AND CONTROL IIIB – COMPREHENSIVE 500+
MCQ EXAM PREPARATION PACK (2025
EDITION)
Q1. Which action would MOST support a 'Cost leadership strategy'?
a) Eliminate customer feedback
b) Focus only on short-term profits
c) Centralise all decisions at top management
d) Increase operational efficiency to reduce unit costs
ANS: d
Explanation: Increasing operational efficiency to reduce unit costs supports the Cost leadership
strategy.
Q2. Which statement BEST contrasts 'Cost leadership strategy' and 'Organizational Learning'?
a) Cost leadership strategy always follows Organizational Learning
b) Both refer only to financial metrics
c) They are effectively identical
d) Cost leadership strategy focuses on planning, while Organizational Learning focuses on
execution
ANS: d
Explanation: Cost leadership strategy is about planning/direction; Organizational Learning
emphasises action/implementation.
Q3. In Lewin's model, what does 'Unfreezing' primarily involve?
a) Consolidate gains immediately
b) Ignore the past
c) Refreeze before changing
d) Prepare the organisation by challenging current assumptions (unfreeze)
ANS: d
Explanation: Unfreezing challenges the status quo to make change possible.
Q4. Which strategic move MOST reflects Microsoft's digital transformation under Satya
Nadella?
a) Dismantling enterprise services
b) Investing in intelligent cloud and platform services
c) Avoiding cloud platforms
d) Returning focus to PC-only products
ANS: b
Explanation: Building cloud and platform capabilities is central to Microsoft's transformation.
Q5. Which option BEST describes 'Risk Avoidance'?
,a) Deny the existence of risk
b) Accept all losses without a plan
c) Refusing to engage in the activity that creates the risk
d) Rely solely on informal rumours
ANS: c
Explanation: Refusing to engage in the activity that creates the risk.
Q6. What is meant by 'Organisational culture'?
a) A short-term marketing plan
b) A single leader's preference
c) Shared values, norms, and artefacts that shape behaviour
d) Only written HR policies
ANS: c
Explanation: Culture encompasses shared beliefs and tangible artefacts guiding behaviour.
Q7. Which perspectives are included in the Balanced Scorecard?
a) Financial, Customer, Internal Process, and Learning & Growth perspectives
b) Only financial metrics
c) Sales, Legal, HR, and Finance
d) Customer feedback only
ANS: a
Explanation: The BSC links financial and non-financial measures across four perspectives.
Q8. Which of the following BEST defines 'Organizational Learning'?
a) Shared values, assumptions, and artefacts that shape behaviour in an organisation
b) Becoming the lowest-cost producer in an industry
c) A model of change with unfreezing, changing, and refreezing stages
d) A continuous process of acquiring, transferring, and applying knowledge
ANS: d
Explanation: A continuous process of acquiring, transferring, and applying knowledge.
Q9. Which action would MOST support a 'Cost leadership strategy'?
a) Increase operational efficiency to reduce unit costs
b) Eliminate customer feedback
c) Focus only on short-term profits
d) Centralise all decisions at top management
ANS: a
Explanation: Increasing operational efficiency to reduce unit costs supports the Cost leadership
strategy.
Q10. Which statement BEST contrasts 'Organisational culture' and 'Strategy Implementation'?
a) Organisational culture always follows Strategy Implementation
b) Organisational culture focuses on planning, while Strategy Implementation focuses on
execution
,c) They are effectively identical
d) Both refer only to financial metrics
ANS: b
Explanation: Organisational culture is about planning/direction; Strategy Implementation
emphasises action/implementation.
Q11. In Lewin's model, what does 'Unfreezing' primarily involve?
a) Ignore the past
b) Consolidate gains immediately
c) Prepare the organisation by challenging current assumptions (unfreeze)
d) Refreeze before changing
ANS: c
Explanation: Unfreezing challenges the status quo to make change possible.
Q12. For a firm like SolarCity, which objective would BEST accelerate distributed solar
adoption?
a) Stop innovation
b) Set measurable installation and efficiency targets to drive adoption
c) Ignore performance metrics
d) Cut customer education
ANS: b
Explanation: Measurable targets focus resources on growth and operational improvements.
Q13. Which option BEST describes 'Risk Transfer'?
a) Deny the existence of risk
b) Shifting exposure to another party, e.g., insurance or contracting out
c) Rely solely on informal rumours
d) Accept all losses without a plan
ANS: b
Explanation: Shifting exposure to another party, e.g., insurance or contracting out.
Q14. What is meant by 'Organisational culture'?
a) Only written HR policies
b) A single leader's preference
c) Shared values, norms and artefacts that shape behaviour
d) A short-term marketing plan
ANS: c
Explanation: Culture encompasses shared beliefs and tangible artefacts guiding behaviour.
Q15. Which perspectives are included in the Balanced Scorecard?
a) Financial, Customer, Internal Process and Learning & Growth perspectives
b) Customer feedback only
c) Sales, Legal, HR and Finance
d) Only financial metrics
, ANS: a
Explanation: The BSC links financial and non-financial measures across four perspectives.
Q16. Which of the following BEST defines 'Competitive Advantage'?
a) Learning that questions and changes underlying assumptions and policies
b) Attributes that allow an organisation to outperform competitors
c) An organisation's ability to recognise, assimilate and apply external knowledge
d) Becoming the lowest-cost producer in an industry
ANS: b
Explanation: Attributes that allow an organisation to outperform competitors.
Q17. Which action would MOST support a 'Differentiation strategy'?
a) Centralise all decisions at top management
b) Eliminate customer feedback
c) Develop unique features and strong branding
d) Focus only on short-term profits
ANS: c
Explanation: Develop unique features and strong branding supports Differentiation strategy.
Q18. Which statement BEST contrasts 'Double Loop Learning' and 'Differentiation strategy'?
a) Double Loop Learning focuses on planning while Differentiation strategy focuses on
execution
b) Both refer only to financial metrics
c) They are effectively identical
d) Double Loop Learning always follows Differentiation strategy
ANS: a
Explanation: Double Loop Learning is about planning/direction; Differentiation strategy
emphasises action/implementation.
Q19. In Lewin's model what does 'Unfreezing' primarily involve?
a) Consolidate gains immediately
b) Ignore the past
c) Refreeze before changing
d) Prepare the organisation by challenging current assumptions (unfreeze)
ANS: d
Explanation: Unfreezing challenges the status quo to make change possible.
Q20. For a firm like SolarCity, which objective would BEST accelerate distributed solar
adoption?
a) Ignore performance metrics
b) Set measurable installation and efficiency targets to drive adoption
c) Cut customer education
d) Stop innovation
ANS: b