Question 1

Which of the following scenarios best illustrates crowdsourcing?

Accepted Answer

A)   A company uses a team consisting of employees from different functional departments to complete a project.
B)   A company hires an external firm to look into its legal matters.
C)   A company hires low-cost manufacturers in less-developed nations to produce its merchandise.
D)   A company encourages the general community to post new product ideas on its official website.E) A) and C)
F) B) and D)

Question 2

How does consumer demand affect fixed costs and variable costs?

Accepted Answer

Fixed costs are independent of consumer ...

Question 3

The tenet behind the triple bottom line is that:

Accepted Answer

A)   a firm should solely focus on increasing the economic value created to/for its customers.
B)   a firm's primary objective should be increasing the total returns to its shareholders.
C)   a firm should achieve positive results along the economic, social, and ecological dimensions to gain a sustainable strategy.
D)   a firm's return on revenue can be broken down into three ratios: COGS/Revenue, R&D/Revenue, and SG&A/Revenue.E) None of the above
F) A) and C)

Question 4

At present, _____ make up the oldest cohort of the workforce.

Accepted Answer

A)   Baby Boomers
B)   Generation Xers
C)   Millennials
D)   Generation YersE) B) and D)
F) All of the above

Question 5

In order to achieve a competitive advantage, a firm should be able to:

Accepted Answer

A)   increase its payable turnover.
B)   keep its producer surplus low.
C)   increase the difference between the value created and the cost to produce it.
D)   increase the difference between consumer surplus and its profits.E) A) and D)
F) B) and C)

Question 6

A high percentage of R&D/Revenue ratio indicates a(n) :

Accepted Answer

A)   strong focus on innovation to improve current products and services.
B)   inefficiency in the management to focus on new products.
C)   strong focus on marketing and sales to promote products and services.
D)   negligent investment toward research and development.E) None of the above
F) B) and C)

Question 7

Which of the following best expresses fixed asset turnover?

Accepted Answer

A)   Current assets/Fixed assets
B)   Revenue/Fixed assets
C)   Fixed assets/Total return to shareholders
D)   Fixed assets/Current liabilitiesE) A) and C)
F) All of the above

Question 8

When GD Inc.declared a dividend of $20,000,000, its market value increased from $8 billion to $8.5 billion.However, it lost a chance to reinvest $20,000,000 in the research and development of a new product which would have earned a profit of $200 million.Thus, this $200 million is referred to as GD Inc.'s _____.

Accepted Answer

A)   producer surplus
B)   consumer surplus
C)   opportunity cost
D)   social costE) A) and B)
F) A) and C)

Question 9

The working capital of a small home-based business is $200,000.The revenues generated account to $600,000, and the profits incurred are $300,000.What would be the company's working capital turnover?

Accepted Answer

A)   3, that is, $600,000/$200,000
B)   $300,000, that is, $600,000 - $300,000
C)   2, that is, $600,000/$300,000
D)   $100,000, that is, $300,000 - $200,000E) B) and D)
F) A) and C)

Question 10

True Machine Inc.and One Electrona Inc.are two competing consumer electronics companies.While True Machine's COGS/Revenue is 66%, One Electrona's is 74%.What do you infer from this financial data?

Accepted Answer

A)   One Electrona has a competitive advantage over True Machine.
B)   True Machine's profit margin is higher than that of One Electrona.
C)   One Electrona is more efficient than True Machine by eight percentage points.
D)   True Machine should focus more on driving down costs, while increasing revenues, and One Electrona should focus more on increasing its fixed asset turnover.E) A) and B)
F) A) and C)

Question 11

_____ are the legal owners of public companies.

Accepted Answer

A)   Employees
B)   Shareholders
C)   Category captains
D)   CreditorsE) A) and C)
F) B) and C)

Question 12

The value a consumer attaches to a product or service is captured in the:

Accepted Answer

A)   least price a consumer is willing to pay for it.
B)   consumer's maximum willingness to pay for it.
C)   expenses incurred by the firm in manufacturing it.
D)   difference between the price charged for it and the cost to produce it.E) B) and C)
F) C) and D)

Question 13

Red Ink Electronics Inc.faced a serious technical problem when developing a microprocessor for a high-tech medical device.The employees of the company including those in the research and development department were unable to solve the issue.Thus, an open call was made to the general public, mainly technicians and product engineers, on the company's website to volunteer to solve the technical problem the company faced.Which of the following does the scenario best illustrate?

Accepted Answer

A)   Crowdsourcing
B)   Vertical integration
C)   Bootstrapping
D)   AmalgamatingE) A) and B)
F) None of the above

Question 14

How does the triple-bottom line approach help managers?

Accepted Answer

Like the balanced scorecard, the triple ...

Question 15

_____ is best described as a process in which a group of people voluntarily performs tasks that were traditionally completed by a firm's employees.

Accepted Answer

A)   Bootstrapping
B)   Outsourcing
C)   Amalgamating
D)   CrowdsourcingE) B) and D)
F) A) and D)

Question 16

How does a sustainable strategy typically help a firm?

Accepted Answer

A)   It helps the firm focus solely on its financial goals.
B)   It reduces the need for corporate social responsibility within the firm.
C)   It facilitates the firm in effectively isolating its external stakeholders.
D)   It helps the firm achieve positive results along the social and ecological dimensions.E) B) and C)
F) None of the above

Question 17

What is the significance of the Cost of goods sold/Revenue ratio?

