Test Bank For Business Strategy Development Application 2nd Edition by Bissonette

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This chapter has 142 questions.

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Multiple Choice Questions - (74) Learning Objective: 01-05 Exposure to the concept of Visionary Leadership - (5)
Learning Objective: 01-06 Via a Management Reflection, a cursory overview of the relationship between
True/False Questions - (56) business strategy and business model development, and the importance of successfully executing both in order for a
business to achieve its identified objectives - (12)
Learning Objective: 01-07 Via an appendix, an introduction to the difference between profit and
Short Answer Questions - (12)
profitability - (13)
Odd Numbered - (71) Topic: 01-01 The Big Picture - (12)
Even Numbered - (71) Topic: 01-02 What Is Business? - (51)
Accessibility: Keyboard Navigation - (130) Topic: 01-03 The Full Business Model - (11)
Difficulty: Difficult - (6) Topic: 01-04 The Role of the Business Owner or C-Suite Manager - (16)
Difficulty: Easy - (107) Topic: 01-05 Putting Plans Into Action - (14)
Difficulty: Moderate - (29) Topic: 01-06 Thinking Across Multiple Horizons - (4)
Gradable: automatic - (130) Topic: 01-07 Corporate Social Responsibility - (10)
Gradable: manual - (12) Topic: 01-08 The Concept of Visionary Leadership - (7)
Learning Objective: 01-01 A macro-level understanding of what business
Topic: 01-09 Management Reflection - The Business Decision-Making Landscape - (8)
is - (54)
Learning Objective: 01-02 An overview of the major components of a
business model and how their successful development and execution determines Topic: 01-10 Appendix - The Business Model and Profitability - (2)
business performance - (54)
Learning Objective: 01-03 An awareness of the overarching role of the
Topic: 01-11 The Difference between Profit and Profitability - (8)
business owner or C-Suite management team - (45)
Learning Objective: 01-04 An understanding of how businesses plan - (42) Topic: 01-12 Improving Profitability - (2)
1. Commercial endeavours refers to the markets the organization serves, the products it offers, and the needs it professes to
meet in the marketplace.
→ True
False
Accessibility: Keyboard Navigation

Difficulty: Easy
True / False Question Gradable: automatic
question #1 Topic: 01-01 The Big Picture
2. Employee interaction is a reflection of the complexities of the business activities that circulate within an organization.
True
→ False

Difficulty: Easy
3. Organizational efficiency and structure refers to the value-creating skills an organization's employees bring to the
marketplace.
True
→ False

Difficulty: Easy
4. Employee interaction refers to the value-creating skills an organization's employees bring to the marketplace.
→ True
False

Difficulty: Easy
5. Business can be thought of as a system designed to grow a market for an organization's goods and services and create
organizational value on behalf of stakeholders.
→ True
False

Difficulty: Easy
6. Any organization that produces a good or service can be classified as a business.
True
→ False

Difficulty: Easy
Gradable: automatic
Learning Objective: 01-01 A macro-level understanding of what business is
Learning Objective: 01-02 An overview of the major components of a business model and how their
True / False Question successful development and execution determines business performance
question #6 Topic: 01-02 What Is Business?
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7. The goal of business activities is profit.

True
→ False

Difficulty: Easy
Gradable: automatic
8. Profit is what it costs to make and sell a product.
True
→ False

Difficulty: Easy
Gradable: automatic
9. Businesses have the right to keep and use their profits as they choose, without limitations.
True
→ False

Difficulty: Easy
Gradable: automatic
10. Businesses seek to earn a profit by providing goods and services to others.
→ True
False

Difficulty: Easy
Gradable: automatic
11. Revenue is the amount a business earns above and beyond what it spends for expenses and costs.
True
→ False

Difficulty: Moderate
Gradable: automatic
12. A manager is an individual who assumes the risk of starting a business.
True
→ False

Difficulty: Easy
Gradable: automatic
13. If a business' costs and expenses are greater than its revenue, it will suffer a loss.
→ True
False

Difficulty: Easy
Gradable: automatic
14. The business model can best be visualized as the underlying operational platform.
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True
→ False

Difficulty: Easy
Gradable: automatic
successful development and execution determines business performance
True / False Question Topic: 01-02 What Is Business?
question #14 Topic: 01-03 The Full Business Model
15. Technology can help businesses become more efficient and productive.
→ True
False

Difficulty: Easy
Gradable: automatic
16. Successful firms follow a customer-driven strategy, as opposed to the management-driven strategy used in the past.
→ True
False

