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Apple Inc. reported revenues of 234 billion USD and net income of 53 billion USD in 2015. These figures represent a stunning annual growth in revenue and net income of 28 percent and 33 percent, respectively, for 2014. This information indicates the importance of using ________ to evaluate company financial performance.


A) financial ratios
B) industry norms
C) historical comparisons
D) competitor analysis

E) A) and C)
F) None of the above

Correct Answer

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A marketing department that promises delivery faster than the ability of the production department to produce is an example of a lack of understanding of the


A) interrelationships among value-creating activities within a firm.
B) organizational culture and leadership.
C) need to maintain the reputation of the company.
D) synergy of the business units.

E) A) and D)
F) C) and D)

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Value-chain analysis can only be applied to manufacturing operations.

A) True
B) False

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The balanced scorecard enables managers to consider their business from all the following perspectives except


A) customer perspective.
B) internal perspective.
C) innovation and learning perspective.
D) ethical perspective.

E) A) and D)
F) A) and C)

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In terms of value-chain analysis, a telephone operating company would find that negotiating and maintaining ongoing relations with regulatory bodies are important activities for achieving


A) inbound logistics.
B) customer awareness.
C) competitive advantage.
D) better employees.

E) None of the above
F) All of the above

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Facebook, Intuit, AB InBev, and others empower their recruiters to make offers on the spot when they interview college students, without knowing what specific position they will fill.Thesefirms search for candidates with attributes such as being a self-starter and a problem-solver, and make quick offers to preempt the market. This is an example of which value chain support activity?


A) operations
B) technology development
C) human resource management
D) procurement

E) A) and B)
F) A) and C)

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The customer perspective of the balanced scorecard answers which of the following questions?


A) How do customers see us?
B) What must we excel at?
C) How do we look to shareholders?
D) Can we continue to improve and create value?

E) B) and C)
F) A) and B)

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Financial ratio analysis measures the performance of the firm based on all but which of the following?


A) balance sheet
B) market valuation
C) income statement
D) industry comparison

E) None of the above
F) A) and D)

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Capabilities that exhibit causal ambiguity are difficult to imitate.

A) True
B) False

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Harley-Davidson markets motorcycles, clothes, toys, and restaurants. It uses its strong ________, which is ________.


A) financial position; an intangible resource
B) brand image; an intangible resource
C) brand image; a tangible resource
D) technological resources; an intangible resource

E) A) and D)
F) B) and C)

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A firm that takes on too much long-term debt to finance operations will see an immediate impact on its indicators of ________ financial leverage.


A) short-term
B) long-term
C) relative
D) comparable

E) None of the above
F) B) and C)

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Raymond Ozzie, the software designer who was critical in the development of Lotus Notes, was able to dictate the terms under which IBM acquired Lotus. This illustrates that he had ________bargaining power based on the ________ cost required by the firm to replace him.


A) low; low
B) low; high
C) high; low
D) high; high

E) None of the above
F) A) and D)

Correct Answer

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Human resources and reputation resources are examples of intangible resources.

A) True
B) False

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Tangible resources are assets that are relatively easy to identify such as financial and physical assets.

A) True
B) False

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The three key types of resources that are central to the resource-based view of the firm are


A) tangible resources, intangible resources, and organizational structure.
B) culture, tangible resources, intangible resources.
C) tangible resources, intangible resources, and organizational capabilities.
D) tangible resources, intangible resources, and top management.

E) All of the above
F) C) and D)

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Coca-Cola has developed data analytic technologies to produce orange juice that meets the taste demands of a global customer base. This is an example of using which value chain supportactivity?


A) marketing and sales
B) technology development
C) human resource management
D) procurement

E) None of the above
F) A) and D)

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The ability to hire, motivate, and retain human capital is an example of ________ capabilities in the resource-based view of the firm.


A) tangible
B) organizational
C) management
D) design

E) None of the above
F) A) and B)

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Financial resources such as cash and cash equivalents are intangible resources.

A) True
B) False

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Some firms find great value by not incorporating their customers into the value creation process.

A) True
B) False

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A travel agent adds value by creating an itinerary that includes transportation, accommodations, and activities that are customized to your budget and travel dates. In terms of the value-chain analysis, this is an example of a ________ organization.


A) retail
B) service
C) manufacturing
D) travel

E) None of the above
F) A) and B)

Correct Answer

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