Business Policy and Strategic Management MCQ and Answers pdf

Business Policy and Strategic Management MCQ and Answers pdf for the preparation of academic and competitive MBA marketing examinations

Business Policy and Strategic Management MCQ

1) Which of the following is action-oriented?
a. Policy
b. Objective
c. Goal
d. Strategy
Ans: D

2) ___ is nothing more than a well-developed statement of directions and goals.
a. A business strategy
b. A business Policy
c. Tactic
d. Objective
Ans: B

3) A value system in an organisation is an example of ___ type of environment.
a. Internal
b. Macro
c. Micro
d. External
Ans: A

4) The word strategy is derived from ___ language.
a. French
b. Spanish
c. Greek
d. Arabic
Ans: C

5) SBU refers to ___.
a. Strategy & Business Units
b. Structural Business Unit
c. Standby Business Units
d. Strategic Business Units
Ans: D

6) ___ identifies the scope of business operations in product & market terms.
a. Purpose
b. Objective
c. Mission statement
d. Goal
Ans: C

7) ‘O’ in SWOT analysis refers to ___.
a. Obstacles
b. Opportunities
c. Operations
d. Objectives
Ans: B

8) Falling sales is an example for ___ indicator.
a. Deteriorating finances
b. Top management problems
c. Deteriorating performance
d. Bad Investment
Ans: C

9) When the business of a company is entirely sold or dissolved it is termed as ___.
a. Divestiture
b. Liquidation
c. Turnaround
d. Captive
Ans: B

10) Active strategy is also called as ___ strategy.
a. Passive
b. Defensive
c. Offensive
d. Flexible
Ans: C

11) Experienced Human resources are considered as ___.
a. Strengths
b. Weakness
c. Opportunities
d. Threats
Ans: A

12) ___ are regarded as short-term objectives.
a. Strategies
b. Goals
c. Mission statements
d. Values
Ans: B

13) Budgeting is an example for ___ control.
a. Strategic
b. Operational
c. Tactical
d. Preventive
Ans: B

14) The type of change that a business organisation has no control is called ___.
a. Internal change
b. Inertial resistance
c. Barriers to change
d. External change
Ans: D

15) Ego reinforcing strategies are examples for ___.
a. Personal value strategies
b. Executive strategies
c. Defensive strategies
d. Individual strategies
Ans: B

16) One of the reasons for lacking creativity in organisations is ___.
a. Self-image
b. Perception
c. Education
d. Inertia
Ans: D

17) Converting non-users to users is a strategy used in ___.
a. Market penetration
b. Integrative Growth
c. Diversification
d. Product development
Ans: A

18) Such strategies which are planned in advance to deal with sudden changes in the future are called as___.
a. Ad hoc methods
b. Contingency strategies
c. Stability strategies
d. Retrenchment strategies
Ans: B

19) The sale of a division unit or part of the asset of a company to another is called as ___.
a. Divestiture
b. Diversification
c. Financial restructuring
d. Tender offer
Ans: A

20) WO represents ___ strategy in the TOWS matrix.
a. Maxi Maxi
b. Mini Mini
c. Mini Maxi
d. Maxi Mini
Ans: D

21) Dropping a product line represents ___ strategy.
a. Retrenchment
b. Stability
c. Growth
d. Defensive
Ans: A

22) Joint ventures are an example for which of the following?
a. Corporate control
b. Business expansion
c. Sell-offs
d. Change of ownership
Ans: B

23) ____ is a composition of beliefs, ideas, norms & moral values.
a. Ethics
b. Assumptions
c. Culture
d. Education
Ans: C

24) Adding new products that have technological and marketing synergies with existing product lines, it is called as ___ type of diversification.
a. Horizontal
b. Synergistic
c. Competitive
d. Concentric
Ans: D

25) KFS means ___.
a. Kentucky Fried Strategies
b. Key Factors for Success
c. Keys to Flexible Strategies
d. Key Five Strategies
Ans: B

