blend of proactive actions to improve the company's competitiveness and financial
performance, and adaptive reactions to unanticipated developments and fresh market
conditions.
PRACTICE QUESTIONS AND ANSWERS
A company's strategy consists of the action plan management is taking to:
A. stake out a unique market position and achieve superior profitability.
B. compete against rivals and establish a transitory competitive advantage.
C. concentrate on improving the existing product offering irrespective of the changing
and turbulent markets.
D. develop a more appealing business model than rivals.
E. identify its strategic vision, its strategic objectives, and its strategic intent. -
ANSWER-A
The objectives of a well-crafted strategy require management to strive to:
A. match rival businesses' products and quality dimensions in the marketplace.
B. build profits for short-term success.
C. realign the market to provoke change in rival companies.
D. develop lasting success that can support growth and secure the company's future
over the long term.
E. re-create their business models regularly. - ANSWER-D
FaberRoad, a respected courier brand, is fast losing its market share to competitors
who do overnight deliveries of packages or offer lower prices. Which strategy would
best address the current state of FaberRoad and help it regain its market?
A. Employing night delivery drivers at a high cost and maintenance charges
B. Developing radio tags that could be attached to packages to allow for real-time
tracking by customers' PCs and mobile phones
C. Diversifying the different types of packages that can be transported and enabling
booking through calls
D. Acquiring small transportation companies with cheaper trucks and tempos,
rebranding, and using them for deliveries - ANSWER-B
A company achieves a competitive advantage when it:
A. provides buyers with superior value compared to rival sellers or offers the same
value at a lower cost.
B. has a profitable business model.
C. is able to maximize shareholder wealth.
D. is consistently able to achieve both its strategic and financial objectives.
E. has a strategy well-matched to its business model. - ANSWER-A
, Giving customers more value for the money by satisfying their expectations on key
quality features, performance, and/or service attributes while beating their price
expectations is a:
A. best-cost provider strategy.
B. focused low-cost strategy.
C. focused differentiation strategy.
D. broad differentiation strategy.
E. low-cost provider strategy. - ANSWER-A
Which of the following is NOT typically a trigger to an evolving strategy?
A. The need to keep strategy in step with changing circumstances, market conditions,
and changing customer needs and expectations
B. The proactive efforts of company managers to fine-tune and improve one or more
pieces of the strategy
C. The need to abandon some strategy features that are no longer working well
D. The need to respond to the newly initiated actions and competitive moves of rival
firms
E. The need to respond to short-term swings in the stock market - ANSWER-E
To which of the following firms is the term "repeatedly evolving strategy" MOST
applicable?
A. A government agency that makes plans for a set period of time and implements them
phase by phase through the tenure
B. A mobile company, established in a saturated market, that aims at quarterly release
of new products
C. A new cosmetics manufacturer in a market that replicates the products of a
competitor at a moderate quality and lower price
D. A nationalized bank that lends at a lower interest rate but a zero processing fee in a
market crowded with privatized banks running at high cost
E. A firearms regulatory agency, set up by the government, that publishes industry
standards for safety, reliability, and quality of arms and ammunition - ANSWER-B
It is normal for a company's strategy to end up being:
A. a blend of offensive actions on the part of managers to improve the company's
profitability and defensive moves to counteract changing market conditions.
B. a combination of conservative moves to protect the company's market share and
somewhat more risky initiatives to set the company's product offering apart from rivals.
C. a close imitation of the strategy employed by the recognized industry leader.
D. a blend of proactive actions to improve the company's competitiveness and financial
performance, and adaptive reactions to unanticipated developments and fresh market
conditions.
