MQM 385 Actual Questions and Correct Answers
Q1
A sustainable strategy is one that produces a competitive advantage that can be maintained
over time.
Answer: False
Q2
Under the strategy as a planned emergence model, even entry-level employees can help
generate strategic initiatives.
Answer: True
Q3
According to the resource-based view, a firm that differentiates itself from its competitors
through its personalized approach to customer service is likely to sustain its competitive
advantage for a long time.
Answer: True
Q4
Generally speaking, a firm will create value if its return on invested capital (ROIC) is less than
the cost of capital.
Answer: False
Q5
One of Rolex's tangible resources is its well-known brand name and reputation for quality
timepieces.
Answer: False
Q6
The core competencies of a firm are determined by the interplay of its tangible resources and
intangible capabilities.
Answer: True
, Q7
The autocratic strategic management process exhibited by the former head of Apple, Steve
Jobs, is best described as an emergent strategy.
Answer: False
Q8
A manager's only responsibility is to monitor and assess the performance of his or her firm.
Answer: False
Q9
Strategic leaders spend the majority of their time working alone to devise new strategies.
Answer: False
Q10
A small coffee shop faces significant potential competition because of the low capital
requirements compared with business environments such as universities and laboratories.
Answer: True
Q11
Once a strategy has been formulated and implemented, it is important that the firm sticks to it
no matter what happens.
Answer: False
Q12
An employee lacking some of the innate abilities to be a top-level manager can still become an
effective strategic leader through hard work and experience.
Answer: True
Q13
Accounting, human resources, and research and development (R&D) are examples of primary
activities that add value directly to the value chain.
Answer: False
Q1
A sustainable strategy is one that produces a competitive advantage that can be maintained
over time.
Answer: False
Q2
Under the strategy as a planned emergence model, even entry-level employees can help
generate strategic initiatives.
Answer: True
Q3
According to the resource-based view, a firm that differentiates itself from its competitors
through its personalized approach to customer service is likely to sustain its competitive
advantage for a long time.
Answer: True
Q4
Generally speaking, a firm will create value if its return on invested capital (ROIC) is less than
the cost of capital.
Answer: False
Q5
One of Rolex's tangible resources is its well-known brand name and reputation for quality
timepieces.
Answer: False
Q6
The core competencies of a firm are determined by the interplay of its tangible resources and
intangible capabilities.
Answer: True
, Q7
The autocratic strategic management process exhibited by the former head of Apple, Steve
Jobs, is best described as an emergent strategy.
Answer: False
Q8
A manager's only responsibility is to monitor and assess the performance of his or her firm.
Answer: False
Q9
Strategic leaders spend the majority of their time working alone to devise new strategies.
Answer: False
Q10
A small coffee shop faces significant potential competition because of the low capital
requirements compared with business environments such as universities and laboratories.
Answer: True
Q11
Once a strategy has been formulated and implemented, it is important that the firm sticks to it
no matter what happens.
Answer: False
Q12
An employee lacking some of the innate abilities to be a top-level manager can still become an
effective strategic leader through hard work and experience.
Answer: True
Q13
Accounting, human resources, and research and development (R&D) are examples of primary
activities that add value directly to the value chain.
Answer: False
