MQM 385 Actual Questions and Correct Answers
Q1
Stakeholders
Answer: individuals or groups with an interest, claim, or stake in the company, in what
it does and in how well it performs
Q2
Internal Stakeholders
Answer: stockholders and employees, including executive officers, other managers,
and board members.
Q3
External Stakeholders
Answer: customers, suppliers, creditors, governments, unions, local communities, and
general public
Q4
Stakeholder Impact Analysis
Answer: Identify the most important stakeholders and give highest priority to
pursuing strategies that satisfy their needs. Identify Stakeholders Identify
Stakeholders' interests and concerns As a result, Identify what claims stakeholders
are likely to make on the organization Identify the stakeholders who are most
important from the organizations perspective Identify the resulting strategic
challenges
Q5
Relationship between Profitability and Profit Growth
Answer: the relationship is a complex one because attaining future growth profit may
require investments that reduce the current rate of profitability Managers need to find
the balance between these two
Q6
Agency Theory
Answer: this theory looks at the problems that can arise in a business relationship
when one person delegates decision making authority to another
Q1
Stakeholders
Answer: individuals or groups with an interest, claim, or stake in the company, in what
it does and in how well it performs
Q2
Internal Stakeholders
Answer: stockholders and employees, including executive officers, other managers,
and board members.
Q3
External Stakeholders
Answer: customers, suppliers, creditors, governments, unions, local communities, and
general public
Q4
Stakeholder Impact Analysis
Answer: Identify the most important stakeholders and give highest priority to
pursuing strategies that satisfy their needs. Identify Stakeholders Identify
Stakeholders' interests and concerns As a result, Identify what claims stakeholders
are likely to make on the organization Identify the stakeholders who are most
important from the organizations perspective Identify the resulting strategic
challenges
Q5
Relationship between Profitability and Profit Growth
Answer: the relationship is a complex one because attaining future growth profit may
require investments that reduce the current rate of profitability Managers need to find
the balance between these two
Q6
Agency Theory
Answer: this theory looks at the problems that can arise in a business relationship
when one person delegates decision making authority to another
