EXAM QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) Q&A 2026|INSTANT
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1. What is the primary purpose of strategic planning?
A. To create daily operational tasks
B. To define long-term direction and goals
C. To eliminate employee supervision
D. To focus only on budgeting
Rationale: Strategic planning sets long-term direction rather
than short-term tasks.
Correct Answer: B
2. Which element best defines an organization’s reason for
existence?
A. Vision statement
B. Mission statement
C. SWOT analysis
D. Action plan
Rationale: The mission defines purpose, while vision defines
future aspiration.
Correct Answer: B
,3. What does SWOT analysis evaluate?
A. Salaries and wages
B. Strengths, Weaknesses, Opportunities, Threats
C. Systems, Workers, Operations, Training
D. Sales, Wins, Objectives, Trends
Rationale: SWOT is a strategic assessment tool.
Correct Answer: B
4. A vision statement primarily describes:
A. Current operations
B. Financial records
C. Desired future state
D. Employee roles
Rationale: Vision describes long-term aspiration.
Correct Answer: C
5. Which is a key characteristic of effective strategic goals?
A. Vague and flexible
B. Measurable and time-bound
C. Based only on opinions
D. Unrelated to mission
,Rationale: Goals should be SMART.
Correct Answer: B
6. What does SMART stand for in strategic planning?
A. Simple, Managed, Agile, Realistic, Timely
B. Strategic, Measurable, Adaptive, Relevant, Tactical
C. Specific, Measurable, Achievable, Relevant, Time-bound
D. Standard, Managed, Accountable, Reliable, Tested
Rationale: SMART defines goal-setting criteria.
Correct Answer: C
7. Which tool is used to analyze external environment factors?
A. SWOT analysis
B. PESTLE analysis
C. Budget report
D. HR audit
Rationale: PESTLE evaluates external macro factors.
Correct Answer: B
8. What does PESTLE analysis include?
A. People, Education, Skills, Training, Labor, Economy
B. Political, Economic, Social, Technological, Legal,
Environmental
, C. Planning, Execution, Strategy, Tactics, Leadership, Evaluation
D. Profit, Expense, Sales, Tax, Loss, Earnings
Rationale: It examines macro-environmental forces.
Correct Answer: B
9. Strategic objectives should align with:
A. Employee preferences
B. Organizational mission and vision
C. Competitor strategies only
D. Short-term trends only
Rationale: Alignment ensures coherence in direction.
Correct Answer: B
10. Which is NOT a component of strategic planning?
A. Mission formulation
B. Goal setting
C. Random decision-making
D. Performance evaluation
Rationale: Strategic planning is structured, not random.
Correct Answer: C
11. A strategic plan typically covers what time horizon?