1 | Page
MBA 620 Final Exam Actual Exam Newest 2026/2027 Complete
Questions And Correct Detailed Answers (Verified Answers)
|Brand New Version!!
When applying the Ansoff Matrix, a firm that sells new products to existing markets is
pursuing:
A. Market penetration
B. Product development
C. Diversification
D. Market development
Answer: B. Product development
In international strategy, the adaptation approach emphasizes:
A. Global standardization of products
B. Tailoring products and strategies to local markets
C. Avoiding foreign market entry
D. Using a single pricing model worldwide
Answer: B. Tailoring products and strategies to local markets
A company that competes in multiple industries but uses a single brand identity across all
is engaging in:
A. Corporate branding
B. Differentiated marketing
C. Private labeling
D. Functional strategy
Answer: A. Corporate branding
The primary difference between strategy formulation and strategy implementation is that:
A. Formulation is short-term, implementation is long-term
B. Formulation is about deciding what to do, implementation is about executing it
C. Implementation always precedes formulation
D. They are identical processes
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Answer: B. Formulation is about deciding what to do, implementation is about executing it
A company benchmarks its performance against industry leaders to:
A. Copy their marketing strategy
B. Measure performance gaps and identify best practices
C. Reduce R&D spending
D. Set arbitrary goals
Answer: B. Measure performance gaps and identify best practices
Which financial ratio best measures a firm’s liquidity?
A. Current ratio
B. Return on assets
C. Price-to-earnings ratio
D. Debt ratio
Answer: A. Current ratio
A firm’s mission statement should primarily describe:
A. Specific financial targets
B. The organization’s purpose and values
C. Step-by-step operational procedures
D. Competitive pricing strategies
Answer: B. The organization’s purpose and values
When the marginal cost of producing an additional unit equals marginal revenue, the firm
is:
A. Maximizing total revenue
B. Maximizing profit
C. Minimizing fixed costs
D. Experiencing diseconomies of scale
Answer: B. Maximizing profit
The strategic management process is best described as:
A. Linear and one-time
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B. Continuous and cyclical
C. Random and informal
D. Short-term and reactive
Answer: B. Continuous and cyclical
Which competitive force is directly reduced when a firm establishes high customer
switching costs?
A. Supplier power
B. Threat of substitutes
C. Rivalry among existing firms
D. Buyer power
Answer: D. Buyer power
If the demand for a product is price elastic, lowering the price will most likely:
A. Decrease total revenue
B. Increase total revenue
C. Have no effect on revenue
D. Decrease quantity demanded
Answer: B. Increase total revenue
Which is the primary advantage of using a matrix organizational structure?
A. Eliminates reporting complexity
B. Encourages resource sharing and cross-functional collaboration
C. Avoids conflict between departments
D. Guarantees lower costs
Answer: B. Encourages resource sharing and cross-functional collaboration
strategy - SOLUTION=where should we compete and how? integrated set of choices that
positions the business in its industry so as to generate superior financial returns over time,
Strong strategy is consistent, aligns with intended business model and positioning, How a
business performs in its environment compared to competitors
, 4 | Page
Future costs that differ among competing decision alternatives (a.k.a., differential or incremental
costs) - SOLUTION=relevant costs
Revenues that differ when one alternative is selected over another. For example, if a company is
deciding whether to keep all customers (Alternative 1) or drop certain less profitable customers
(Alternative 2), difference between total revenue for Alternative 1 and total revenue for
Alternative 2. - SOLUTION=differential revenues
Costs that differ when one alternative is selected over another. For example, if a company is
deciding whether to make a product internally (Alternative 1) or outsource production
(Alternative 2), difference between costs for Alternative 1 and Alternative 2 -
SOLUTION=differential costs
Reviewing the differential revenues and costs for alternative courses of action; this is used by
management to evaluate different alternatives and to select the best course of action -
SOLUTION=differential analysis
Means a company is deciding whether to make a product internally or buy the product from an
outside firm. Differential analysis helps managers focus solely on the costs that are relevant to
the make-or-buy decision. Variable production costs are typically differential costs. Fixed
production costs must be reviewed on a case-by-case basis to determine which costs are
differential and which are not. Managers typically select the alternative with the lowest cost. -
SOLUTION=make-or-buy decision
A cost that can be avoided, or eliminated, if one alternative is chosen over another (also
differential costs) - SOLUTION=avoidable cost
MBA 620 Final Exam Actual Exam Newest 2026/2027 Complete
Questions And Correct Detailed Answers (Verified Answers)
|Brand New Version!!