Difficulty: Easy
Gradable: automatic
17. The competitive environment now empowers managers to make decisions quickly for their front line employees.
True
→ False

Difficulty: Easy
Gradable: automatic
18. Managers coordinate resources to achieve organizational objectives.
→ True
False

Difficulty: Easy
Gradable: automatic
19. Businesses seek to earn a profit by providing goods and services to others.
→ True
False

Difficulty: Easy
Gradable: automatic
20. If a business' costs and expenses are less than than its revenue, it will earn a profit.
→ True
False

Difficulty: Easy
Gradable: automatic
21.
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On the company-centric (business system) side of the business model, the key activities cell refers to the infrastructure and
resource base of the organization.
True
→ False

Gradable: automatic
True / False Question Topic: 01-02 What Is Business?
22. The Buckmaker Corporation generated total revenues of $30 million dollars while incurring expenses of $17 million.
During the year Buckmaker earned a profit of $13 million.
→ True
False

Difficulty: Easy
Gradable: automatic
23. Successful businesses constantly monitor consumer wants and needs.
→ True
False

Difficulty: Easy
Gradable: automatic
24. Not-for-profit organizations such as the Canadian Cancer Society do not engage in management, marketing, or finance
activities.
True
→ False

Difficulty: Easy
Gradable: automatic
Learning Objective: 01-03 An awareness of the overarching role of the business owner or C-Suite
management team
True / False Question Learning Objective: 01-04 An understanding of how businesses plan
question #24 Topic: 01-05 Putting Plans Into Action
25. To remain competitive in today's market, firms must produce a quality product and offer outstanding service at a
reasonable price.
→ True
False

Difficulty: Easy
Gradable: automatic
management team
question #25 Topic: 01-04 The Role of the Business Owner or C-Suite Manager
26. Producing a high quality product will ensure success in the competitive environment.
True
→ False

Difficulty: Easy
Gradable: automatic
management team
27. A key element of business success is a business plan.
→ True
False
True / False Question Accessibility: Keyboard Navigation

question #27 Difficulty: Moderate
Gradable: automatic
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management team
Learning Objective: 01-04 An understanding of how businesses plan
Topic: 01-11 The Difference between Profit and Profitability
28. Management is the art of getting things done through organizational resources.
→ True
False

Difficulty: Easy
Gradable: automatic
management team
29. A modern manager's main job is to issue orders, then follow up to make sure employees do as they were told.
True
→ False

Difficulty: Easy
Gradable: automatic
management team
30. Managers in progressive organizations tend to emphasize teamwork and cooperation rather than discipline and giving
orders.
→ True
False

Difficulty: Easy
Gradable: automatic
management team
31. Managers in many of today's high-tech firms realize that workers often know much more about technology than they do.
→ True
False

Difficulty: Easy
Gradable: automatic
management team
32. Despite all of the changes in the business environment, the basic way a manager performs his or her job has remained
remarkably constant.
True
→ False

Difficulty: Easy
Gradable: automatic
management team
33. Given the lack of discipline and short attention spans of today's workers, modern managers must watch their workers
closely, set strict rules, and vigorously enforce them.
True
→ False

Difficulty: Easy
Gradable: automatic
management team
34. In most high tech industries, the best way to respond quickly to rapid technological changes is to keep most authority and
responsibility in the hands of a few key managers who provide precise, detailed directions to the workers.
True
→ False
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question #34 Difficulty: Easy
Gradable: automatic
management team
Topic: 01-04 The Role of the Business Owner or C-Suite Manager
35. The need for better-educated and self-directed workers has made it easier for managers to obtain the trust and loyalty of
their workers.
True
→ False

Difficulty: Easy
Gradable: automatic
management team
36. Every business is faced with the reality of having less uses for resources than resources available.
True
→ False

Difficulty: Easy
Gradable: automatic
management team
37. Because of advancements in technology, managers now have an easier time obtaining long-term commitments from
workers.
True
→ False

Difficulty: Easy
Gradable: automatic
management team
38. An organization is said to have competitive advantage when it can perform critical activities better than its rivals.
→ True
False

Difficulty: Easy
Gradable: automatic
management team
39. Not-for-profit organizations are concerned with wealth creation on behalf of their shareholders and stakeholders.
True
→ False

Difficulty: Easy
Gradable: automatic
management team
40. For-profit organizations serve their customers and clients via a model of collective interest and social goal achievement.
True
→ False

