Strategic Management and Business Policy

MB 0036/MH 0045
(3 Credits) Group A: 1 Marks Questions (Question Number 1-40) Group B: 2 Marks Questions (Question Number 41-60) Group C: 4 Marks Questions (Question Number 61-75) Full Marks: 140 Please Answer All Questions Only One Option is Correct

Group A

1. ___________________ refers to the process of identifying opportunities to achieve further growth within the companys current businesses. a) Diversification Growth b) Integrative Growth c) Intensive Growth d) Market Development Strategy Ans:- c) 2. Two or more companies may get together to synergise their operation, seeking alliance for their ______________________. a) b) c) d) Promotional Alliance Product and/or service alliance Pricing Collaborations Logistic Alliance Ans:- b) 3. When the firm finds that it is not possible to fill a gap in the market with the existing strategy, it considers a change in the focus of the _________________________________________. a) b) c) d) Strategy Operation Resources Market

Ans:- a)

4. ____________________ can be adopted in the case of highly competitive and volatile industries. a) Combination b) Stability c) Retrenchment d) Expansion Ans:- d)

5. External stability can be attained by maintaining_____________________. a) b) c) d) Market share Expansion Focus Diversification Ans:- a 6. A good ______________ plan will help attract necessary financing by demonstrating the feasibility of your venture and the level of thought and professionalism you bring to the task. a) b) c) d) Strategy Market Business Expansion Ans:- c 7. Once established, the Business priorities need to be ____________ and updated. a) b) c) d) Changed Reviewed Analysed Controlled Ans:- b) 8. The need to ___________________ effectively underlies the whole work programme. a) b) c) d) Communicate Operate Manage Review

Ans:- a)

9. ________________ enterprises of today work with an internet gateway giving access to millions of records, with published principles, tools, standards and guidance that can be applied to Business data including their collection and mobilization. a) b) c) d) Globalised Transnational Multinational Business Ans: a) 10. ____________________relates to the use of the NETWORK within the day to day business of agencies as a source of data relevant to local reporting or casework. a) b) c) d) Processes Generic Enhancement Data contributor engagement Operational Use Ans: d)

11. _______________________ is free enough to take more than a single pre- determined path into the future , and therefore cannot be purely mechanical. a) b) c) d) Strategic System Complex System Multi System Mechanical System Ans: b) 12. The creativity and imagination of a business will come from the ___________________ interaction of diverse individuals. a) Static b) Dynamic c) Personal Ans: b) 13. ______________________are Creative- They are natural born story teller. a) b) c) d) Ad- Agents Top managements Sales People Accountants Ans:- c)

14. There are lessons learned from the _____________ industry, which point to the importance of immaterial investments. a) b) c) d) Japanese Chinese U.S German Ans:- a)

15. Instead of designing and planning products and services as a top down exercise through a captive ______________ , the models of self organisisng networks provide an alternative view. a) b) c) d) CRM Logistic Channel Supply Chain Ans:- d)

16. ______________________ Means intervention and co- ordination by individuals or teams before, during , and after an event to resolve the crisis, minimize loss, and otherwise protect the organization. a) b) c) d) Crisis Management Team Crisis management Center Crisis Management Crisis Management Plannings Ans: c) 17. ______________________ is a management level financial analysis that identifies the impacts of losing an organizations resources. a) b) c) d) Business Continuity Business Continuity Plan Business Impact Analysis Business Control Policy Ans:- c)

18. ___________________________ is a comprehensively managed effort to prioritize key business processes, identify significant threats to normal operation, and plan mitigation strategies to ensure effective and efficient organizational response to the challenges that surface during and after crisis. a) Business Continuity b) Business Continuity Plan c) Business Impact Analysis d) Business Control Policy Ans: a) 19. ______________________ is a business activity or process that cannot be interrupted or unavailable for several business days without having a significant negative impact on the organization a) Critical Records b) Disaster c) Critical Function d) Disaster Recovery Ans: c) 20. _____________________ should be arranged as necessary. a) b) c) d) Crisis Management Team Crisis Counseling Crisis Management Crisis Management Plannings Ans : b) 21. The Chief Financial Officer is subordinated to _______________. a) b) c) d) Chief Executive Officer ( CEO) Managing Director (MD) Financial Director Board of Director Ans: a) 22. A __________________________ is an organized program for employees of a corporation allowing them to buy its shares. a) b) c) d) Employees Stock Option Plan Economic Recovery Tax Stock Option Entrepreneurs One Stop Shop Ans: c)

