Chapter No1.

The Nature of Strategic Management
The term _________ is used to refer to strategy formulation, implementation, and evaluation, with _________referring only to strategy formulation. strategic planning; strategic management assessment; planning strategic management; strategic planning management cycle; brainstorming Which of these requires a firm to establish annual objectives, devise policies, and allocate resources? Strategy formulation Strategy implementation Strategy manipulation Strategy evaluation The rationale for periodically conducting strategic-management meetings away from the work site is to encourage more _____________ and ____________ among participants. feedback; rigidity creativity; candor confidence; self-interest strategy evaluation; candor Anything that a firm does especially well compared to rival firms is referred to as: competitive advantage. comparative advantage. an external opportunity. opportunity cost. Both military and business organizations do all of the following except: use of the element of surprise. aim "to gain competitive advantage." use the assumption of conflict to develop strategies. use their own strengths to exploit competitors' weaknesses. __________ help an organization gather, analyze, and organize information. Ethics officers Operatives Lobbyists Strategists A disadvantage of international operations is:

foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials and/or cheap labor. economies of scale can be achieved from operation in global rather than solely domestic markets. competitors in foreign markets may not exist. language, culture, and value systems differ among countries, causing communication barriers and problems managing people. _________ are especially critical for successful strategy implementation. Interpersonal skills Technical plans Long-range plans Short-range plans 9. All of these are pitfalls an organization should avoid in strategic planning except: using strategic planning to gain control over decisions and resources. failing to involve key employees in all phases of planning. hastily moving from mission development to strategy formulation. using plans as a standard for measuring performance. ____________ and __________ refer to economic, social, cultural, demographic, environmental, political, legal, governmental, technological, and competitive trends and events that could significantly benefit or harm an organization in the future. Internal strengths; external threats External opportunities; external threats Internal weaknesses; external opportunities Internal strengths; internal weaknesses Strategic management can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives. True False The action stage of strategic management is called strategy formulation. True False Three fundamental strategy evaluation activities are reviewing external and internal factors, measuring performance, and taking corrective actions. True False Strategies can be defined as specific results that an organization seeks to achieve in pursuing its basic mission. True

False Strategies are the means by which long-term objectives will be achieved. Reasons for poor or no strategic planning on part of firms include overconfidence, too expensive, suspicion, and laziness. True False Objectives are an organization's statements that answer the question "what do we want to become?" True False An organization can pursue any and/or all strategies that potentially could benefit the firm. True False No organization can pursue all the strategies that potentially could benefit the firm. Communication is an act of strengthening employees' sense of effectiveness by encouraging them to participate in decision making and to exercise initiative and imagination, and rewarding them for doing so. True False Empowerment is the act of strengthening employees' sense of effectiveness by encouraging and rewarding them to participate in decision making and exercise initiative and imagination. Strategic management must be a self-reflective learning process. True False One pitfall to avoid in strategic planning is top management making many intuitive decisions that conflict with formal planning. True False

Virtual University MCQs BANK
MGT603 Solved MCQs from Book by Fred (chap 2)

Chapter No2.
The Nature of Strategic Management Most practitioners and academicians of strategic management feel that an effective mission statement exhibits ______ characteristics or components. twelve

three five nine

Carefully prepared _____________ and ____________ are widely recognized by both practitioners and academicians as the first step in strategic management. short-term objectives; long-term objectives long-term objectives; goals creeds; long-term objectives vision statements; mission statements The vision and mission statement can often be found: in the SEC report. in a competitive market analysis. on the front of annual reports. on supplier invoices. It is important to involve ______________ in the process of developing a mission statement. only those managers who will use the mission very few people to ease consensus-building as wide a variety of upper-level managers as possible as many managers as possible An article by Campbell and Yueng emphasizes that the process of developing a mission statement should create a(n) ________ and ________ between the organization and its employees. cultural bond; sense of accomplishment emotional bond; sense of mission

It can be as long as the management wants. stockholders lobbyists competitors customers . One sentence of 10 to 20 words. Less than 250 words.physical bond. twice one quarter half five times A major reason for developing a business mission statement is to attract ________ who give meaning to an organization. A study by Rarick and Vitton found that firms with a formalized mission statement have the average return on shareholders' equity compared to those firms without a formalized mission statement. implementation control formulation evaluation What is the recommended length of an effective mission statement? There is no recommendation. sense of direction During strategy _________. profitable purpose short-term plan. corporate social policy should be set and administered. One page.

Developing a comprehensive mission statement is important because divergent views can be revealed and resolved through the process. The vision statement should be a paragraph and developed by the CEO or President of the company.Which of the following is a question that an effective mission statement answers? What is our profitability? Is the firm technologically current? What is our net worth? What is the company we want to be in the long-range future? The vision statement should be short. preferably one sentence. True False Resolving divergent views is one result of developing a comprehensive mission statement. as well as competitors. preferably one sentence. creditors. but not the competitors. preferably one sentence. and as many managers as possible should have input into developing the statement. customers. True False Stakeholders include stockholders. Commitment to a company's strategy and intellectual agreement on the strategies to be pursued do not necessarily translate into an emotional bond. True False This does not necessarily translate into an emotional bond. Drucker says that asking the question "What is our business?" is synonymous with asking the question "what is our mission?" True False Drucker says that asking the question "What is our business?" is synonymous with asking the question "what is our mission?" Stakeholders of an organization include stockholders. True False The vision statement should be short. customers and creditors. strategies that have been formulated may not be implemented. True False The vision statement should be short. . hence.

Ans: T Page: 82 2. (4) technological forces and (5) demographic forces. True False A good mission statement should not be more than 250 words describing nine components. (3) political. Page 83 5. Ans: F Page: 82 The Nature of an External Audit 3. social policy should be reaffirmed and changed. 1. True False CHAPTER 3 The External Assessment True/False Introduction Industry analysis is also referred to as external strategic management audit. An external audit focuses on identifying and evaluating trends and events within the control of management.An effective mission statement should include five components. (2) social and cultural forces. Ans: F Page: 83 . Ans: F 4. Ans: T Page: External audits attempt to identify key variables that offer actionable responses. The term social policy embraces managerial philosophy and thinking at the highest levels of an organization. governmental and legal forces. True False It should be changed during strategy evaluation. The aim of an external audit is to develop an exhaustive list of every possible factor that could influence the business. Five major categories of external variables are: (1) economic forces. During strategy formulation. A mission statement should be longer than 250 words describing the ten components. True False An effective mission statement should include nine components.

