MBA 5003 GRADUATE BUSINESS FUNDAMENTALS QUESTIONS AND ANSWERS | STUDY GUIDE
2026/2027
corporations - ✔✔legal entity that can sue or be bused, make party to contracts, and can
acquire property; owned by stockholders but managed on a daily basis by C-Suite & governed
by board of directors
Goal of firm - ✔✔Maximize firm value
3 drivers of firm value - ✔✔cash flow, timing, & risk
how to maximize firm value - ✔✔maximize the present value of expected future cash flow
principal - ✔✔= stockholder
agent - ✔✔= management
solution to conflict of interest - ✔✔corporate government
corporate government - ✔✔The system by which business corporations are directed and
controlled
stakeholder view - ✔✔corporate decision-making should account for the well-being of
constituencies (other than shareholders) such as employees, suppliers, local communities,
creditors, environment
role of strategy - ✔✔How a firm positions itself relative to its competition, deploys its
resources and directs its activities to create and sustain its competitive edge
, low-cost strategy - ✔✔seeking sales volume by achieving lowest price through lowest cost (ex.
Walmart)
differentiation strategy - ✔✔seeking higher profit margin by providing unique or good service
high market share, high market growth rat - ✔✔stars
low market share, high market growth rate - ✔✔question marks
high market share, low market growth rate - ✔✔cash cow
low market growth, low market share - ✔✔dog
The tool used in strategic planning to assess attractive markets or product lines is referred to as:
- ✔✔BCG growth-share matrix
marketing is focused on - ✔✔generating value
marketing - ✔✔the activity, set of institutions, & processing for creating, communicating, and
delivering value
value - ✔✔the perceived benefits that a customer receives from a product compared with the
cost of obtaining it
marketing seeks to match - ✔✔needs with wants
2026/2027
corporations - ✔✔legal entity that can sue or be bused, make party to contracts, and can
acquire property; owned by stockholders but managed on a daily basis by C-Suite & governed
by board of directors
Goal of firm - ✔✔Maximize firm value
3 drivers of firm value - ✔✔cash flow, timing, & risk
how to maximize firm value - ✔✔maximize the present value of expected future cash flow
principal - ✔✔= stockholder
agent - ✔✔= management
solution to conflict of interest - ✔✔corporate government
corporate government - ✔✔The system by which business corporations are directed and
controlled
stakeholder view - ✔✔corporate decision-making should account for the well-being of
constituencies (other than shareholders) such as employees, suppliers, local communities,
creditors, environment
role of strategy - ✔✔How a firm positions itself relative to its competition, deploys its
resources and directs its activities to create and sustain its competitive edge
, low-cost strategy - ✔✔seeking sales volume by achieving lowest price through lowest cost (ex.
Walmart)
differentiation strategy - ✔✔seeking higher profit margin by providing unique or good service
high market share, high market growth rat - ✔✔stars
low market share, high market growth rate - ✔✔question marks
high market share, low market growth rate - ✔✔cash cow
low market growth, low market share - ✔✔dog
The tool used in strategic planning to assess attractive markets or product lines is referred to as:
- ✔✔BCG growth-share matrix
marketing is focused on - ✔✔generating value
marketing - ✔✔the activity, set of institutions, & processing for creating, communicating, and
delivering value
value - ✔✔the perceived benefits that a customer receives from a product compared with the
cost of obtaining it
marketing seeks to match - ✔✔needs with wants