Difficulty: Easy
Gradable: automatic
management team
41. Questions like "What do we want to do?" are associated with the implementation stage of the planning cycle.
True
→ False
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Difficulty: Easy
Gradable: automatic
management team
42. Questions like "What needs to be changed or improved?" are associated with the positioning stage of the planning cycle.
True
→ False

Difficulty: Easy
Gradable: automatic
management team
43. Stakeholders are best understood as the shareholders of a business or the people who have made an equity investment.
True
→ False

Difficulty: Easy
Gradable: automatic
management team
question #43 Topic: 01-07 Corporate Social Responsibility
44. Stakeholders have a direct or an indirect link to an organization and can be impacted by its policies, actions, and decisions.
→ True
False

Difficulty: Easy
Gradable: automatic
management team
45. Social and environmental responsibility is not as important as it used to be.
True
→ False

Difficulty: Easy
Gradable: automatic
management team
46. Short-term performance is one of two fundamental objectives that managers must consider when making decisions about
the strategic direction of the organization.
True
→ False

Gradable: automatic
management team
question #46 Topic: 01-06 Thinking Across Multiple Horizons
47. Green initiatives are challenging organizations to position themselves as good corporate citizens in order to acquire and
retain customers.
→ True
False

Difficulty: Easy
Gradable: automatic
management team
48. Strategies are actions that a firm executes to meet short-term objectives.
True
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→ False

Gradable: automatic
business strategy and business model development, and the importance of successfully executing both in
True / False Question order for a business to achieve its identified objectives
question #48 Topic: 01-09 Management Reflection - The Business Decision-Making Landscape
49. Assessing company resources and capabilities is an element of the business decision-making model.
→ True
False

Gradable: automatic
question #49 Topic: 01-08 The Concept of Visionary Leadership
50. As managers, we need to avoid the temptation to become predominantly focused on short-term results.
→ True
False

Difficulty: Easy
Gradable: automatic
51. The amount of profit or loss earned by a business can be found by subtracting the firm's expenses from its revenues.
→ True
False

Difficulty: Easy
Gradable: automatic
True / False Question profitability
question #51 Topic: 01-11 The Difference between Profit and Profitability
52. Profits of a business include the salaries paid to the owners and employees of that business.
True
→ False

Gradable: automatic
53. Total revenue - total expenses = profit
True
→ False

Difficulty: Easy
Gradable: automatic
54. Profitability is the "bottom line" result the organization has been able to achieve.
True
→ False

Difficulty: Easy
Gradable: automatic
55. Profitability measures how well an organization is using its resources over a specific period of time.
→ True
False

Gradable: automatic
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profitability
Topic: 01-11 The Difference between Profit and Profitability
56. The challenge to improve profitability faces both large companies and small companies.
→ True
False

Difficulty: Easy
Gradable: automatic
question #56 Topic: 01-12 Improving Profitability
57. One way of thinking about the talent component of an organization is to use the axiom that a successful strategy results
from ____% thinking and ____% execution:
→ 5, 95
95, 5
80, 20
20, 80
50, 50

Difficulty: Easy
Gradable: automatic
Multiple Choice Question successful development and execution determines business performance
58. The goal of business is to earn
respect.
resources.
→ a profit.
responsibility.
independence.

Gradable: automatic
59. A business' objectives should NOT be:
specific
measurable
actionable
controllable
→ overly complicated

Gradable: automatic
management team
Multiple Choice Question Learning Objective: 01-04 An understanding of how businesses plan
60. Which of the following is NOT presented as a key ability of visionary leaders:
articulate and communicate the vision
create exceptional commitment to vision within the workforce
→ adjust, build out or reinvent the business model
understand the critical investments necessary for success
demonstrate leadership commitment

Difficulty: Easy
Gradable: automatic
Multiple Choice Question Learning Objective: 01-05 Exposure to the concept of Visionary Leadership
61. If a business is to be successful in the long run, it must treat its customers, employees, and community with social
meetings.
→ responsibility.
agendas.
insight.
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interests.