Page 86 The economic standard of living varies little between cities and countries. the Yen rose to a five-year high against the dollar. Ans: F 14. Page: 85 Motor vehicle firms in the United States are vulnerable when the value of the dollar Page: 86 A low value of the dollar means lower exports and higher imports. a company first must gather competitive intelligence and information about social. Page: 84 The Industrial Organization (I/O) View 9. economic. falls. Ans: T 8. As many managers and employees as possible should be involved in the process of performing an external audit. Ans: T Page: 83 7. . Page: 86 In 2005. Ans: F Page: 84 Freund argues that key external factors must not be hierarchical. environmental. Page: 85 Economic factors do not have much impact on the attractiveness of strategies. Page: 85 Page: 85 12. Ans: F 13. Ans: F Economic Forces 10. Ans: T 16. Research findings suggest that a greater percentage of a firm’s profitability can be explained by the industry than can be explained by the firm’s internal factors. cultural. Ans: F An economic trend in America is the increasing numbers of two-income households. An increase in interest rates is directly related to an increase in discretionary income and an increase in the demand for discretionary goods. demographic. governmental and technological trends. Ans: T 11.6. political. To perform an external audit. Ans: F 15. legal.

Russian businesses are more likely to fall victim to illegal actions by officials and policemen than by criminals. free enterprise. The United States is getting older and less Caucasian. Ans: F Page 86 The cost of living in London is greater than the cost of living in New York City. Political. Page 87 The cost of living in Boston is greater than the cost of living in New York City. Ans: F Page 88 24. In the United States. Ans: F Page 87 20. over 18% of the population in the United States will be over 65 years old. Ans: T Page: 88 22. Ans: T Page 89 Political. Ans: T Page 88 23. Recent consumption trends in the United States indicate that wine consumption is increasing at 5% while beer consumption is increasing at 10%. Ans: T Page 87 Social. Ans: T 18. Governmental and Legal Forces 27. Ans: F Page 90 . and legal factors are considered key threats for most small and large organizations. Page: 89 China replaced Mexico as the largest exporter to the United States. In 2003. Demographic and Environmental Forces 21. the political bureaucracy in Russia has been able to stimulate economic progress. Cultural. Ans: T Page: 88 25. Hispanics are expected to become a larger minority group in the United States than African Americans by 2021. and entrepreneurship. According to the Wall Street Journal. governmental. Page 87 19. by 2025. Ans: F 26. the population has been moving from the south and west to the Northeast and Midwest.Ans: F 17. It is predicted that.

but the whole company if necessary. not just products. The Internet is changing the very nature of many industries by altering product life cycles and changing the historical trade-off between production standardization and flexibility. Ans: T Page: 96 34. Ans: T Competitive Forces 32. Within the European Union (EU).28. there are less than 500 corporate spies now actively engaged in intelligence activities. tax rates have been standardized to end competitive tax breaks among member countries. Ans: F Page 96 Internal opportunities can be represented by major competitors’ weaknesses. Page: 96 36. Ans: T Page: 93 page 90 31. Corporate intelligence can be defined as a systematic and ethical process for gathering and analyzing information about the competition’s activities and general business trends to further a business’s own goals. nothing quite recedes like success.” Ans: T Page: 96 Page: 94 33. particularly in technology-driven businesses. “Innovate or evaporate. fix it—make it better. critical technology decisions are too often delegated to lower organizational levels or are made without an understanding of their strategic implications. Ans F: Page 96 .” is a characteristic given that describes the most competitive companies in America. In practice. Ans: F 35. Ans: F Technological Forces 30. A characteristic that describes the most competitive companies in America is “whether it’s broke or not. According to Business Week. Ans: T Page: 83 29. Political forecasts can be the most important part of an external audit for firms that depend heavily on government contracts.

(4) bargaining power of buyers. According to Michael Porter. five competitive forces create vital opportunities and threats to organizations: (1) new entrants. Ans: T Page: 100 44. Ans: T Page: 96 38. Ans: F Page: 101 . firms enter into cooperative agreements. Competitive intelligence is not considered corporate espionage because 95 percent of the information a company needs to make strategic decisions is available and accessible to the public. cooperative agreements between competitors are becoming less popular. Ans: T Page: 97 39.S. The first step for using Porter’s Five-Forces Model is to evaluate the relative strength of each competitive force. and 9 out of 10 large companies have employees dedicated solely to gathering competitive intelligence. and (5) rivalry among existing firms. Ans: F Page 101 45. Learning from the partner is a major reason whyU. Ans: F Page: 99 42. (2) substitute products or services. According to Business Week. An effective CI program allows all areas of a firm to access consistent and verifiable information in making decisions. Ans: F Page 98 41. (3) bargaining power of suppliers.37. Ans: T Page: 97 40. Ans: F page 99 Competitive Analysis: Porter’s Five-Forces Model 43. Bargaining power of consumers is usually the most powerful of Porter’s five competitive forces. Because companies are fearful of corporate espionage. Market commonality is the extent to which the type and amount of a firm’s internal resources are comparable to a rival.

Ans: F 54. Ans: F page 104 Quantitative forecasts become less accurate as historical relationships become less Page: 104 Linear regression is based on the assumption that the future will be different from the Page: 104 Linear regression is a popular technique for qualitative forecasts. Qualitative forecasts are most appropriate when historical data are available and when the relationships among key variables are expected to remain the same in the future. Ans: T 48. Ans: T Forecasts are educated assumptions about future trends and events. Ans: T page 103 Forecasting Tools and Techniques 50. Ans: F 52. Without reasonable assumptions. Significant barriers to entry are not always sufficient to keep some new firms from entering industries with higher-quality products. the strategy-formulation process could not proceed effectively. lower prices and substantial marketing resources. The bargaining power of consumers can be the most important force impacting competitive advantage.46. a. Page: 102 49. lenses. stable. Ans: T Page: 104 The Global Challenge . Page 10 55. Ans: T 53. Page: 104 51. past. Ans: T 47. Ans: F Page: 102 Laser eye surgery would be considered a substitute product for eyeglasses and contact Page 102 Forward integration is used by firms to gain control or ownership of suppliers.