23. The CFO can report directly to the Board of Directors through the person of ___________________. a) b) c) d) Managing Director The Chief Executive Officer Financial Director The Chairman of the Board of Directors Ans: d) 24. A company can run liabilities which outweigh its assets. This is called __________________________. a) b) c) d) Economic Recovery Tax Qualifying Stock Option Equity Insolvency Bankruptcy Insolvency Ans: d) 25. Once the assets of the company are sold, the first to be fully paid off are ___________________________ a) Secured Creditors b) Secured Debitors c) Secured Investor d) Entrepreneur Ans: a) 26. State True or False The Budget allocates amounts of money to every activity and/ or department of the firm. Ans: True 27. State True or false A decision system has great impact on the profits of the company. Ans: True 28. Operating Cash Flow= Net Income + ______________________________ a) b) c) d) Change in working Capital Total Current Liabilities Previous Years Working Capital Depreciation and Amortization Ans: d)

29. Working Capital= _____________________- Total Current Liabilities a) b) c) d) One years Working Capital Operating Cash Flow Capital Expenditure Total Current Assets Ans: d) 30. When the advance- money is finished, the construction company notifies the ______________ a) b) c) d) Bankers Buyers Suppliers Financers Ans:- b) 31. The _______________ normally includes the right to exclude others from making, using, selling, or importing the patented product, and similar rights concerning patented processes. a) b) c) d) Patent Right Commercial Right Legal Right Property Right Ans:- a) 32. A _______________ involves a formal, legally binding commitment between two or more partners to work together on shared enterprise. a) b) c) d) Merger Agreement Joint Venture Agreement Acquisition Agreement None of these Ans:- b)

33. A _____________________ company is an independent company created from an existing legal body. a) b) c) d) Spin off Joint venture Individual Acquired Ans:- a)

34. A ____________________ is a general term for a new company is its early stages of development. a) Small Scale Company b) Commercial Company c) Start Up Company d) Multinational Company Ans:- c) 35. A ________________ is a further license, when the licensee of the original license itself grants a license itself a third party. a) b) c) d) Sole License Sub License License Right All of these Ans:- b)

36. CSR is not an __________________ ass- on to business core activities- but about the way in which businesses are managed. a) b) c) d) Additional Compulsory Optional None of these Ans:- c) 37. Beyond CSR, international agreements are in place and their implementation by _____________________ should be promoted.

a) b) c) d)

Companies Promoters Multinational Enterprises Governments Ans:- d)

38. Most research about corporate responsibility focuses on ____________________ of managers, and particularly on managers responsible for health, safety and environmental issues a) b) c) d) Investigation Creativity Performance All of these Ans:- a)

39. _____________________ have been identified as the crucial factor that influences an organizations sustainable behavior. a) b) c) d) Personnels Managers Individuals Professionals Ans:- c) 40. CSR relates to a very wide range of company _________________. a) b) c) d) Activities Operation Performance Capability Ans:- a)

GROUP- B
41. Programmes refer to the ____________________ sequence of _____________ to be performed in a given project or job. a) b) c) d) Creative, Jobs Task, Rules Assignments, Action Logical, Operation Ans- d) 42. Mission- _______________________________________________________ a) A world class, innovative, competitive and profitable engineering enterprise providing total business solutions. b) What the company wants to achieve c) To achieve the Goal d) To achieve the above objectives Ans:- b)

43. A. ) _________________- It refers to the process of identifying opportunities to achieve further growth within the companys current businesses. a) Intensive Growth b) Integrative Growth

c) Diversification d) None of these Ans:- a) 44. B.) ______________________ is to explore the possibility to find or develop new markets for its current products. a) b) c) d) Product Development Integrative Diversification Market Development Strategy Ans:- d) 45. Product and/ or service alliance:______________________________________________________________ a) b) c) d) Two or more companies may come together to promote their products and services Companies may join together for pricing collaborations The focus is on developing or extending logistics support Two or more companies may get together to synergise their operations, seeking alliance for their product and services. Ans- d)

46. State True or False A. The strategic review of the NETWORK is designed to move the development programme of the NETWORK on from its initial proof of concept Ans- True B. The principal target for the development of the Internet Gateway is not addition of Content. Ans- False 47. The __________ is dependent upon ___________of the NETWORK work programme. a) b) c) d) Plan, Coordination, Operation, Cooperation Management, Rules None of the above Ans- c) 48. As _________________ and ______________ of the vision of a national network linking the recorders of Business information to the users of the information a) b) c) d) Participant, Facilitator, Guardian, promoter Advisor, Partner None of these Ans- b)

