BUS-4476: Chapters 1, 12, 2, 3, 4 & 6
Study Guide Exam and Actual
Answers 2025-2026 Updated.
William Ackman is a hedge fund manager who owned a large share of J.C. Penney stock. He was
also a member of the J.C. Penney board. He tried to get the CEO fired, but the board and top
management said he breached his boardroom duties when he publicly disclosed information
about the CEO search and financial condition of the company. He resigned from the board of
directors. This is an example of a contentious relationship between - Answer the capital
market stakeholders and the organizational stakeholders.
Firms use both the __________ and __________ models. In fact, these models complement
each other in that one focuses outside the firm while the other focuses inside the firm. - Answer
industrial organization (I/O) & resource-based
Refuge Nursing Homes, Inc., (RNH) has been highly profitable in the past 10 years, providing its
investors higher returns than those earned by its direct competitors' investors. RNH has a
reputation for providing high-paying managerial and hourly-employee jobs. However, recent
investigations have revealed that the nursing home residents have been provided substandard
care, including non-nutritious and unappetizing meals, non-functional medical equipment, and
inadequate patient-care staffing. Which of the following statements best describes the
situation? - Answer RNH has prioritized the demands of capital market stakeholders and
organizational stakeholders over the demands of product market stakeholders.
The resource-based model argues that - Answer resources that are valuable, rare, costly to
imitate, and non-substitutable form the basis of a firm's core competencies.
To have the potential to become sources of competitive advantage, resources and capabilities
must be non-substitutable, valuable, __________, and __________. - Answer rare & costly to
imitate
Which of the following statements is MOST consistent with the I/O view? Performance of a firm
is most directly attributable to: - Answer the profitability of the industry in which the firm
competes.
The industrial organization (I/O) model argues that the - Answer key factor in success is
choosing the correct industry in which to compete
,The CEO of Twin Spires, Inc., is committed to using the expertise and resources currently in the
firm to serve the needs of the natural gardening community by providing rare and native plants
to individuals and nurseries around the United States. The perspective of the CEO of Twin Spires
is consistent with the assumptions of the industrial organization (I/O) model. - Answer False
The firm's mission is more concrete than its vision. - Answer True
A firm's mission tends to be enduring while its vision can change in light of changing
environmental conditions. - Answer False
If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's
strategic decision making. - Answer False
The strategic management process is - Answer a way that businesses analyze information and
formulate initiatives to create superior value for customers, then implement those initiatives to
out-perform competitors.
A CEO wants to implement a new strategy for her firm. Previously, the company's strategy was
differentiation and focused on having the highest quality product. Now, instead of increasing
the quality of the product, she wants to maintain quality but drive down cost per unit. What
term defines this scenario? - Answer Strategic change
Lisa is the CEO of her company and has a distinct leadership style. She doesn't want her
employees to be afraid to take an action they know is right. She wants her subordinates to be
able to take matters into their own hands, so she delegates many things to empower them. She
has built a team culture in which the team and the company are more important than personal
interests. What type of manager is Lisa? - Answer Transformational leader
The Board of Directors is deciding who the new CEO should be for a company. It has narrowed
the candidates down to two highly-credentialed individuals. Steve is known to be harsh but fair.
He is a proven CEO and has driven companies to success quickly. Kim, the other candidate, is
known to be a "people person" with a high emotional intelligence. In the past she has
demonstrated success building company culture to achieve great results. Knowing this, which
candidate should the company choose if it is seeking to motivate its employees? - Answer Kim,
because she is a transformational leader.
Why would a company want to have a heterogeneous top management team? - Answer
Thoughts coming from different expertise and backgrounds will provide a better decision.
, candidates hold the best chance to help this company achieve their goals? - Answer An
outside industry C-level candidate with short tenure
Which of the following is NOT a benefit to the firm using the internal labor market to select a
new CEO? - Answer Internal hiring results in an increased level of innovation.
A CEO gains power from all of the following circumstances EXCEPT - Answer when tenure of
the top management team is shorter than the tenure of the board.
CEO duality refers to - Answer the situation where the CEO is also chairperson of the board of
directors.
Which of the following is NOT one of the four perspectives in the balanced scorecard
framework? - Answer Entrepreneurial
When the top management team is homogeneous and a new CEO is selected from inside the
firm, it is - Answer unlikely that the current strategy will change.
Billy Kroghmen is the son of a very prominent Fortune 500 CEO. Billy has had troubles. He failed
out of multiple colleges, universities, and correspondence schools. He finally received his
undergraduate degree from a university with only a post office box for an address. He then
enrolled in the school's combined graduate accounting and law school programs, graduating
with honors and degrees in both areas. After graduation, he twice failed both the CPA and bar
exams, managing to set record low scores on the ethics portions of both. Despite these
academic setbacks, Billy's career now seems to be thriving. He has been appointed to a number
of "blue ribbon" government committees and is on the board of directors of two corporations
and one prestigious not-for-profit organization. In at least one instance, a donor credited Billy
with the idea for making a large contribution to the not-for-profit. Widespread speculation is -
Answer high; social; low; human
Which of the following is NOT associated with heterogeneous top management teams? -
Answer Diminished debate among top managers
Coca-Cola and PepsiCo have been accused of contributing to the obesity problem in the United
States. This accusation comes from the __________ segment of the general environment. -
Answer sociocultural
Study Guide Exam and Actual
Answers 2025-2026 Updated.
