200. Under Just in Time (JIT) approach, when
the new stock is ordered?
► When stock comes to an end
► When stock reaches the re-order level
► On 1st of
each month
► At the start of the year
201. Which one of the following variables is
not directly affected by market
segmentation?
► Product
► Place
► Process
► Price
202. In the low earnings period, which one of
the following can endanger
stockholders’ return and can put in danger the
company survival?
► Too much debt in the capital structure
► Too much liquid assets in the capital structure
► Too much equity in the capital structure
► Too much tax in the capital structure
203. Which element in the projected income
statement cannot be forecasted
using the percentage-of-sales method?
► Cost of goods sold
► Interest expense
► Selling expense
► Administrative expense
204. Which of these is the most common type of
budgeting time frame?
► Daily
► Monthly
► Quarterly
► Annually
205. Which of the following is NOT accepted
for determining a business
worth?
► Firm’s holdings
► Firm’s earnings
► Firm’s return on investment
► Firm’s bringing in to the market
1. What a firm owns (hold)
2. What a firm earns
3. What a firm will bring in the market.
206. If technology is changing rapidly and the
market is growing slowly then
what decision the firm should take regarding R
& D?
► In-house R&D should be established
► Acquisition of a well-established firm in the industry
► R&D investment is risky, so don't take
any action
► Obtain R&D expertise on an nonexclusive basis
207. Which of the following is NOT one of the
major approaches to R&D?
► To be an innovative imitator of successful products
► To be a low-cost producer by mass-producing products
► To be a differentiated products manufacturer
in industry
► To be the first firm to market new technological products
208. What is the appropriate time frame for
strategy-evaluation activities?
► At the beginning of a problem
► On a continuous basis
► Upon completion of major projects
► After the closing of financial year
209. To make changes in the organization’s
management, marketing,
finance/accounting and R&D, which one of
the following should be focused?
► Revised mission
► Revised IFE
► Revised EFE matrix
► Revised EPM matrix
210. A revised IFE
► Changes in the organization's management, marketing R & D, computer
information system and external environment.
► Marketing, finance/accounting, production/operations, R&D and computer
information systems strengths and weaknesses
► Effectiveness of a firm's strategies in response to key opportunities and threats
► Effectiveness of an organization’s strategy in pursuing the competitive goals
and managerial actions
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