LSUS MBA 701 FINAL TEST 2026 QUESTIONS WITH
CORRECT ANSWERS GRADED A+
● Related Diversification. Answer: Expansion into businesses sharing resources,
technologies, or markets with existing operations
● Cash Flow Statement. Answer: Report tracking cash inflows and outflows from operating,
investing, and financing activities
● Product Development. Answer: Growth strategy creating new products for existing
markets through innovation
● Organizational Structure. Answer: Framework defining hierarchy, roles, reporting
relationships, and authority distribution
● Competitive Advantage. Answer: Condition or circumstance putting company in favorable
business position relative to competitors
● Financial Analysis. Answer: Evaluation of business financial performance through
statement examination and ratio calculation
● Bargaining Power of Buyers. Answer: Degree to which customers can negotiate
favorable terms affecting company pricing and profitability
● Industry Analysis. Answer: Systematic examination of industry structure, trends,
profitability, and competitive dynamics
● Business Strategy. Answer: Long-term plan defining how organization will compete,
achieve objectives, and create value for stakeholders
● Master of Business Administration. Answer: Graduate degree providing advanced
business education in management, finance, marketing, operations, and strategic thinking
preparing leaders for executive roles
● Primary Activities. Answer: Main functions directly creating value including inbound
logistics, operations, outbound logistics, marketing/sales, and service
● LSUS. Answer: Acronym for Louisiana State University Shreveport offering MBA program
with concentration options
, ● Inorganic Growth. Answer: Expansion through mergers, acquisitions, or partnerships
rather than internal development
● Red Ocean Strategy. Answer: Competing in existing market space with known boundaries
and competitive rules
● Return on Assets. Answer: Profitability ratio indicating how efficiently company uses
assets to generate earnings
● ROI. Answer: Acronym for Return on Investment evaluating efficiency of investment or
comparing multiple investments
● Value Creation. Answer: Process of generating worth exceeding costs through products,
services, or business model innovation
● Positioning. Answer: Creating distinct image and identity in customers' minds relative to
competitors
● Porter's Five Forces. Answer: Model analyzing industry attractiveness through threat of
new entrants, bargaining power of suppliers/buyers, threat of substitutes, and competitive
rivalry
● Threat of Substitutes. Answer: Risk of alternative products or services satisfying same
customer needs differently
● Return on Equity. Answer: Profitability ratio measuring net income generated per dollar of
shareholder equity
● Industry Analysis. Answer: Systematic examination of industry structure, trends,
profitability, and competitive dynamics
● Merger. Answer: Combination of two companies forming new legal entity sharing
ownership and operations
● Acquisition. Answer: Purchase of one company by another where buyer gains control and
ownership
● Shareholder Primacy. Answer: View that maximizing shareholder value is primary
corporate responsibility
● Corporate Governance. Answer: System of rules, practices, and processes directing and
controlling company
CORRECT ANSWERS GRADED A+
● Related Diversification. Answer: Expansion into businesses sharing resources,
technologies, or markets with existing operations
● Cash Flow Statement. Answer: Report tracking cash inflows and outflows from operating,
investing, and financing activities
● Product Development. Answer: Growth strategy creating new products for existing
markets through innovation
● Organizational Structure. Answer: Framework defining hierarchy, roles, reporting
relationships, and authority distribution
● Competitive Advantage. Answer: Condition or circumstance putting company in favorable
business position relative to competitors
● Financial Analysis. Answer: Evaluation of business financial performance through
statement examination and ratio calculation
● Bargaining Power of Buyers. Answer: Degree to which customers can negotiate
favorable terms affecting company pricing and profitability
● Industry Analysis. Answer: Systematic examination of industry structure, trends,
profitability, and competitive dynamics
● Business Strategy. Answer: Long-term plan defining how organization will compete,
achieve objectives, and create value for stakeholders
● Master of Business Administration. Answer: Graduate degree providing advanced
business education in management, finance, marketing, operations, and strategic thinking
preparing leaders for executive roles
● Primary Activities. Answer: Main functions directly creating value including inbound
logistics, operations, outbound logistics, marketing/sales, and service
● LSUS. Answer: Acronym for Louisiana State University Shreveport offering MBA program
with concentration options
, ● Inorganic Growth. Answer: Expansion through mergers, acquisitions, or partnerships
rather than internal development
● Red Ocean Strategy. Answer: Competing in existing market space with known boundaries
and competitive rules
● Return on Assets. Answer: Profitability ratio indicating how efficiently company uses
assets to generate earnings
● ROI. Answer: Acronym for Return on Investment evaluating efficiency of investment or
comparing multiple investments
● Value Creation. Answer: Process of generating worth exceeding costs through products,
services, or business model innovation
● Positioning. Answer: Creating distinct image and identity in customers' minds relative to
competitors
● Porter's Five Forces. Answer: Model analyzing industry attractiveness through threat of
new entrants, bargaining power of suppliers/buyers, threat of substitutes, and competitive
rivalry
● Threat of Substitutes. Answer: Risk of alternative products or services satisfying same
customer needs differently
● Return on Equity. Answer: Profitability ratio measuring net income generated per dollar of
shareholder equity
● Industry Analysis. Answer: Systematic examination of industry structure, trends,
profitability, and competitive dynamics
● Merger. Answer: Combination of two companies forming new legal entity sharing
ownership and operations
● Acquisition. Answer: Purchase of one company by another where buyer gains control and
ownership
● Shareholder Primacy. Answer: View that maximizing shareholder value is primary
corporate responsibility
● Corporate Governance. Answer: System of rules, practices, and processes directing and
controlling company
