MKTG 400 Exam questions and
answers rated A+
Business Strategy - ANS✅✅A leadership plan that achieves a specific set of goals or objectives
Generic Business Strategies - ANS✅✅another name for business-level strategies, which are cost
leadership and product differentiation
Firm Effects on Competitive Advantage - ANS✅✅
strategic trade-offs - ANS✅✅Choices between a cost or value position. Such choices are necessary
because higher value creation tends to generate higher cost.
Dimensions of Corporate Strategy - ANS✅✅vertical integration
diversification
geographic scope
Explain the influence of economies of scale on firm growth - ANS✅✅A firm's efficiency is affected
by its size. Large firms are often more efficient than small ones because they can gain from
economies of scale. As a firm expands its scale of operations, it is said to move into its long run.
transaction costs - ANS✅✅the costs that parties incur in the process of agreeing to and following
through on a bargain
Build Buy Borrow Framework - ANS✅✅Conceptual model that aids firms in deciding whether to
pursue internal development, enter a contractual arrangement or strategic alliance, or acquire new
resources, capabilities, and competencies
multinational enterprise - ANS✅✅a firm that operates on a worldwide scale without ties to any
specific nation or region
Globalization - ANS✅✅the process by which businesses or other organizations develop
international influence or start operating on an international scale.
, CAGE distance framework - ANS✅✅A decision framework based on the relative distance between
home and a foreign target country along four dimensions: cultural distance, administrative and
political distance, geographic distance, and economic distance.
real-options perspective - ANS✅✅approach to strategic decision making that breaks down a larger
investment decision into a set of smaller decisions that are staged sequentially over time
explicit knowledge - ANS✅✅knowledge that is easily communicated and available to everyone
strategic alliance - ANS✅✅A long-term partnership between two or more companies established
to help each company build competitive market advantages.
information asymmetry - ANS✅✅situation in which one party is more informed than another
because of the possession of private information
public stock company - ANS✅✅is an important institutional arrangement in modern, free market
economies. It provides goods and services as well as employment, pays taxes, and increases the
standard of living. Society grants the right to incorporation, but in turn expects companies to be
good citizens by adding value to society.
shared value creation framework - ANS✅✅a model proposing that managers have a dual focus on
shareholder value creation and value creation for society
principal-agent problem - ANS✅✅a problem caused by agents pursuing their own interests rather
than the interests of the principals who hired them
inside directors - ANS✅✅Board members who are generally part of the company's senior
management team; appointed by shareholders to provide the board with necessary information
pertaining to the company's internal workings and performance.
outside directors - ANS✅✅Board members who are not employees of the firm, but who are
frequently senior executives from other firms or full-time professionals.
publicly traded companies - ANS✅✅companies that offer shares of stock or partial ownership to
those that wish to buy into that company
answers rated A+
Business Strategy - ANS✅✅A leadership plan that achieves a specific set of goals or objectives
Generic Business Strategies - ANS✅✅another name for business-level strategies, which are cost
leadership and product differentiation
Firm Effects on Competitive Advantage - ANS✅✅
strategic trade-offs - ANS✅✅Choices between a cost or value position. Such choices are necessary
because higher value creation tends to generate higher cost.
Dimensions of Corporate Strategy - ANS✅✅vertical integration
diversification
geographic scope
Explain the influence of economies of scale on firm growth - ANS✅✅A firm's efficiency is affected
by its size. Large firms are often more efficient than small ones because they can gain from
economies of scale. As a firm expands its scale of operations, it is said to move into its long run.
transaction costs - ANS✅✅the costs that parties incur in the process of agreeing to and following
through on a bargain
Build Buy Borrow Framework - ANS✅✅Conceptual model that aids firms in deciding whether to
pursue internal development, enter a contractual arrangement or strategic alliance, or acquire new
resources, capabilities, and competencies
multinational enterprise - ANS✅✅a firm that operates on a worldwide scale without ties to any
specific nation or region
Globalization - ANS✅✅the process by which businesses or other organizations develop
international influence or start operating on an international scale.
, CAGE distance framework - ANS✅✅A decision framework based on the relative distance between
home and a foreign target country along four dimensions: cultural distance, administrative and
political distance, geographic distance, and economic distance.
real-options perspective - ANS✅✅approach to strategic decision making that breaks down a larger
investment decision into a set of smaller decisions that are staged sequentially over time
explicit knowledge - ANS✅✅knowledge that is easily communicated and available to everyone
strategic alliance - ANS✅✅A long-term partnership between two or more companies established
to help each company build competitive market advantages.
information asymmetry - ANS✅✅situation in which one party is more informed than another
because of the possession of private information
public stock company - ANS✅✅is an important institutional arrangement in modern, free market
economies. It provides goods and services as well as employment, pays taxes, and increases the
standard of living. Society grants the right to incorporation, but in turn expects companies to be
good citizens by adding value to society.
shared value creation framework - ANS✅✅a model proposing that managers have a dual focus on
shareholder value creation and value creation for society
principal-agent problem - ANS✅✅a problem caused by agents pursuing their own interests rather
than the interests of the principals who hired them
inside directors - ANS✅✅Board members who are generally part of the company's senior
management team; appointed by shareholders to provide the board with necessary information
pertaining to the company's internal workings and performance.
outside directors - ANS✅✅Board members who are not employees of the firm, but who are
frequently senior executives from other firms or full-time professionals.
publicly traded companies - ANS✅✅companies that offer shares of stock or partial ownership to
those that wish to buy into that company
