Question 1

Price elasticity is a measure of how much the supply or demand of a good changes if the price changes.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following are switching costs? Select all that apply:

Accepted Answer

A)  The time it takes to learn a new software program
B)  Fee for cancelling mobile phone service
C)  Search costs
D)  Emotional attachment
E)  Cannibalization A,B,C,D

Question 3

What is Pareto's Law?

Accepted Answer

A)  80 percent of the effects come from 20 percent of the causes.
B)  Work expands to fill the time available for its completion.
C)  Anything that can go wrong will go wrong.
D)  Never attribute to malice that which can be adequately explained by stupidity.

Question 4

Low-on-Cash Inc. decides to use factoring to improve cash flow. This strategy would involve which of the following?

Accepted Answer

A)  Selling accounts receivable to a collection agency or a bank
B)  Selling goods on credit but with a specified date for payment
C)  Selling the factors of production for cost, plus a small mark-up
D)  Selling unused factory equipment to make up for the short-fall in cash flow A

Question 5

What is MECE?

Accepted Answer

A)  Miminal Exceptions Consulting Excellence Framework
B)  Mutual Exclusive Collectively Exhaustive
C)  A key six sigma principle
D)  STAR

Question 6

A number of highly trained workers from a large domestic airline have been reclassified owing to major technological changes in the operations of the airline. These employees have been told that the work they performed in the past is no longer required.
Which of the concepts below best describes this situation?

Accepted Answer

A)  De-skilling
B)  Globalization
C)  Inertia of managers
D)  Resistance to change
E)  Planned obsolesce

Question 7

Different technological platforms, systems and products are moving towards performing the same functions. What is this phenomenon referred to as?

Accepted Answer

A)  Confluence
B)  Co-radiation
C)  Cooperation
D)  Convergence
E)  Synergy

Question 8

Leveraged buyouts (LBOs) are not collateralized.

Accepted Answer

A) True 
 B)False

Question 9

Ted is negotiating a 10-year contract with the U.S. government to provide educational services. The government wants a fixed price project. However, Ted is extremely concerned about the possibility of inflation given the increase in government spending. Ted should suggest what time of contract?

Accepted Answer

A)  Inflatable
B)  Floater
C)  Bonded adjustment
D)  Fixed price with economic adjustment
E)  Treasury

Question 10

How did famous management thinker Joseph Juran define quality?

Accepted Answer

A)  Achieving six sigma
B)  Zero defect manufacturing
C)  Value for cost
D)  Fitness for use
E)  Successful scope verification

Question 11

Which of the following is not part of basic value chain model?

Accepted Answer

A)  Customer service
B)  Product delivery
C)  Operations
D)  Procurement
E)  COGS

Question 12

Which of the following situations is most likely to be a razor and blade strategy?

Accepted Answer

A)  Coke and Pepsi
B)  Breakfast sandwich and coffee
C)  Hamburger with cheese
D)  Video game system and cartridges
E)  Ordering contact lenses online

Question 13

Great Skin Inc. has decided to enter the market for women's razors. What type of pricing framework is most likely to apply?

Accepted Answer

A)  Break-even pricing
B)  Competition-based pricing
C)  Cost-based pricing
D)  Market pricing

Question 14

Sales at ABC Party Supply have fallen off significantly over the past three years. Which of following is least applicable to this situation?

Accepted Answer

A)  ABC's market is mature.
B)  ABC's products are obsolete.
C)  Substitutions are on the rise.
D)  Costs are rising.
E)  All of the above

Question 15

Reducing inventory levels reduces risk.

Accepted Answer

A) True 
 B)False  True

Question 16

A problem with risk management at large firms is that it is often:

Accepted Answer

A)  Completely ignored
B)  Siloed
C)  Too frequent
D)  Too aggressive
E)  All of the above

Question 17

You are a consultant brought into help Bo's Television, a global conglomerate. ScreenMaster is a separate company that makes the screens for Bo's TVs. If Bo's acquired Screenmaster, this would be an example of what?

Accepted Answer

A)  Conflict of interest
B)  Horizontal integration
C)  Transfer pricing
D)  Vertical integration
E)  Cost-based accounting

Question 18

Boris wants to figure out how much more his company should invest into the quality of a certain product. What tool would be most effective for this exercise?

Accepted Answer

A)  Five Forces analysis
B)  Generic strategies
C)  MECE
D)  Razor and Blades
E)  Marginal analysis

Question 19

Which of the following can you use a Monte Carlo simulation to model? Select all that apply:

Accepted Answer

A)  Cost
B)  Probability of success
C)  Project duration
D)  Quality of inputs
E)  Stock returns

Question 20

What are three areas of synergies? Select 3 answers:

Accepted Answer

A)  Revenue
B)  Inventory
C)  Quality
D)  Cost
E)  Management

Exam 7: Strategy

Price elasticity is a measure of how much the supply or demand of a good changes if the price changes.