Ans: F Page: 111 . Ans: T Page 107 60. Ans: T Page: 106 57. Page: 106 China is the world’s fastest-growing economy. Rampant corruption and the absence of a legal system are risks that still restrain firms from initiating business withChina. Globalization is a process of worldwide integration of strategy formulation.0.56. ratings and total weighted scores. The critical success factors in a Competitive Profile Matrix are often the same as those in an EFE Matrix. implementation and evaluation activities. but threats too can receive high weights if they are especially severe or threatening. A global strategy seeks to meet the needs of customers worldwide with the lowest cost at the highest value. Ans: T Page: 106 58. Hong Kong serves as the gateway toChina. Regardless of the number of key opportunities and threats included in an External Factor Evaluation Matrix. Ans: T 59. the highest possible total weighted score for an organization is 4. and the lowest possible total weighted score is 0.0. Ans: T Page: 111 64. Both a Competitive Profile Matrix and an EFE Matrix have the same meaning in the weights. a. Ans: T Page: 108 Industry Analysis: The EFE Matrix 61. Ans: T Page: 109 62. opportunities often receive higher weights than threats. In an EFE Matrix. Ans: F Page: 109 The Competitive Profile Matrix (CPM) 63. a.

as it’s a planning function. Analyzing competitors Analyzing financial ratios Analyzing available technologies Studying the political environment Analyzing social. primarily front-line supervisors between 15 to 20 managers for it to be valid stockholders and external government agencies Ans: b Page: 83 To perform an external audit. technological and competitive trends and events comprise a. measurable. c. formulating strategy. as many managers and employees as possible. e. b. a company first must: get an approval from the Securities and Exchange Commission perform an internal audit gather competitive intelligence and information about external trends hire a consultant to develop a comprehensive strategic plan. d. implementing strategy. d. Page: 83 The process of performing an external audit needs to include: only top level managers. e. b. c. c. d. e. b. political. performing an external audit. . conducting an internal audit. a. c.Multiple Choice The Nature of an External Audit 65. b. developing an effective mission statement. cultural. a. Ans: b __________ is not part of an external audit. applicable to all competing firms. d. b. Ans: c 67. d. c. Ans: c 69. all of these Page: 84 Freund emphasizes that key external factors should be all of these except: important to achieving long-term and annual objectives. relatively few in number. economic. 68. demographic and geographic forces Page: 83 66. a. Identifying and evaluating key social. e. a.

compared to the external audit. hierarchical in the sense that some will pertain to the overall company while others will be more narrowly focused. amount and nature of a firm’s internal resources should be considered first and foremost in devising strategies that can lead to sustainable competitive advantage. Ans: T Page: 126 . The basic premise of the research-based view is that the mix. Ans: T Page: 125 Integrating Strategy and Culture 6 The subtle. elusive and largely unconscious forces that shape the workplace are captured by the organizational culture. departments and divisions fit into the whole organization.2. Ans: T Page: 124 The Resource-Based View 4 Proponents of the resource-based view argue that external factors are more important than internal factors for a firm in achieving and sustaining competitive advantage Ans: F Page: 125 5. Ans: c Page: 84 CHAPTER 4 The Internal Assessment True/False The Nature of an Internal Audit 1. An internal audit task force of managers could be charged with determining a specific number (usually 10 to 20) of the most important strengths and weaknesses. Ans: T Page: 123 3. 1. Opportunities are a firm’s distinctive competencies that cannot be easily matched or imitated by competitors. Ans: F Page: 123 The process of performing an internal audit.e. provides more opportunity for participants to understand how their jobs. type.

A ritual is a standardized.. Page: 126 Ans: T 8. technical consequences of practical importance. The U. Allocating resources is one of the five basic activities (functions) performed by managers. Cultural products include values. Metaphors are handed-down narratives of some wonderful event that is based on history but has been embellished with fictional detail. Page: 131 . Page 129 Page 127 In China. Ans: F 13. you should completely finish your food. Ans: T 10. or personal relations. to show that you enjoyed your meal. Ans: F Page: 129 In China. Ans: T Page: 130 16. Ans: T 11.S. understanding of Far Eastern cultures is a strength its firms have in competing with Pacific Rim firms. stories. Ans: F Page 127 9. in general. Ans: F Management 18. In the United States. Ans: T 12. Ans: F Page: 130 17. Page: 128 Linkages between a firm’s culture and strategies often determine succe 14.7. an amicable relationship is often mandatory before conducting business. The smile is one form of communication that works the same worldwide. detailed set of techniques and behaviors that manage anxieties but seldom produce intended. is revered in all cultures of the world. Ans: T Page 129 15 In the U. business behaviors revolve around guanxi. beliefs. personal achievement and accomplishments are more important than time spent with the family and the quality of relationships espoused by some cultures. and language.S. Punctuality.

Controlling is the management function that is most important for the evaluation stage of the strategic management process. Ans: F Page: 131 The only certain thing about the future of any organization is change. product and service planning. Ans: F 26. Planning should be performed mostly by middle management and then presented to top management for analysis and approval. Page: 127 29. Ans: F Marketing 27. Page: 132 21. marketing research and opportunity analysis. Page: 131 Organizing is the cornerstone of effective strategy formulation. The purpose of organizing is to achieve coordinated effort by defining task and authority relations.Ans: F 19. Ans: F Page: 132 22. Ans: T 24. distribution. pricing. Ans: T 28. Ans: T Page 132 23. Page: 134 The management function of organizing is included in human resource management. . Page: 135 The controlling function of management is synonymous to strategy formulation. Ans: T 25. Ans: T Page: 136 A form of customer analysis is administering customer surveys. Successful strategy formulation generally rests upon the ability of an organization to sell some product or service. selling. Page: 136 Page: 133 Motivation is one explanation why some people work hard and others do not. Ans: T 20. There are seven basic functions of marketing: customer analysis.

The Internet was the fastest-growing segment of U. was planning on increasing their sales force by 15% in Ans: F Page 137 33. benefits and risks associated with marketing decisions. comprise the functions or basic decision areas of finance: the investment decision.Ans: F Page: 137 34. Distribution involves warehousing. Distribution becomes especially important when a firm is striving to implement a product development or backward integration strategy.S. distribution channels. Ans: T Page: 139 38.Ans: F Page: 137 30. which has the world’s largest drug sales force. governments. recording and analyzing of data about problems relating to the marketing of goods and services. according to James Van Horne. wholesaling and retailing. Ans: F Page: 138 37. marketing research. Test marketing is used more frequently by industrial companies than consumer goods companies. advertising spending in 2004 compared to 2003. suppliers. Ans: T Finance/Accounting 39. Marketing research is the systematic gathering. Ans: T Page: 137 31. An opportunity analysis is an appraisal of the costs. Page: 139 . Five major stakeholders that affect pricing decisions are consumers. Ans: F Page: 138 36. A new trend is to base advertising rates solely on sales rates with regard to advertising products or services on the Internet. distributors and competitors. Ans: T Page: 138 35. Ans: T Page 137 32 Pfizer. the financing decision and the earnings decision. Three areas.

