MGT603 Mid Term solved Quizs

116. “Performance comparison of organization business processes against an

internal or external standard of recognized leaders.” Identify the term relevant to

the specified statement.

► Restructuring

► Process redesign

► Reengineering

► Benchmarking

http://www.adamssixsigma.com/Glossary_of_terms/six_sigma_glossary_B.ht

m

117. After completing an EPS/EBIT analysis, what conclusions would you

make?

► Debt appears to be the best financing alternative

► Stock would be the best financing alternative

► Combination of debt and stock is the best financial alternative

► Dividends must be considered before concluding

118. What is a central strategy-implementation technique that allows an

organization to examine the expected results of various actions and

approaches?

► Financial budgeting

► TOWS analysis

► Projected financial statement

► External analysis

REF: Pro forma (projected) financial statement analysis is a central strategyimplementation

technique because it allows an organization to examine the

expected results of various actions and approaches.

119. Retained earnings are obtained by subtracting which of the two items?

► Dividends from Net Income

► EBIT from Net Income

► Taxes from EBIT

► Interest Expense from EBIT

Ref: Formula of Retained Earning= Net Income – Dividends

120. XYZ Company has controlled its distributors so that no other firm can

access the scarce natural resources available in the country, which are used in

XYZ’s production. This action is taken in order to reduce which of the

following:

► The bargaining power of customers

► The bargaining power of suppliers

► The threat of new entrants

► The threat of substitute products

Ref: The threat of new entrants

o the existence of barriers to entry

o economies of product differences

o brand equity

o switching costs

o capital requirements

o access to distribution

o absolute cost advantages

o learning curve advantages

o expected retaliation

o government policies

121. Outbound logistics includes which one of the following?

► Receiving, storing, inventory control, transportation planning.

► Machining, packaging, assembly, equipment maintenance, testing

► Activities required to get the finished product at the customers

► Activities that maintain and enhance the product's value

Ref: Outbound Logistics. The activities required to get the finished product at the

customers: Warehousing, order fulfillment, transportation, distribution

management.

122. Which of the following statement is correct about operations?

► It includes receiving, storing, inventory control & transportation planning

► It includes machining, packaging, assembling, maintaining equipment

testing

► It includes the activities required to get the finished product at the customers

► It includes the activities that maintain and enhance the product's value

Ref: Operations. Include machining, packaging, assembly, equipment

maintenance, testing and all other value-creating activities that transform the

inputs into the final product.

123. All of the following are support activities of Porter’s supply chain

model EXCEPT:

► Firm Infrastructure

► Marketing and Sales primary activity

► Technology Development

► Procurement

Support activities (Staff functions, overhead)

1. Procurement

2. Technology Development

3. Human Resource Management

4. Firm Infrastructure

124. Adapting to change confronts an organization’s strategic management to

which of the following issue(s):

►What kind of business we should be in?

► Are we in the right field?

►should we reshape our business?

► All of the given options

Ref: change. The need to adapt to change leads organizations to key strategic

management questions, such as “What kind of business should we become?”

“Are we in right field?” “Should we reshape our business?” “Are new

technologies being developed that could put us out of business?”(Page no.06)

125. Which of the following is TRUE about Vision statement of a company?

► It defines the customers

► It concentrates on future

► It identifies critical processes

► It informs about the desired level of performance

Ref: Many organizations today develop a "vision statement" which answers the

question, what do we want to become?