Gradable: automatic
management team
62. Not-for-profit organizations,
Last for only short periods of time as their objective is not to create profits for their owners.
Have a hard time hiring employees as they have no means of paying them.
Are not concerned about meeting their financial needs.
→ Can provide an opportunity for individuals to address social issues.
Are the same as government organizations

Gradable: automatic
management team
63. All of the following are recognized as abilities of visionary leaders except:
demonstrate leadership commitment
→ drive increases in profitability
articulate and communicate vision
create commitment to vision
Enable execution of essential processes

Difficulty: Easy
Gradable: automatic
64. What is the first step in the business decision-making model:
→ visualize and assess the business opportunity
adjust, build out or reinvent the business model
assess company resources and capabilities
determine tactics required to achieve objectives
confirm market size and profitability potential

Difficulty: Easy
Gradable: automatic
Learning Objective: 01-06 Via a Management Reflection, a cursory overview of the relationship
between business strategy and business model development, and the importance of successfully
Multiple Choice Question executing both in order for a business to achieve its identified objectives
65. ____________ refers to the human resource requirements of the business.
→ Labour
Capital
Assets
Efficiency
Acumen

Difficulty: Easy
Gradable: automatic
66. When consumers decide to purchase a particular product, they:
will search for the retailer that offers the lowest price.
→ consider the total collection of benefits that the product offers.
base their decision on a brand name nearly all of the time.
initially evaluate the product's package.
Multiple Choice Question Accessibility: Keyboard Navigation

Gradable: automatic
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Topic: 01-02 What Is Business?
67. Any activity which seeks to earn a profit by providing a good or service is known as a(n):
industry
corporation
→ business
service
initiative

Difficulty: Easy
Gradable: automatic
68. __________can most easily be thought of as a set of mission-focused actions aimed at identifying the needs of a particular
market, or markets, and the development of a solution to such needs through the acquisition or transformation of goods
and services that can be delivered to the marketplace at a profit:
goods-producing activities
service activities
→ business
government
Not-for-profit activities

Difficulty: Easy
Gradable: automatic
69. ______________ refers to the ability of managers to establish a direction for the organization based on the needs
identified in the marketplace and the mission (reason for being) of the organization.
Human capital
Assets
Business Acumen
→ Visionary leadership
Managerial Acumen

Difficulty: Easy
Gradable: automatic
70. A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals is a
mission statement.
corporate charter.
→ business plan.
corporate statement.
balance sheet.

Gradable: automatic
management team
71. In evaluating colleges, students, and parents are likely to judge a school:
strictly on the basis of major curriculums offered.
based on the tuition.
→ by the collection of benefits offered by the school.
on the anticipated rate of return on their tuition investment.
strictly on the basis of extracurricular activities offered

Gradable: automatic
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Topic: 01-03 The Full Business Model
72. _________ refers to the money needed by an organization.
Assets
Labour
→ Capital
Managerial acumen
Structure

Difficulty: Easy
Gradable: automatic
73. Which of the following is NOT one of the four core fundamental resource areas an organization will build its business
model or system around?
Assets
Labour
Capital
Managerial acumen
→ Structure

Difficulty: Easy
Gradable: automatic
74. To start any business you must first have
investors.
→ an idea.
capital.
employees.
a business plan.

Gradable: automatic
management team
75. Which of the following is NOT a suitable definition of strategy?
Is the development of plans and decisions which will guide the direction of the firm and determine its long-
term performance.
Focuses on the vision of the firm and the opportunity which it believes exists in the marketplace.
Checks that the life expectancy of the product or service is long enough to ensure that the initial investment
can be recovered and that the firm can make a profit.
Is the means by which the organization selects future direction and areas for focus.
→ Checks to see that day-to-day activities are running smoothly and generating profit.

Difficulty: Easy
Gradable: automatic
76. Culture, processes, and infrastructure are related to which of the three characteristics one can use to assess a business?
Employee interaction
Organizational capacity
Commercial endeavours
Markets the organization serves
→ Organizational efficiency and structure

Difficulty: Easy
Multiple Choice Question Gradable: automatic
77. _________ occurs when a company possesses capabilities that enable it to perform critical activities better than its rivals:
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positioning
managerial acumen
→ competitive advantage
profit
profitability

Difficulty: Easy
Gradable: automatic
Multiple Choice Question management team
78. The role of the top-level management team is to anticipate, recognize, and _____ opportunities that then drive the creation
of products and/or delivery of services believe to offer solutions to problems in a unique, important, and valued
(meaningful) way.
examine
analyze
consider
→ act upon
think about

Difficulty: Difficult
Gradable: automatic
management team
79. Sweet Dream Confectioners uses the same ingredients as most other producers of chocolate candies. In fact, taste tests
suggest that the candy itself, while quite good, isn't much better than other well-known brands of chocolate. However, the
company wraps its candies in expensive looking foil and places them in very attractive boxes. It promotes its products in
advertisements as "the ultimate in chocolate experience." Sweet Dream charges a much higher price than most
competitors, but sales continue to grow. This success indicates that:
consumers often behave in an irrational manner.
→ there is more to the total product offer than the physical product.
consumers seldom consider price when making a buying decision for goods such as chocolate.
chocolate is best classified as a convenience good.
the market is inefficient

Difficulty: Easy
Gradable: automatic
80. When purchasing a product, the consumer is actually buying its anticipated benefits and
→ satisfaction.
price.
costs.
productivity.
form.

