Strategic Mgmt Exam Set Questions And Verified Correct Answers A+ Pa
Study online at https://quizlet.com/_i5c42n
1. If TechnoGeek and VarsityBlue compete in the same market for the same
customer and TechnoGeek generates $900 of economic value each time it sells
a product or service while VarsityBlue generates $400 of economic value each
time it sells a product or service, TechnoGeek has a(n) ________ of $500.: Comp Adv
2. It is usually possible to know for sure that a firm is choosing the right strate-
gy.: False
3. Green Frog is an environmentally friendly firm in the cosmetics industry.
If Green Frog were considering expanding beyond the cosmetics industry
into pharmaceuticals in order to gain competitive advantages by operating in
multiple markets and industries, this would be an example of which type of
strategy?: Corp Level Strategy
4. All firms have almost entirely emergent strategies.: False
5. High quality objectives are tightly connected to the elements of a firm's
mission but tend to be relatively difficult to measure and track over time.: False
its easy
6. The view that equity holders only receive payment on their investment in a
firm after all legitimate claims by a firm's other stakeholders are satisfied is
known as the ________ view of equity holders: residual claimaints
7. From 1926 to 1995, visionary firms earned ________ returns compared to firms
that were not visionary firms.: sub higher
8. Accounts receivable turnover is an example of which type of ratio?: activity
9. Thermacorp's weighted average cost of capital is 13.5. If the average WACC
in the heating and cooling industry is 19, Thermacorp can be said to be earn-
ing: below normal econ perf
10. Visionary firms earn substantially higher returns than average firms because
they acknowledge that profit maximizing is their primary reason for existence.-
: false
11. In many ways, the difference between traditional economics research and
strategic management research is that the former attempts to explain why
________, while the latter attempts to explain ________.: should not persist, when they can
1/5
, Strategic Mgmt Exam Set Questions And Verified Correct Answers A+ Pa
Study online at https://quizlet.com/_i5c42n
12. Johnson & Johnson's introduction of "Johnson's Toilet and Baby Powder" as
a result of customers asking to purchase the talcum powder is an example of
a planned strategy.: False
13. The percentage of a firm's total capital that is debt times the cost of debt
plus the percentage of a firm's total capital; or equity times the cost of equity
is the: weighted avg cost of capital
14. Green Frog is an environmentally friendly firm in the cosmetics industry.
If during the strategic planning process Green Frog tried to determine the
critical threats and opportunities in its competitive environment, it would be
performing a(n): external analysis
15. Firms that generate less economic value than their rivals experience a com-
petitive: disadvantage
16. Johnson & Johnson's strategy to get into the baby powder business is an
example of a(n) ________ strategy.: emergent
17. One of the first scholars to examine the longevity of competitive advantage
was: Dennis Mueller
18. Actions firms take to gain competitive advantages by operating in multiple
markets or industries simultaneously are known as: corp level
19. The two types of measures of competitive advantage include: Acct and Econ
Measures
20. Green Frog is an environmentally friendly firm in the cosmetics industry.
Even though Green Frog is environmentally friendly, the strategic planning
team had decided that financial performance is one of the company's top pri-
orities. Which of the following is the best example of an objective the company
might use to help it achieve its goal of superior financial performance?: growth in
earnings per share averaging 15% or better annually for the next five years
21. Green Frog is an environmentally friendly firm in the cosmetics industry. If
Green Frog undertook an analysis to help it understand which of its resources
and capabilities are likely to be sources of competitive advantage and which
are less likely to sources of such advantages it would be performing a(n): Interna
analysis
2/5
Study online at https://quizlet.com/_i5c42n
1. If TechnoGeek and VarsityBlue compete in the same market for the same
customer and TechnoGeek generates $900 of economic value each time it sells
a product or service while VarsityBlue generates $400 of economic value each
time it sells a product or service, TechnoGeek has a(n) ________ of $500.: Comp Adv
2. It is usually possible to know for sure that a firm is choosing the right strate-
gy.: False
3. Green Frog is an environmentally friendly firm in the cosmetics industry.
If Green Frog were considering expanding beyond the cosmetics industry
into pharmaceuticals in order to gain competitive advantages by operating in
multiple markets and industries, this would be an example of which type of
strategy?: Corp Level Strategy
4. All firms have almost entirely emergent strategies.: False
5. High quality objectives are tightly connected to the elements of a firm's
mission but tend to be relatively difficult to measure and track over time.: False
its easy
6. The view that equity holders only receive payment on their investment in a
firm after all legitimate claims by a firm's other stakeholders are satisfied is
known as the ________ view of equity holders: residual claimaints
7. From 1926 to 1995, visionary firms earned ________ returns compared to firms
that were not visionary firms.: sub higher
8. Accounts receivable turnover is an example of which type of ratio?: activity
9. Thermacorp's weighted average cost of capital is 13.5. If the average WACC
in the heating and cooling industry is 19, Thermacorp can be said to be earn-
ing: below normal econ perf
10. Visionary firms earn substantially higher returns than average firms because
they acknowledge that profit maximizing is their primary reason for existence.-
: false
11. In many ways, the difference between traditional economics research and
strategic management research is that the former attempts to explain why
________, while the latter attempts to explain ________.: should not persist, when they can
1/5
, Strategic Mgmt Exam Set Questions And Verified Correct Answers A+ Pa
Study online at https://quizlet.com/_i5c42n
12. Johnson & Johnson's introduction of "Johnson's Toilet and Baby Powder" as
a result of customers asking to purchase the talcum powder is an example of
a planned strategy.: False
13. The percentage of a firm's total capital that is debt times the cost of debt
plus the percentage of a firm's total capital; or equity times the cost of equity
is the: weighted avg cost of capital
14. Green Frog is an environmentally friendly firm in the cosmetics industry.
If during the strategic planning process Green Frog tried to determine the
critical threats and opportunities in its competitive environment, it would be
performing a(n): external analysis
15. Firms that generate less economic value than their rivals experience a com-
petitive: disadvantage
16. Johnson & Johnson's strategy to get into the baby powder business is an
example of a(n) ________ strategy.: emergent
17. One of the first scholars to examine the longevity of competitive advantage
was: Dennis Mueller
18. Actions firms take to gain competitive advantages by operating in multiple
markets or industries simultaneously are known as: corp level
19. The two types of measures of competitive advantage include: Acct and Econ
Measures
20. Green Frog is an environmentally friendly firm in the cosmetics industry.
Even though Green Frog is environmentally friendly, the strategic planning
team had decided that financial performance is one of the company's top pri-
orities. Which of the following is the best example of an objective the company
might use to help it achieve its goal of superior financial performance?: growth in
earnings per share averaging 15% or better annually for the next five years
21. Green Frog is an environmentally friendly firm in the cosmetics industry. If
Green Frog undertook an analysis to help it understand which of its resources
and capabilities are likely to be sources of competitive advantage and which
are less likely to sources of such advantages it would be performing a(n): Interna
analysis
2/5
