AACSB Quiz with complete solutions
2025/2026
Question: A drawback of the functional organizational structure is...
A) That each worker must report to more than one superior.
B) It creates silos of knowledge which makes it difficult to communicate across functions.
C) Too much decentralization of decision-making authority.
D) Its lack of flexibility.
E) The need to downsize before implementing this structure. - correct answer ✔✔B) It creates
silos of knowledge which makes it difficult to communicate across functions.
Q: The strategic planning process by which companies rigorously assess their performance
relative to the market place is called?
A) Yearly management audit
B) Annual market review.
C) Management's Analysis and Report to Shareholders
D) The Situation Analysis.
E) Company annual report. - correct answer ✔✔D) The Situation Analysis.
Q: Which of the following is not a necessity for leveraging the skills and capabilities of global
subsidiaries?
A) The firm must have incentives for local managers to share knowledge and ideas.
B) The firm's managers must be aware that competencies can develop anywhere in the world.
, C) The firm must be pursuing a strategy of differentiation.
D) The firm's managers must help to transfer competencies around the company.
E) The firm must offer incentives that encourage employees to take necessary risks to ensure
skills and capabilities are tranferred/shared. - correct answer ✔✔C) The firm must be pursuing a
strategy of differentiation.
Stanley's services firm wants, and may need, to diversify and enter an embryonic market, but it
doesn't have enough cash or access to capital itself to enter the market. Which of the following
strategies do you recommend to Stanley?
A) Diversify through acquiring a company in the market.
B) Do not diversify at all.
C) Diversify through a new internal venture.
D) Diversify with a joint venture.
E) Diversify through vertical integration. - correct answer ✔✔D) Diversify with a joint venture.
Which of the following factors must be considered in choosing the structure and control
systems for managing a global business?
A) How to distribute and allocate responsibility and authority between managers at home and
abroad.
B) The selection of the organizational structure that groups divisions both at home and abroad.
C) The selection of the right kinds of communication and control systems.
D) The selection of the right kinds of leadership and organizational culture.
2025/2026
Question: A drawback of the functional organizational structure is...
A) That each worker must report to more than one superior.
B) It creates silos of knowledge which makes it difficult to communicate across functions.
C) Too much decentralization of decision-making authority.
D) Its lack of flexibility.
E) The need to downsize before implementing this structure. - correct answer ✔✔B) It creates
silos of knowledge which makes it difficult to communicate across functions.
Q: The strategic planning process by which companies rigorously assess their performance
relative to the market place is called?
A) Yearly management audit
B) Annual market review.
C) Management's Analysis and Report to Shareholders
D) The Situation Analysis.
E) Company annual report. - correct answer ✔✔D) The Situation Analysis.
Q: Which of the following is not a necessity for leveraging the skills and capabilities of global
subsidiaries?
A) The firm must have incentives for local managers to share knowledge and ideas.
B) The firm's managers must be aware that competencies can develop anywhere in the world.
, C) The firm must be pursuing a strategy of differentiation.
D) The firm's managers must help to transfer competencies around the company.
E) The firm must offer incentives that encourage employees to take necessary risks to ensure
skills and capabilities are tranferred/shared. - correct answer ✔✔C) The firm must be pursuing a
strategy of differentiation.
Stanley's services firm wants, and may need, to diversify and enter an embryonic market, but it
doesn't have enough cash or access to capital itself to enter the market. Which of the following
strategies do you recommend to Stanley?
A) Diversify through acquiring a company in the market.
B) Do not diversify at all.
C) Diversify through a new internal venture.
D) Diversify with a joint venture.
E) Diversify through vertical integration. - correct answer ✔✔D) Diversify with a joint venture.
Which of the following factors must be considered in choosing the structure and control
systems for managing a global business?
A) How to distribute and allocate responsibility and authority between managers at home and
abroad.
B) The selection of the organizational structure that groups divisions both at home and abroad.
C) The selection of the right kinds of communication and control systems.
D) The selection of the right kinds of leadership and organizational culture.