49. The study of complex systems therefore revealed a co- evolutionary process of a system and its environment in which successive change and adaptation each involved two separate steps: a) Focussed on efficiency and strategic planning and control, In generating successful companies capable of flourishing in this new environment b) The environment in the future after the decision is known, We can ignore effect that we do not know c) Discovering what to do, Doing what has been decided d) Know your option, Evaluate the single outcome of implementing each of them. Ans:- c) 50. A.) ____________________ - A work location, other than the primary location, to be used when the primary location is not accessible. a) b) c) d) Business Continuity Business Continuity plan Business Impact Analysis Alternate Worksite Ans- d) B.) _________________- A pre- arranged agreement developed between two or more entities to Render assistance to the parties of the agreement. a) b) c) d) Mutual Aid Agreement Prevention Mitigation Strategies Readiness Ans:- a) 51. Write the Full Form OfA.) ERTA-_________________________________ Ans:- Economic Recovery Tax Act B.) ESOP- _________________________________ Ans:- Employee Stock Ownership Plan 52. Write the Full Form OfA.) CFO- __________________ Ans:- Chief Financial Officer B.) CEO-____________________ Ans:- Chief Executive Officer 53. Developing ___________ are still after the cosy _______________ European model. a) Companies, New b) Management, Past c) Countries, Outdated d) None of these Ans:- c)

54. State True or FalseA.) A top executive is not asked how profitable will his firm be this quarter. Ans:- False B.) Decision Support Systems cost as little as 20, 000 USD. Ans:- True 55. _________________ is a branch of _________________ and wherever and whenever humans are involved, answers dont come easily. a.) b.) c.) d.) Sales, Marketing Economy, Psychology Resource, HRD Stock, Finance Ans:- b)

56. FCFE= ____________________- (1- Debt Ratio)*(_____________________ Depreciation and Amortization + Change in working Capital) a) Capital Expenditure, Net Income b) Preferred Dividends, Principle Repayment of Debt c) Principle Repayment of Debt, Preferred Dividends d) Net Income, Capital Expenditure Ans:- d) 57. Write the full form of the following:A.) ROE- _________________________________________ Ans:- Return on Banks Equity B.) ROA- ___________________________________________ Ans:- Return on Banks Asset

58. A ________________________ is merely the grant of permission to undertake some of the actions covered by intellectual property rights, and the ____________________ retains ownership and control of the basic patent. a.) b.) c.) d.) Licence, Patent holder Agreement, Partner Legal commitment, Company None of these Ans:- a)

59. The person granting the licence is the ________________ and the person receiving the licence is the ___________________________. a.) b.) c.) d.) Licence Officer, Owner Licensor, Licensee Licence Contoller, Representative Licence Authority, Applicant Ans:- b)

60. Write Full Form OfA.) GRI-_______________________________________ Ans:- Global Reporting Initiative B.) EMAS-_______________________________________ Ans:- Eco- Management and Audit scheme

GROUP- C
1. State whether the following statements are True or False:A.) A strategy is an operational tool to achieve the goals, and thus, the corporate mission. Ans:- True B.) Strategies attempt to outline exactly how the enterprise is to accomplish its objectives. Ans:- False C.) Diversification refers to the process of identifying opportunities to develop or acquire businesses that are not related to companys current businesses Ans:-True D.) Intensive Growth refers to the process of identifying opportunities to develop or acquire businesses that are related to the companys current businesses. Ans:- False 2. Match These: A.) Vision- a) How do we translate this into action. B.) Mission- b) To ensure that employees are committed C.) Goals- c) Be Innovative D.) Objectives- d). To emerge as the most competitive player in terms of price and quality Ans- A- a B- c C-d D- b

3. Match These:A.) Cost of Goods Sold a) Cost of Goods Sold B.) Debt/ Equity Investment- b)Rent C.) Expenses- c) Equipment Loan D.) Overhead Expenses- d) Materials/ Suppplies Ans:- A- d, B- c, C-a, D-b

