Management MCQs

Which of the following statements best describes strategic management?

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A. A process consisting of determining objectives and strategic actions to achieve those objectives
B. A process consisting of determining objectives, strategic actions to achieve those objectives, the implementation of desired strategy, and the monitoring of that strategy
C. A process consisting of the determination of direction, strategic actions to achieve objectives, the implementation of desired strategy, and monitoring of that strategy
D. A process for determining direction, strategic actions to achieve objectives, and the implementation of desired strategy
✅ The correct answer is option C.
A process consisting of the determination of direction, strategic actions to achieve objectives, the implementation of desired strategy, and monitoring of that strategy statements best describes strategic management. Strategic management is the ongoing planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. Changes in the business environment require organizations to constantly assess their strategies for success.

Kind of costs that has been occurred in past are also known as

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A. unrecorded costs
B. recorded costs
C. sunk costs
D. bunked costs
✅ The correct answer is option C.
Kind of costs that has been occurred in past are also known as sunk costs. A sunk cost is a cost that an entity has incurred, and which it can no longer recover. Sunk costs should not be considered when making the decision to continue investing in an ongoing project, since these costs cannot be recovered.

___________arises when a firm is able to perform an activity that is distinct from competitors

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A. competitive advantage
B. focus
C. cost leadership
D. logic
✅ The correct answer is option A.
Competitive advantage arises when a firm is able to perform an activity that is distinct from competitors. Competitive advantage refers a company’s ability to outperform rivals due to unique, high demand, or superior quality products or services.

An example of direct engineered cost is

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A. indirect material cost
B. direct material cost
C. direct labour cost
D. indirect labour cost
✅ The correct answer is option B.
An example of direct engineered cost is direct material cost. Direct material cost is the cost of the raw materials and components used to create a product. The materials must be easily identifiable with the resulting product (otherwise they are considered to be joint costs).

Forgone contribution of resources, in to revenues because of not using resources, in next best use is classified as

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A. in-source cost
B. opportunity cost
C. offshore cost
D. outsource cost
✅ The correct answer is option B.
Forgone contribution of resources, in to revenues because of not using resources, in next best use is classified as opportunity cost. Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services.

Which of the following statements best describes scenario planning?

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A. Exploring future possibilities by looking at potential outcomes from particular causes and seeking to explain why things might occur
B. Considering three likely scenarios for future developments, and devising a strategy according to the likeliest outcome
C. Helping managers come to terms with the threats and opportunities within the company by devising a possible scenario to eliminate the threats and capitalize on the opportunities
D. Planning the best way to secure the scenario outcome that would benefit the company most
✅ The correct answer is option A.
Exploring future possibilities by looking at potential outcomes from particular causes and seeking to explain why things might occur best describes scenario planning. Scenario planning is making assumptions on what the future is going to be and how your business environment will change overtime inlight of that future. More precisely, Scenario planning is identifying a specific set of uncertainties, different “realities” of what might happen in the future of your business.

In public corporation, claim of fundamental ownership is called

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A. common stock
B. fundamental stock
C. corporate stock
D. claimed stock
✅ The correct answer is option A.
In public corporation, claim of fundamental ownership is called common stock. Common stock is a security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy.