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Strategic Mgmt Exam Set Questions And
Verified Correct Answers A+
If TechnoGeek and VarsityBlue compete in the same market for
the same customer and TechnoGeek generates $900 of economic
value each time it sells a product or service while VarsityBlue
generates $400 of economic value each time it sells a product or
service, TechnoGeek has a(n) ________ of $500. Ans: Comp Adv
It is usually possible to know for sure that a firm is choosing the
right strategy. Ans: False
Green Frog is an environmentally friendly firm in the cosmetics
industry. If Green Frog were considering expanding beyond the
cosmetics industry into pharmaceuticals in order to gain
competitive advantages by operating in multiple markets and
industries, this would be an example of which type of strategy?
Ans: Corp Level Strategy
All firms have almost entirely emergent strategies. Ans: False
High quality objectives are tightly connected to the elements of a
firm's mission but tend to be relatively difficult to measure and
track over time. Ans: False
its easy
The view that equity holders only receive payment on their
investment in a firm after all legitimate claims by a firm's other
stakeholders are satisfied is known as the ________ view of equity
holders Ans: residual claimaints
From 1926 to 1995, visionary firms earned ________ returns
compared to firms that were not visionary firms. Ans: sub higher
Accounts receivable turnover is an example of which type of ratio?
Ans: activity
Thermacorp's weighted average cost of capital is 13.5. If the
average WACC in the heating and cooling industry is 19,
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Thermacorp can be said to be earning Ans: below normal econ
perf
Visionary firms earn substantially higher returns than average
firms because they acknowledge that profit maximizing is their
primary reason for existence. Ans: false
In many ways, the difference between traditional economics
research and strategic management research is that the former
attempts to explain why ________, while the latter attempts to
explain ________. Ans: should not persist, when they can
Johnson & Johnson's introduction of "Johnson's Toilet and Baby
Powder" as a result of customers asking to purchase the talcum
powder is an example of a planned strategy. Ans: False
The percentage of a firm's total capital that is debt times the cost
of debt plus the percentage of a firm's total capital; or equity times
the cost of equity is the Ans: weighted avg cost of capital
Green Frog is an environmentally friendly firm in the cosmetics
industry. If during the strategic planning process Green Frog tried
to determine the critical threats and opportunities in its
competitive environment, it would be performing a(n) Ans:
external analysis
Firms that generate less economic value than their rivals
experience a competitive Ans: disadvantage
Johnson & Johnson's strategy to get into the baby powder business
is an example of a(n) ________ strategy. Ans: emergent
One of the first scholars to examine the longevity of competitive
advantage was Ans: Dennis Mueller
Actions firms take to gain competitive advantages by operating in
multiple markets or industries simultaneously are known as Ans:
corp level
The two types of measures of competitive advantage include Ans:
Acct and Econ Measures
© 2025 All rights reserved
Strategic Mgmt Exam Set Questions And
Verified Correct Answers A+
If TechnoGeek and VarsityBlue compete in the same market for
the same customer and TechnoGeek generates $900 of economic
value each time it sells a product or service while VarsityBlue
generates $400 of economic value each time it sells a product or
service, TechnoGeek has a(n) ________ of $500. Ans: Comp Adv
It is usually possible to know for sure that a firm is choosing the
right strategy. Ans: False
Green Frog is an environmentally friendly firm in the cosmetics
industry. If Green Frog were considering expanding beyond the
cosmetics industry into pharmaceuticals in order to gain
competitive advantages by operating in multiple markets and
industries, this would be an example of which type of strategy?
Ans: Corp Level Strategy
All firms have almost entirely emergent strategies. Ans: False
High quality objectives are tightly connected to the elements of a
firm's mission but tend to be relatively difficult to measure and
track over time. Ans: False
its easy
The view that equity holders only receive payment on their
investment in a firm after all legitimate claims by a firm's other
stakeholders are satisfied is known as the ________ view of equity
holders Ans: residual claimaints
From 1926 to 1995, visionary firms earned ________ returns
compared to firms that were not visionary firms. Ans: sub higher
Accounts receivable turnover is an example of which type of ratio?
Ans: activity
Thermacorp's weighted average cost of capital is 13.5. If the
average WACC in the heating and cooling industry is 19,
© 2025 All rights reserved
, 2 | Page
Thermacorp can be said to be earning Ans: below normal econ
perf
Visionary firms earn substantially higher returns than average
firms because they acknowledge that profit maximizing is their
primary reason for existence. Ans: false
In many ways, the difference between traditional economics
research and strategic management research is that the former
attempts to explain why ________, while the latter attempts to
explain ________. Ans: should not persist, when they can
Johnson & Johnson's introduction of "Johnson's Toilet and Baby
Powder" as a result of customers asking to purchase the talcum
powder is an example of a planned strategy. Ans: False
The percentage of a firm's total capital that is debt times the cost
of debt plus the percentage of a firm's total capital; or equity times
the cost of equity is the Ans: weighted avg cost of capital
Green Frog is an environmentally friendly firm in the cosmetics
industry. If during the strategic planning process Green Frog tried
to determine the critical threats and opportunities in its
competitive environment, it would be performing a(n) Ans:
external analysis
Firms that generate less economic value than their rivals
experience a competitive Ans: disadvantage
Johnson & Johnson's strategy to get into the baby powder business
is an example of a(n) ________ strategy. Ans: emergent
One of the first scholars to examine the longevity of competitive
advantage was Ans: Dennis Mueller
Actions firms take to gain competitive advantages by operating in
multiple markets or industries simultaneously are known as Ans:
corp level
The two types of measures of competitive advantage include Ans:
Acct and Econ Measures
© 2025 All rights reserved
