MAN 4720 Quiz 3 Questions With
Correct Answers
Restrictions imposed by the government, such as export quotas on certain
products, are a part of the ________ environment of the PESTEL framework.
- economic
- sociocultural
- ecological
- political - ANSWER political
Ez Solutions Inc. has been operating in the country of Jamtland for almost a
decade. The nation is currently experiencing an economic downturn. Which of
the following is the most likely benefit of this economic condition for Ez Solutions
Inc.?
- Ez Solutions Inc. will have better access to highly skilled human capital at a
lower cost.
- Ez Solutions Inc. will have to expand its operations to meet the increasing
consumer demand.
- Ez Solutions Inc. will experience less competition from rival companies.
- Ez Solutions Inc. will find it easier to raise prices to increase profits. - ANSWER
Ez Solutions Inc. will have better access to highly skilled human capital at a
lower cost.
The amount that savers are paid for use of their money and the amount that
borrowers pay for that use is best described as a(n)
- interest rate
- service tax
- royalty fee
- surcharge - ANSWER interest rate
ABC Hardrives Inc., All Digital Inc., and FastFax Corp. are all companies that
manufacture and sell consumer electronics. They procure their component
parts from a similar set of suppliers in China and sell the final product to
customers with similar needs. Thus, the three companies together are a part of
a(n)
- plant
- focus group
, - industry
- occupational group - ANSWER industry
When the Alta Velocidad Española (AVE) was completed, it impacted Spain's
local airline industry. Which of the following statements about the five forces
does this reflect?
- Substitutes were not readily available because customers cannot use other
means of transport.
- Substitutes made it difficult for generating a profit potential in Spain's airline
industry.
- The combination of the competitive forces leads to collusion among existing
airlines.
- Entry barriers in Spain's airline industry are relatively high because of the high
costs involved. - ANSWER Substitutes made it difficult for generating a profit
potential in Spain's airline industry.
Incumbent firms can benefit from several important sources of entry barriers.
Economies of scale are one such source. Which of the following is an implication
of economies of scale for incumbent firms?
- They cannot employ technology efficiently.
- They can spread fixed costs over lesser units.
- They benefit from a less specialized division of labor.
- They can demand better terms from their suppliers. - ANSWER They can
demand better terms from their suppliers.
The relative bargaining power of suppliers is most likely low when
- the suppliers provide products that are differentiated.
- incumbent firms face low switching costs when changing suppliers.
- there are no readily available substitutes for the products and services they
offer.
- the suppliers' industry is more concentrated than the industry it sells to. -
ANSWER incumbent firms face low switching costs when changing suppliers.
MicroChips Corp. is a company that supplies microprocessors to 2020
Processors Inc., a computer hardware company. When 2020 Processors Inc.
demands lower prices for the microprocessors, MicroChips Corp. makes it clear
that it would profit more from launching its own brand of laptops and desktops in
the market. Fearing the competition it would then face from MicroChips Corp.,
2020 Processors Inc. decides to buy the microprocessors at the quoted price
itself. In this scenario, MicroChips Corp., as a supplier, has exercised its
bargaining power by threatening to
- forward integrate
Correct Answers
Restrictions imposed by the government, such as export quotas on certain
products, are a part of the ________ environment of the PESTEL framework.
- economic
- sociocultural
- ecological
- political - ANSWER political
Ez Solutions Inc. has been operating in the country of Jamtland for almost a
decade. The nation is currently experiencing an economic downturn. Which of
the following is the most likely benefit of this economic condition for Ez Solutions
Inc.?
- Ez Solutions Inc. will have better access to highly skilled human capital at a
lower cost.
- Ez Solutions Inc. will have to expand its operations to meet the increasing
consumer demand.
- Ez Solutions Inc. will experience less competition from rival companies.
- Ez Solutions Inc. will find it easier to raise prices to increase profits. - ANSWER
Ez Solutions Inc. will have better access to highly skilled human capital at a
lower cost.
The amount that savers are paid for use of their money and the amount that
borrowers pay for that use is best described as a(n)
- interest rate
- service tax
- royalty fee
- surcharge - ANSWER interest rate
ABC Hardrives Inc., All Digital Inc., and FastFax Corp. are all companies that
manufacture and sell consumer electronics. They procure their component
parts from a similar set of suppliers in China and sell the final product to
customers with similar needs. Thus, the three companies together are a part of
a(n)
- plant
- focus group
, - industry
- occupational group - ANSWER industry
When the Alta Velocidad Española (AVE) was completed, it impacted Spain's
local airline industry. Which of the following statements about the five forces
does this reflect?
- Substitutes were not readily available because customers cannot use other
means of transport.
- Substitutes made it difficult for generating a profit potential in Spain's airline
industry.
- The combination of the competitive forces leads to collusion among existing
airlines.
- Entry barriers in Spain's airline industry are relatively high because of the high
costs involved. - ANSWER Substitutes made it difficult for generating a profit
potential in Spain's airline industry.
Incumbent firms can benefit from several important sources of entry barriers.
Economies of scale are one such source. Which of the following is an implication
of economies of scale for incumbent firms?
- They cannot employ technology efficiently.
- They can spread fixed costs over lesser units.
- They benefit from a less specialized division of labor.
- They can demand better terms from their suppliers. - ANSWER They can
demand better terms from their suppliers.
The relative bargaining power of suppliers is most likely low when
- the suppliers provide products that are differentiated.
- incumbent firms face low switching costs when changing suppliers.
- there are no readily available substitutes for the products and services they
offer.
- the suppliers' industry is more concentrated than the industry it sells to. -
ANSWER incumbent firms face low switching costs when changing suppliers.
MicroChips Corp. is a company that supplies microprocessors to 2020
Processors Inc., a computer hardware company. When 2020 Processors Inc.
demands lower prices for the microprocessors, MicroChips Corp. makes it clear
that it would profit more from launching its own brand of laptops and desktops in
the market. Fearing the competition it would then face from MicroChips Corp.,
2020 Processors Inc. decides to buy the microprocessors at the quoted price
itself. In this scenario, MicroChips Corp., as a supplier, has exercised its
bargaining power by threatening to
- forward integrate
