Business Strategy MCQ with Answers for preparation of MBA, BBA, Bcom, Mcom, and other regular and distance mode examinations.
1. The democratic way to implement the strategic change
a) Participation
b) Intervention
c) Accommodation
d) Direction
Ans: a
2) This is an indirect action method that uses an intermediate change agent in the change process.
a) Accommodation
b) Networks action
c) Participation
d) All of the above
Ans: b
3) Strategic planning is not a
a) Box of tricks
b) Magic wand
c) Forecasting
d) All of the above
Ans: d
4) Strategic planning is mainly concerned with the-
a) Futurity of the present decision
b) Forecasting
c) Planning
d) All of the above
Ans: a
5) The main emphasis of strategic planning is on planning-
a) Short-range
b) Long-range
c) Day-to-day basis
d) All of the above
Ans: c
6) According to ___, an effective or good plan is simple and based on a clearly defined objective.
a) L F Urwick
b) Federick Taylor
c) All
d) None of the above
Ans: a
7) A business may grow by-
a) Increasing its existing lines of business
b) Adding new lines of business
c) Adding new markets
d) All of the above
Ans: d
8) ___ is sine-qua-non for the survival of a business enterprise.
a) Development
b) Competitiveness
c) Growth
d) None of the above
Ans: b
9) Types of growth strategies are-
a) Intensive growth strategy
b) Integrative growth strategy
c) Diversification growth strategy
d) All of the above
Ans: d
10) Value is-
a) Amount buyers willing to pay
b) Total revenue
c) Both ‘a’ & ‘b’
d) None of the above
Ans: c
11) In any business organization, the ___ is important if strategic plans are to be implemented as per schedule.
a) Human factor
b) Economic factor
c) Financial factor
d) Material factor
Ans: a
12) Analysis of ___ is helpful to identify the attitude & behaviour of the competitor
a) Current strategy
b) Future goals
c) Assumptions
d) All
Ans: b
13) Strategies and moves of a firm will be influenced by its
a) Future goals
b) Current strategy
c) Assumptions
d) Capabilities
Ans: c
14) Who guides the subordinates for future courses of action with requisite directions?
a) Seniors
b) Top management
c) Managers
d) Business Policies
Ans: b
15) In an age of increasing specialization, there is a growing need for ___ directors & executives who can combine a high degree of competence in one functional area with an ability to see the interrelated nature of business problems.
a) Broad gauged
b) Competitive
c) Skilled
d) All of the above
Ans: a
16) Business is dependent on the-
a) Policies
b) Environment
c) Objectives
d) None of the above
Ans: b
17) “Interest groups” of the environment of the firm comprise-
a) Consumers
b) Suppliers
c) Creditors
d) All of the above
Ans: d
18) Identify the uncontrollable factors which are influencing the business policies-
a) Geophysical factors
b) Socio-cultural factors
c) Demography factors
d) All of the above
Ans: d
19) Employee morale can be boasted only when they are aware-
a) What to do?
b) When & how to do it?
c) By whom?
d) All of the above
Ans: d
20) Long-term strategy which defines the overall character and mission of the organization.
a) SBU strategy
b) Corporate strategy
c) Functional strategy
d) All of the above
Ans: b
21) ___ is considered the most important strategist responsible to play a major role in strategic decision-making.
a) CEO
b) Functional head
c) Chief manager
d) All of the above
Ans: a
22) Who has given this definition-“Unified comprehension and integrated plan designed to assure that the basic objectives of the enterprise are achieved.”
a) Mc Nicholas
b) Mc Farland
c) Gluek
d) Haner
Ans: c
23) ___ involves foresight on the expansion and development of the organization’s strategy
a) long term strategy
b) short term strategy
c) recovery strategy
d) All of the above
Ans: b
24) “Crisis Strategy” is also known as-
a) Defensive Strategy
b) Strategy for survival
c) Root strategy
d) Recovery strategy
Ans: b
25) ___ is referred to as a Neutral strategy.
a) Growth strategy
b) Stability strategy
c) Retrenchment strategy
d) Defensive strategy
Ans: b
26) ___ occurs when an entire company is sold or dissolved.