Gradable: automatic
81. Which of the following does NOT make up a business?
A system of integrated actions
develops and grows a market for its goods and/or services
creates organizational value (wealth) on behalf of its stakeholders
→ develops wealth for its employees
delivers the right solution to the right customer

82. A company does not have competitive advantage when:
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it can offer customers a product/service that has more value to them than similar products offered by other
companies.
the business plan is competitive and executed properly.
customers are attracted to the company's product/service offering(s).
the company generates money, or revenue, from the sale of the product.
→ the company's product/service offer is perceive to be equal to that offered by other companies.

Gradable: automatic
management team
83. A business incurs a ___________ if its costs and expenses exceed its revenues.
→ loss
liability
debit
dividend
bonus

Difficulty: Easy
Gradable: automatic
84. A business' objectives should NOT be which of the following?
Specific
Measurable
→ Easy
Controllable
Actionable

Gradable: automatic
management team
85. Which of the following is NOT one of the three fundamental characteristics that an efficient and effective operating
platform will possess?
→ A system of integrated actions
Commercial Endeavours
Employee Interaction model
Organizational Efficiency
Organizational Structure

Gradable: automatic
86. The business plan should do all of the following except
explain the business.
include estimates of income and expenses.
establish a strategy for acquiring sufficient funds.
include an analysis of the competition.
→ act as a shackle to limit the business's flexibility and decision making.

Gradable: automatic
management team
87. Today's progressive managers:
usually prefer to use the autocratic style of leadership.
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→ tend to emphasize teamwork and cooperation rather than discipline and order-giving.
face fewer challenges and problems than managers in the past.
can rely on a much higher level of worker loyalty to the organization than in the past.
are beginning to revert to a command-and-control approach.

Difficulty: Easy
Gradable: automatic
management team
88. Profitability analysis takes into consideration all of the following except:
return on the capital invested
return on equity
financial leverage
comparisons between competitors to determine which organizations are the most effective in their utilization
of their resources
→ market capitalization

Gradable: automatic
Multiple Choice Question profitability
89. Which of the following is NOT one of the areas in which visionary leaders excel:
build support and critical mass for vision
→ eliminate opposition to vision and strategy
free up resources to complete critical initiatives
ensure accountability is embedded in reward and performance programs
Create shared understanding of vision

Difficulty: Easy
Gradable: automatic
90. ____________ is the amount a business earns over and above what it spends for salaries and other expenses.
→ Profit
Revenue
Interest
Dividends
tax

Difficulty: Easy
Gradable: automatic
91. ____________ is the amount a business earns over and above what it spends for salaries and other expenses.
→ Profit
Revenue
Interest
Dividends
Assets

Difficulty: Easy
Gradable: automatic
92. _______ represent the infrastructure and resource base of the organization:
→ assets
liabilities
labour
capital
managerial acumen
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Difficulty: Easy
Gradable: automatic
93. Key resources include all of the following EXCEPT:
assets
→ liabilities
labour
capital
managerial acumen

Difficulty: Easy
Gradable: automatic
94. __________________ refers to the value-creating skills which an organization's employees bring to the marketplace.
Organizational efficiency
→ Employee interaction
Labour supply
Organizational value
Stakeholder efficiency

95. _________ refers to the immediate-term actions which a firm executes in order to meet the short-term objectives set forth
in the current planning cycle:
strategy
→ tactics
leadership
culture
resources and capabilities

Difficulty: Easy
Gradable: automatic
96. The total amount of money that businesses earn by selling goods and services is called ________.
profit
→ revenue
loss
retained earnings
equity

Difficulty: Easy
Gradable: automatic
97. Which of the following is NOT part of the process called The Business Planning Cycle?
Management team understands its strategic opportunities and its capabilities, competencies, and overall
capacity.
Management team develops a business plan via a process which outlines its focus and methodology for using
its resources.
→ Management team capitalizes on its identified strategic opportunities.
Management team creates valuable products and services.
Management team creates a unique position in the marketplace built around a competitive advantage.

question #97 Difficulty: Moderate
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Gradable: automatic
management team
Topic: 01-05 Putting Plans Into Action
98. The functions of organizing, staffing, planning, and controlling are most closely associated with
employees.
customers.
→ managers.
stockholders.
accountants.

