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1. Which statement is true

A.Effective goals are related to the important features of job

B.Feedback arrangement with revaluation is also an effective goal

C.The goal improves organizational and personal execution, clearly tells about reason for
increment in control

D.All of the above

2. The strategic management process is the way in which strategists determine

objectives and

A Make recording
.
B.Make coordinating

C Make strategic decisions

.
D Make planning
.
3. Which is the step in the process of strategic decision-making?

A Problem Diagnosis
.
B.The Selection of a Solution

C Problem Awareness
.
D All of the above
.
4. Which statement is true?

A The strategic management involve the determination of the organisation's

. mission, strategic policies, and strategic objectives

B.Strategic management is a stream of decisions and action which leads to the

development of an effective strategy or strategies to help achieve corporate
objectives

C The strategic management process is the way in which strategists determine

. objectives and make strategic decisions.

D All of the above.

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5. The strategist uses the career planning in order?

A To enable the employees to develop and make them ready to meet the future
. challenges

B.To provide suitable promotional opportunities

C To attract competent persons and retain them in the organisation

.
D All of the above
.
6. Which statement is true?

A Operating goals clear that which element is significant as result-oriented or

. qualitative

B.Official goals and operating goals both are different

C Operating goals express that what is an organisation exactly trying to do

.
D All of the above
.
7. Cultural values would be part of which of the following factor in macro environment?

A. Economic

B. Natural

C. Social

D. Ecological

8. In the case where an organization acquires its supplier, this is an example of

A. Horizontal integration

B. Forwards vertical integration

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C. Backwards vertical integration

D. None of the above

9. The strategy evaluation factors include

A Contributory Relationships
.
B.MVC-Host Country Relationships

C Financial Measures
.
D All of the above
.

10. The guidelines for delegating authority includes

A Select the key jobs and competent managers and appoint the right and competent manager
. as head of each unit.

B.Revenue-producing and results producing activities should not be subordinate to internal

support or staff functions.

C Activities and organisational units with a crucial role in strategy implementation process
. should not be subordinate to routine and non-key activities

D All of the above

.
11. Which is the functional area of Strategic Management?

A Production or Operations
.
B.Finance

C Marketing
.
D All of the above
.
12. ____________ system is basically one of private enterprise in which decisions
about what and how much to produce are left to discretion of owners and managers

A Political System
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B.Capitalistic Economic System

C Economic System
.
D Legal System
.
13. Which is the functions of GATT?

A Seeking to resolve trade disputes

.
B.Acting as a forum for multilateral trade negotiations

C Administrating and implementing the multilateral and plurilateral trade

. agreements which together make up the WTO.

D All of the above.

.

14. ______ is the process of managing the pursuit of organisational

mission while managing the relationship of the organisation to its
environment."

A.System Management

B.Strategic Management

C.Financial Management

D.Cost Management

15. Which statement is true?

A An offensive strategy, if successful, can open up a competitive

. advantage over competitors

B.All firms are subject to attacks from competitors in a competitive

environment

C A grand offensive involving several major initiatives may be

. sometimes launched by the aggressors

D There is a benefit period, after a successful competitive

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. offensive.

16. In the context of strategic management resources can be defined as

A The knowledge and skills within the organisation

.
B.Something that an organisation owns, controls or has access to on a semi-permanent basis

C The physical assets of the organisation

.
D None of the above
.
17. ___________ is the managerial process of developing and maintaining a viable fit
between the organisation's objectives, skills and resources and its changing market
opportunities.

A Cost
.
B.Product Oriented Strategic Planning

C Product
.
D All of the above
.
18. The corporate level management help each strategic business unit to define
its

A.goal of nature

B.goal of production

C.goal of firm

D.scope of operation

19. Which is advantage of the merging from buyer's point of view?

A To take balance in product line

.
B.To make better investment

C To raise the price value of company's stock

.
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D All of the above

.
20. Approaches to organisational change includes

A Protecting employees interests

.
B.Encourage team work

C Employee Participation in decision-making relating the changes.

