MGT 4394 Final Exam Questions and
All Correct Answers 2026 Updated.
strategy - Answer The set of goal-directed actions a firm takes
to gain and sustain competitive advantage
Strategic
Management - Answer An integrative management field that
combines analysis, formulation, and
implementation in the quest for
competitive advantage.
Competitive advantage - Answer Stake out a unique
position within an
industry.
Sustained Competitive advantage - Answer over a long period of time.
How to create competitive advantage ? - Answer Π=R-C
The AFI Framework - Answer Analyze (A)
Formulate (F)
Implement(I)
Stakeholders - Answer Organizations, groups, and individuals that can affect or are affected
by a
firm's actions.
Stakeholder Strategy : - Answer An integrative approach to managing a
diverse set of stakeholders effectively in
order to gain and sustain competitive
advantage.
Mission - Answer Why do we exist?
, Vision - Answer Where do we want to go?
Values - Answer How do we get there?
Product-oriented vision statement - Answer "To be the safest, most progressive North
American Railroad"
Defines a business in terms of a good or service provided
Customer-oriented vision statement - Answer "To make people happy."
defines a business in terms of providing solutions to customer needs
Short term debt - Current Ratio - Answer Current Ratio=Current Assets/Current Liabilities
- A current ratio that is lower than the industry average may indicate a higher risk of distress or
default
- high current ratio compared to peer group indicates that management may not be using assets
efficiently
Short term debt-Quick ratio - Answer Quick Ratio = Liquid Assets / Current Liabilities
Quick Ratio = (Cash & Equivalents + Marketable Securities + AR) / Current Liabilities
-A figure of 1 is considered to be the normal
quick ratio, as it indicates that the company
is fully equipped with sufficient assets that
can be instantly liquidated to pay off its
current liabilities.
-A company that has a quick ratio of less
than 1 may not be able to fully pay off its
current liabilities in the short term, while a
company having a quick ratio higher than 1
can instantly get rid of its current liabilities.
Short term Debt
Day's inventory - Answer Day's Inventory = [ Average inventory / (Cost of Sales / Number of
Days) ]
- The days sales of inventory (DSI) is a
All Correct Answers 2026 Updated.
strategy - Answer The set of goal-directed actions a firm takes
to gain and sustain competitive advantage
Strategic
Management - Answer An integrative management field that
combines analysis, formulation, and
implementation in the quest for
competitive advantage.
Competitive advantage - Answer Stake out a unique
position within an
industry.
Sustained Competitive advantage - Answer over a long period of time.
How to create competitive advantage ? - Answer Π=R-C
The AFI Framework - Answer Analyze (A)
Formulate (F)
Implement(I)
Stakeholders - Answer Organizations, groups, and individuals that can affect or are affected
by a
firm's actions.
Stakeholder Strategy : - Answer An integrative approach to managing a
diverse set of stakeholders effectively in
order to gain and sustain competitive
advantage.
Mission - Answer Why do we exist?
, Vision - Answer Where do we want to go?
Values - Answer How do we get there?
Product-oriented vision statement - Answer "To be the safest, most progressive North
American Railroad"
Defines a business in terms of a good or service provided
Customer-oriented vision statement - Answer "To make people happy."
defines a business in terms of providing solutions to customer needs
Short term debt - Current Ratio - Answer Current Ratio=Current Assets/Current Liabilities
- A current ratio that is lower than the industry average may indicate a higher risk of distress or
default
- high current ratio compared to peer group indicates that management may not be using assets
efficiently
Short term debt-Quick ratio - Answer Quick Ratio = Liquid Assets / Current Liabilities
Quick Ratio = (Cash & Equivalents + Marketable Securities + AR) / Current Liabilities
-A figure of 1 is considered to be the normal
quick ratio, as it indicates that the company
is fully equipped with sufficient assets that
can be instantly liquidated to pay off its
current liabilities.
-A company that has a quick ratio of less
than 1 may not be able to fully pay off its
current liabilities in the short term, while a
company having a quick ratio higher than 1
can instantly get rid of its current liabilities.
Short term Debt
Day's inventory - Answer Day's Inventory = [ Average inventory / (Cost of Sales / Number of
Days) ]
- The days sales of inventory (DSI) is a
