BUS4476 MIDTERM EXAMINATION
AND ALL CORRECT ANSWERS 2025-
2026 UPDATED.
GlenOak Corp. is planning to open a second corporate office in a new city. The legal team at
GlenOak Corp. is studying the various state and local regulations that control its industry in
order to narrow down the possible sites to those which would be most conducive to success.
What type of stakeholder is being focused on at this stage? - Answer Host communities, which
are product market stakeholders
Product market stakeholders generally are satisfied when - Answer a firm's profit margin
reflects at least a balance between the returns to capital market stakeholders and the returns in
which they share
As a strategic leader in your organization, what should you focus on when selecting actions for
the firm? - Answer Creating value for all stakeholder groups
PGG Mining is making a strategic decision about whether to shut down a coal mine in
Pennsylvania. It is important to consider that the decision - Answer has ethical implications for
organizational stakeholders.
An investor is considering in which of two start-up companies to invest. The investor has faith in
the industrial organization (I/O) model of above-average returns and is using that as a guideline
to make a decision. Both start-up companies propose to manufacture health-focused foods with
low salt, low sugar, high fiber, and no artificial additives. RexRich Foods has a business strategy
of producing a differentiated product for which consumers will pay more. Green Pastures Foods
is in the health-foods industry because of its internal culture and commitment to healthy
lifestyles, but it does not have any executives with experience in food production. Which
investment decision is the investor most likely to make? - Answer The investor will select
RexRich Foods since it is most consistent with the I/O model.
The I/O and resource-based models contain many of the same steps. One clear difference
between the two models is the resource-based model starts by looking at the internal strengths
and weaknesses of a firm, while the I/O model begins with an examination of the external
environment. Another key difference is the resource-based model identifies an attractive
industry much earlier in the process than does the I/O model. - Answer false
For a diversified firm, corporate-level strategy is concerned with - Answer determining the
, What is the basis of a firm's strategy and ability to earn above-average returns, according to the
resource-based model? - Answer Physical, human, and organizational capital
The increasing economic interdependence among countries and their organizations as reflected
in the flow of products, financial capital, and knowledge across country borders is defined as -
Answer globalization
Which of the following is a challenge faced by firms in today's competitive landscape due to
digitalization? - Answer Understanding the strategic implications associated with digitalization
When capabilities serve as a source of competitive advantage for a firm over its rivals, the firm
has created a(n) - Answer core competence
Todd works at EnergyOne and also owns shares of stock in the company and is a member in the
union there. Todd himself is a(n) __________ stakeholder; the union is a(n) __________
stakeholder. - Answer capital market and organizational; product market
Which of the following will increase the probability that a lower-level manager will become a
successful strategic leader? - Answer training and development programs
The CEO of Icon Image Associates wishes to radically change the corporate culture of the firm.
She knows that she must convince others at Icon Image of the necessity of the culture change
and gain their active support. The CEO knows that the key players in energizing the culture
change and fostering alignment with the new strategic vision are - Answer the CEO, top
managers, and middle managers
Chaymark Ltd. has successfully shared complementary resources with other firms. Chaymark
has achieved a level of transparency with those firms that has created trust and will enable
additional sharing of resources in the future. What type of capital has Chaymark developed and
used? - Answer social
The Enron employee who reported the financial manipulations at the company to her superiors
can be considered to have engaged in - Answer an act of courage
Pat is a strategic leader at Moricon. Pat's team is developing new internal auditing practices to
be implemented at Moricon. Pat has assigned one member of the team to ensure that the new
procedures are consistent with the firm's ethical standards. Pat is taking action that supports
AND ALL CORRECT ANSWERS 2025-
2026 UPDATED.
GlenOak Corp. is planning to open a second corporate office in a new city. The legal team at
GlenOak Corp. is studying the various state and local regulations that control its industry in
order to narrow down the possible sites to those which would be most conducive to success.
What type of stakeholder is being focused on at this stage? - Answer Host communities, which
are product market stakeholders
Product market stakeholders generally are satisfied when - Answer a firm's profit margin
reflects at least a balance between the returns to capital market stakeholders and the returns in
which they share
As a strategic leader in your organization, what should you focus on when selecting actions for
the firm? - Answer Creating value for all stakeholder groups
PGG Mining is making a strategic decision about whether to shut down a coal mine in
Pennsylvania. It is important to consider that the decision - Answer has ethical implications for
organizational stakeholders.
An investor is considering in which of two start-up companies to invest. The investor has faith in
the industrial organization (I/O) model of above-average returns and is using that as a guideline
to make a decision. Both start-up companies propose to manufacture health-focused foods with
low salt, low sugar, high fiber, and no artificial additives. RexRich Foods has a business strategy
of producing a differentiated product for which consumers will pay more. Green Pastures Foods
is in the health-foods industry because of its internal culture and commitment to healthy
lifestyles, but it does not have any executives with experience in food production. Which
investment decision is the investor most likely to make? - Answer The investor will select
RexRich Foods since it is most consistent with the I/O model.
The I/O and resource-based models contain many of the same steps. One clear difference
between the two models is the resource-based model starts by looking at the internal strengths
and weaknesses of a firm, while the I/O model begins with an examination of the external
environment. Another key difference is the resource-based model identifies an attractive
industry much earlier in the process than does the I/O model. - Answer false
For a diversified firm, corporate-level strategy is concerned with - Answer determining the
, What is the basis of a firm's strategy and ability to earn above-average returns, according to the
resource-based model? - Answer Physical, human, and organizational capital
The increasing economic interdependence among countries and their organizations as reflected
in the flow of products, financial capital, and knowledge across country borders is defined as -
Answer globalization
Which of the following is a challenge faced by firms in today's competitive landscape due to
digitalization? - Answer Understanding the strategic implications associated with digitalization
When capabilities serve as a source of competitive advantage for a firm over its rivals, the firm
has created a(n) - Answer core competence
Todd works at EnergyOne and also owns shares of stock in the company and is a member in the
union there. Todd himself is a(n) __________ stakeholder; the union is a(n) __________
stakeholder. - Answer capital market and organizational; product market
Which of the following will increase the probability that a lower-level manager will become a
successful strategic leader? - Answer training and development programs
The CEO of Icon Image Associates wishes to radically change the corporate culture of the firm.
She knows that she must convince others at Icon Image of the necessity of the culture change
and gain their active support. The CEO knows that the key players in energizing the culture
change and fostering alignment with the new strategic vision are - Answer the CEO, top
managers, and middle managers
Chaymark Ltd. has successfully shared complementary resources with other firms. Chaymark
has achieved a level of transparency with those firms that has created trust and will enable
additional sharing of resources in the future. What type of capital has Chaymark developed and
used? - Answer social
The Enron employee who reported the financial manipulations at the company to her superiors
can be considered to have engaged in - Answer an act of courage
Pat is a strategic leader at Moricon. Pat's team is developing new internal auditing practices to
be implemented at Moricon. Pat has assigned one member of the team to ensure that the new
procedures are consistent with the firm's ethical standards. Pat is taking action that supports
