BUAD 453 MIDTERM EXAM
QUESTIONS WITH CORRECT
DETAILED ANSWERS (GRADE A)
Which of the following is one of the basic building blocks of competitive advantage?
a. variety
b. distribution
c. quantity
d. logistics
e. innovation - Answer-e. innovation
Costs of goods sold is reported on the:
a. balance sheet
b. financial position statement
c. income statement
d. overhead expertise statement
e. cash budget - Answer-c. income statement
Which of the following support activities in the value chain controls the transmission of
physical materials through the value chain from procurement through production and
into distribution?
a. human resources
b. logistics
c. operations
d. research and development
e. information systems - Answer-b. logistics
Factors or characteristics that make it difficult for another individual or company to
replicate something are known as:
a. technological know-how
b. primary activities
c. support activities
d. barriers to imitation
e. marketing know-how - Answer-d. barriers to imitation
Using the value-chain model, which of the following primary activities is performed first,
as inputs are transformed into outputs?
a. production
b. research and development
c. customer service
d. marketing and sales
, e. logistics - Answer-b. research and development
The simplest measure of efficiency is the:
a. total costs of producing products
b. quantity of inputs required to produce a given output
c. ratio of revenues divided by invested capital
d. net profit expressed as a percentage of sales
e. amount of money the company has to work with in the short term - Answer-b. quantity
of inputs required to produce a given output
The concept of efficiency as a building block of competitive advantage applies to:
a. only those products that have been redesigned
b. only those products of a firm popular among a large customer base
c. only those products that consumers believe to be high quality
d. custom-made products only
e. all products produced by a firm - Answer-e. all products produced by a firm
Which generic business-level strategy is based on the intent to lower costs so that a
company can lower prices and still make a profit?
a. broad differentiation
b. focus differentiation
c. broad low-cost
d. focus low-cost
e. price differentiation - Answer-c. broad low-cost
A differentiation strategy is based on creating a product that customers perceive as
being:
a. the most costly product in the industry
b. the same as other available products
c. the least costly product in the industry
d. cheaper, but inferior to the available products
e. superior to other available products - Answer-e. superior to other available products
When a company targets a certain segment or niche, and customizes its offering to the
needs of that particular segment through the addition of features and functions, the
company is pursuing a ____ strategy
a. focus low-cost
b. product substitution
c. focus differentiation
d. broad low-cost
e. broad differentiation - Answer-c. focus differentiation
At the luxury hotel in Miami, FL, three hotel employees serve the needs of each guest.
In every room, a guest can summon a chef, a maid, or a valet by pressing a button at
his or her bedside. Which generic business-level strategy is the luxury hotel utilizing?
a. broad differentiation
QUESTIONS WITH CORRECT
DETAILED ANSWERS (GRADE A)
Which of the following is one of the basic building blocks of competitive advantage?
a. variety
b. distribution
c. quantity
d. logistics
e. innovation - Answer-e. innovation
Costs of goods sold is reported on the:
a. balance sheet
b. financial position statement
c. income statement
d. overhead expertise statement
e. cash budget - Answer-c. income statement
Which of the following support activities in the value chain controls the transmission of
physical materials through the value chain from procurement through production and
into distribution?
a. human resources
b. logistics
c. operations
d. research and development
e. information systems - Answer-b. logistics
Factors or characteristics that make it difficult for another individual or company to
replicate something are known as:
a. technological know-how
b. primary activities
c. support activities
d. barriers to imitation
e. marketing know-how - Answer-d. barriers to imitation
Using the value-chain model, which of the following primary activities is performed first,
as inputs are transformed into outputs?
a. production
b. research and development
c. customer service
d. marketing and sales
, e. logistics - Answer-b. research and development
The simplest measure of efficiency is the:
a. total costs of producing products
b. quantity of inputs required to produce a given output
c. ratio of revenues divided by invested capital
d. net profit expressed as a percentage of sales
e. amount of money the company has to work with in the short term - Answer-b. quantity
of inputs required to produce a given output
The concept of efficiency as a building block of competitive advantage applies to:
a. only those products that have been redesigned
b. only those products of a firm popular among a large customer base
c. only those products that consumers believe to be high quality
d. custom-made products only
e. all products produced by a firm - Answer-e. all products produced by a firm
Which generic business-level strategy is based on the intent to lower costs so that a
company can lower prices and still make a profit?
a. broad differentiation
b. focus differentiation
c. broad low-cost
d. focus low-cost
e. price differentiation - Answer-c. broad low-cost
A differentiation strategy is based on creating a product that customers perceive as
being:
a. the most costly product in the industry
b. the same as other available products
c. the least costly product in the industry
d. cheaper, but inferior to the available products
e. superior to other available products - Answer-e. superior to other available products
When a company targets a certain segment or niche, and customizes its offering to the
needs of that particular segment through the addition of features and functions, the
company is pursuing a ____ strategy
a. focus low-cost
b. product substitution
c. focus differentiation
d. broad low-cost
e. broad differentiation - Answer-c. focus differentiation
At the luxury hotel in Miami, FL, three hotel employees serve the needs of each guest.
In every room, a guest can summon a chef, a maid, or a valet by pressing a button at
his or her bedside. Which generic business-level strategy is the luxury hotel utilizing?
a. broad differentiation