Difficulty: Easy
Gradable: automatic
management team
99. Today, managers have to make allocation decisions around the use of all of the following resources EXCEPT:
financial
human
natural
technological
→ consumer

Difficulty: Easy
Gradable: automatic
management team
100."I Can't Believe That It's Medicine" is an advertising slogan for a new antacid. The manufacturer claims that their antacid
works faster and tastes better than any competing brand. These claims are part of the firm's __________ strategy.
partnership
portfolio
new product development.
→ positioning
value chain

Difficulty: Easy
Gradable: automatic
101._______ expenditures are expenses incurred as a result of the normal business operations. The salaries/wages of
employees, the purchase of raw materials for the fabrication of products, the costs of shipping products from point A to
point B, or the costs of advertising campaigns, are examples of such expenses.
Asset-based
Working
→ Operating
Functioning
Past

Difficulty: Easy
Gradable: automatic
102.__________ is the ability to develop a unique, credible, sustainable, and valued place in the minds of our customers for
our brand, products, and/or services:
→ positioning
relative merit assessment
opportunity assessment
revenue model development
primary segment development and exploitation
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Gradable: automatic
103.Which of the following is NOT one of the three fundamental characteristics against which a business can be initially
assessed?
Commercial endeavours
→ Organizational capacity
Employee interaction
Organizational structure

Difficulty: Easy
104.The idea that strategy is 5% thinking and 95% execution, and execution is 5% technical competence and 95% people
capabilities is most closely associated with which characteristic of a business?
Commercial endeavour
Organizational capacity
→ Employee interaction
Organizational structure

Difficulty: Easy
105.Which of the following is NOT typically included on the company-centric side of the business model?
activities
resources
partners
→ revenue model
product/service portfolio

Difficulty: Easy
Gradable: automatic
Multiple Choice Question Topic: 01-02 What Is Business?
106.According to your text, marketing research and data analytics are most commonly associated with:
value proposition development
→ opportunity assessment
portfolio management
value chain configuration
assembly of key resources

Difficulty: Easy
Gradable: automatic
107._______________ is the art of getting things done using organizational resources.
Socialization
Justification
Preparation
→ Management
Cultural alignment

Gradable: automatic
management team
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Topic: 01-04 The Role of the Business Owner or C-Suite Manager
108.___________ summarizes to whom a product or service is geared and the benefits the purchaser will realize as a result of
using the product or service:
→ value proposition
product mix
product differentiation
product portfolio

Difficulty: Easy
Gradable: automatic
Multiple Choice Question management team
109.Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a
similar market?
Product matrix.
→ Product line.
Product mix.
Total product offer.
product proposition.

Difficulty: Easy
Gradable: automatic
110.Which of the following is typically NOT used to describe commercial endeavours?
Needs the organization professes to meet in the marketplace
Products the organization offers
Services the organization offers
→ Transaction processes the organization develops

Difficulty: Easy
111._____________ measures how well a company is using its resources over a specific period of time to generate earnings
relative to its competitors:
profit
→ profitability
profit potential
profit target
profit expectation

Difficulty: Easy
Gradable: automatic
question #111 Topic: 01-10 Appendix - The Business Model and Profitability
112.Businesses differ from not-for-profit organizations in that a business's focus is on
price.
goods.
→ profit.
organization.
plans.

Gradable: automatic
113.____________ is the "bottom line" result an organization has realized for an identified, immediate period of time:
profit potential
profit target
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profitability
→ profit
profit expectation

Difficulty: Easy
Gradable: automatic
question #113 Topic: 01-10 Appendix - The Business Model and Profitability
114.Too much emphasis on developing future products and/or services, versus responding to customer needs today, may result
in the business:
falling short of social responsibility expectations
→ liquidity issues if it is unable to cover its expenses in the short term
remaining healthy and continues to grow
acquiring external capital funding commitments which will enable them to reinvest in the organization
ensuring that it remains vibrant and responsive to community needs

Gradable: automatic
management team
115.A loss occurs when expenses are greater than:
assets
profit
→ revenue
costs
taxes

Difficulty: Easy
Gradable: automatic
116.Which of the following is NOT integral in how an organization can succeed in identifying solutions to needs the
marketplace desires?
right time
right customer
right place
→ right invention
right price