26) Activities associated with receiving, storing and disseminating inputs to products are also called as ____.
a. Inbound logistics
b. Outbound logistics
c. Operations
d. Procurement
Ans: A

27) An example for a generic competitive strategy is ___.
a. Differentiation
b. Support activity
c. Strategy based on degree of freedom
d. Value chain
Ans: A

28) One of the characteristics of a good strategic plan is ___.
a. Personality of top executives
b. Minimum mistakes
c. Uses available resources
d. Centralised planning
Ans: C

29) ___ is a broad, general guide to action which directs goal attainment.
a. Objective
b. Strategy
c. Policy
d. Plan
Ans: C

30) The person who profounded TOWS matrix is ___.
a. Drucker
b. Weihrich
c. Sharplin
d. Prahalad
Ans: D

31) Synergy effect is when ____.
a. 2 + 2 = 4
b. 2 + 2 = 6
c. 2 + 2 = 2
d. 2 + 2 = 5
Ans: D

32) An example for demographic variable/factor –
a. Purchase behaviour
b. Economic cycles
c. Pollution
d. Family size
Ans: D

33) Following is a market development strategy –
a. Vertical integration
b. Focus on Existing markets
c. Integrative growth
d. Entry to new markets
Ans: A

34) The objective of diversifying business is to ___.
a. Maximise risks
b. Minimise profits
c. Minimise risks
d. Maximise total assets
Ans: B

35) Conservation of non-replenishable resources is an example for ___ factor.
a. Ecological
b. Demographic
c. Strategic
d. Social
Ans: C

36) Who quoted this ‘there is only one valid definition of business: to create customer’?
a. Edmond & Gray
b. Peter Drucker
c. Waterman
d. Glueck
Ans: C

37) Overall cost leadership achieves ___.
a. Maximum profits
b. Cost minimisation
c. Risk diversification
d. Innovation
Ans: B

38) When a firm’s basic strategy is reconsidered on the occurrence of a sudden, unexpected event, then the type of control needed is ____.
a. Operational
b. Special alert
c. Implementation
d. Strategic
Ans: A

39) ___ is a qualitative factor.
a. Market share
b. Growth rate
c. Liquid assets
d. Company image
Ans: C

40) Threat of substitutes is considered as ___.
a. Competitive force
b. State of growth
c. Rivalry
d. Competitive strategy
Ans: A

41) Steps taken by a company in launching a new product is considered as ____ strategy that is based on a certain ____.
a. Defensive; Objective
b. Offensive; Purpose
c. Long term; Control
d. Survival; Operation

42) Identify the Qualitative criteria to evaluate strategies –
a. Employee motivation
b. Managerial attitude towards risk
c. Return on equity
d. Ego reinforcing strategy
Ans: B

43) Resistance to change arising from the existing perceptions, beliefs and work habits in the organisation is referred to as ___ resistance.
a. Conscious
b. Resource
c. Inertial
d. Environmental
Ans: B

44) Which of the following is a socio-cultural factor?
a. Customs & preferences
b. Family size & education
c. Investments & savings
d. High population growth
Ans: A

45) Labour policy is considered to be ____.
a. Environmental barrier
b. Resource constraint
c. Crises
d. Strategic advantage
Ans: D

46) In the absence of proper plans or factual information, decisions taken by entrepreneurs will be mostly based on____.
a. Contingency strategy
b. Ad hoc method
c. Intuitive knowledge
d. Neutral strategy
Ans: D

47) Stability strategy involves which of the following:
a. Expansion & growth
b. Incremental improvements
c. New businesses
d. Divesture & turnaround
Ans: C

48) An example for conscious resistance –
a. Culture change
b. Redeployment
c. Management style difference
d. Change as a result of crises
Ans: D

49) Flexible strategy is suitable for unstable environments because organisation may prefer ___.
a. Variety and stimulation
b. Growth and external dependence
c. Internal consistency and workability
d. Power and sales growth
Ans: B

50) Identify the strategy that involves backward and forward integration.
a. Diversification growth
b. Intensive growth
c. Integrative growth
d. Retrenchment
Ans: C