GB 370 TEST PAPER 2025/2026 QUESTIONS AND ANSWERS
GRADED A+
✔✔One of the negatives of sole proprietorship is the tax aspect. - ✔✔False
✔✔Which is not something to consider when looking for your attorney? -
✔✔Reasonable Fees
✔✔The design and development plan charts its developments within the contexts of
______, marketing, and the company itself. - ✔✔Production
✔✔Unless you expect to have many passive investors, limited partnerships would
generally not be the best choice for a new business. - ✔✔True
✔✔In the value chain, which of the following activities is deemed to add direct value to a
firm? - ✔✔Sales and Service
✔✔Firms pursuing a differentiation strategy are vulnerable to different competitive
threats that firms pursuing a cost leader strategy. - ✔✔True
✔✔Stakeholders are individuals, not groups. - ✔✔False
✔✔While there are different schools of thought about how strategy comes about,
researchers generally agree the common characteristic across successful organizations
is: - ✔✔Strategic Focus
✔✔The best vision statements create harmony with regard to the status quo. - ✔✔False
✔✔Cost leaders must maintain their marketing or face the possible entry of more cost-
effective competitors. - ✔✔False
✔✔The related diversification corporate-level strategy is where an organization
manufactures one product or service and sells it in a single geographic market. -
✔✔False
✔✔The different aspects of strategy as distinguished by
Mintzberg include which of the following? - ✔✔Realized
✔✔Human resources management alignment means - ✔✔To integrate decisions about
people with decisions about the result of an organization
✔✔Sometimes mission statements also include a summation of the firm's values. -
✔✔True
, ✔✔A cost-focus is a low-cost, narrowly focused market strategy. - ✔✔True
✔✔Where does strategy formulation fit within the POLC framework? - ✔✔Planning
✔✔Controlling consists of the following steps EXCEPT: - ✔✔Write a mission and vision
statement
✔✔Industries with many companies that have successfully differentiated their product
have more rivalry. - ✔✔False
✔✔Using Porter's analysis, firms are likely to generate higher profits of the industry
includes which of the following? - ✔✔Difficult to enter
✔✔A firm's performance relative to industry peers is likely to vary according to the level
to which resources, capabilities, and ultimately core competencies satisfy VRIO criteria.
- ✔✔True
✔✔An organization's culture has all the following
characteristics except - ✔✔Exactly the same throughout the entire organization
✔✔A firm's tangible resource includes which of the following? - ✔✔Production
Equipment
✔✔There are three ways an organization can respond to their environment: combine
(merge), purchase (acquisition), or form new venture partnerships. - ✔✔True
✔✔Organizational culture is defined by all of the following EXCEPT: - ✔✔Organizational
mission and vision statements
✔✔If management is seeking to change vision and mission, their ability to change the
organization's culture to support those new directions is impossible to achieve. -
✔✔False
✔✔Organizational design is used to match the form of the organization as closely as
possible to the vision of the organization. - ✔✔False
✔✔The industry characteristics that make it very difficult for firms to achieve strategic
competitiveness and earn above- average returns includes all of the following EXCEPT:
- ✔✔Relatively moderate rivalry
✔✔Planning starts with vision and mission, and concludes with strategizing. - ✔✔False
GRADED A+
✔✔One of the negatives of sole proprietorship is the tax aspect. - ✔✔False
✔✔Which is not something to consider when looking for your attorney? -
✔✔Reasonable Fees
✔✔The design and development plan charts its developments within the contexts of
______, marketing, and the company itself. - ✔✔Production
✔✔Unless you expect to have many passive investors, limited partnerships would
generally not be the best choice for a new business. - ✔✔True
✔✔In the value chain, which of the following activities is deemed to add direct value to a
firm? - ✔✔Sales and Service
✔✔Firms pursuing a differentiation strategy are vulnerable to different competitive
threats that firms pursuing a cost leader strategy. - ✔✔True
✔✔Stakeholders are individuals, not groups. - ✔✔False
✔✔While there are different schools of thought about how strategy comes about,
researchers generally agree the common characteristic across successful organizations
is: - ✔✔Strategic Focus
✔✔The best vision statements create harmony with regard to the status quo. - ✔✔False
✔✔Cost leaders must maintain their marketing or face the possible entry of more cost-
effective competitors. - ✔✔False
✔✔The related diversification corporate-level strategy is where an organization
manufactures one product or service and sells it in a single geographic market. -
✔✔False
✔✔The different aspects of strategy as distinguished by
Mintzberg include which of the following? - ✔✔Realized
✔✔Human resources management alignment means - ✔✔To integrate decisions about
people with decisions about the result of an organization
✔✔Sometimes mission statements also include a summation of the firm's values. -
✔✔True
, ✔✔A cost-focus is a low-cost, narrowly focused market strategy. - ✔✔True
✔✔Where does strategy formulation fit within the POLC framework? - ✔✔Planning
✔✔Controlling consists of the following steps EXCEPT: - ✔✔Write a mission and vision
statement
✔✔Industries with many companies that have successfully differentiated their product
have more rivalry. - ✔✔False
✔✔Using Porter's analysis, firms are likely to generate higher profits of the industry
includes which of the following? - ✔✔Difficult to enter
✔✔A firm's performance relative to industry peers is likely to vary according to the level
to which resources, capabilities, and ultimately core competencies satisfy VRIO criteria.
- ✔✔True
✔✔An organization's culture has all the following
characteristics except - ✔✔Exactly the same throughout the entire organization
✔✔A firm's tangible resource includes which of the following? - ✔✔Production
Equipment
✔✔There are three ways an organization can respond to their environment: combine
(merge), purchase (acquisition), or form new venture partnerships. - ✔✔True
✔✔Organizational culture is defined by all of the following EXCEPT: - ✔✔Organizational
mission and vision statements
✔✔If management is seeking to change vision and mission, their ability to change the
organization's culture to support those new directions is impossible to achieve. -
✔✔False
✔✔Organizational design is used to match the form of the organization as closely as
possible to the vision of the organization. - ✔✔False
✔✔The industry characteristics that make it very difficult for firms to achieve strategic
competitiveness and earn above- average returns includes all of the following EXCEPT:
- ✔✔Relatively moderate rivalry
✔✔Planning starts with vision and mission, and concludes with strategizing. - ✔✔False
