Question 1

Tangible resources are assets that are relatively easy to identify such as financial and physical assets.

Accepted Answer

A) True 
 B)False

Question 2

What are the four perspectives that the "balanced scorecard" enables managers to evaluate their business?

Accepted Answer

The four perspectives are the ...

Question 3

What are some of the key strengths and limitations of SWOT analysis?

Accepted Answer

The strength of SWOT analysis is that it...

Question 4

Establishing a customer service hotline to handle customer complaints would be considered a primary activity in value chain analysis.

Accepted Answer

A) True 
 B)False

Question 5

Capabilities that are causally ambiguous are difficult to imitate.

Accepted Answer

A) True 
 B)False

Question 6

For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have the following four attributes

Accepted Answer

A)   Rare, valuable, mobile, and nonsubstitutable.
B)   Rare, inimitable, physically unique, and nonsubstitutable.
C)   Rare, valuable, inimitable, and nonsubstitutable.
D)   Rare, valuable, physically unique, and causally ambiguous.E) B) and D)
F) All of the above

Question 7

Which of the following lists consists of support activities?

Accepted Answer

A)   Human resource management, technology development, customer service, and procurement
B)   Human resource management, customer service, marketing and sales, and operations
C)   Human resource management, information systems, procurement, and firm infrastructure
D)   Customer service, information systems, technology development, and procurementE) All of the above
F) C) and D)

Question 8

Which of the following would be most difficult to assess?

Accepted Answer

A)   The liquidity position of a firm
B)   The legitimacy and reputation of a firm
C)   Market share growth
D)   The efficiency with which a firm utilizes its assetsE) B) and C)
F) None of the above

Question 9

Leverage ratios provide measures of a firm's capacity to meet its long-term financial obligations.

Accepted Answer

A) True 
 B)False

Question 10

The resource-based view (RBV)  of the firm combines two perspectives

Accepted Answer

A)   the primary and support activities of the firm.
B)   the interrelationships among the primary activities of the firm and corporate management.
C)   the internal analysis of the firm as well as the external analysis of the industry and competitive environment.
D)   the industry and the competitive environment.E) All of the above
F) C) and D)

Question 11

The following are examples of socially complex organizational phenomena except

Accepted Answer

A)   a firm's culture
B)   interpersonal relations among a firm's managers
C)   complex physical technology
D)   reputation with suppliers and customersE) B) and C)
F) All of the above

Question 12

Technology development is a much broader concept than research and development.

Accepted Answer

A) True 
 B)False

Question 13

In value chain analysis, value is measured by market value of the total stock outstanding of the company.

Accepted Answer

A) True 
 B)False

Question 14

What are the benefits and limitations of making historical comparisons in analyzing a firm's performance?

Accepted Answer

Historical comparisons can help to track...

Question 15

Which of these categories of financial ratios is used to measure a company's ability to meet its short-term financial obligations?

Accepted Answer

A)   Leverage ratios
B)   Profitability ratios
C)   Activity ratios
D)   Liquidity ratiosE) B) and C)
F) A) and D)

Question 16

_____ are the competencies or skills that a firm employs to transform inputs into outputs.

Accepted Answer

A)   Tangible resources
B)   Intangible resources
C)   Reputational resources
D)   Organizational capabilitiesE) A) and B)
F) B) and C)

Question 17

How should managers assess changes in their firm's competitive position in their industries during a period of unusual economic growth?

Accepted Answer

A)   Compare the firm's financial ratios with ratios of firms in other strategic groups in the industry.
B)   Compare the firm's financial ratios over the most recent one-year period.
C)   Compare the financial ratios of all firms in the country's industry-some of whom serve very diverse market segments and have specialized accordingly.
D)   Compare the financial ratios of firms in the company's strategic group.E) C) and D)
F) B) and C)

Question 18

Gillette combines several technologies (e.g., metallurgy, physiology, physics)  to attain unparalleled success in the wet shaving industry. This is an example of their

Accepted Answer

A)   tangible resources.
B)   intangible resources.
C)   organizational capabilities.
D)   strong primary activities.E) All of the above
F) None of the above

Question 19

Historical comparisons are most appropriate during periods of recession or economic boom.

Accepted Answer

A) True 
 B)False

Question 20

The best measure of a company's ability to meet imminent financial obligations is known as the

Accepted Answer

A)   current ratio.
B)   total asset turnover.
C)   debt ratio.
D)   profit margin.E) C) and D)
F) A) and C)

Exam 3: Assessing the Internal Environment of the Firm

Which of the following would be most difficult to assess?

Correct AnswerverifiedShow Answer

Establishing a customer service hotline to handle customer complaints would be considered a primary activity in value chain analysis.

Correct AnswerverifiedShow Answer

For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have the following four attributes

Correct AnswerverifiedShow Answer

Capabilities that are causally ambiguous are difficult to imitate.

Correct AnswerverifiedShow Answer

The best measure of a company's ability to meet imminent financial obligations is known as the

Correct AnswerverifiedShow Answer

Technology development is a much broader concept than research and development.

Correct AnswerverifiedShow Answer

Leverage ratios provide measures of a firm's capacity to meet its long-term financial obligations.

Correct AnswerverifiedShow Answer

Tangible resources are assets that are relatively easy to identify such as financial and physical assets.

Correct AnswerverifiedShow Answer

How should managers assess changes in their firm's competitive position in their industries during a period of unusual economic growth?

Correct AnswerverifiedShow Answer

What are the benefits and limitations of making historical comparisons in analyzing a firm's performance?

Correct AnswerverifiedHistorical comparisons can help to track...View AnswerShow Answer

In value chain analysis, value is measured by market value of the total stock outstanding of the company.

Correct AnswerverifiedShow Answer

What are some of the key strengths and limitations of SWOT analysis?

Correct AnswerverifiedThe strength of SWOT analysis is that it...View AnswerShow Answer

The resource-based view (RBV) of the firm combines two perspectives

Correct AnswerverifiedShow Answer

Gillette combines several technologies (e.g., metallurgy, physiology, physics) to attain unparalleled success in the wet shaving industry. This is an example of their

Correct AnswerverifiedShow Answer

Historical comparisons are most appropriate during periods of recession or economic boom.

Correct AnswerverifiedShow Answer

Which of these categories of financial ratios is used to measure a company's ability to meet its short-term financial obligations?

Correct AnswerverifiedShow Answer

What are the four perspectives that the "balanced scorecard" enables managers to evaluate their business?

Correct AnswerverifiedThe four perspectives are the ...View AnswerShow Answer

The following are examples of socially complex organizational phenomena except

Correct AnswerverifiedShow Answer

_____ are the competencies or skills that a firm employs to transform inputs into outputs.

Correct AnswerverifiedShow Answer

Which of the following lists consists of support activities?

Correct AnswerverifiedShow Answer

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Historical comparisons can help to track...
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The strength of SWOT analysis is that it...
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The four perspectives are the ...
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