GB 370 EXAMINATION TEST 2025/2026 QUESTIONS AND
ANSWERS GRADED A+
✔✔the culture of an organization is very difficult to change:
true or false - ✔✔true
✔✔a stakeholder group, composed of the CEO and members of the top management
team, is considered an important stakeholder group for all of the following reasons
except:
a. its responsibility or formulation a strategy that realizes the mission and vision
b. its key role in strategy implementation
c. its power and influence in the organization
d. its influence as either originator or steward of the organizations mission and vision -
✔✔c. its power and influence in the organization
✔✔stakeholders are individuals not groups:
true or false - ✔✔false
✔✔one of the main driving forces that influence organizational decisions is uncertainty:
true or false - ✔✔true
✔✔not all organizations meet strategies to survive and thrive:
true or false - ✔✔false
✔✔an organization pursuing a differentiation strategy seeks competitive advantage by
offering products or services that are unique from those offered by rivals:
true or false - ✔✔true
✔✔the stronger a suppliers power to an industry, the more likely it is that firms in the
industry will be able to force down prices and reduce the suppliers profits:
true or false - ✔✔false
✔✔owning resources which do not meet the VRIO test of value puts the firm at a
competitive advantage:
true or false - ✔✔false
✔✔mission and vision both relate to an organizations purpose and are typically
communicated orally:
true or false - ✔✔false
✔✔executive leaders do not play a large role in defining organizational culture:
true or false - ✔✔false
, ✔✔where does strategy formulation fit within the POLC framework:
a. controlling
b. planning
c. organizing
d. leading - ✔✔b. planning
✔✔the purpose of diversification is:
a. to spread out risk and opportunities over a larger set of businesses
b. to capture more consumers
c. to build a portfolio of businesses much like a portfolio of stock
d. to satisfy the mission and vision - ✔✔a. to spread out risk and opportunities over a
larger set of businesses
✔✔it is important to note that the concept of strategy is relevant to only large, public
companies like GE:
true or false - ✔✔false
✔✔how are the shareholders affected by a firms strategies?
a. their decisions influence the firms strategies
b. their wealth increases or decreases with the firms actions
c. their participation increases or decreases with firms actions
d. their interests increase or decrease with firms actions - ✔✔b. their wealth increases
or decreases with the firms actions
✔✔which of the following is not a disadvantage of franchising?
a. reduced financial risk of new business success
b. loss of independence due to imposed operational controls of franchiser
c. limitations of franchise (market area, product, customers)
d. start up fees to purchase franchise - ✔✔a. reduced financial risk of new business
success
✔✔the business concept should start with:
a. business description
b. developed plan
c. an executive summary
c. sales analysis - ✔✔c. an executive summary
✔✔you have to use an attorney to file for incorporation:
true or false - ✔✔false
✔✔targeting teenagers is a specific enough target for your niche:
true or false - ✔✔false
ANSWERS GRADED A+
✔✔the culture of an organization is very difficult to change:
true or false - ✔✔true
✔✔a stakeholder group, composed of the CEO and members of the top management
team, is considered an important stakeholder group for all of the following reasons
except:
a. its responsibility or formulation a strategy that realizes the mission and vision
b. its key role in strategy implementation
c. its power and influence in the organization
d. its influence as either originator or steward of the organizations mission and vision -
✔✔c. its power and influence in the organization
✔✔stakeholders are individuals not groups:
true or false - ✔✔false
✔✔one of the main driving forces that influence organizational decisions is uncertainty:
true or false - ✔✔true
✔✔not all organizations meet strategies to survive and thrive:
true or false - ✔✔false
✔✔an organization pursuing a differentiation strategy seeks competitive advantage by
offering products or services that are unique from those offered by rivals:
true or false - ✔✔true
✔✔the stronger a suppliers power to an industry, the more likely it is that firms in the
industry will be able to force down prices and reduce the suppliers profits:
true or false - ✔✔false
✔✔owning resources which do not meet the VRIO test of value puts the firm at a
competitive advantage:
true or false - ✔✔false
✔✔mission and vision both relate to an organizations purpose and are typically
communicated orally:
true or false - ✔✔false
✔✔executive leaders do not play a large role in defining organizational culture:
true or false - ✔✔false
, ✔✔where does strategy formulation fit within the POLC framework:
a. controlling
b. planning
c. organizing
d. leading - ✔✔b. planning
✔✔the purpose of diversification is:
a. to spread out risk and opportunities over a larger set of businesses
b. to capture more consumers
c. to build a portfolio of businesses much like a portfolio of stock
d. to satisfy the mission and vision - ✔✔a. to spread out risk and opportunities over a
larger set of businesses
✔✔it is important to note that the concept of strategy is relevant to only large, public
companies like GE:
true or false - ✔✔false
✔✔how are the shareholders affected by a firms strategies?
a. their decisions influence the firms strategies
b. their wealth increases or decreases with the firms actions
c. their participation increases or decreases with firms actions
d. their interests increase or decrease with firms actions - ✔✔b. their wealth increases
or decreases with the firms actions
✔✔which of the following is not a disadvantage of franchising?
a. reduced financial risk of new business success
b. loss of independence due to imposed operational controls of franchiser
c. limitations of franchise (market area, product, customers)
d. start up fees to purchase franchise - ✔✔a. reduced financial risk of new business
success
✔✔the business concept should start with:
a. business description
b. developed plan
c. an executive summary
c. sales analysis - ✔✔c. an executive summary
✔✔you have to use an attorney to file for incorporation:
true or false - ✔✔false
✔✔targeting teenagers is a specific enough target for your niche:
true or false - ✔✔false
