MGMT 4000 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

MGMT 4000 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 Which of the following is not an important component of the strategic management process? Analysis Measurement Formulation Implementation - Answers Measurement ___________ is a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors. Analyze Strategy Positioning Performance - Answers Strategy Suppose the revenue generated by Firms A, B, C, and D in 2022 are $200,000, $200,000, $700,000, and $500,000, respectively. Which of the following firm(s) has/have a competitive advantage? Firm B Firm C Firm C and Firm D Firm D - Answers Firm C and Firm D A company is operating in Los Angeles and has 36 employees. The hourly minimum wage in Los Angeles is $14.25 for employers with 26 or more employees and $13.25 for employers with 25 or fewer employees. This company is paying $12 per hour to the shop floor workers. This company is not satisfying which of the following responsibilities? philanthropic responsibilities ethical responsibilities legal responsibilities economic responsibilities - Answers legal responsibilities Which of the following is typically an economic responsibility of a firm? donating resources toward community development repayment of debt to the creditors helping a nation increase its import of goods and services offering minimum wages to the employees - Answers repayment of debt to the creditors Supplier stakeholders are concerned with an assurance of a continued relationship with the firm. safe working conditions. timely payment of wages. increase in profits. - Answers an assurance of a continued relationship with the firm. External stakeholders include everyone, except: Suppliers Unions Stockholders Customers - Answers Stockholders Which of the following is an example of an 'industry'? Amazon Tesla Apple Airline - Answers Airline A company decides to pay excessive bonuses to its high-performing employees. This decision might concern which of the following stakeholder groups most directly? Creditors Stockholders Suppliers Government - Answers Stockholders f the top managers of a company decide to withhold taxes, which of the following stakeholder groups might be the most concerned? Government Creditors Suppliers Stockholders - Answers Government ________ are considered the ethical standards and norms that govern the behavior of individuals within a firm. Value statements Mission statements Vision statement - Answers Value statements Which of the following is true regarding vision statements? Vision statements are more general than mission statements Vision statements are more specific than mission statements Vision statements are short-term as compared to mission statements - Answers Vision statements are more general than mission statements The mission statement of a typewriter manufacturing company is- "A typewriter in every office." What is wrong with this mission statement? It is not future-oriented. It does not indicate how the company will achieve its goal. It is too specific. - Answers It does not indicate how the company will achieve its goal. Jeff Bezos, Founder and Ex-CEO of Amazon, named the company 'Amazon' after the Amazon river, the largest river on the planet, as he wanted to make the company earth's largest bookstore. This example can be best stated as the strategic leaders' first step toward deciding organizational value the mission of the company the vision of the company - Answers the vision of the company Google states: "Google will redefine the search engine industry by organizing information and making it accessible and useful universally." This is an example of a Value statement Vision statement Mission statement - Answers Mission statement Our vision is "To create great-tasting beverages." This is an example of a product-oriented vision statement customer-oriented vision statement - Answers product-oriented vision statement Which of the following is only a product-oriented vision statement? "To be the world's most loved, most efficient, and most profitable airline." "We believe in free expression and think every voice has the power to impact the world." "To give people the power to build community and bring the world closer together." - Answers "To be the world's most loved, most efficient, and most profitable airline." A technology company is operating in a highly volatile environment with new players entering the market, changing customers' tastes and preferences, and the government formulating new laws regularly. Which of the following strategy plans might not be suitable for such a company? Scenario planning Strategic planning Strategy as planned emergence - Answers Strategic planning Which of the following is not an important characteristic of the strategic planning approach of organizational strategy? It involves feedback from the employees It involves predicting the future from the past It is a formal approach It is suitable for a stable environment - Answers It involves feedback from the employees John and Jackie are working in the advertising department of a company as a manager and lead, respectively. They have both been asked by the top managers to create two different advertisements for a new product that will be launched next month, one emphasizing the quality of the product and the other on the price. This strategic decision-making technique represents devil's advocacy Correct! dialectic inquiry - Answers dialectic inquiry Under which of the following situations buyers will be more powerful: 1. The products offered by the firm are unique. 2. There are few buyers in the market. Option 2 Option 1 - Answers Option 2 Which of the following external factors is a part of a firm's task environment? innovation in process technology threat of new firms entering the industry sustainable economic growth levels of employment - Answers threat of new firms entering the industry In 2020, Starbucks announced straw-less sippy cup-style lids, replacing plastic straws to prevent an estimated one billion straws a year from ending up in landfills. Starbucks changed the strategy as a response to which of the following external environmental factors? legal ecological political economic - Answers ecological General environmental factors can have both positive and negative impacts on various industries. For example, greater concern for health might have a ________ impact on the fitness industry (together with health clubs and gyms) and a ________ impact on the packaged food industry. These are called ________ impacts. positive; negative; technological negative; positive; economic positive; negative; sociocultural negative; positive; ecological - Answers positive; negative; sociocultural An upscale one-stop shop for all pet supplies gathers information related to the income level of the residents to increase sales. Which of the following