Ans: F Capacity decisions concern the design of the physical production system. Page: 147 49. F 45. Page: 145 Production/Operations 48. Page: 141 Activity ratios measure how effectively a firm is using its resources. Ans: F Page: 148 50. T 44. Financial ratio analysis rarely has to go beyond the actual calculation and interpretation of ratios Ans: F 47.Increased efficiency. only minor costs of producing a product or service are incurred within operations. Ans: Page 144 46. Ans: T 43. Ans: T Page 145 A limitation of financial ratios is the fact that they are based on accounting data. Page: 141 41.Ans: Page: 143 Leverage ratios measure a firm’s ability to meet maturing short-term obligations. the stability of dividends paid over time and the repurchase or issuance of stock. so production/operations does not have great value as a competitive weapon in a company’s overall strategy. F Page: 141 The idea that paying dividends results in a higher stock price is a myth. In most industries.Ans: F 40.Ans: T Page: 149 Research and Development . Ans: F Page: 141 Financial ratios are not applicable to nonprofit organizations. Ans: Page: 143 Total assets turnover ratio is calculated by dividing sales by fixed assets. Dividend decisions concern issues such as the percentage of earnings paid to stockholders. productivity and job satisfaction can come from cross-training workers. Ans: T 42. quality.

The functions of information systems are growing in importance because organizations are becoming more complex.Ans: T Page: 153 Value Chain Analysis (VCA) 55. or (4) decide how many successful new products are needed and work backwards to estimate the required R&D investment. Benchmarking is an analytical tool used to determine whether a firm’s value chain activities are competitive compared to rivals. Four common approaches to determine R&D budget allocations used successfully are: (1) finance as many project proposals as possible. Page: 152 Management Information Systems 54. Ans: T 59. Ans: F Page: 151 Internal R&D and contract R&D are the two basic forms of R&D in organizations. Ans: F Page 155 57. Page: 157 The Internal Factor Evaluation Matrix should include from 10 to 20 key factors .51. decentralized and globally dispersed. Ans: T 53. (2) use a percentage-of-sales method. (3) budget for R&D about what competitors spend. Ans: T 52. Ans: T Page: 154 56. value chain analysis can rarely help a firm monitor whether its prices and costs are competitive. Ans: T Page 157 The IFE Matrix 58. Internal Factor Evaluation Matrix is a summary step when conducting an internal strategic-management audit. Page: 151 Spending on research and development is steadily decreasing in the United States. Although a useful step in the strategic management process. Value Chain Analysis can enable a firm to better identify its own strengths and weaknesses especially as compared to competitors’ Value Chain Analyses.

c. business. b. external audits. a. c. A firm’s strengths that cannot be easily matched or imitated by competitors are called a.Ans: T Multiple Choice Page: 158 The Nature of an Internal Audit 60. e. distinctive competencies. a. internal audits. e. Ans: c 62. d. b. d. internal properties. b. d. e. Page: 115 Who should perform an internal audit? A private auditing firm The organization’s accounting department Managers from different units of the organization A team of top-level managers and lower-level employees The chief executive officer Page: 116 _______ exemplifies the complexity of relationships among the functional areas of Government audit External audit Financial ratio analysis Environmental scanning Distribution strategy . c. special properties. Ans: b 61.

d. technological resources. inexpensive. a. Ans: a 65. c. copyrights. not easily substitutable.Ans: c Page: 116 The Resource Based Web 63. inefficient. shareholder resources. natural resources. e. easily substitutable. or expensive. c. Page: 117 Integrating Strategy and Culture . Ans: d financial resources. Page: 117 Empirical indicators are resources that are either rare. firm structure. Page: 117 Organizational resources include all of the following except: employee training. a. information systems. b. organizational resources. The internal resource categories used in the resource-based approach are physical resources. planning processes. c. e. hard to imitate. Ans: c 64. b. d. b. human resources and a. d. e.

d. behavior modification. technical consequences of practical results are called a. Ans: b dysfunctional behavior. b. c. c. rites metaphors rituals values Page: 119 69. groupthink. Ans: d folktales. . b. d. Ans: d 67. A pattern of behavior developed by an organization as it learns to cope with its problems of external adaptation and internal integration that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive. What are historical narratives describing the unique accomplishments of a group and its leaders. detailed set of techniques and behaviors that manage anxieties. b. d. e.66. usually in heroic terms. Page: 118 Which of the following is not a cultural product? Rites Emotions Rituals Sagas Symbol Page: 118 68. c. A standardized. e. e. internal audit effect. think and feel is called a. but seldom produce intended. a. organizational culture.

a. relationships relationships. c. d. time silence. d. c.a. c. e. Ans: d south east west north southeast Page: 120 72. rites. b. Ans: b 70. b. beliefs metaphors legend Page: 119 71. d. time. a. e. relationships . e. b. time silence. a. Ans: a rites sagas stories myths folktales Page: 119 Life-directing attitudes that serve as behavioral guidelines are called values. the more participatory the management style. In Europe. c. Americans place an exceptionally high priority on __________ whereas many foreigners place more worth on __________. b. d. it is generally true that the farther __________ on the continent.

planning. job analysis and unity of command? . Ans: c 75. e. job specification. consolidating. b. a. What is the essential bridge between the present and the future that increases the likelihood of achieving desired results? a. d. d.e. ample personal distance Page: 122 73. motivating. b. c. d. Ans: a Management close personal distance. Ans: a Motivating Planning Controlling Staffing Organizing Page: 123 All of the following are basic duties of a manager except: staffing. Page: 123 What is an up-front investment in success? Planning Organizing Motivating Staffing Controlling Page: 123 76. a. e. Ans: b 74. b. c. organizing. Which function of management includes areas such as job design. c. e.

a. employee energy. e. Ans: b 77. when a team effort is used to achieve desired results. b. d. d. b. c. a. a. when individuals work separately to achieve desired results. c. Ans: b planning organizing motivating staffing controlling Page: 124 Who does a planning horizon of two to five years applies to? top management general management middle management lower management all levels of management Page: 124 Synergy is synthetic energy. b. e. e. combining jobs to form departments and delegating authority? a. d. c. Ans: a 78. Which management function includes breaking tasks into jobs. motivating staffing organizing controlling . b. Page: 125 79. when financial expectations of the firm are decided upon. d. c.

