Strategic Management and Business

Policy
MB 0036/MH 0045
(3 Credits)
Group A: 1 Marks Questions (Question Number 1-40)
Group B: 2 Marks Questions (Question Number 41-60)
Group C: 4 Marks Questions (Question Number 61-75)
Full Marks: 140
Please Answer All Questions – Only One Option is Correct
Group A
1. ___________________ refers to the process of identifying opportunities to achieve
further growth within the company’s current businesses.

a) Diversification Growth
b) Integrative Growth
c) Intensive Growth
d) Market Development Strategy

Ans:- c)
2. Two or more companies may get together to synergise their operation, seeking
alliance for their ______________________.

a) Promotional Alliance
b) Product and/or service alliance
c) Pricing Collaborations
d) Logistic Alliance

Ans:- b)
3. When the firm finds that it is not possible to fill a gap in the market with the
existing strategy, it considers a change in the focus of the
_________________________________________.

a) Strategy
b) Operation
c) Resources
d) Market

Ans:- a)
4. ____________________ can be adopted in the case of highly competitive and volatile
industries.

a) Combination
b) Stability
c) Retrenchment
d) Expansion
Ans:- d)
5. External stability can be attained by maintaining_____________________.

a) Market share
b) Expansion
c) Focus
d) Diversification

Ans:- a
6. A good ______________ plan will help attract necessary financing by demonstrating
the feasibility of your venture and the level of thought and professionalism you
bring to the task.

a) Strategy
b) Market
c) Business
d) Expansion

Ans:- c
7. Once established, the Business priorities need to be ____________ and updated.

a) Changed
b) Reviewed
c) Analysed
d) Controlled

Ans:- b)
8. The need to ___________________ effectively underlies the whole work programme.

a) Communicate
b) Operate
c) Manage
d) Review

Ans:- a)
9. ________________ enterprises of today work with an internet gateway giving access
to millions of records, with published principles, tools, standards and guidance that
can be applied to Business data including their collection and mobilization.

a) Globalised
b) Transnational
c) Multinational
d) Business

Ans: a)
10. ____________________relates to the use of the NETWORK within the day to day
business of agencies as a source of data relevant to local reporting or casework.

a) Processes
b) Generic Enhancement
c) Data contributor engagement
d) Operational Use

Ans: d)
11. _______________________ is free enough to take more than a single pre-
determined path into the future , and therefore cannot be purely ‘ mechanical’.

a) Strategic System
b) Complex System
c) Multi System
d) Mechanical System

Ans: b)
12. The creativity and imagination of a business will come from the
___________________ interaction of diverse individuals.

a) Static
b) Dynamic
c) Personal

Ans: b)
13. ______________________are Creative- They are natural born story teller.

a) Ad- Agents
b) Top managements
c) Sales People
d) Accountants

Ans:- c)
14. There are lessons learned from the _____________ industry, which point to the
importance of immaterial investments.

a) Japanese
b) Chinese
c) U.S
d) German

Ans:- a)
15. Instead of designing and planning products and services as a ‘ top down’
exercise through a captive ‘______________’ , the models of self organisisng networks
provide an alternative view.

a) CRM
b) Logistic
c) Channel
d) Supply Chain

Ans:- d)
16. ______________________ Means intervention and co- ordination by individuals or
teams before, during, and after an event to resolve the crisis, minimize loss, and
otherwise protect the organization.

a) Crisis Management Team

b) Crisis management Center
c) Crisis Management
d) Crisis Management Plannings

Ans: c)
17. ______________________ is a management level financial analysis that identifies
the impacts of losing an organization’s resources.

a) Business Continuity
b) Business Continuity Plan
c) Business Impact Analysis
d) Business Control Policy

Ans:- c)
18. ___________________________ is a comprehensively managed effort to prioritize
key business processes, identify significant threats to normal operation, and plan
mitigation strategies to ensure effective and efficient organizational response to the
challenges that surface during and after crisis.

a) Business Continuity
b) Business Continuity Plan
c) Business Impact Analysis
d) Business Control Policy
Ans: a)
19. ______________________ is a business activity or process that cannot be
interrupted or unavailable for several business days without having a significant
negative impact on the organization
a) Critical Records
b) Disaster
c) Critical Function
d) Disaster Recovery