4. State True or False:A.) The driver is not concerned with providing ready access to data on location, extent, pattern, and quality Business. Ans:- False B.) Once established, the Business Priorities need not be reviewed and updated. Ans:- False C.) The Business Priorities are based upon ten top- level objectives. Ans:- False D.) Your Business Plan is not just a funding tool, but also a blueprint for how your business should operate. Ans: True 5. State True or False:A.) The people involved in manufacturing actually create product that change the world. Ans:- True B.) Efficiency of execution must precede imagination and creativity. Ans:- False C.) A complex system is a system that has one possible future. Ans:- False D.) Complex systems thinking also inform us how to achieve a high rate of delivery of new products and services and rapid adaptation to changing condition. Ans:- True 6. Match the following:A.) Crisis Management:- a.) A specific room or facility staffed by personnel charged with commanding, controlling and coordinating the use of resources and personnel and personnel in response to a crisis. B.) Crisis Management Center- b.) Intervention and coordination by individuals or team before, during and after an event to resolve the crisis, minimize loss, and otherwise protect the organization C.) Crisis Management Planning- c)A group directed by senior management orits representatives to lead incident/ event response comprised of personnel from such functions as human resource, information technology facilities, security, legal, communication/ media relations, manufacturing, warehousing, and other business critical support functions. D.) Crisis Management Planning- A properly funded ongoing process supported by senior management to ensure that the necessary steps are taken to identify and analyze the adverse impact of crisis events, maintain viable recovery strategies, and provide overall coordination of the organizations timely and effective response to a crisis.

Ans:- A-b, B-a, C-d, D-c

7. Fill the correct word from Mutual Aid Agreement, Recovery/ Resumption, Mitigation Strategies, Evacuation. A.) _____________________- Organized, phased, and supervised dispersalof people from dangerous or potentially dangerous areas. B.) ___________________- Plans and processes to bring an organization out of crisis that resulted in an interruption. C.) ___________________- Implementation of measures to lessen or eliminate the occurrence or impact of a crisis.

D.) __________________- A pre- arranged agreement developed between two or more entities to render assistance to the parties of the agreement. Ans:- A.- Evacuation, B.- Recovery/ Resumption, C. Mitigation Strategies, D.- Mutual Aid Agreement

8. State True or False:A. The Second Phase of a new business is the formation of an idea. Ans:- False B. SBAs assist the entrepreneur in the preparation of business plans. Ans:- True C. A stock option plan is an organized program for employees of a corporation allowing them to buy its shares. Ans:- True D. The poor CFO is loyal to the management- not to the firm. Ans:- True

9. State True or False:A. In England- Bankruptcy is automatically triggered Ans:- False B. American law learns in favour of maintaining the company as an ongoing concern. Ans:- True C. Each state has modified the Federal Law to fit its special, local conditions Ans:- True D. Another well known structure is the Employee Stock Ownership Plan where by employees regularly sale shares and may ultimately assume control of the company. Ans- False

10. Write the Full Form of the folloeing:A. FCFE-_______________________________ Ans:- Free cash flow to equity B. ATO- ___________________________ Ans:- Asset Turnover C. CAPM- ____________________________ Ans:- Capital Asset Pricing Model D. DDM- ____________________________ Ans:- Dividend Discount Models

11. State true or false:A.) The most widely used model to evaluate specific risks is the capital asset pricing model. Ans:- True B.) Change in working capital= One years working capital plus previous years working capital Ans:- False C.) The firm must have one voice. Ans:- True D.) Last 3 years income statements of the firm or of constituents of the firm, if the firm is the result of a merger Ans:- True 12. Write the full form of the following:A.) IAPA- __________________________________________ Ans:- International Air Passengers Association B.) VAR-__________________________________________ Ans:- Value at Risk C.) NI- _____________________________________ Ans: National Income D.) DD-_____________________________________ Ans:- Due Diligence 13. State true or false:A. Venture capital and risk capital funds, for instance, are purely strategic investors. Ans:- False B. The Credit Card Company sends the transaction s to the issuing bank and automatically debits it. Ans;- True C. The issuing bank debits the cardholders account. It issues monthly or transaction related statements to the cardholder. Ans:- True D. A chargeback is a transaction disputed within the payment system. Ans:- True

14. State True or False:A. Patent licenses and assignments of patent rights have to cover all patent rights together. Ans:- False B. An assignment of intellectual property rights is the sale of a patent right, or a share of the patent. Ans:- True C. A joint venture agreement involves a formal, legally binding commitment between two or more partners to work together on a shared enterprise. Ans: True D. In a due diligence process, your commercial partner may undertake a range of checks and need various forms of information. Ans:- True

15. State True or False:A. The consultation process on the green paper has supported community action in the field of CSR. Ans:- True B. The role of enterprise policy is to help create a business environment, which support the Lisbon objective of becoming the worlds most dynamic knowledge- driven economy, support entrepreneurship and sustainable economic growth. Ans:- True C. Consumers and their representative organizations have therefore an important role to play in the evolution of CSR. Ans:- True D. Most respondents to green paper stressed the importance of education and training of managers, employees, and other actors to promote CSR. Ans:- True