Ans: b Staffing Motivating Planning Controlling Organizing Page: 126 82. c. b. e. d. Which of the following is the process of influencing people to accomplish specific objectives? a. c. Forecasting Organizational structure Recruiting Management development Communication Page: 126 Staffing involves all of these activities except: . d.e. Ans: c planning Page: 125 80. Ans: b planning organizing controlling directing evaluating Page: 125 81. _______ is a major component in motivation. b. Which function of management is concerned with span of control and chain of command? a. e. d. b. e. Ans: e 83. c. a.

the InternalExternal (IE) Business Portfolio Matrix and the Grand Strategy Matrix are included in stage two of the strategy-formulation framework. not analytical tools. the Strategic Position and Action Evaluation (SPACE) Matrix. coupled with the external and internal audit information. are always responsible and accountable for strategic decisions. e. TOWS and BCG matrices. The Threats-Opportunities-Weaknesses-Strengths (TOWS) Matrix.a.Ans: F Page: 198 7. Basic input information for the matching and decision stage matrices is provided by the information derived from SPACE. objectives and mission provide a basis for generating and evaluating feasible alternative strategies. followed by the matching stage.Ans: T Page: 196-197 2. Ans: c recruiting transferring. An organization’s present strategies. Stage 2 in the strategy-formulation framework involves a single technique. Identifying and evaluating alternative strategies shouldn’t involve the managers and employees who earlier assembled the organizational vision and mission statements. customer analysis. Ans: F Page: 197 3. performed the external audit and conducted the internal aud . c. b. Page: 127 CHAPTER 6 Strategy Analysis and Choice True/False The Nature of Strategy Analysis and Choice 1. The first stage of the strategy-formulation framework is the input stage. managing union relations. Ans: T Page: 198 5. The Internal Factor Evaluation Matrix and the External Factor Evaluation Matrix are part of the final stage of the strategy formulation framework.Ans: F Page: 198 6.Ans: T Page: 198 The Input Stage 8. Ans: F Page: 198 A Comprehensive Strategy-Formulation Framework 4. Strategic analysis and choice largely involves making objective decisions based on subjective information. Strategists themselves. d.Ans: F Page: 198 9. the Boston Consulting Group (BCG) Business Portfolio Matrix.Ans: T Page: 199 . the Quantitative Strategic Planning Matrix. training and developing.

ST. an organization should match its external opportunities and threats. Page: 200 A TOWS Matrix is composed of four cells for four types of strategies it creates.Ans: T Page: 200 19. Page: 199 14. Page: 200 18. The ES and CA dimension variables in a SPACE Matrix are assigned a numerical value ranging from –1 (best) to –6 (worst). From matching an internal weakness with an external threat. Page: 203 23. To effectively formulate competitive strategies.Ans: F Page: 201 21.Ans: F Page: 199 13. organizations generally will pursue the other three types of strategies (WO. Page: 201 Matching techniques include both the SPACE Matrix and the TOWS Matrix.Ans: T Page: 200-202 20. Only to get into a situation where they can work from strengths to take advantage of opportunities. SO strategies are based on using a firm’s internal strengths to take advantage of external opportunities and threats. Ans: T Page: 199 11. Good intuitive judgment is always needed to determine appropriate weights and ratings in the input stage matrices. The number of internal factors and external factors in the matching stage is reduced to generate feasible strategies. and the two external dimensions. Ans: T 22.Ans: F Page: 199 15. Ans: T WT strategies are defensive tactics. a WT strategy in the TOWS Matrix could result. financial strength (FS) and competitive advantage (CA). Ans: F Matching strengths with weaknesses is how SW strategies are created.Ans: T Page: 204 24. not to select or determine which strategies are best. or WT). The purpose of each stage 2 matching tool is to generate feasible alternative strategies. industry strength (IS) and environmental stability (ES). Ans: T Page: 204 . Ans: T The purpose of matching key factors is to generate feasible alternative strategies. Ans: F 17.Ans: T Page: 199 The Matching Stage 12. The most important determinants of an organization’s overall strategic position are considered to be the two internal dimensions.10.Ans: F Page: 200 16. The divisions of an organization should utilize strategy-formulation analytical tools to develop their own strategies and objectives.

Ans: F Product quality is an important consideration in the BCG Matrix. A firm should pursue defensive strategies if the coordinates of a SPACE directional vector are (2.3). The four strategies of the SPACE Matrix are aggressive. In performing SPACE analysis.Ans: F Page: 207 . Ans: F The SPACE Matrix axes are labeled aggressive. Page: 206 36.Ans: T 37. Integration and diversification strategies are most often included in competitive strategies in a SPACE Matrix.” Page: 206 38. Ans: F Page: 206 32. which corresponds to a division that has half the market share of the leading firm in the industry. defensive and diversification when a firm’s directional vector is located in the aggressive quadrant of the SPACE Matrix. Ans: T The Boston Consulting Group Matrix is good for firms with many “profit centers.Ans: T Page: 206 34.Ans: F Page: 207 40.Ans: F Page: 204 27. integration. The midpoint on the x-axis of a BCG Matrix. The company’s total sales and number of employees are key considerations in the Boston Consulting Group Matrix. The appropriate strategies are intensive. offensive and defensive.Ans: T Page: 206 35. growth potential.4). The firm should pursue conservative strategies if the coordinates of a SPACE directional vector are (1. a multidivisional organization is allowed to manage its portfolio of businesses. In the SPACE Matrix.25.Ans: T Page: 205 29.Ans: F Page: 205 30. Ans: F Page: 205 28. is typically set at 0. market share and product life cycle are some examples of areas to consider when evaluating a company’s competitive advantage. profit potential and financial stability could all fall under the category of industry strength. conservative. By examining the relative market share and industry growth rate of each division relative to all other divisions with the BCG matrix. T Relative market share position is given on the x-axis of the BCG Matrix. Page: 204 26. conservative. Conservative strategies in a SPACE Matrix most often include intensive strategies and concentric diversification.05.Ans: F Page: 206 33. barriers to entry into market are best categorized as a competitive advantage (CA) variable. Technical know-how.Ans: Page: 206 31.Ans: F Page: 206 39. defensive and competitive.

