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SMGT2256 FINAL REVIEW 2026
LATEST QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
1. A strategy to be the industry's overall low-cost provider tends to
be more appealing than a differentiation or best-cost or
focus/market niche strategy when? - correct answer -The
offerings of rival firms are essentially identical, standardized,
commodity-like products.
2. Examples of important cost drivers in a company's value chain
do not include? - correct answer -Customer service.
3. The marketing emphasis of a company pursuing a focused low-
cost provider strategy usually is to? - correct answer -
Communicate the attractive features of a budget-priced product
offering that fits niche members' expectations.
4. Broad differentiation strategies are well-suited for market
circumstances where? - correct answer -There are many
ways to differentiate the product or service that has value to
buyers.
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5. The major difference between a low-cost provider strategy is
the? - correct answer -Size of the buyer group to which a
company is appealing.
6. A focused low-cost strategy can lead to attractive competitive
advantage when? - correct answer -A firm can lower costs
significantly by limiting its customer base to a well-defined
buyer segment.
7. The production emphasis of a company pursuing a broad
differentiation strategy usually involves? - correct answer -
Emphasis on building differentiating features that buyers are
willing to pay for and includes wide selection and many product
variations.
8. If the trend of the current ratio is increasing, while the trend of
the quick ratio is decreasing over a period of time, this could be
a warning that the firm is? - correct answer -Carrying excess
inventories.
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9. Total asset turnover is a component of which of the following of
the building blocks of financial analysis? - correct answer -
Efficiency.
10. If management wanted to increase the financial leverage of
the firm, it would: - correct answer -Raise additional capital by
selling fixed interest rate long-term bonds.
11. Which of the following ratios would be considered a
measurement of short-term liquidity? - correct answer -Quick
ratio.
12. Leverage means using borrowed money to do which of the
following? - correct answer -Earn a return greater than the
cost of borrowing.
13. If net sales increase by 4%, from $1,500,000 to $1,560,000,
and the cost of goods sold increases 4%, from $1,240,000 to
$1,289,600, the gross profit from sales will increase by 4%.
True or false? - correct answer -True.
SMGT2256 FINAL REVIEW 2026
LATEST QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
1. A strategy to be the industry's overall low-cost provider tends to
be more appealing than a differentiation or best-cost or
focus/market niche strategy when? - correct answer -The
offerings of rival firms are essentially identical, standardized,
commodity-like products.
2. Examples of important cost drivers in a company's value chain
do not include? - correct answer -Customer service.
3. The marketing emphasis of a company pursuing a focused low-
cost provider strategy usually is to? - correct answer -
Communicate the attractive features of a budget-priced product
offering that fits niche members' expectations.
4. Broad differentiation strategies are well-suited for market
circumstances where? - correct answer -There are many
ways to differentiate the product or service that has value to
buyers.
, Page | 2
5. The major difference between a low-cost provider strategy is
the? - correct answer -Size of the buyer group to which a
company is appealing.
6. A focused low-cost strategy can lead to attractive competitive
advantage when? - correct answer -A firm can lower costs
significantly by limiting its customer base to a well-defined
buyer segment.
7. The production emphasis of a company pursuing a broad
differentiation strategy usually involves? - correct answer -
Emphasis on building differentiating features that buyers are
willing to pay for and includes wide selection and many product
variations.
8. If the trend of the current ratio is increasing, while the trend of
the quick ratio is decreasing over a period of time, this could be
a warning that the firm is? - correct answer -Carrying excess
inventories.
, Page | 3
9. Total asset turnover is a component of which of the following of
the building blocks of financial analysis? - correct answer -
Efficiency.
10. If management wanted to increase the financial leverage of
the firm, it would: - correct answer -Raise additional capital by
selling fixed interest rate long-term bonds.
11. Which of the following ratios would be considered a
measurement of short-term liquidity? - correct answer -Quick
ratio.
12. Leverage means using borrowed money to do which of the
following? - correct answer -Earn a return greater than the
cost of borrowing.
13. If net sales increase by 4%, from $1,500,000 to $1,560,000,
and the cost of goods sold increases 4%, from $1,240,000 to
$1,289,600, the gross profit from sales will increase by 4%.
True or false? - correct answer -True.
