Mgt 603 Solved Quiz with reference

1. Which method of determining a firm’s net worth can be numerically

expressed as: Market price of the firm’s stock* Average net income for the past five years Annual earnings per share

► Sum of equity and earnings method

► Price-earnings ratio method p; 139

► Long-term asset method

►Outstanding shares method

2. Which of the following is an example of a narrow mission?

► We sell packaged pineapples M. file

► The firm deals in beverages

► Stationery is our product

► Company manufactures food items

3. Which of the following business actions is NOT considered to be unethical?

► Poor product or service safety

► Using non-union labor in a union shop

► Misleading advertising

► Too expensive products M. File

 Political variables have a significant effect on which one of the following?

► Formulation and implementation of strategy 35

► Formulation and evaluation of a strategy

► Implementation and evaluation of a strategy

► Formulation, implementation and evaluation of a strategy

5. Which of the following is one of the Political, Governmental & Legal

factors?

► Ethical concerns

► Traffic congestion

► Lobbying activities M. File

► Average level of education

6. The XYZ Company wants to know the major favorable situations that exist

in its environment. Essentially, the company wants to gain understanding of

what?

► Strengths

► Weaknesses

► Threats

► Opportunities

7. Keeping strategies secret from employees and stakeholders can do all of the following EXCEPT:

► Provide competitive advantage to competitors

► hinder employee and stakeholder communication

► Reduces employee and stakeholder understanding

► Minimize employee and stakeholder commitment

8. Sana has spent a day in a session where the future of her company was

discussed. The people involved were trying to determine what the role of their

company was as the 21st century approaches. Goals were then developed

based upon their vision of the company's mission. Sana spent her day on

which of the following process?

► Planning M. File

► Organizing

► Leading

► Controlling

9. Opportunity analysis is one of the basic functions of which one of the

following?

► Computer information systems

► Marketing Q. File

► Production/operations

► Research and development

10. Which of the following term describes “the merging of two or more

businesses at the same level of production in some formal, legal relationship”?

► Backward integration

► Horizontal integration

► Market penetration

► Market development

When an organization takes up the same type of products at the same level of

production or marketing process, it is said to follow a strategy of horizontal

integration