BUSI 490 CAPSTONE FINAL EXAM QUESTIONS WITH
ACCURATE ANSWERS
1) compute the total costs associated with a decision correct answer
1) Cost leadership correct answer
1) Investment decision correct answer
1) Planning correct answer
2) Differentiation correct answer
2) estimate the total benefits from the decision, correct answer
2) Financing decision correct answer
2) Organizing correct answer
3) compare the total costs with the total benefits correct answer
3) Dividend decision correct answer
3) Focus correct answer
,3) Motivating correct answer
4) Staffing correct answer
5) Controlling correct answer
ACQUISITION correct answer When a large organization purchases (acquires) a
smaller firm; a merger.
ACTIONABLE FACTORS correct answer Meaningful in terms of having strategic
implications; reveal potential strategies to capitalize or compensate.
ACTIVITY RATIOS correct answer Inventory turnover and average collection period
measure how effectively a firm is using its resources.
AGGRESSIVE QUADRANT correct answer In a SPACE matrix analysis, when the
firm's directional vector points in the upper right quadrant, the firm should
pursue aggressive strategies.
ANNUAL OBJECTIVES correct answer Short-term milestones, usually one year,
that organizations must achieve to reach long-term targets/goals.
ATTRACTIVENESS SCORES correct answer In a QSPM, the numerical value (rating)
that indicates the relative attractiveness of each strategy given a single internal or
external factor.
, BACKWARD INTEGRATION correct answer A strategy seeking ownership or
increased control of a firm's suppliers, such as a manufacturer acquiring its raw
material source firms.
BANKRUPTCY correct answer A legal document that allows a firm to avoid major
debt obligations and void union contracts in order to survive and regroup as a
firm. There are five major types:
BENCHMARKING correct answer An analytical tool used to determine how a firm's
value chain activities compare to rival firms in order to better gain and sustain
competitive advantages.
BOARD OF DIRECTORS correct answer A group of individuals above the CEO, who
have oversight and guidance over management and who care for shareholders'
interests.
BOSTON CONSULTING GROUP MATRIX (BCG) correct answer A four quadrant,
strategic planning analytical tool that places an organization's various divisions as
circles in a display (similar to the IE Matrix) based on two key dimensions: 1)
relative market share position and 2) industry growth rate. The diagram's four
quadrants (Stars, Question Marks, Cash Cows, Dogs) each have different strategy
implications.
BREAKEVEN POINT correct answer The quantity of units that a firm must sell in
order for its total revenues (TR) to equal its total costs (TC).
BUSINESS correct answer PROCESS OUTSOURCING - When a firm contracts with
an outside firm(s) to take over some of their functional operations, such as human
resources, information systems, payroll, accounting, or customer service.
ACCURATE ANSWERS
1) compute the total costs associated with a decision correct answer
1) Cost leadership correct answer
1) Investment decision correct answer
1) Planning correct answer
2) Differentiation correct answer
2) estimate the total benefits from the decision, correct answer
2) Financing decision correct answer
2) Organizing correct answer
3) compare the total costs with the total benefits correct answer
3) Dividend decision correct answer
3) Focus correct answer
,3) Motivating correct answer
4) Staffing correct answer
5) Controlling correct answer
ACQUISITION correct answer When a large organization purchases (acquires) a
smaller firm; a merger.
ACTIONABLE FACTORS correct answer Meaningful in terms of having strategic
implications; reveal potential strategies to capitalize or compensate.
ACTIVITY RATIOS correct answer Inventory turnover and average collection period
measure how effectively a firm is using its resources.
AGGRESSIVE QUADRANT correct answer In a SPACE matrix analysis, when the
firm's directional vector points in the upper right quadrant, the firm should
pursue aggressive strategies.
ANNUAL OBJECTIVES correct answer Short-term milestones, usually one year,
that organizations must achieve to reach long-term targets/goals.
ATTRACTIVENESS SCORES correct answer In a QSPM, the numerical value (rating)
that indicates the relative attractiveness of each strategy given a single internal or
external factor.
, BACKWARD INTEGRATION correct answer A strategy seeking ownership or
increased control of a firm's suppliers, such as a manufacturer acquiring its raw
material source firms.
BANKRUPTCY correct answer A legal document that allows a firm to avoid major
debt obligations and void union contracts in order to survive and regroup as a
firm. There are five major types:
BENCHMARKING correct answer An analytical tool used to determine how a firm's
value chain activities compare to rival firms in order to better gain and sustain
competitive advantages.
BOARD OF DIRECTORS correct answer A group of individuals above the CEO, who
have oversight and guidance over management and who care for shareholders'
interests.
BOSTON CONSULTING GROUP MATRIX (BCG) correct answer A four quadrant,
strategic planning analytical tool that places an organization's various divisions as
circles in a display (similar to the IE Matrix) based on two key dimensions: 1)
relative market share position and 2) industry growth rate. The diagram's four
quadrants (Stars, Question Marks, Cash Cows, Dogs) each have different strategy
implications.
BREAKEVEN POINT correct answer The quantity of units that a firm must sell in
order for its total revenues (TR) to equal its total costs (TC).
BUSINESS correct answer PROCESS OUTSOURCING - When a firm contracts with
an outside firm(s) to take over some of their functional operations, such as human
resources, information systems, payroll, accounting, or customer service.