external environmental factor is this firm considering? economic sociocultural legal ecological - Answers sociocultural If yesterday the value of one U.S. Dollar was equal to 1.2 Canadian Dollars and today the value of one U.S. Dollar is equal to 1.4 Canadian Dollars, what happened to the value of the Canadian Dollar in relation to the U.S. Dollar It is appreciated It is depreciated - Answers It is depreciated Apple Inc. is expected to hit the market with their new electric vehicle with the next-level battery technology to extend range and efficiency. Big players in the EV industry like Tesla would face which of the following threat(s) if Apple Inc. is able to get the car on the road by 2024? the threat of substitution the threat of new entrants the threat of substitution and new entrant - Answers the threat of substitution and new entrant An automobile manufacturer acquires a rental car company. This is an example of backward integration forward integration - Answers forward integration Uber and Lyft are engaged in a bitter war that involves undercutting each other's prices and poaching drivers in order to increase their market shares. This would be an example of: the threat of substitution bargaining power of buyers intensity of rivalry the threat of new entrant - Answers intensity of rivalry Economies of scale help a firm to provide a response to their competitors by: reducing the bargaining power of suppliers reducing the threat of substitution reducing the threat of new entrants reducing the bargaining power of buyers - Answers reducing the threat of new entrants Which of the following is not one of the ratios that constitutes return on revenue? Research and development expense/Revenue Long-term assets/Revenue Selling, general, and administrative expense/Revenue Cost of goods sold (COGS)/Revenue - Answers Long-term assets/Revenue The ratio of selling, general, and administrative expense and revenue is related to which of the following value-chain activity of the firm? Distribution Supply chain management Marketing and sales Operations - Answers Marketing and sales If Firm A's return on invested capital is 16.4 percent and Firm B's return on invested capital is 20.2 percent, which firm has a competitive advantage? Firm A Firm B - Answers Firm B f Firm A has a higher cost of goods sold (COGS) and revenue ratio than Firm B, what does it indicate? Firm B has a competitive advantage over Firm A. Firm A has a competitive advantage over Firm B. - Answers Firm B has a competitive advantage over Firm A. A firm incurs $500 to manufacture a phone. In the market, customers are willing to pay a maximum of $1000 for the phone priced at $800. How much economic value is created by the firm in this example? $300 $500 $800 $200 - Answers $500 A firm incurs $3 to manufacture a pencil. In the market, customers are willing to pay a maximum of $6 for the pencil priced at $8. How much is the producer surplus in this example? $5 $6 $2 $3 - Answers $5 Both Firm A and Firm B incur a cost of $500 to manufacture a single unit of a refrigerator. However, Firm A charges a higher price than Firm B does as consumers are willing to pay more for the products offered by Firm A. Which of the following statement is true? Firm B has a competitive advantage over Firm A Both the firms have achieved a competitive parity Firm A creates more economic value than Firm B - Answers Firm A creates more economic value than Firm B Harley Davidson increased their expenditure on employee training programs to make employees more efficient, thereby making its manufacturing process more cost-effective. Which of the following dimension(s) of the triple bottom line is this example highlighting? Both people and planet Only people Both people and profit Only profit - Answers Both people and profit A company sells an e-book reader at the cost price. However, the company makes its profits when users have to download or buy books online. Which of the following business models is implemented by this company? Pay as you go Correct! Razor-razor-blades Subscription Wholesale - Answers LinkedIn, a professional social media website, allows its users to create their profiles for free but charges a price for additional services. This is an example of a ________ business model. Subscription Agency Freemium Bundling - Answers Freemium Which of the following is not an example of a business-level strategy? American Airlines strategizing to compete with Southwest Whole Foods strategizing to compete with Target Lyft strategizing to compete with DoorDash Facebook strategizing to compete with Twitter - Answers Lyft strategizing to compete with DoorDash Business-level strategies are concerned specifically with: how functional areas will be organized within the firm. selecting the industries in which the firm will compete. how a business with multiple physical locations will operate one of those locations. creating differences between the firm's position and its competitors. - Answers creating differences between the firm's position and its competitors. When a firm is able to produce distinctive products for selective customers who value unique features more than they value low cost, the firm is successfully implementing a(n): focused cost leadership You Answered differentiation focused differentiation overall cost leadership - Answers focused differentiation Which of the following is not one of the value drivers that helps to improve a firm's differentiation strategic position? Improve the product features Enhance customer service Economies of scale Findings complement to the products/services - Answers Economies of scale Tom owns a small one-stop-shop that sells inexpensive pet supplies. Which of the following business-level strategies is adopted by Tom? focused differentiation differentiation focused cost leadership overall cost leadership - Answers focused cost leadership Walmart is able to keep its cost structure lower than its rivals by leveraging streamlined logistics and negotiating bargain prices from its suppliers. They are using a(n) ________ strategy. focused cost leadership overall cost leadership focused differentiation differentiation - Answers overall cost leadership Ann Taylor Stores Corporation offers clothing for professional women and is superior to other clothing lines because it provides a chic, sophisticated look to a woman using expensive and high-quality material. Ann Taylor Stores Corporation is using a(n) ________ strategy. differentiation focused cost leadership focused differentiation overall cost leadership - Answers focused differentiation When selecting a business-level strategy, the firm must determine all of the following except: how the customers' needs will be satisfied? what are the needs of the customers? who are the customers? how to enter the international market? - Answers how to enter the international market?