Correct Answer
verified

Which of the following are switching costs? Select all that apply:

Correct Answer
verified
A,B,C,D

What is Pareto's Law?

Correct Answer
verified

Low-on-Cash Inc. decides to use factoring to improve cash flow. This strategy would involve which of the following?

Correct Answer
verified
A

What is MECE?

Correct Answer
verified

Correct Answer
verified

Different technological platforms, systems and products are moving towards performing the same functions. What is this phenomenon referred to as?

Correct Answer
verified

Leveraged buyouts (LBOs) are not collateralized.

Correct Answer
verified

Ted is negotiating a 10-year contract with the U.S. government to provide educational services. The government wants a fixed price project. However, Ted is extremely concerned about the possibility of inflation given the increase in government spending. Ted should suggest what time of contract?

Correct Answer
verified

How did famous management thinker Joseph Juran define quality?

Correct Answer
verified

Which of the following is not part of basic value chain model?

Correct Answer
verified

Which of the following situations is most likely to be a razor and blade strategy?

Correct Answer
verified

Great Skin Inc. has decided to enter the market for women's razors. What type of pricing framework is most likely to apply?

Correct Answer
verified

Sales at ABC Party Supply have fallen off significantly over the past three years. Which of following is least applicable to this situation?

Correct Answer
verified

Reducing inventory levels reduces risk.

Correct Answer
verified
True

A problem with risk management at large firms is that it is often:

Correct Answer
verified

You are a consultant brought into help Bo's Television, a global conglomerate. ScreenMaster is a separate company that makes the screens for Bo's TVs. If Bo's acquired Screenmaster, this would be an example of what?

Correct Answer
verified

Boris wants to figure out how much more his company should invest into the quality of a certain product. What tool would be most effective for this exercise?

Correct Answer
verified

Which of the following can you use a Monte Carlo simulation to model? Select all that apply:

Correct Answer
verified

What are three areas of synergies? Select 3 answers:

Correct Answer
verified

Exam 7: Strategy

Price elasticity is a measure of how much the supply or demand of a good changes if the price changes.

Correct AnswerverifiedShow Answer

Which of the following are switching costs? Select all that apply:

Correct AnswerverifiedA,B,C,D

What is Pareto's Law?

Correct AnswerverifiedShow Answer

Low-on-Cash Inc. decides to use factoring to improve cash flow. This strategy would involve which of the following?

Correct AnswerverifiedA

What is MECE?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Different technological platforms, systems and products are moving towards performing the same functions. What is this phenomenon referred to as?

Correct AnswerverifiedShow Answer

Leveraged buyouts (LBOs) are not collateralized.

Correct AnswerverifiedShow Answer

Ted is negotiating a 10-year contract with the U.S. government to provide educational services. The government wants a fixed price project. However, Ted is extremely concerned about the possibility of inflation given the increase in government spending. Ted should suggest what time of contract?

Correct AnswerverifiedShow Answer

How did famous management thinker Joseph Juran define quality?

Correct AnswerverifiedShow Answer

Which of the following is not part of basic value chain model?

Correct AnswerverifiedShow Answer

Which of the following situations is most likely to be a razor and blade strategy?

Correct AnswerverifiedShow Answer

Great Skin Inc. has decided to enter the market for women's razors. What type of pricing framework is most likely to apply?

Correct AnswerverifiedShow Answer

Sales at ABC Party Supply have fallen off significantly over the past three years. Which of following is least applicable to this situation?

Correct AnswerverifiedShow Answer

Reducing inventory levels reduces risk.

Correct AnswerverifiedTrue

A problem with risk management at large firms is that it is often:

Correct AnswerverifiedShow Answer

You are a consultant brought into help Bo's Television, a global conglomerate. ScreenMaster is a separate company that makes the screens for Bo's TVs. If Bo's acquired Screenmaster, this would be an example of what?

Correct AnswerverifiedShow Answer

Boris wants to figure out how much more his company should invest into the quality of a certain product. What tool would be most effective for this exercise?

Correct AnswerverifiedShow Answer

Which of the following can you use a Monte Carlo simulation to model? Select all that apply:

Correct AnswerverifiedShow Answer

What are three areas of synergies? Select 3 answers:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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A,B,C,D

Correct Answer
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Correct Answer
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A

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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True

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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