Ans: F Page: 209 47. Cash cows represent the organization’s best long-run opportunities for growth and profitability. The size of the circle in a BCG Matrix corresponds to the proportion of corporate revenue generated by that business unit. The firm should pursue aggressive strategies if the coordinates of a SPACE directional vector are (5.Ans: T Page: 211 54. Divisions with a low relative market share position and a high industry growth are called question marks in the BCG Matrix. dog. investment characteristics and needs of an organization’s various divisions. Ans: T Viewing businesses as star.Ans: T Page: 210 49. Ans: F Dogs on the BCG Matrix usually become stars after market penetration. The BCG Matrix does not reflect whether or not various divisions or their industries are growing over time.Ans: F Page: 212 56. Page: 210 50. Page: 211 55. A firm should pursue competitive strategies if the coordinates of a SPACE directional vector are (4. Ans: T Both IE and BCG Matrices are called portfolio matrices.Ans: T Page: 211 51. cash cow. Ans: F BCG Matrix requires more information about the divisions than the IE Matrix. cash cow and dogs are the four quadrants exhibited by the SPACE Matrix. Page: 211 52. Star. or question mark is an oversimplification. Divisions in Quadrant IV are called dogs because the organization must decide whether to strengthen them by pursuing intensive strategies or engaging in joint venture.4)Ans: T Page: 207 42. Ans: T Page: 211 53. question mark.5 represents a weak internal position. the BCG Matrix and the IE Matrix are used only in formulating strategies in multidivisional firms. the BCG Matrix is a snapshot of an organization at a given point in time.41. Generally. The major overall benefit of the BCG Matrix is that it draws attention to the cash flow. Ans: F Page: 207 43. Ans: F 48. The pie slice indicates the proportion of corporate profits generated by that division. Having no temporal qualities. an internal factor evaluation score of 2. Page: 212 .Ans: T Page: 208 46.Ans: F Page: 208 44.6).Ans: T Page: 208 45. On the x-axis of the IE Matrix.

Ans: F Page: 213 59. Ans:t 58. according to the Grand Strategy Matrix. and any number of strategies can comprise a given set.\ Page: 219 . Ans: F Page: 218 Two limitations of the Quantitative Strategic Planning Matrix are weights and ratings. To objectively evaluate feasible alternative strategies identified in Stage 2.Ans: F 70.Ans: T Page: 216 65. then concentric diversification may reduce the risks associated with a narrow product Ans: T 61. According to the Grand Strategy Matrix.Ans: F Page: 216 67. Alternative strategies derived from the TOWS Matrix. Total attractiveness scores are defined as the sum of the attractiveness scores in a given column of the QSPM. Small companies could skip Stages 1 and 2 of the strategy-formulation framework and develop a QSPM. IE Matrix and Competitive Profile Matrix are included in the QSPM’s top row.Ans: F Page: 216 64. Step 1 of a QSPM assigns weights to each key external and internal factor. Positioned in or around cell IX in the IE Matrix.Ans: F Page: 218 71. market share and market growth. hold and maintain and harvest or divest. Any number of sets of alternative strategies can be included in the QSPM. successful organizations are able to achieve a portfolio of businesses. Ans: F Page: 214 The Decision Stage 62. when a Quadrant I firm is too heavily committed to a single product. Ans: T Page: 216 68. BCG Matrix. The relative desirability of one strategy over another is indicated by the magnitude of the difference between the total attractiveness scores in a given set of strategic alternatives. The Grand Strategy Matrix is based on two evaluative dimensions. The Quantitative Strategic Planning Matrix is an excellent decision stage analytical tool. Quadrant III organizations compete in rapid-growth industries and have weak competitive positions. Page: 217 Ans: F 69. Ans: T Page: 216 66. The left column of a QSPM consists of information taken directly from the Internal Factor Evaluation Matrix and the External Factor Evaluation Matrix.Ans: F Page: 213 60. the QSPM uses input information derived from Stage 1. The IE Matrix can be divided into three major regions that have different strategy implications: grow and build. Ans: F 72. SPACE Matrix.57. The Sum Total Attractiveness Scores are defined by the product of multiplying the weights (step 2) by the attractiveness scores (step 4) in each row of the QSPM.\ Ans: T Page: 215 63.

The ________ stage involves a single technique. Matching e. Stage 1 consists of IFE. Ans: T Page: 219 74. Matching e. Functional Ans: c Page: 198 97. QSPM. A positive feature of OSPM is that sets of strategies can be examined sequentially or simultaneously. CPM Ans: c Page: 198 . Decision d. A(n) __________ reveals the relative attractiveness of alternative strategies and thus provides an objective basis for selecting specific strategies. QSPM d. Matching Ans: e Page: 198 98. Stage 2 b. d. a. What stage is this in the strategy formulation framework? a. long-term. Output b. Decision c. e. Stage 3 e. One positive feature of OSPM is that it does not require intuitive judgments and educated assumptions. EFE and CPM.73. Input d. short-term subjective. a. Strategy analysis and choice largely involves making __________ decisions based on __________ information. Ans: F Multiple Choice The Nature of Strategy Analysis and Choice 95. Stage 1 Ans: b Page: 198 99. Output c. a. TOWS b. Input d. Input b. long-term subjective. b. c. short-term objective. subjective Ans: b Page: 196 A Comprehensive Strategy-Formulation Framework 96. objective short-term. Which stage in the strategy-formulation framework focuses on generating feasible alternative strategies? a. SPACE c. IFE e. Decision c.

decision stage d. Ans: d The Input Stage 101. the SPACE Matrix. SW d. SO b. The Competitive Profile Matrix d. __________ is not a Stage 2 matching technique. intuition and analysis. a. WT . the Grand Strategy Matrix and the Competitive Profile Matrix. synergy. input stage b. WO c. c. Each of the nine techniques included in the strategy formulation framework rely on the use of a. financial formulas and statistics. a. c. strictly factual data. __________ is not a TOWS strategy. Page: 198 The __________ stage includes an Internal Factor Evaluation Matrix and a Competitive Profile Matrix. luck. b. a. Ans: a input matching decision penetration research Page: 198 102. b. d. The SPACE Matrix b. The Grand Strategy Matrix c. c. None of the above Ans: e Page: 199 105. e. __________ is not an input stage matrix.100. a. a. matching stage c. e. IFE IE CPM EFE Ans: b Page: 198 The Matching Stage 103. The __________ of the strategy formulation framework contains the TOWS Matrix. d. ST e. b. output stage e. The TOWS Matrix Ans: c Page: 198 104. The Business Portfolio Matrix e. d.