.
D All of the above
.
21.   'Reputation' in the context of an organisation's resources can provide
competitive advantage because

A It is difficult to copy
.
B.It is based on word-of-mouth

C It is a threshold resource
.
D It is explicit
.

22. Organisational Capability includes

A. Managerial Experience

B. Strategic Planning and Management System

C. Superior Information

D. All of the above

23. The _________ answers the question "What do we want to become?" whereas ______
answers the question "What is our business?"

A.Vision statement, mission statement

B.Short-term objectives; long term objectives

C.Objectives; strategies

D.Mission vision
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24. Which statement is true about goal?

A Vertical diversification
.
B.Market diversification

C Product diversification
.
D All of the above
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. 28. Which is the reasons for change of a firm from concentration

strategies?

A Overconfidence
.
B.Pressure to use idle capacity

C Temptations of diversification
.
D All of the above
.
29.Which statement is true?

A Strategy has more subjective values

.
B.Strategy is developed at the highest level

C.Strategy requires more difficult-to-get information. A manager

requires more information for arriving at a strategic decision,
while tactics requires normal information which is generated
within the organisation

D All of the above

.
30. What does stars symbolize in BCG matrix?

A.Growth

B.Decline

C.Maturity

D.Introduction
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31. The acronym SWOT stands for

a. Special Weapons for Operations Timeliness

b. Services, Worldwide Optimization, and Transport

c. Strengths Worldwide Overcome Threats

d. Strengths, Weaknesses, Opportunities, and Threats

Ans. d

32. Which of the following is not a characteristic of strategic management

that makes it different from other types of management?

a. It is interdisciplinary.

b. It has an external focus.

c. It has an internal focus.

d. It concerns the present direction of the organization.

Ans. d

33. Which of the following is an issue considered in developing corporate

strategies?

a. What business(es) are we in?

ADVERTISEMENTS:

b. What direction are we going?

c. What resources do we have to implement our strategies?

d. What businesses are we in and what to do with those businesses?

Ans. c

34. Which of the following is NOT a major element of the strategic

management process?
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a. Formulating strategy

b. Implementing strategy

c. Evaluating strategy

c. Assigning administrative tasks

Ans. d

35. Competitive advantage can best be described as:

a. increased efficiency.

b. what sets an organization apart.

c. a strength of the organization.

d. intangible resources.

Ans. a

36. ________________ is the foundation of blue ocean strategy.

a. Innovation

b. Value creation

c. Value innovation

d. value cost trade-off

Ans. c

37. The various organizational routines and processes that determine how
efficiently and effectively the organization transforms its inputs into
outputs are called:

a. strengths.

b. core competencies.

c. capabilities.

d. customer value.
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Ans. b

38. When defining strategic management the most important thing to

remember is that it is:

a. Not as easy as you think

b. Mainly the province of senior managers

c. A living evolving process

d. More conceptual than practical

e. A way of determining responsibilities

Ans. C

39. An organisation’s strategy:

a. remains set in place longer than the mission and objectives
b. generally forms over a period of time as events unfold
c. tends to be formed at the same time the mission is developed and objectives
are formulated
d. is usually conceived at a single time when managers sit down and work out
a comprehensive strategic plan for the next 3-5 years
Ans. b
40. The primary focus of strategic management is:
a. strategic analysis
b. the total organisation
c. strategy formulation
d. strategy implementation.
Ans. b
41. Which of the following is not an advantage of strategic management?
a. It provides organisations with a clearer sense of direction and purpose
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b. It helps improve the political, economic, social and technological