Ans: c)
20. _____________________ should be arranged as necessary.

a) Crisis Management Team

b) Crisis Counseling
c) Crisis Management
d) Crisis Management Plannings

Ans : b)
21. The Chief Financial Officer is subordinated to _______________.

a) Chief Executive Officer ( CEO)

b) Managing Director (MD)
c) Financial Director
d) Board of Director

Ans: a)
22. A __________________________ is an organized program for employees of a
corporation allowing them to buy its shares.

a) Employees Stock Option Plan

b) Economic Recovery Tax
c) Stock Option
d) Entrepreneur’s One Stop Shop

Ans: c)
23. The CFO can report directly to the Board of Directors through the person of
___________________.

a) Managing Director
b) The Chief Executive Officer
c) Financial Director
d) The Chairman of the Board of Directors

Ans: d)
24. A company can run liabilities which outweigh its assets. This is called
__________________________.

a) Economic Recovery Tax

b) Qualifying Stock Option
c) Equity Insolvency
d) Bankruptcy Insolvency

Ans: d)
25. Once the assets of the company are sold, the first to be fully paid off are
___________________________

a) Secured Creditors
b) Secured Debitors
c) Secured Investor
d) Entrepreneur

Ans: a)
26. State True or False

The Budget allocates amounts of money to every activity and/ or department of the
firm.
Ans: True
27. State True or false

A decision system has great impact on the profits of the company.

Ans: True
28. Operating Cash Flow= Net Income + ______________________________

a) Change in working Capital

b) Total Current Liabilities
c) Previous Year’s Working Capital
d) Depreciation and Amortization

Ans: d)
29. Working Capital= _____________________- Total Current Liabilities

a) One year’s Working Capital

b) Operating Cash Flow
c) Capital Expenditure
d) Total Current Assets

Ans: d)
30. When the advance- money is finished, the construction company notifies the
______________

a) Bankers
b) Buyers
c) Suppliers
d) Financers

Ans:- b)
31. The _______________ normally includes the right to exclude others from making,
using, selling, or importing the patented product, and similar rights concerning
patented processes.

a) Patent Right
b) Commercial Right
c) Legal Right
d) Property Right

Ans:- a)
32. A _______________ involves a formal, legally binding commitment between two or
more partners to work together on shared enterprise.

a) Merger Agreement
b) Joint Venture Agreement
c) Acquisition Agreement
d) None of these

Ans:- b)
33. A _____________________ company is an independent company created from an
existing legal body.

a) Spin –off
b) Joint venture
c) Individual
d) Acquired

Ans:- a)
34. A ____________________ is a general term for a new company is its early stages of
development.
a) Small Scale Company
b) Commercial Company
c) Start – Up Company
d) Multinational Company

Ans:- c)
35. A ________________ is a further license, when the licensee of the original license
itself grants a license itself a third party.

a) Sole License
b) Sub License
c) License Right
d) All of these

Ans:- b)
36. CSR is not an __________________ “ass- on” to business core activities- but about
the way in which businesses are managed.

a) Additional
b) Compulsory
c) Optional
d) None of these

Ans:- c)
37. Beyond CSR, international agreements are in place and their implementation by
_____________________ should be promoted.

a) Companies
b) Promoters
c) Multinational Enterprises
d) Governments

Ans:- d)
38. Most research about corporate responsibility focuses on ____________________ of
managers, and particularly on managers responsible for health, safety and
environmental issues

a) Investigation
b) Creativity
c) Performance
d) All of these
Ans:- a)
39. _____________________ have been identified as the crucial factor that influences
an organization’s sustainable behavior.

a) Personnel’s
b) Managers
c) Individuals
d) Professionals

Ans:- c)
40. CSR relates to a very wide range of company _________________.

a) Activities
b) Operation
c) Performance
d) Capability

Ans:- a)
GROUP- B
41. Programmes refer to the ____________________ sequence of _____________ to be
performed in a given project or job.