SO strategies. SO b. WO strategies. Ans: c Page: 200 Poor product quality. weaknesses. ST strategies d. decide who the company’s major competitors are. c. WT strategies. The most ideal situation for a company to be in on the TOWS Matrix would be if they had all a. SO strategies b. Page: 200 Matching internal strengths with external opportunities is part of which section of the TOWS Matrix? a. what type of strategies would be appropriate? a. b. The ST cell d. coupled with reliable suppliers. c. d. d. b. SW WO SW Page: 201 Which strategies use a firm’s strengths to avoid or reduce the impact of external threats? . The purpose of each Stage 2 matching tool is to a. WO strategies. identify the strengths. ST strategies. SO strategies. b. c. Ans: b 107. If an organization were to match high employee turnover with increased local competition. ST e. Which strategies aim at improving internal weaknesses by taking advantage of external opportunities? a. c. The WT cell b. ST strategies. WO c. would suggest a. Ans: a Page: 200 109. a. pick the best strategy for the firm to carry out. d. WT Ans: b Page: 200 110.106. WT strategies. WT strategies Ans: d 112. generate the feasible alternative strategies for the firm. The center four cells Ans: d Page: 200 108. The SO cell e. SW d. The WO cell c. opportunities and threats of the firm. Ans: b Page: 200 111. b. WO strategies c.

IS and ES. Which of the following is not a step of a TOWS Matrix? a. SPACE Matrix c. __________ reveals whether aggressive. Grand Strategy Matrix b. Match strengths with external opportunities and record the resultant SO strategies in the appropriate cell c. FS and CA. e. d. a. SO b. d. List the firm’s key external threats b. Aggressive b. defensive. a. nine d. eight two Page: 201 115. c. Competitive Profile Matrix d. e. List the firm’s external weaknesses e. ST e. six c.d. Ans: d Which of these is not a SPACE Matrix quadrant? a. __________ strategies are defensive tactics directed at reducing internal weaknesses and avoiding environmental threats. SW d. ST WT Ans: d Page: 201 113. List the firm’s external threats Ans: d Page: 202 116. four b. c. e. CA and ES. conservative. Ans: c A TOWS Matrix is composed of __________ cells. a. b. The two positive-rated dimensions on SPACE Matrix are a. Defensive Competitive Offensive Conservative Page: 204 117. . QSPM Ans: b Page: 204 118. FS and IS. WO c. TOWS Matrix e. Match internal weaknesses with external threats and record the resultant WT strategies d. or competitive strategies are most appropriate. WT Ans: e Page: 201 114.

product quality. c. ease of entry into the market. d. a. d. What is the BCG Matrix ideal for analyzing? a. Ans: b Page: 206 123. do all of the above. b. d. a. Ans: d Page: 206 121. avoid external threats. Ans: d Page: 205 120. d. Page: 204 119. Ans: a 122. A firm located in the aggressive quadrant of the SPACE Matrix should use its internal strengths to a. liquidity. c. b. the number of products a division has on the market compared to the competitors. c. overcome internal weaknesses. b. b.e. c. Ans: c FS and ES. working capital. take advantage of external opportunities. the number of employees in a division compared to the number of employees in the largest rival in the industry. __________ should not be included as a factor in the Environmental Stability (ES) computation. leverage. c. Technological changes Competitive pressure Rate of inflation Liquidity . a division’s market share divided by the market share of the largest rival in that industry. b. Companies with more than one division All companies Companies with annual sales greater than $1 million Companies with annual sales of less than $1 million Large companies Page: 206 The BCG measures relative market share position as a division’s sales compared to the sales of similar companies. operations and facilities. d. Financial strengths are measured on the SPACE Matrix by variables such as investment. c. working capital and a.

which of these strategies are not appropriate? a. Product development Concentric diversification Divestiture Market penetration . b. c. b. Financial strength and industry strength. b. Which of these quadrants in SPACE Matrix implies staying close to the firm’s basic competencies and not taking excessive risks? a. e. e. c. c. d. Environmental stability and competitive advantage. d. Conservative Competitive Defensive Aggressive None of these Page: 206 ______________ is common to the defensive and conservative quadrants of a SPACE Matrix. Environmental stability and industry strength.e. Ans: d 124. a. b. c. d. d. Ans: a 127. e. Ans: a 125. Seasonal effects Page: 206 What are two external dimensions of SPACE Matrix? a. Page: 206 If the SPACE Matrix directional vector falls in the aggressive quadrant. Ans: d Intensive Integrative Diversification Defensive Combination Page: 206 126. Industry strength and competitive advantage Competitive advantage and financial strength.

Ans: b Retrenchment Page: 206 128. d. When a division of an organization has a high relative market share and is in a fastgrowing industry. Ans: a Star Question mark Cash cow Stuck-in-the-middle Dog Page: 208 131. c. +3) strategy profile portray? a. b. b. What type of strategies would you recommend when a firm’s SPACE Matrix directional vector has the coordinates (-2. question mark. How would a division with a low relative market share position in a high growth industry be described? a. . e. Aggressive Conservative Competitive Defensive Integrative Page: 207 In the SPACE analysis what does a (+6. c. b. +3)? a. Ans: b 129. d.e. star. c. e. b. cash cow. c. A strong industry An unstable environment A stable environment A weak industry A weak financial position Page: 207 Ans: a 130. e. d. it is called a a.

e. c. b. Ans: d 135. Concentric diversification Horizontal integration c. not allowing a company to be classified as somewhere in between two categories. b. star. b. being a time-consuming and costly analysis. question mark. dog. Page: 209 Ans: a 132. cash cow. d. e. e. dog. Conglomerate diversification Backward integration Forward integration Page: 210 Most likely.d. d. . d. A division with a high relative market share position in a low-growth industry can be described as a a. requiring at least three years’ worth of data. calf star failure Page: 210 The BCG Matrix limitations include a. Ans: a 134. a cash cow was what in the past? a. c. dog question mark c. not reflecting divisional or industry growth over time. b. Ans: b 133. failure. d. Page: 210 Which of these is an attractive strategy for a cash cow division? a.

