Sophia Principles of Management Milestone 1

Principles of Management
Unit 1 / Milestone 1
20/20 that's 100%
RETAE
20 questions were answered correctly.
1
What is a business unit with high market share in a market that isn’t
growing?


A cash cow


A dog


A star


A question mark

CONCEPT
Strategic Objectives and Levels of Strategy
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2
What is the effect of a reflective system of decision-making?


It enhances decision-making ability.


It causes decision-making bias.


It is quick and intuitive.



, It is easily disrupted.

RATIONALE
The reflective system of decision-making in the brain is logical, analytical, and
methodical, thereby enhancing decision-making ability.
CONCEPT
Barriers to Effective Decision-Making
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3
Your boss at a communications company asks you to come up with
ideas to prevent customers from switching to competitors, which they
can do at a low cost.

What should you recommend?


Examine demographic and socioeconomic trends.


Threaten the competitors with legal action.


Increase the quality of customer service.


Take legal action against switching customers.

RATIONALE
Because switching costs are low, increasing the value you provide customers may be a
way to retain them longer as customers. Increasing switching costs is also an option but
may backfire in the long run.
CONCEPT
A Firm's Micro Environment: Porter's Five Forces
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4
What is the progression of activities a company undertakes to create a
product or service that consumers will pay for?


Patterned advance