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MBA 620 MIDTERM EXAM ACTUAL EXAM
NEWEST 2026 2027 COMPLETE QUESTIONS
AND CORRECT DETAILED CORRECT ANSWERS
VERIFIED CORRECT ANSWERS BRAND NEW
VERSION HIGH YIELD STUDY GUIDE ACTUAL
UPDATED PRACTICE QUESTIONS MIDTERM
EXAM PREPARATION GRADED A+ SUCCESS
REVIEW
Which decision-making approach emphasizes optimization under perfect
information? A. Behavioral model
B. Classical model
C. Incremental model
D. Intuitive model
CORRECT ANSWER: B. Classical model
An entrepreneur chooses to focus on a niche market by offering a specialized
product. Which strategy is being used?
A. Cost leadership
B. Broad differentiation
C. Focus strategy
D. Retrenchment
CORRECT ANSWER: C. Focus strategy
In the BCG Growth-Share Matrix, a business unit with high market share and
low growth is considered a:
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A. Question mark
B. Star
C. Cash cow
D. Dog
CORRECT ANSWER: C. Cash cow
Which financial tool is most appropriate for determining whether a project
generates value after accounting for the cost of capital?
A. Payback period
B. ROI
C. Net Present Value (NPV)
D. Break-even analysis
CORRECT ANSWER: C. Net Present Value (NPV)
Which strategy in the Ansoff Matrix involves selling existing products to new
markets? A. Market penetration
B. Diversification
C. Market development
D. Product development
CORRECT ANSWER: C. Market development
When an organization anticipates external changes and adjusts proactively, it
demonstrates:
A. Reactive strategy
B. Adaptive strategy
C. Defensive strategy
D. Crisis management
CORRECT ANSWER: B. Adaptive strategy
Which accounting concept recognizes expenses when incurred, not when paid?
A. Cash basis
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B. Accrual basis
C. Matching principle
D. Revenue principle
CORRECT ANSWER: B. Accrual basis
Scenario planning in strategic management is primarily used to:
A. Forecast a single outcome
B. Explore multiple possible futures
C. Avoid all risks
D. Predict competitor pricing only
CORRECT ANSWER: B. Explore multiple possible futures
Which best describes a firm’s vision statement?
A. Short-term operational plan
B. Long-term aspiration of what the organization seeks to become
C. Mission translated into annual budgets
D. Description of products and services offered
CORRECT ANSWER: B. Long-term aspiration of what the organization
seeks to become
A “first mover advantage” usually comes from:
A. Waiting for competitors to test the market
B. Entering the market early and building brand recognition
C. Delaying product launches to minimize risk
D. Using price wars to dominate later
CORRECT ANSWER: B. Entering the market early and building brand
recognition
Which measure indicates the risk-return tradeoff of an investment?
A. Beta coefficient
B. Liquidity ratio
MBA 620 MIDTERM EXAM ACTUAL EXAM
NEWEST 2026 2027 COMPLETE QUESTIONS
AND CORRECT DETAILED CORRECT ANSWERS
VERIFIED CORRECT ANSWERS BRAND NEW
VERSION HIGH YIELD STUDY GUIDE ACTUAL
UPDATED PRACTICE QUESTIONS MIDTERM
EXAM PREPARATION GRADED A+ SUCCESS
REVIEW
Which decision-making approach emphasizes optimization under perfect
information? A. Behavioral model
B. Classical model
C. Incremental model
D. Intuitive model
CORRECT ANSWER: B. Classical model
An entrepreneur chooses to focus on a niche market by offering a specialized
product. Which strategy is being used?
A. Cost leadership
B. Broad differentiation
C. Focus strategy
D. Retrenchment
CORRECT ANSWER: C. Focus strategy
In the BCG Growth-Share Matrix, a business unit with high market share and
low growth is considered a:
,2 | Page
A. Question mark
B. Star
C. Cash cow
D. Dog
CORRECT ANSWER: C. Cash cow
Which financial tool is most appropriate for determining whether a project
generates value after accounting for the cost of capital?
A. Payback period
B. ROI
C. Net Present Value (NPV)
D. Break-even analysis
CORRECT ANSWER: C. Net Present Value (NPV)
Which strategy in the Ansoff Matrix involves selling existing products to new
markets? A. Market penetration
B. Diversification
C. Market development
D. Product development
CORRECT ANSWER: C. Market development
When an organization anticipates external changes and adjusts proactively, it
demonstrates:
A. Reactive strategy
B. Adaptive strategy
C. Defensive strategy
D. Crisis management
CORRECT ANSWER: B. Adaptive strategy
Which accounting concept recognizes expenses when incurred, not when paid?
A. Cash basis
, 3 | Page
B. Accrual basis
C. Matching principle
D. Revenue principle
CORRECT ANSWER: B. Accrual basis
Scenario planning in strategic management is primarily used to:
A. Forecast a single outcome
B. Explore multiple possible futures
C. Avoid all risks
D. Predict competitor pricing only
CORRECT ANSWER: B. Explore multiple possible futures
Which best describes a firm’s vision statement?
A. Short-term operational plan
B. Long-term aspiration of what the organization seeks to become
C. Mission translated into annual budgets
D. Description of products and services offered
CORRECT ANSWER: B. Long-term aspiration of what the organization
seeks to become
A “first mover advantage” usually comes from:
A. Waiting for competitors to test the market
B. Entering the market early and building brand recognition
C. Delaying product launches to minimize risk
D. Using price wars to dominate later
CORRECT ANSWER: B. Entering the market early and building brand
recognition
Which measure indicates the risk-return tradeoff of an investment?
A. Beta coefficient
B. Liquidity ratio