the way they plot organizational divisions. a. Ans: b both c & d.e. d. d. b. c. Market penetration Conglomerate diversification Joint venture Retrenchment Liquidation . What has four quadrants based on two dimensions: competitive position and market growth? a. c. Page: 212 137. __________ in the Grand Strategy Matrix is recommended for a firm with rapid market growth and a strong competitive position. Competitive Profile Matrix TOWS Matrix SPACE Matrix Grand Strategy Matrix QSPM Page: 213 Firms located in which quadrant of the Grand Strategy Matrix are in an excellent strategic position? a. b. Ans: e 136. their strategic implications. e. the IE requires more information about the divisions than the BCG Matrix. d. b. d. Ans: d 138. Ans: a III IV I II Page: 213 139. a. c. b. e. Page: 211 The BCG Matrix and the IE Matrix are different in all of the following aspects except their axes. c.

d. the first strategy recommended is a. asset expansion. Ans: d I II III IV Page: 214 . c. d. d. Quadrant _____ organizations have a strong competitive position but are in a slow-growth industry. just whole companies. b. and they need to determine why the firm’s current approach is ineffective and how the company can best change to improve its competitiveness. c. The Grand Strategy Matrix can be used to evaluate competitive position and market growth for a. c. Ans: c individual products. b. they are unable to compete effectively. Although Quadrant _____ companies are growing. company divisions and individual products.Ans: a Page: 213 140. a. immediate liquidation of assets. For companies located in Quadrant III of the Grand Strategy Matrix. a. according to the Grand Strategy Matrix. Page: 213 141. whole companies and company divisions. Page: 214 142. Ans: a extensive cost and asset reduction. b. c. employee expansion. according to the Grand Strategy Matrix. d. Ans: b I II III IV Page: 214 143. b.

c.144. d. e. a. b. Ans: d TOWS Matrix. Page: 216 147. The __________ determines the relative attractiveness of various strategies based on the extent to which key external and internal critical success factors are capitalized. Space Matrix. d. IE Matrix. A(n) __________ strategy could be most effective when a firm has excess production capacity and its basic industry is experiencing declining sales and profits. d. e. BCG Matrix. c. b. a. a. Ans: b 146. d. c. backward integration forward integration concentric diversification joint venture integration Page: 215 Internal Factor Evaluation Matrix Quantitative Strategic Planning Matrix BCG Business Portfolio Matrix Grand Strategy Matrix SPACE Matrix Page: 215 The top row of a QSPM consists of alternative strategies derived from all of these except a. b. e. __________ is included in the decision stage of the strategy formulation framework. Ans: c The Decision Stage 145. b. BCG Matrix SPACE Matrix TOWS Matrix IE Matrix . c. CPM Matrix.

Total attractiveness scores Sum total attractiveness scores Weighted scores Total weighted scores Factors Page: 218 What should be included in strategies in the QSPM? all strategies suggested by Stage 2 matrices. 4 Page: 217 Which of the following is the first step in developing QSPM? Compute the Total Attractiveness Scores b. Examine the Stage 2 matrices and identify alternative strategies the organization should consider implementing c. a. Assign weights to each key external and internal factor Determine the Attractiveness Scores e. c. e. Ans: e 148. d. a. 20 2. 40 20. Ans: a 151. . b. b.e. c. d. b. a minimum of _______ internal and ______ external critical success factors should be included. 10 40. d. a. QSPM Page: 216 In the QSPM. only the best or most promising strategies suggested by Stage 2 matrices. e. Make a list of the firm’s key external opportunities/threats and internal strengths/weaknesses in the left column of the QSPM Ans: e Page: 217-218 150. b. strategies that will assure organizational success. 10. 2 4. What term is defined as the product of multiplying ratings by attractiveness scores in each row of the QSPM? a. Ans: c 149.

c.c. e. a. 5 2 1 10 There is no limit. It is only as good as the prerequisite input information and matching analyses upon which it is based e. c. Strategy Culture Mission Objectives QSPM Page: 219 Ans: b 155. heroes and heroines that describe a firm? a. Ans: e Both c & d Page: 219 Cultural Aspects of Strategy Choice 154. culture can dictate the choice of strategies. Page: 218 What is the highest number of strategies that can be examined at one time with the QSPM? a. . b. The culture of a firm is important when considering strategies because cultural products can support strategies so managers can often implement changes swiftly and easily. e. personalities. strategies that encourage corporate expansion. What includes the set of shared values. b. attitudes. c. norms. b. Page: 219 Which of these do QSPM limitations include? Only a few strategies can be evaluated simultaneously The cost of doing the analysis Subjective judgments and educated guesses are required d. customs. b. Ans: e 153. everyone in the firm should have a vote as to which strategies to implement. a. c. d. Ans: b 152. d. beliefs.

Ans: d Generalization Satisficing Focus on higher-order issues Equifinality Specialization Page: 221 The Role of a Board of Directors 158. d. a.d. e. the roles and duties of a board of directors include all of these broad categories. Today. Ans: a Page: 219-220 The Politics of Strategy Choice 156. c. e. control and oversight over management adhering to legal prescriptions . outsiders management union employees stockholders Page: 222 Except for ________________. d. Ans: a 159. b. b. b. Ans: c 157. c. ones. a. __________ is known as the tactic of shifting focus from specific issues to more general Equifinality Focus on higher-order issues Generalization Satisficing None of the above Page: 221 __________ means it is possible to achieve similar results using different means or paths a. boards of directors are composed mostly of __________. c. d. a. b. Employees always welcome cultural change. e.

c. According to Business Week. e. d. b. c. consideration of stakeholders’ interests advancement of stockholders’ rights expansion of management stock options Page: 223 Ans: e 160. Ans: d . d. b. c. d. compensate board members only in company stock. Page: 223-224 What did Business Week conclude a board of directors should do? Ensure no more than two board members are insiders Limit the number of other boards a member can serve on Ban interlocking directorships All of the above Page: 223-224 Ans: b 161. require each director to own a large amount of company stock. e. link the CEO’s pay to specific goals. a good board of directors performs all of these responsibilities except a. place the entire board up for election every five years. require directors to retire at age 70. a.

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