EXAM QUESTIONS WITH
CORRECT ANSWERS
Which of the following is NOT a determinant of the extent of rivalry among established
companies - Answer-The bargaining power of buyers
Americans are currently living ling now than in the past because of advances in
medicine. As a result, the sale of products that meets the needs of older individuals,
such as devices that assist in walking and movement, have increased. In the context of
an industry's macroenvironment, age is considered a _________ force - Answer-
demographic
Suppliers in an industry are most powerful when - Answer-a. there are few substitutes
for the products that they sell
An industry can be defined as a group of - Answer-companies offering products or
services that are close substitutes for each other
Which of the following industry structure consists of a large number of small or medium-
sized companies, none of which is in a position to determine industry price? - Answer-
Fragmented industry
Mobility barriers - Answer-inhibit the movement of companies between strategic groups
in an industry
Porter's Five Forces model did not recognize the - Answer-power of complement
providers
Cost of goods sold is reported on the - Answer-income statement
Dale's methods of fitting horseshoes save time and money for his employer at the local
ranch. However, when Dale suggests that everyone use his method, his boss, Cedric,
says, "No. That's not the way we've always done it around here." Cedric's resistance to
change illustrates: - Answer-organizational inertia
Using the value chain model, which of the following primary activities is performed last,
as inputs are transformed into outputs? - Answer-customer service
Which of the following best describes product innovation? - Answer-creating products
that have superior attributes than existing products