a) Divestiture strategy
b) Liquidation
c) Captive
d) All of the above
Ans: b
27) ___ are planned in advance to deal with sudden changes in the future.
a) Contingency strategies
b) Combination strategy
c) Turnaround strategy
d) Stability strategy
Ans: a
28) Under the combination strategy, a company adopts-
a) Stability& growth strategies
b) Stability & retrenchment strategies
c) Growth & retrenchment strategies
d) All of the above
Ans: d
29) Changes in attitudes, and advances in education are types of-
a) Internal changes
b) External changes
c) Behavioral changes
d) None of the above
Ans: b
30) ___ Refers to the creation of a new legal entity by the parent company.
a) Divestitures
b) Spin-offs
c) Tender offer
d) All of the above
Ans: b
31) Private companies became public for several reasons-
a) Raise capital by public issue
b) Respectability
c) Foreign collaboration
d) All of the above
Ans: d
32) Company culture can be traced from-
a) Company manager behaviour
b) Methods of decision-making
c) Overall outlook of the management
d) All of the above
Ans: d
33) Common competitive actions include-
a) Price changes
b) Promotional measures
c) Customer service & warranties
d) All
Ans: d
34) ___ are the specified actions suggested achieving the objectives.
a) Strategies
b) Policies
c) Board of directors
d) Management
Ans: a
35) ___ is concerned with the course of action to fulfill the set objectives.
a) Strategies
b) Policies
c) Management
d) Board of directors
Ans: b
36) The Main objective of generating the policy is to have ___ in the business organization.
a) Smooth working
b) Stability
c) Continuity
d) All of the above
Ans: a
37) Success of any business policy depends upon the acceptance of-
a) Principles
b) Rules
c) Regulations
d) All of the above
Ans: d
38) ___ review the result of the strategies.
a) Top management
b) Board of directors
c) Planning staff
d) Strategists
Ans: b
39) An orientation towards unity in the universe
a) Aesthetic
b) Political
c) Religious
d) Economics
Ans: c
40) Manager regards changes in the business environment as-
a) Threats
b) Forecast
c) Opportunities
d) Challenges
Ans: c
41) ___ does not directly formulate the strategy
a) Top management
b) Board of directors
c) Corporate planners
d) Consultants
Ans: b
42) Strategies are devices to reduce ___ & ___ that are expected an account for the complexity of business operations.
a) Future problems & opportunities
b) Decisions & actions
c) Business risk & insecurity
d) None of the above
Ans: c
43) ___ strategy concerns itself with the immediate goals & ___ strategy generally involves foresight.
a) Short-term & long term
b) Long-term & short term
c) Short-term & short term
d) None of the above
Ans: a
44) A company pursues a growth strategy when-
a) It enters a new business or market
b) Effect major increase in its current business
c) Both ‘a’ & ‘b’
d) None of the above
Ans: c
45) Four alternative types of strategy are:-
a) Stability, growth, retrenchment, defensive
b) Stability, retrenchment, defensive, combination
c) Divestiture, liquidation, captive, turnaround
d) Growth, contingency, captive, stability
Ans: a
46) ___ and ___ are of primary importance to the business firm in a constantly changing business environment.
a) Contingency strategies, tactics
b) Neutral strategies, stability strategies
c) Liquidation, capital strategy
d) Growth strategies, stability strategies
Ans: a
47) During a period of recession ___ is suitable; while___ is used during a period of economic expansion, a strong competitive position.
a) Growth strategy, stability strategy
b) Stability strategy, growth strategy
c) Defensive strategy, turnaround
d) All of the above
Ans: b
48) There are only two options:
a) Change or sink
b) Survival or growth
c) Inevitable or evitable
d) None of the above
Ans: a
49) Two types of behavioural resistance are-
a) Inertial resistance, conscious resistance
b) Tactical resistance, perception resistance
c) Beliefs, habits
d) None of the above
Ans: a
50) ___ refers to the strategy to be followed by a particular business unit and helps to strengthen its competitive position in the market.
a. Corporate strategy
b. Business strategy
c. Functional strategy
d. Marketing strategy
Ans: b
Business Strategy Multiple Choice Questions (MCQ) and Answers: Set-1
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