a) Creative, Jobs
b) Task, Rules
c) Assignments, Action
d) Logical, Operation

Ans- d)
42. Mission- _______________________________________________________

a) “A world class, innovative, competitive and profitable engineering enterprise

providing total business solutions.”
b) “What the company wants to achieve”
c) “ To achieve the Goal”
d) “ To achieve the above objectives

Ans:- b)
43. A. ) _________________- It refers to the process of identifying opportunities to
achieve further growth within the company’s current businesses.

a) Intensive Growth
b) Integrative Growth
c) Diversification
d) None of these

Ans:- a)
44. B.) ______________________ is to explore the possibility to find or develop new
markets for its current products.

a) Product Development
b) Integrative
c) Diversification
d) Market Development Strategy

Ans:- d)
45. Product and/ or service alliance:-
______________________________________________________________

a) Two or more companies may come together to promote their products and
services
b) Companies may join together for pricing collaborations
c) The focus is on developing or extending logistics support
d) Two or more companies may get together to synergise their operations, seeking
alliance for their product and services.

Ans- d)
46. State True or False
A. The strategic review of the NETWORK is designed to move the development
programme of the NETWORK on from it’s initial “ proof of concept” Ans- True
B. The principal target for the development of the Internet Gateway is not addition
of Content.

Ans- False
47. The __________ is dependent upon ___________of the NETWORK work programme.

a) Plan, Coordination,
b) Operation, Cooperation
c) Management, Rules
d) None of the above

Ans- c)
48. As _________________ and ______________ of the vision of a national network
linking the recorders of Business information to the users of the information

a) Participant, Facilitator,
b) Guardian, promoter
c) Advisor, Partner
d) None of these

Ans- b)
49. The study of complex systems therefore revealed a co- evolutionary process of
a system and its environment in which successive change and adaptation each
involved two separate steps:

a) Focused on efficiency and strategic planning and control, In generating

successful companies capable of flourishing in this new environment
b) The environment in the future ‘after’ the decision is known, We can ignore effect
that we do not know
c) Discovering what to do, doing what has been decided
d) Know your option; evaluate the single outcome of implementing each of them.

Ans:- c)
50. A.) ____________________ - A work location, other than the primary location, to be
used when the primary location is not accessible

a) Business Continuity
b) Business Continuity plan
c) Business Impact Analysis
d) Alternate Worksite

Ans- d)
B.) _________________- A pre- arranged agreement developed between two or more
entities to
Render assistance to the parties of the agreement.
a) Mutual Aid Agreement
b) Prevention
c) Mitigation Strategies
d) Readiness

Ans:- a)
51. Write the Full Form Of-
A.) ERTA-_________________________________

Ans:- Economic Recovery Tax Act

B.) ESOP- _________________________________

Ans:- Employee Stock Ownership Plan

52. Write the Full Form Of-
A.) CFO- __________________

Ans:- Chief Financial Officer

B.) CEO-____________________

Ans:- Chief Executive Officer

53. Developing ___________ are still after the cosy _______________ European model.
a) Companies, New
b) Management, Past
c) Countries, Outdated
d) None of these

Ans:- c)
54. State True or False-
A.) A top executive is not asked how profitable will his firm be this quarter.

Ans:- False
B.) Decision Support Systems cost as little as 20, 000 USD.

Ans:- True
55. _________________ is a branch of _________________ and wherever and whenever
humans are involved, answers don’t come easily.

a.) Sales, Marketing

b.) Economy, Psychology
c.) Resource, HRD
d.) Stock, Finance

Ans:- b)
56. FCFE= ____________________- (1- Debt Ratio)*(_____________________ –
Depreciation and Amortization + Change in working Capital)
a) Capital Expenditure, Net Income
b) Preferred Dividends, Principle Repayment of Debt
c) Principle Repayment of Debt, Preferred Dividends
d) Net Income, Capital Expenditure

Ans:- d)
57. Write the full form of the following:-
A.) ROE- _________________________________________

Ans:- Return on Bank’s Equity

B.) ROA- ___________________________________________

Ans:- Return on Bank’s Asset

58. A ________________________ is merely the grant of permission to undertake some
of the actions covered by intellectual property rights, and the ____________________
retains ownership and control of the basic patent.

a.) Licence, Patent holder

b.) Agreement, Partner
c.) Legal commitment, Company
d.) None of these

Ans:- a)
59. The person granting the licence is the ________________ and the person receiving
the licence is the ___________________________.

a.) Licence Officer, Owner

b.) Licensor, Licensee
c.) Licence Contoller, Representative
d.) Licence Authority, Applicant

Ans:- b)
60. Write Full Form Of-
A.) GRI-_______________________________________

Ans:- Global Reporting Initiative

B.) EMAS-_______________________________________

Ans:- Eco- Management and Audit scheme

GROUP- C
1. State whether the following statements are True or False:-

A.) A strategy is an operational tool to achieve the goals, and thus, the corporate
mission.

