BUS 345 Final Exam Review with
Complete Solutions
____ describes the collectively shared values and norms of an organizations members
A) Competitive advantage
B) Organizational structure
C) Organizational culture
D) Core competency - ANSWER-C) organizational culture
____ is a business model in which the manufacturer sets a fixed price on a product, but
the retailer is free to set its own price.
A) Agency B) Freemium C) Bundling D) Wholesale - ANSWER-D) Wholesale
____ is best described as the difference between a buyer's willingness to pay for a
product or service and a firm's total cost to produce it.
A) Economic value created B) Break-even point C) Consumer surplus D) Cost of capital
- ANSWER-A) Economic value created
A bank, CQC, offers a customer a personal loan. In which of the following
circumstances will this decision most likely be considered unethical?
A) The bank knows that the customer will be unable to pay the loan if the interest rate
rises.
B) The bank is not aware of the investments made by the customer.
C) The bank has the financial statements of the customer, but it is not aware of each
source of income.
D) The bank is depending on the customer to pay back the loan before term completion.
- ANSWER-A) The bank knows that the customer will be unable to pay the loan if the
interest rate rises.
A company scientist at a biotechnology company decides to work on his own research
project, hoping to eventually start his own firm, rather than on the project he was
assigned. However, the company's stockholders are unaware of this situation. This is an
example of a(n) ____ in the context of a principal-agent problem.
A) adverse selection B) stakeholder strategy C) moral hazard D) shared value creation -
ANSWER-C) Moral hazard
A customer-oriented vision statement focuses employees to think about how best to:
A) make a product easier to use.
B) increase their efficiency to benefit consumers.
C) improve a popular product.
D) solve a problem for a consumer. - ANSWER-D) solve a problem for a consumer
, A firm incurs $400 to manufacture a television. In the market, customers are willing to
pay a maximum of $600 for the television priced at $500. The difference of $200 ($600
minus $400) is the:
A) consumer surplus.
B) total return to shareholders.
C) customer lifetime value.
D) economic value created. - ANSWER-D) economic value created
A firm's ____ relates to its ability to create value for customers (V) while containing the
cost to do so (C).
A) strategic position B) industry effects C) advantage of the marketplace D) industry
analysis - ANSWER-A) strategic position
A greater cultural distance between two trading countries
A) increases linguistic similarities between the two countries. B) increases the liability of
foreignness.
C) reduces the uncertainty of doing business. D) reduces the transaction costs
associated with business. - ANSWER-B) increases the liability of foreignness
A traditional top-down strategic planning process typically begins with:
A) employees at the operational level identifying problems within an organization.
B) functional managers formulating functional strategies for their respective
departments.
C) strategic leaders adjusting a company's vision and mission based on environmental
analysis.
D) employees who have close contact with customers taking autonomous actions. -
ANSWER-C) Strategic leaders adjusting a company's vision and mission based on
environmental analysis
A unique positon within an industry that allows a firm to provide value while controlling
costs could be described by which of the following?
A) The less value and more costs the better
B) Decreases the likelihood of gaining a competitive advantage
C) Value created less the firm costs provides economic contribution
D) Value and costs will be equal - ANSWER-C) Value created less the firm costs
provides economic contribution
A(n) ____ leverages new technologies to attack existing markets.
A) disruptive innovation B) incremental innovation C) radical innovation D) architectural
innovation - ANSWER-A) disruptive innovation
According to the value chain analysis, which of the following is a primary activity?
A) research and development
B) human resources management
C) accounting and finance
D) marketing and sales - ANSWER-D) marketing and sales
Complete Solutions
____ describes the collectively shared values and norms of an organizations members
A) Competitive advantage
B) Organizational structure
C) Organizational culture
D) Core competency - ANSWER-C) organizational culture
____ is a business model in which the manufacturer sets a fixed price on a product, but
the retailer is free to set its own price.
A) Agency B) Freemium C) Bundling D) Wholesale - ANSWER-D) Wholesale
____ is best described as the difference between a buyer's willingness to pay for a
product or service and a firm's total cost to produce it.
A) Economic value created B) Break-even point C) Consumer surplus D) Cost of capital
- ANSWER-A) Economic value created
A bank, CQC, offers a customer a personal loan. In which of the following
circumstances will this decision most likely be considered unethical?
A) The bank knows that the customer will be unable to pay the loan if the interest rate
rises.
B) The bank is not aware of the investments made by the customer.
C) The bank has the financial statements of the customer, but it is not aware of each
source of income.
D) The bank is depending on the customer to pay back the loan before term completion.
- ANSWER-A) The bank knows that the customer will be unable to pay the loan if the
interest rate rises.
A company scientist at a biotechnology company decides to work on his own research
project, hoping to eventually start his own firm, rather than on the project he was
assigned. However, the company's stockholders are unaware of this situation. This is an
example of a(n) ____ in the context of a principal-agent problem.
A) adverse selection B) stakeholder strategy C) moral hazard D) shared value creation -
ANSWER-C) Moral hazard
A customer-oriented vision statement focuses employees to think about how best to:
A) make a product easier to use.
B) increase their efficiency to benefit consumers.
C) improve a popular product.
D) solve a problem for a consumer. - ANSWER-D) solve a problem for a consumer
, A firm incurs $400 to manufacture a television. In the market, customers are willing to
pay a maximum of $600 for the television priced at $500. The difference of $200 ($600
minus $400) is the:
A) consumer surplus.
B) total return to shareholders.
C) customer lifetime value.
D) economic value created. - ANSWER-D) economic value created
A firm's ____ relates to its ability to create value for customers (V) while containing the
cost to do so (C).
A) strategic position B) industry effects C) advantage of the marketplace D) industry
analysis - ANSWER-A) strategic position
A greater cultural distance between two trading countries
A) increases linguistic similarities between the two countries. B) increases the liability of
foreignness.
C) reduces the uncertainty of doing business. D) reduces the transaction costs
associated with business. - ANSWER-B) increases the liability of foreignness
A traditional top-down strategic planning process typically begins with:
A) employees at the operational level identifying problems within an organization.
B) functional managers formulating functional strategies for their respective
departments.
C) strategic leaders adjusting a company's vision and mission based on environmental
analysis.
D) employees who have close contact with customers taking autonomous actions. -
ANSWER-C) Strategic leaders adjusting a company's vision and mission based on
environmental analysis
A unique positon within an industry that allows a firm to provide value while controlling
costs could be described by which of the following?
A) The less value and more costs the better
B) Decreases the likelihood of gaining a competitive advantage
C) Value created less the firm costs provides economic contribution
D) Value and costs will be equal - ANSWER-C) Value created less the firm costs
provides economic contribution
A(n) ____ leverages new technologies to attack existing markets.
A) disruptive innovation B) incremental innovation C) radical innovation D) architectural
innovation - ANSWER-A) disruptive innovation
According to the value chain analysis, which of the following is a primary activity?
A) research and development
B) human resources management
C) accounting and finance
D) marketing and sales - ANSWER-D) marketing and sales
