BPS PRACTICE EXAM QUESTIONS
AND ANSWERS ALL CORRECT
The minimum wage in the country of New Morland is $8 an hour. Odion, a restaurant in
New Morland's capital city, pays its servers $8 per hour. However, the management of
the restaurant feels that this amount is excessive for workers whose only job is to clear
tables. By continuing to adhere to the rules set by the government of New Morland,
which of the following responsibilities is Odion satisfying?
a. legal responsibilities
b. philanthropic responsibilities
c. ethical responsibilities
d. demographic responsibilities - Answer-a. legal responsibilities
Gladiator Apparel is the market leader in the sportswear industry. Though most of its
resources are common to those of its competitors, a few rare resources have helped the
company gain and sustain a competitive advantage. Which of the following assets of
Gladiator Apparel is most likely to be considered a rare resource that is contributing to
its competitive advantage?
a. the company's land and buildings
b. the company's plant and machinery
c. the company's raw material supplies
d. the company's design patents - Answer-d. the company's design patents
For a firm that operates in an industry where competition is high, which of the following
practices will result in inferior performance?
a. choosing a distinct but different strategic position in the industry
b. working toward increasing the difference between value creation and cost
c. trying to be everything to everybody by combining different competitive strategies
,d. focusing on creating value for customers rather than destroying rivals - Answer-c.
trying to be everything to everybody by comgining different competitive strategies
The average cost of production for a bottle of vitamin water in the industry is $4 while its
average price is $7. StoreAll Inc. manufactures the same product for $3 per bottle and
sells it for $7 per bottle. Which of the following statements is most likely true of StoreAll
Inc. in this scenario?
a. It has a competitive advantage in the industry.
b. It has a competitive disadvantage in the industry.
c. It has competitive parity with other firms in the industry.
d. It has formed a strategic alliance with other firms in the industry. - Answer-a. it has a
competitive advantage in the industry
The Founder of Teach for America, Wendy Kopp, wants to make teaching an attractive
option for promising young professionals. Identify the phrase that represents the vision
she developed for Teach for America.
a. to improve standardized test scores across the board
b. to cut wasteful spending from education budgets
c. to encourage parents to take a more active role in their children's education
d. to give all children in the United States the opportunity to attain an excellent
education. - Answer-d. to give all children in the US the opportunity to attain an
excellent education
A traditional top-down strategic planning process typically begins with
a. employees at the operational level identifying problems within an organization.
b. functional managers formulating functional strategies for their respective
departments.
c. strategic leaders adjusting a company's vision and mission based on environmental
analysis.
d. employees who have close contact with customers taking autonomous actions. -
Answer-c. strategic leaders adjusting a company's vision and mission based on
environmental analysis
, Burke Furnishings is a company that manufactures and sells home furniture. It sources
its materials from another country to keep costs low. An assembly line worker in one of
its manufacturing centers noticed that there was increasing concern regarding the
potential toxicity of the flame-resistant materials used in the furniture. In response, she
compiled a list of nontoxic flame-resistant materials that the company could use. When
her manager learned about this, he presented the prospect and got it approved from the
top management team. This is an example of the
a. top-down strategic planning approach.
b. planned emergence approach.
c. scenario planning process.
d. reverse engineering process. - Answer-b. planned emergence approach
Which of the following features about a buyer indicates that the buyer has high
bargaining power?
a. when the buyer cannot credibly threaten to backwardly integrate into the industry
b. when the buyer cannot purchase specific products from other sellers
c. when the buyer faces high switching costs
d. when the buyer operates in an industry where products are undifferentiated - Answer-
d. when the buyer operates in an industry where products are undifferentiated
Fadia Ammunition Inc., a firm controlled and managed by the government of Fadia, is
the only company that has the license to produce defense arms in the country. Which of
the following industry competitive structures does this best illustrate?
a. monopolistic competition
b. monopoly
c. oligopoly
d. perfect competition - Answer-b. monopoly
Samsung and Google cooperate as complementors to compete against Apple's strong
position in the mobile device industry, while at the same time Samsung and Google are
increasingly becoming competitive with one another. This scenario best illustrates the
process of
a. co-opetition.