environment of the organisation
c. It helps orientate management decisions to relevant environmental
conditions
d. It helps organisations be proactive rather than reactive
Ans. b
42. Which of the following defines what business or businesses the firm is
in or should be in?
a. Business strategy
b. Corporate strategy
c. Functional strategy
d. National strategy
Ans. b
43. Which of the following defines how each individual business unit will
attempt to achieve its mission?
a. Business strategy
b. Corporate strategy
c. Functional strategy
d. National strategy
Ans. a
44. Which of the following focuses on supporting the corporate and
business strategies?
a. Competitive strategy
b. Corporate strategy
c. Operational strategy
d. National strategy
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e. Mission strategy
Ans. c
45. Which one of the following is not a primary task of strategic
managers?
a. Establishing strategic objectives
b. Developing the steps to follow in implementing operational level plans
c. Defining the business and developing a mission
d. Developing a strategy
e. Implementing and evaluating the chosen strategy
Ans. b
46. The task of strategy choice involves:
a. developing plans and activities which will improve the organisation’s
performance and competitive position
b. determining how the organisation can be more market and efficiency
oriented
c. monitoring whether the organisation is achieving good financial
performance
d. keeping the organisation free of debt
Ans. a
47. Which one of the following is at the core of strategic management?
a. Choosing which organisational objectives to focus on
b. Being alert for opportunities to change work responsibilities
c. Adapting the organisation to a changing external environment
d. Choosing whether to make decisions autocratically or on the basis of
participation
Ans. c
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48. The corporate level is where top management directs:

a. all employees for orientation
b. its efforts to stabilize recruitment needs
c. overall strategy for the entire organization
d. overall sales projections
Ans. c
49. The three organizational levels are:
a. corporate level, business level, functional level
b. corporate level, business unit level, functional level
c. corporate strategy level, business unit level, functional level
d. corporate strategy level, business level, specialist level
Ans. a
50. Which of the following is an example of competing on quick response?
a. a firm produces its product with less raw material waste than its competitors
b. a firm offers more reliable products than its competitors
c. a firm’s products are introduced into the market faster than its competitors’
d. a firm’s research and development department generates many ideas for
new products
Ans. c
51. Which one of the following is NOT included in the Porter’s Five
Forces model:
a. Potential development of substitute products
b. Bargaining power of suppliers
c. Rivalry among stockholders
d. Rivalry among competing firms
Ans. c
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52. What is meant by the term ‘Stakeholder’?

a. A person who is not related with a business.
b. A person who is related with a business.
c. A person who owns a business.
d. A person who purchases the shares of a business.
Ans. b
53. Of the following, which one would NOT be considered one of the
components of a mission statement?
a. The target market for XYZ is oil and gas producers as well as producers of
chemicals.
b. XYZ shall hire only those individuals who have with sufficient educational
levels so as to be of benefit to our customers
c. The customers of XYZ shall include global and local consumers of gas and
oil products and domestic users of nontoxic chemicals
d. The technologies utilized by XYZ shall focus upon development of
alternative sources of gas and oil so as to remain competitive within the
industry
Ans. b

54.The strategic management process is

a. A set of activities that will assure a temporary advantage and average returns for the firm.

b. A decision-making activity concerned with a firm’s internal resources, capabilities, and

competencies, independent of the conditions in its external environment.
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c. a process directed by top-management with input from other stakeholders that seeks to achieve
above-average returns for investors through effective use of the organization’s resources.

d. the full set of commitments, decisions, and actions required for the firm to achieve above-
average returns and strategic competitiveness..

Ans. d

55. The goal of the organization’s__________ is to capture the hearts and minds of
employees, challenge them, and evoke their emotions and dreams.

a. vision

b. mission

c. culture

d. strategy

Ans. a

56. A firm’s mission

a. is a statement of a firm’s business in which it intends to compete and the customers which it
intends to serve.

b. is an internally-focused affirmation of the organization’s financial, social, and ethical goals.

c. is mainly intended to emotionally inspire employees and other stakeholders.

d. is developed by a firm before the firm develops its vision.

Ans. a
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57. The environmental segments that comprise the general environment typically will NOT
include

a. demographic factors.

b. sociocultural factors.

c. substitute products or services.

d. technological factors.

Ans. c

58. An analysis of the economic segment of the external environment would include all of
the following EXCEPT

a. interest rates.

b. international trade.

c. the strength of the U.S. dollar.

d. the move toward a contingent workforce.