William Ackman is a hedge fund manager who owned a large share of J.C. Penney stock. He was
also a member of the J.C. Penney board. He tried to get the CEO fired, but the board and top
management said he breached his boardroom duties when he publicly disclosed information
about the CEO search and financial condition of the company. He resigned from the board of
directors. This is an example of a contentious relationship between - Answer the capital
market stakeholders and the organizational stakeholders.
Firms use both the __________ and __________ models. In fact, these models complement
each other in that one focuses outside the firm while the other focuses inside the firm. - Answer
industrial organization (I/O) & resource-based
Refuge Nursing Homes, Inc., (RNH) has been highly profitable in the past 10 years, providing its
investors higher returns than those earned by its direct competitors' investors. RNH has a
reputation for providing high-paying managerial and hourly-employee jobs. However, recent
investigations have revealed that the nursing home residents have been provided substandard
care, including non-nutritious and unappetizing meals, non-functional medical equipment, and
inadequate patient-care staffing. Which of the following statements best describes the
situation? - Answer RNH has prioritized the demands of capital market stakeholders and
organizational stakeholders over the demands of product market stakeholders.
The resource-based model argues that - Answer resources that are valuable, rare, costly to
imitate, and non-substitutable form the basis of a firm's core competencies.
To have the potential to become sources of competitive advantage, resources and capabilities
must be non-substitutable, valuable, __________, and __________. - Answer rare & costly to
imitate
Which of the following statements is MOST consistent with the I/O view? Performance of a firm
is most directly attributable to: - Answer the profitability of the industry in which the firm
competes.
The industrial organization (I/O) model argues that the - Answer key factor in success is
choosing the correct industry in which to compete
,The CEO of Twin Spires, Inc., is committed to using the expertise and resources currently in the
firm to serve the needs of the natural gardening community by providing rare and native plants
to individuals and nurseries around the United States. The perspective of the CEO of Twin Spires
is consistent with the assumptions of the industrial organization (I/O) model. - Answer False
The firm's mission is more concrete than its vision. - Answer True
A firm's mission tends to be enduring while its vision can change in light of changing
environmental conditions. - Answer False
If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's
strategic decision making. - Answer False
The strategic management process is - Answer a way that businesses analyze information and
formulate initiatives to create superior value for customers, then implement those initiatives to
out-perform competitors.
A CEO wants to implement a new strategy for her firm. Previously, the company's strategy was
differentiation and focused on having the highest quality product. Now, instead of increasing
the quality of the product, she wants to maintain quality but drive down cost per unit. What
term defines this scenario? - Answer Strategic change
Lisa is the CEO of her company and has a distinct leadership style. She doesn't want her
employees to be afraid to take an action they know is right. She wants her subordinates to be
able to take matters into their own hands, so she delegates many things to empower them. She
has built a team culture in which the team and the company are more important than personal
interests. What type of manager is Lisa? - Answer Transformational leader
The Board of Directors is deciding who the new CEO should be for a company. It has narrowed
the candidates down to two highly-credentialed individuals. Steve is known to be harsh but fair.
He is a proven CEO and has driven companies to success quickly. Kim, the other candidate, is
known to be a "people person" with a high emotional intelligence. In the past she has
demonstrated success building company culture to achieve great results. Knowing this, which
candidate should the company choose if it is seeking to motivate its employees? - Answer Kim,
because she is a transformational leader.
Why would a company want to have a heterogeneous top management team? - Answer
Thoughts coming from different expertise and backgrounds will provide a better decision.
, candidates hold the best chance to help this company achieve their goals? - Answer An
outside industry C-level candidate with short tenure
Which of the following is NOT a benefit to the firm using the internal labor market to select a
new CEO? - Answer Internal hiring results in an increased level of innovation.
A CEO gains power from all of the following circumstances EXCEPT - Answer when tenure of
the top management team is shorter than the tenure of the board.
CEO duality refers to - Answer the situation where the CEO is also chairperson of the board of
directors.
Which of the following is NOT one of the four perspectives in the balanced scorecard
framework? - Answer Entrepreneurial
When the top management team is homogeneous and a new CEO is selected from inside the
firm, it is - Answer unlikely that the current strategy will change.
Billy Kroghmen is the son of a very prominent Fortune 500 CEO. Billy has had troubles. He failed
out of multiple colleges, universities, and correspondence schools. He finally received his
undergraduate degree from a university with only a post office box for an address. He then
enrolled in the school's combined graduate accounting and law school programs, graduating
with honors and degrees in both areas. After graduation, he twice failed both the CPA and bar
exams, managing to set record low scores on the ethics portions of both. Despite these
academic setbacks, Billy's career now seems to be thriving. He has been appointed to a number
of "blue ribbon" government committees and is on the board of directors of two corporations
and one prestigious not-for-profit organization. In at least one instance, a donor credited Billy
with the idea for making a large contribution to the not-for-profit. Widespread speculation is -
Answer high; social; low; human
Which of the following is NOT associated with heterogeneous top management teams? -
Answer Diminished debate among top managers
Coca-Cola and PepsiCo have been accused of contributing to the obesity problem in the United
States. This accusation comes from the __________ segment of the general environment. -
Answer sociocultural