Multiple Choice Question Difficulty: Moderate
question #116 Gradable: automatic
117.Which of the following is typically NOT used to describe commercial endeavours?
→ Value-creating skills of employees
Services the organization offers
Products the organization offers
Needs the organization professes to meet in the marketplace

Difficulty: Easy
118.Which organization is endeavouring to serve a wealthier and "trendier" customer base?
Walmart
Home Outfitters
Simons Inc.
→ Hudson's Bay Company
Zellers

Gradable: automatic
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profitability
Topic: 01-12 Improving Profitability
119._______, managers need to understand where the market is going and how their products and services will fit into the
market and meet customer needs. ________, they need to ensure that the right product reaches the right customer at the
right time and at the right place for the right price.
Tactically; Tactically
Strategically; Strategically
→ Strategically; Tactically
Decisively; Tactically
Defensively; Tactically

Difficulty: Easy
Gradable: automatic
120.___________ is the development of plans and decisions which will guide the direction of the firm and determine its long-
term performance.
Vision
Planning
→ Strategy
Execution
Tactic

Difficulty: Easy
Gradable: automatic
121.____________ is the development of plans and decisions which will guide the direction of the firm and determine its
long-term performance.
Vision
Planning
→ Strategy
Execution
Tactic

Difficulty: Easy
Gradable: automatic
122.The _______ of the value proposition is the perceived sum of your company's ability to deliver in each of the areas noted
within the value proposition equation, versus the _____ of your competitors' value propositions measured across these
same benefit areas.
total; strength
→ strength; strength
strength; weakness
weakness; weakness
weakness; strength

Difficulty: Easy
Gradable: automatic
123.Which of the following is NOT one of the key elements that comprise the commercial endeavours characteristic of the
"big picture" model of the enterprise:
markets the organization serves
products the organization offers
→ structure of the organization
services the organization offers
needs the organization meets
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Gradable: automatic
124.Last year, MacTeck Enterprises had total revenues of $34 million while its total expenses were $22 million. Based on this
information, MacTeck:
→ earned a profit of $12 million.
earned a profit of $56 million.
suffered a loss of $12 million.
suffered a loss of $22 million.
paid tax of $12 million

Gradable: automatic
125.Which of the following is the best example of a business?
A community college
The Salvation Army
The Girl Guides of Canada
→ Walmart
The YMCA

Gradable: automatic
126.In order to achieve long-term growth and profitability, businesses are constantly searching for new markets and new
opportunities to further grow the scope and focus of their organizations:
because management behavior is unpredictable
because they recognize that the demand for current products and services could disappear
to ensure the immediate survival of the firm
→ in order to achieve long-term growth and profitability
because it is too difficult to do business in Canada

Gradable: automatic
management team
127.Which of the following is NOT typically included on the market-centric side of the business model:
→ key resources
positioning
value proposition
revenue model

Difficulty: Easy
Gradable: automatic
Multiple Choice Question Topic: 01-02 What Is Business?
128.Which of the following is NOT one of the key areas of the company-centric side of the business model:
activities
resources
→ value proposition development
partners
products and services
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Gradable: automatic
129.The role of the top-level management team is to anticipate, recognize, and act upon opportunities that then drive the
creation of products and/or delivery of services believe to offer solutions to problems in a unique, important, and _____
way.
interesting
varied
→ valued
insightful
efficient

Gradable: automatic
management team
130.A value proposition which has a positive price/quality relationship is considered superior to those of your competitors, if
it:
is more unique
is more important
your product is more value-driven
provides greater opportunity to communicate to the potential purchaser
→ all of the choices are correct