Ans. d

59. Product differentiation refers to the:

a. ability of the buyers of a product to negotiate a lower price.

b. response of incumbent firms to new entrants.

c. belief by customers that a product is unique.

d. fact that as more of a product is produced the cheaper it becomes per unit.
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Ans. c

60. Which of the following is NOT an entry barrier to an industry?

a. expected competitor retaliation

b. economies of scale

c. customer product loyalty

d. bargaining power of suppliers

Ans. d

61. Switching costs refer to the:

a. cost to a producer to exchange equipment in a facility when new technologies emerge.

b. cost of changing the firm’s strategic group.

c. one-time costs suppliers incur when selling to a different customer.

d. one-time costs customers incur when buying from a different supplier.

Ans. d

62. New entrants to an industry are more likely when (i.e., entry barriers are low when…)

a. it is difficult to gain access to distribution channels.

b. economies of scale in the industry are high.

c. product differentiation in the industry is low.

d. capital requirements in the industry are high.

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Ans. c

63. Suppliers are powerful when:

a. satisfactory substitutes are available.

b. they sell a commodity product.

c. they offer a credible threat of forward integration.

d. they are in a highly fragmented industry.

Ans. c

64. The highest amount a firm can charge for its products is most directly affected by

a. expected retaliation from competitors.

b. the cost of substitute products.

c. variable costs of production.

d. customers’ high switching costs.

Ans. b

65. All of the following are forces that create high rivalry within an industry EXCEPT

a. numerous or equally balanced competitors.

b. high fixed costs.

c. fast industry growth.

d. high storage costs.

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Ans. c

66. According to the five factors model, an attractive industry would have all of the
following characteristics EXCEPT:

a. low barriers to entry.

b. suppliers with low bargaining power.

c. a moderate degree of rivalry among competitors.

d. few good product substitutes.

Ans. a

67. Internal analysis enables a firm to determine what the firm

a. can do.

b. should do.

c. will do.

d. might do.

Ans. a

68. An external analysis enables a firm to determine what the firm

a. can do.

b. should do.

c. will do.
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d. might do.

Ans. d

69. ________ is/are the source of a firm’s________, which is/are the source of the firm’s
________.

a. Resources, capabilities, core competencies

b. Capabilities, resources, core competencies

c. Capabilities, resources, above average returns

d. Core competencies, resources, competitive advantage

Ans. a

70. In the airline industry, frequent-flyer programs, ticket kiosks, and e-ticketing are all
examples of capabilities that are

a. rare.

b. causally ambiguous.

c. socially complex.

d. valuable.

Ans. d

71. Firms with few competitive resources are more likely

a. to not respond to competitive actions.

b. respond quickly to competitive actions.

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c. delay responding to competitive actions.

d. respond to strategic actions, but not to tactical actions.

Ans. c

72. Competitors are more likely to respond to competitive actions that are taken by

a. differentiators.

b. larger companies.

c. first movers.

d. market leaders.

Ans. d

73. What can be defined as the art and science of formulating, implementing and
evaluating cross-functional decisions that enable an organization to achieve its objectives?

a. Strategy formulation

b. Strategy evaluation

c. Strategy implementation

d. Strategic management

e. Strategic leading

Ans. d

74. Which of the following is not a cultural product?

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a. Rites

b. Emotions

c. Rituals

d. Sagas

e. Symbols

Ans. b

75. Which individuals are most responsible for the success and failure of an organization?

a. Strategists

b. Financial planners

c. Personnel directors

d. Stakeholders

e. Human resource managers

Ans. a

76. Which of the following is an element of a firm’s remote external environment?

a. Competition

b. Political agencies

c. Suppliers

d. Trade union
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Ans. b

77. Long-term objectives should be all of the following except:

a. measurable.

b. continually changing.

c. reasonable.

d. challenging.

e. consistent.

Ans. b

78. What are guides to decision making?

a. laws

b. rules

c. policies

d. procedures

e. goals

Ans. C

79. When two or more companies carrying on similar business decide to combine, a new
company is formed, it is known as ..................

(A) Amalgamation (B) Absorption (C) Internal reconstruction (D) External reconstruction
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80. When one of the existing companies take over business of another company or companies, it
is known as ...........