AND ANSWERS ALL CORRECT
The minimum wage in the country of New Morland is $8 an hour. Odion, a restaurant in
New Morland's capital city, pays its servers $8 per hour. However, the management of
the restaurant feels that this amount is excessive for workers whose only job is to clear
tables. By continuing to adhere to the rules set by the government of New Morland,
which of the following responsibilities is Odion satisfying?
a. legal responsibilities
b. philanthropic responsibilities
c. ethical responsibilities
d. demographic responsibilities - Answer-a. legal responsibilities
Gladiator Apparel is the market leader in the sportswear industry. Though most of its
resources are common to those of its competitors, a few rare resources have helped the
company gain and sustain a competitive advantage. Which of the following assets of
Gladiator Apparel is most likely to be considered a rare resource that is contributing to
its competitive advantage?
a. the company's land and buildings
b. the company's plant and machinery
c. the company's raw material supplies
d. the company's design patents - Answer-d. the company's design patents
For a firm that operates in an industry where competition is high, which of the following
practices will result in inferior performance?
a. choosing a distinct but different strategic position in the industry
b. working toward increasing the difference between value creation and cost
c. trying to be everything to everybody by combining different competitive strategies
,d. focusing on creating value for customers rather than destroying rivals - Answer-c.
trying to be everything to everybody by comgining different competitive strategies
The average cost of production for a bottle of vitamin water in the industry is $4 while its
average price is $7. StoreAll Inc. manufactures the same product for $3 per bottle and
sells it for $7 per bottle. Which of the following statements is most likely true of StoreAll
Inc. in this scenario?
a. It has a competitive advantage in the industry.
b. It has a competitive disadvantage in the industry.
c. It has competitive parity with other firms in the industry.
d. It has formed a strategic alliance with other firms in the industry. - Answer-a. it has a
competitive advantage in the industry
The Founder of Teach for America, Wendy Kopp, wants to make teaching an attractive
option for promising young professionals. Identify the phrase that represents the vision
she developed for Teach for America.
a. to improve standardized test scores across the board
b. to cut wasteful spending from education budgets
c. to encourage parents to take a more active role in their children's education
d. to give all children in the United States the opportunity to attain an excellent
education. - Answer-d. to give all children in the US the opportunity to attain an
excellent education
A traditional top-down strategic planning process typically begins with
a. employees at the operational level identifying problems within an organization.
b. functional managers formulating functional strategies for their respective
departments.
c. strategic leaders adjusting a company's vision and mission based on environmental
analysis.
d. employees who have close contact with customers taking autonomous actions. -
Answer-c. strategic leaders adjusting a company's vision and mission based on
environmental analysis
, Burke Furnishings is a company that manufactures and sells home furniture. It sources
its materials from another country to keep costs low. An assembly line worker in one of
its manufacturing centers noticed that there was increasing concern regarding the
potential toxicity of the flame-resistant materials used in the furniture. In response, she
compiled a list of nontoxic flame-resistant materials that the company could use. When
her manager learned about this, he presented the prospect and got it approved from the
top management team. This is an example of the
a. top-down strategic planning approach.
b. planned emergence approach.
c. scenario planning process.
d. reverse engineering process. - Answer-b. planned emergence approach
Which of the following features about a buyer indicates that the buyer has high
bargaining power?
a. when the buyer cannot credibly threaten to backwardly integrate into the industry
b. when the buyer cannot purchase specific products from other sellers
c. when the buyer faces high switching costs
d. when the buyer operates in an industry where products are undifferentiated - Answer-
d. when the buyer operates in an industry where products are undifferentiated
Fadia Ammunition Inc., a firm controlled and managed by the government of Fadia, is
the only company that has the license to produce defense arms in the country. Which of
the following industry competitive structures does this best illustrate?
a. monopolistic competition
b. monopoly
c. oligopoly
d. perfect competition - Answer-b. monopoly
Samsung and Google cooperate as complementors to compete against Apple's strong
position in the mobile device industry, while at the same time Samsung and Google are
increasingly becoming competitive with one another. This scenario best illustrates the
process of
a. co-opetition.