Difficulty: Easy
Gradable: automatic
131.What is a business?
Explanation:
A business can most easily be thought of as mission-focused activities aimed at identifying the needs of a particular
market, or markets, and the development of a solution to such needs through the acquisition and/or transformation of
goods and services that can be delivered to the marketplace at a profit.
Gradable: manual
Short Answer Question successful development and execution determines business performance
132.What are the three fundamental characteristics against which an organization can be assessed?
Explanation:
An efficient and effective operating platform will also possess three fundamental characteristics against which it can be
assessed. These three characteristics are its commercial endeavours, its employee interaction model, and its organizational
efficiency and structure.
Gradable: manual
133.What is visionary leadership?
Explanation:
Visionary leadership refers to the ability of managers to establish a direction for the organization based on the needs
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identified in the marketplace and the mission (reason for being) of the organization. This is then translated into a strategic
plan designed to guide the organization to fulfilling such needs while meeting its mission.
Difficulty: Easy
Gradable: manual
Short Answer Question Learning Objective: 01-05 Exposure to the concept of Visionary Leadership
134.What is a business model or system?
Explanation:
Combined, the application of assets, labour, capital, and managerial acumen, in support of the transformation and sale of
goods and services, determines a company's cost base and overall operating platform, or what is called its business model
or system.
Difficulty: Easy
Gradable: manual
135.What is the "second" business objective (after making profit)?
Explanation:
This second objective is to set in motion the ability of the organization to achieve long-term growth and profitability.
Businesses recognize that the demand for the products and services which they currently offer will change, and could, in
fact, disappear over time. Given this, businesses are constantly searching for new markets and new opportunities to further
grow the scope and focus of their organizations. Although immediate-term operating performance is based on the products
and services which a business offers today, new products and services will need to be developed in order to ensure that the
organization remains healthy and continues to grow.
Difficulty: Easy
Gradable: manual
Short Answer Question profitability
136.What are stakeholders?
Explanation:
Stakeholders are individuals, groups, or organizations which have a direct or indirect relationship with an organization,
and which can be impacted by its policies, actions and decisions. Stakeholders could include customers, suppliers,
government, employees, etc.
Difficulty: Easy
Gradable: manual
management team
Short Answer Question Learning Objective: 01-04 An understanding of how businesses plan
137.Do you agree with the idea that when consumers calculate the value of a product, then look at the benefits and then
subtract the costs? Why/why not?
Explanation:
Answers will vary.
Difficulty: Easy
Gradable: manual
138.What is the difference between asset-based and operating expenditures, give an example of each?
Explanation:
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Asset-based expenditures are those expenditures which you incur in commencing a business operation or expanding its
capacity. Examples of such expenses could be the purchase of equipment or building(s). Operating expenditures are
expenses incurred as a result of the normal business operations. The salaries/wages of employees, the purchase of raw
materials for the fabrication of products, the costs of shipping products from point A to point B, or the costs of advertising
campaigns, are examples of such expenses.
Gradable: manual
Short Answer Question profitability
139.What is strategy?
Explanation:
Strategy is the development of plans and decisions which will guide the direction of the firm and determine its long-term
performance. Strategy focuses on the vision of the firm and the opportunity which it believes exists in the marketplace.
Difficulty: Easy
Gradable: manual
Short Answer Question executing both in order for a business to achieve its identified objectives
140.Explain the differences between strategic, tactical, operational, and contingency planning.
Explanation:
Strategic planning is long-range planning that determines major goals of the organization and the policies and strategies
for obtaining and using resources to achieve those goals. Strategic planning deals with such fundamental questions as
which customers to serve, what products and services to sell, and the geographic areas in which the firm will compete.
Students may note that top managers are very involved in strategic planning.
Tactical planning is short-range planning that involves the process of developing detailed, short-term decisions about what
is to be done, who is to do it, and how it is to be done. Tactical planning involves setting annual budgets and deciding on
other details which contribute to reaching strategic objectives. Students may point out that lower level managers are more
heavily involved in tactical planning.
Operational planning involves setting the work standards and schedules needed in the short run to achieve tactical
objectives. Operational planning tends to focus on specific department managers, supervisors, and employees.
Contingency planning is the preparation of alternative courses of action that may be used if the primary plans do not
achieve the objectives of the organization. Due to rapid changes that can occur in economic and competitive
environments, it is wise to have alternative plans ready to be implemented.
Gradable: manual
141.When does a business have a competitive advantage?
Explanation:
A company has a competitive advantage when it can offer customers a product/service that has more value to them than
similar products offered by other companies. If the business plan is competitive and executed properly, and customers are
attracted to the company's product/service offering(s), the company generates money, or revenue, from the sale of the
product.
Gradable: manual
142.What is a value proposition?
Explanation:
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Simply stated, a value proposition is a statement which summarizes whom a product or service is geared towards and the
benefits which the purchaser of the product or service will realize as a result of using the product. It is made up of service
benefits, product benefits, brand benefits, cost benefits, and emotional benefits. The strength of the value proposition is
the perceived sum of your company's ability to deliver in each of the areas noted within the value proposition equation,
versus the strength of your competitors' value propositions measured across these same benefit areas.
Difficulty: Easy
Gradable: manual
Short Answer Question management team

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This chapter has 142 questions.

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7. The goal of business activities is profit.

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