Test Bank for Karakowsky and Guriel, The Context of Business. Questions and Answers

1) Strategic management is a process where managers constantly analyze their
companies’ external environment, but ignore their internal environment.
a. True
b. False

Answer: b
Diff: 1
Type: TF
Page Reference: 162
Skill: recall
Objective: Chapter 5-LO1

2) Economies of scale are often considered to be an entry barrier for new entrants.
a. True
b. False

Answer: a
Diff: 1
Type: TF
Page Reference: 164
Skill: recall
Objective: Chapter 5-LO2

3) Product differentiation between companies usually contributes to greater rivalry
among existing firms.
a. True
b. False

Answer: b
Diff: 2
Type: TF
Page Reference: 167
Skill: both
Objective: Chapter 5-LO2

4) The VRIO model analyzes companies on their variety, real-time initiatives and
organization.
a. True
b. False


Test Bank for Karakowsky and Guriel, The Context of Business, 1e
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