Accepted Answer

The ratio Cost of goods sold (COGS)/Reve...

Question 18

The cost of capital to create a product is a fixed cost because it is:

Accepted Answer

A)   directly proportional to the output level.
B)   uniform throughout all firms and industries.
C)   not a part of the profit calculations.
D)   unaffected by consumer demand.E) B) and D)
F) A) and D)

Question 19

Master's Health Club, a chain of gyms and spas, requires its customers to pay a quarterly or an annual fee to use its services.Irrespective of whether they frequently use the services during the payment period or not, members have to pay in advance.Which of the following business models does this best illustrate?

Accepted Answer

A)   Razor-razor-blade
B)   Pay-as-you-go
C)   Subscription-based
D)   FreemiumE) C) and D)
F) B) and D)

Question 20

Which of the following is an advantage of a triple-bottom line approach?

Accepted Answer

A)   The approach takes an integrative and holistic view in assessing a company's performance.
B)   The approach does not rely on an external view of a firm to assess its performance.
C)   The approach is more of a quantitative performance metric rather than a mere conceptual framework.
D)   The framework can help managers assess a firm's competitive advantage without taking into account the firm's performance along noneconomic dimensions.E) C) and D)
F) A) and D)

Exam 5: Competitive Advantage, Firm Performance, and Business Models

_____ is best described as a process in which a group of people voluntarily performs tasks that were traditionally completed by a firm's employees.

Correct Answer
verified

True Machine Inc.and One Electrona Inc.are two competing consumer electronics companies.While True Machine's COGS/Revenue is 66%, One Electrona's is 74%.What do you infer from this financial data?

Correct Answer
verified

The tenet behind the triple bottom line is that:

Correct Answer
verified

How does the triple-bottom line approach help managers?

Correct Answer
verified
Like the balanced scorecard, the triple ...
View Answer

_____ are the legal owners of public companies.

Correct Answer
verified

Which of the following scenarios best illustrates crowdsourcing?

Correct Answer
verified

How does a sustainable strategy typically help a firm?

Correct Answer
verified

The working capital of a small home-based business is $200,000.The revenues generated account to $600,000, and the profits incurred are $300,000.What would be the company's working capital turnover?

Correct Answer
verified

The cost of capital to create a product is a fixed cost because it is:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

What is the significance of the Cost of goods sold/Revenue ratio?

Correct Answer
verified
The ratio Cost of goods sold (COGS)/Reve...
View Answer

How does consumer demand affect fixed costs and variable costs?

Correct Answer
verified
Fixed costs are independent of consumer ...
View Answer

Which of the following best expresses fixed asset turnover?

Correct Answer
verified

At present, _____ make up the oldest cohort of the workforce.

Correct Answer
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The value a consumer attaches to a product or service is captured in the:

Correct Answer
verified

Which of the following is an advantage of a triple-bottom line approach?

Correct Answer
verified

Correct Answer
verified

In order to achieve a competitive advantage, a firm should be able to:

Correct Answer
verified

A high percentage of R&D/Revenue ratio indicates a(n) :

Correct Answer
verified

Exam 5: Competitive Advantage, Firm Performance, and Business Models

_____ is best described as a process in which a group of people voluntarily performs tasks that were traditionally completed by a firm's employees.

Correct AnswerverifiedShow Answer

True Machine Inc.and One Electrona Inc.are two competing consumer electronics companies.While True Machine's COGS/Revenue is 66%, One Electrona's is 74%.What do you infer from this financial data?

Correct AnswerverifiedShow Answer

The tenet behind the triple bottom line is that:

Correct AnswerverifiedShow Answer

How does the triple-bottom line approach help managers?

Correct AnswerverifiedLike the balanced scorecard, the triple ...View AnswerShow Answer

_____ are the legal owners of public companies.

Correct AnswerverifiedShow Answer

Which of the following scenarios best illustrates crowdsourcing?

Correct AnswerverifiedShow Answer

How does a sustainable strategy typically help a firm?

Correct AnswerverifiedShow Answer

The working capital of a small home-based business is $200,000.The revenues generated account to $600,000, and the profits incurred are $300,000.What would be the company's working capital turnover?

Correct AnswerverifiedShow Answer

The cost of capital to create a product is a fixed cost because it is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is the significance of the Cost of goods sold/Revenue ratio?

Correct AnswerverifiedThe ratio Cost of goods sold (COGS)/Reve...View AnswerShow Answer

How does consumer demand affect fixed costs and variable costs?

Correct AnswerverifiedFixed costs are independent of consumer ...View AnswerShow Answer

Which of the following best expresses fixed asset turnover?

Correct AnswerverifiedShow Answer

At present, _____ make up the oldest cohort of the workforce.

Correct AnswerverifiedShow Answer

The value a consumer attaches to a product or service is captured in the:

Correct AnswerverifiedShow Answer

Which of the following is an advantage of a triple-bottom line approach?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In order to achieve a competitive advantage, a firm should be able to:

Correct AnswerverifiedShow Answer

A high percentage of R&D/Revenue ratio indicates a(n) :

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Like the balanced scorecard, the triple ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The ratio Cost of goods sold (COGS)/Reve...
View Answer

Correct Answer
verified
Fixed costs are independent of consumer ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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