HTM 2314 FINAL EXAM QUESTIONS
WITH 100% CORRECT ANSWERS
Which of the following is true of medium-sized and small firms?
A) They explore foreign markets to see where the opportunities lie for leveraging their
technology.
B) They consider exporting only after their domestic market is saturated.
C) They are proactive about seeking opportunities for profitable exporting.
D)They are not intimidated by the complexities of foreign legal systems.
E) They have a high degree of familiarity with foreign market opportunities - Answer-B)
They consider exporting only after their domestic market is saturated.
Which of the following is a common pitfall that novice exporters come across?
A) problems securing financing
B) poor understanding of the opportunities in the domestic market
C) low unit costs
D) familiar distribution systems
E) increased economies of scale - Answer-A) problems securing financing
Due to the complexity and diversity of foreign markets, firms sometimes hesitate to seek
export opportunities. These firms can best overcome ignorance by
A) lowering unit costs
B) shortening production runs.
C) creating revenue.
D) collecting information.
E) outsourcing decisions. - Answer-D) collecting information.
Japan's great trading houses are referred to as:
A) kanban
B) guanxi
C) kaizen
D) sogo shosha
E) zaibatsu - Answer-D) sogo shosha
Which of the following institutions within the U.S. Department of Commerce is dedicated
to providing businesses with intelligence and assistance for attacking foreign markets?
A) Small Business Administration
B) Federal Trade Commission
C) Bank of New York
D) Bureau of Competition
, E) International Trade Administration - Answer-E) International Trade Administration
Which of the following is a way in which the U.S. Department of Commerce helps
potential exporters?
A) It coordinates a nationwide group of international trade attorneys who provide free
initial consultations to small businesses on export-related matters.
B) It assembles a "comparison shopping service" for countries that are major markets
for U.S. exports
C) It starts exporting operations for firms until they are well established.
D) It oversees volunteers with international trade experience and directs them to provide
one-on-one counseling to active and new-to-export businesses.
E) It provides export specialists who act as the export marketing departments or
international departments for their client firms. - Answer-B) It assembles a "comparison
shopping service" for countries that are major markets for U.S. exports
(T/F) The actions that managers take to attain the goals of the firm are referred to as a
firm's strategy. - Answer-True
(T/F) Profit growth is measured by the percentage increase in net profits over time. -
Answer-True
(T/F) The amount of value a firm creates is measured by the difference between its
costs of production and the value that consumers perceive in its products. - Answer-
True
(T/F) Consumer surplus captures some of the value of a product thereby reducing the
price a firm can charge for it. - Answer-True
(T/F) A strategy that focuses primarily on increasing the attractiveness of a product is
referred to as a low-cost strategy. - Answer-False (A strategy that focuses primarily on
increasing the attractiveness of a product is referred to as a differentiation strategy.)
(T/F) According to Michael Porter, all positions on the efficiency frontier are viable. -
Answer-False (Porter emphasizes that it is very important for management to decide
where the company wants to be positioned with regard to value (V) and cost (C), to
configure operations accordingly, and to manage them efficiently to make sure the firm
is operating on the efficiency frontier. However, not all positions on the efficiency frontier
are viable.)
(T/F) In terms of attaining a competitive advantage, support activities can be as
important as the primary activities of the firm. - Answer-True
(T/F) The term organizational structure refers to the totality of a firm's organization,
including organization architecture, control systems and incentives, organizational
culture, processes, and people. - Answer-False (The term organization architecture can
WITH 100% CORRECT ANSWERS
Which of the following is true of medium-sized and small firms?
A) They explore foreign markets to see where the opportunities lie for leveraging their
technology.
B) They consider exporting only after their domestic market is saturated.
C) They are proactive about seeking opportunities for profitable exporting.
D)They are not intimidated by the complexities of foreign legal systems.
E) They have a high degree of familiarity with foreign market opportunities - Answer-B)
They consider exporting only after their domestic market is saturated.
Which of the following is a common pitfall that novice exporters come across?
A) problems securing financing
B) poor understanding of the opportunities in the domestic market
C) low unit costs
D) familiar distribution systems
E) increased economies of scale - Answer-A) problems securing financing
Due to the complexity and diversity of foreign markets, firms sometimes hesitate to seek
export opportunities. These firms can best overcome ignorance by
A) lowering unit costs
B) shortening production runs.
C) creating revenue.
D) collecting information.
E) outsourcing decisions. - Answer-D) collecting information.
Japan's great trading houses are referred to as:
A) kanban
B) guanxi
C) kaizen
D) sogo shosha
E) zaibatsu - Answer-D) sogo shosha
Which of the following institutions within the U.S. Department of Commerce is dedicated
to providing businesses with intelligence and assistance for attacking foreign markets?
A) Small Business Administration
B) Federal Trade Commission
C) Bank of New York
D) Bureau of Competition
, E) International Trade Administration - Answer-E) International Trade Administration
Which of the following is a way in which the U.S. Department of Commerce helps
potential exporters?
A) It coordinates a nationwide group of international trade attorneys who provide free
initial consultations to small businesses on export-related matters.
B) It assembles a "comparison shopping service" for countries that are major markets
for U.S. exports
C) It starts exporting operations for firms until they are well established.
D) It oversees volunteers with international trade experience and directs them to provide
one-on-one counseling to active and new-to-export businesses.
E) It provides export specialists who act as the export marketing departments or
international departments for their client firms. - Answer-B) It assembles a "comparison
shopping service" for countries that are major markets for U.S. exports
(T/F) The actions that managers take to attain the goals of the firm are referred to as a
firm's strategy. - Answer-True
(T/F) Profit growth is measured by the percentage increase in net profits over time. -
Answer-True
(T/F) The amount of value a firm creates is measured by the difference between its
costs of production and the value that consumers perceive in its products. - Answer-
True
(T/F) Consumer surplus captures some of the value of a product thereby reducing the
price a firm can charge for it. - Answer-True
(T/F) A strategy that focuses primarily on increasing the attractiveness of a product is
referred to as a low-cost strategy. - Answer-False (A strategy that focuses primarily on
increasing the attractiveness of a product is referred to as a differentiation strategy.)
(T/F) According to Michael Porter, all positions on the efficiency frontier are viable. -
Answer-False (Porter emphasizes that it is very important for management to decide
where the company wants to be positioned with regard to value (V) and cost (C), to
configure operations accordingly, and to manage them efficiently to make sure the firm
is operating on the efficiency frontier. However, not all positions on the efficiency frontier
are viable.)
(T/F) In terms of attaining a competitive advantage, support activities can be as
important as the primary activities of the firm. - Answer-True
(T/F) The term organizational structure refers to the totality of a firm's organization,
including organization architecture, control systems and incentives, organizational
culture, processes, and people. - Answer-False (The term organization architecture can