(A) Amalgamation (B) Absorption (C) Internal reconstruction (D) External reconstruction

81. While calculating purchase price, the following values of assets are considered

(A) Book value (B) New values fixed (C) Average values (D) Market values

82. Shares received from the new company are recorded at –

(A) Face value (B) Average price (C) Market value (D) None of the above

83. Which of the following statement is correct?

(A) The amount of Goodwill or Capital Reserve is found out in the books of purchasing
company only

(B) The amount of Goodwill or Capital Reserve is found out in the books of vendor company
only.

(C) Goodwill = Net Assets – Purchase price

(D) The face value of shares of purchasing company will be taken in to account while calculating
purchase consideration.

84. If the two companies have different accounting policies in respect of the same item, then they
make necessary changes to adopt .............. accounting policies.

(A) Lifo method (B) Fifo method (C) Weighted method (D) Uniform

85.In case of .............., one existing company takes over the business of another company and no
new company is formed.

(A) Amalgamation (B) Absorption (C) Reconstruction (D) None of the Above

86. In amalgamation of two companies

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(A) Both companies lose their existence (B) Both companies continue (C) Any one
company continues

87. Centurion bank and ________________________merged to form centurion Bank of

Punjab.
1.Bank of Punjab
2.Bank of Chandigarh
3.Laxmi Commercial Bank
4.Punjab National Bank
5.None of these

88. Which of the following is typically the most important economy or synergy which is sought
from Mergers and Acquisitions M&A activity?

a) Economies of scope from applying existing resources to new uses, at little additional cost.
b) Revenue and marketing synergies from new, enhanced, or more efficient distribution.
c) Economies of scale effects from organizational learning.
d) Economies of scale from doing away with duplication of function between the two
firms.

89. When British Airways merged with Iberia, the Spanish airline, what kind of merger was this?

a) Vertical.
b) Horizontal.
c) Joint venture.
d) Conglomerate.

90. Which of the following is not an anti-takeover defence?

a) Hubris
b) Greenmail
c) Golden Parachute
d) Scorched Earth
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91. Which region has the largest amount of Mergers and Acquisitions activity and has the longest
history of this type of business activity?

a) Continental Europe
b) The UK
c) The USA
d) Japan and Korea

92. The acquisition of a retail shoe store by a shoe manufacturer is an example of

A.Vertical integration B. A conglomerate C. Market extension D. Horizontal integration.

93. Which of the following is a combination involving the absorption of one firm by another?

A. Merger B.Consolidation C. Proxy fight D.Acquisition.

94. An attempt to replace management in which a group of shareholders try to solicit votes is a
A. Tender offer B. Takeover C. Proxy fight D. Leveraged buyout.

95. Which of the following is a defensive tactic against a hostile takeover by tender offer?

A.Leveraged buyout (LBO ) B.Acquisition C.Conglomerate merger D. Saturday

night special.

96. Which of the following statements about the benefits and costs of mergers is correct?
A.The shareholders of target firms that are acquired substantially benefit.
B.The shareholders of acquiring firms substantially benefit in successful takeovers
C.The shareholders of target firms not acquired substantially benefit
D.Both shareholders of the acquiring firm and the target firm are required to receive positive
returns.

97. A parent company sold a subsidiary to a group of managers of the subsidiary. The purchasing
group invested $1 million and borrowed $49 million against the assets of the subsidiary. This is
an example of a

A.Spin-off B.Leveraged buyout C. Joint venture. D. Liquidation.

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98. Which of the following will reduce average production costs following a merger?
A. conglomerate merger B. The existence of economies of scale C. A vertical merger.
D. Net operating losses of an acquired firm

99. The coinsurance effect can be reduced by

Retirement of Debt before a Combination
Issuance of Debt after a Combination
A. Yes Yes B. Yes No C. No Yes D. No No

100. After a merger, the difference between the value of the combined entity and the sum of the
values of the separate entities is
A. A pooling of interests. B. Consolidation. C. Goodwill. D. Synergy.

101. Which of the following is most likely to be a bad reason for a business combination
involving publicly held companies?
A. Diversification B. Greater leverage through the increase of debt capacity C.
Ouster of incumbent management D. A breakup value in excess of the cost.