When applying the Ansoff Matrix, a firm that sells new products to existing markets is
pursuing:
A. Market penetration
B. Product development
C. Diversification
D. Market development
Answer: B. Product development
In international strategy, the adaptation approach emphasizes:
A. Global standardization of products
B. Tailoring products and strategies to local markets
C. Avoiding foreign market entry
D. Using a single pricing model worldwide
Answer: B. Tailoring products and strategies to local markets
A company that competes in multiple industries but uses a single brand identity across all
is engaging in:
A. Corporate branding
B. Differentiated marketing
C. Private labeling
D. Functional strategy
Answer: A. Corporate branding
The primary difference between strategy formulation and strategy implementation is that:
A. Formulation is short-term, implementation is long-term
B. Formulation is about deciding what to do, implementation is about executing it
C. Implementation always precedes formulation
D. They are identical processes
,2 | Page
Answer: B. Formulation is about deciding what to do, implementation is about executing it
A company benchmarks its performance against industry leaders to:
A. Copy their marketing strategy
B. Measure performance gaps and identify best practices
C. Reduce R&D spending
D. Set arbitrary goals
Answer: B. Measure performance gaps and identify best practices
Which financial ratio best measures a firm’s liquidity?
A. Current ratio
B. Return on assets
C. Price-to-earnings ratio
D. Debt ratio
Answer: A. Current ratio
A firm’s mission statement should primarily describe:
A. Specific financial targets
B. The organization’s purpose and values
C. Step-by-step operational procedures
D. Competitive pricing strategies
Answer: B. The organization’s purpose and values
When the marginal cost of producing an additional unit equals marginal revenue, the firm
is:
A. Maximizing total revenue
B. Maximizing profit
C. Minimizing fixed costs
D. Experiencing diseconomies of scale
Answer: B. Maximizing profit
The strategic management process is best described as:
A. Linear and one-time
,3 | Page
B. Continuous and cyclical
C. Random and informal
D. Short-term and reactive
Answer: B. Continuous and cyclical
Which competitive force is directly reduced when a firm establishes high customer
switching costs?
A. Supplier power
B. Threat of substitutes
C. Rivalry among existing firms
D. Buyer power
Answer: D. Buyer power
If the demand for a product is price elastic, lowering the price will most likely:
A. Decrease total revenue
B. Increase total revenue
C. Have no effect on revenue
D. Decrease quantity demanded
Answer: B. Increase total revenue
Which is the primary advantage of using a matrix organizational structure?
A. Eliminates reporting complexity
B. Encourages resource sharing and cross-functional collaboration
C. Avoids conflict between departments
D. Guarantees lower costs
Answer: B. Encourages resource sharing and cross-functional collaboration
strategy - SOLUTION=where should we compete and how? integrated set of choices that
positions the business in its industry so as to generate superior financial returns over time,
Strong strategy is consistent, aligns with intended business model and positioning, How a
business performs in its environment compared to competitors
, 4 | Page
Future costs that differ among competing decision alternatives (a.k.a., differential or incremental
costs) - SOLUTION=relevant costs
Revenues that differ when one alternative is selected over another. For example, if a company is
deciding whether to keep all customers (Alternative 1) or drop certain less profitable customers
(Alternative 2), difference between total revenue for Alternative 1 and total revenue for
Alternative 2. - SOLUTION=differential revenues
Costs that differ when one alternative is selected over another. For example, if a company is
deciding whether to make a product internally (Alternative 1) or outsource production
(Alternative 2), difference between costs for Alternative 1 and Alternative 2 -
SOLUTION=differential costs
Reviewing the differential revenues and costs for alternative courses of action; this is used by
management to evaluate different alternatives and to select the best course of action -
SOLUTION=differential analysis
Means a company is deciding whether to make a product internally or buy the product from an
outside firm. Differential analysis helps managers focus solely on the costs that are relevant to
the make-or-buy decision. Variable production costs are typically differential costs. Fixed
production costs must be reviewed on a case-by-case basis to determine which costs are
differential and which are not. Managers typically select the alternative with the lowest cost. -
SOLUTION=make-or-buy decision
A cost that can be avoided, or eliminated, if one alternative is chosen over another (also
differential costs) - SOLUTION=avoidable cost