Ans:- True
B.) Strategies attempt to outline exactly how the enterprise is to accomplish its
objectives.

Ans:- False
C.) Diversification refers to the process of identifying opportunities to develop or
acquire businesses that are not related to company’s current businesses

Ans:-True
D.) Intensive Growth refers to the process of identifying opportunities to develop or
acquire businesses that are related to the company’s current businesses.

Ans:- False
2. Match These:
A.) Vision- a) How do we translate this into action.
B.) Mission- b) To ensure that employees are committed
C.) Goals- c) Be Innovative
D.) Objectives- d). To emerge as the most competitive player in terms of price and
quality

Ans- A- a
B- c
C-d
D- b

3. Match These:-
A.) Cost of Goods Sold – a) Cost of Goods Sold
B.) Debt/ Equity Investment- b)Rent
C.) Expenses- c) Equipment Loan
D.) Overhead Expenses- d) Materials/ Suppplies
Ans:- A- d, B- c, C-a, D-b
4. State True or False:-
A.) The driver is not concerned with providing ready access to data on location,
extent, pattern, and quality Business.

Ans:- False
B.) Once established, the Business Priorities need not be reviewed and updated.

Ans:- False
C.) The Business Priorities are based upon ten top- level objectives.

Ans:- False
D.) Your Business Plan is not just a funding tool, but also a blueprint for how your
business should operate.

Ans: True
5. State True or False:-
A.) The people involved in manufacturing actually create product that change the
world.

Ans:- True
B.) Efficiency of execution must precede imagination and creativity.

Ans:- False
C.) A complex system is a system that has one possible future.

Ans:- False
D.) Complex systems thinking also inform us how to achieve a high rate of delivery
of new products and services and rapid adaptation to changing condition.

Ans:- True
6. Match the following:-

A.) Crisis Management:- a.) A specific room or facility staffed by personnel charged
with commanding, controlling and coordinating the use of resources and personnel
and personnel in response to a crisis.
B.) Crisis Management Center- b.) Intervention and coordination by individuals or
team before, during and after an event to resolve the crisis, minimize loss, and
otherwise protect the organization
C.) Crisis Management Planning- c)A group directed by senior management orits
representatives to lead incident/ event response comprised of personnel from such
functions as human resource, information technology facilities, security, legal,
communication/ media relations, manufacturing, warehousing, and other business
critical support functions.
D.) Crisis Management Planning- A properly funded ongoing process supported by
senior management to ensure that the necessary steps are taken to identify and
analyze the adverse impact of crisis events, maintain viable recovery strategies,
and provide overall coordination of the organization’s timely and effective response
to a crisis.
Ans:- A-b, B-a, C-d, D-c
7. Fill the correct word from” Mutual Aid Agreement, Recovery/ Resumption,
Mitigation Strategies, Evacuation”

A.) _____________________- Organized, phased, and supervised dispersalof people

from dangerous or potentially dangerous areas.
B.) ___________________- Plans and processes to bring an organization out of crisis
that resulted in an interruption.
C.) ___________________- Implementation of measures to lessen or eliminate the
occurrence or impact of a crisis.
D.) __________________- A pre- arranged agreement developed between two or more
entities to render assistance to the parties of the agreement.

Ans:- A.- Evacuation, B.- Recovery/ Resumption,

C. – Mitigation Strategies, D.- Mutual Aid Agreement
8. State True or False:-
A. The Second Phase of a new business is the formation of an idea.

Ans:- False
B. SBAs assist the entrepreneur in the preparation of business plans.

Ans:- True
C. A stock option plan is an organized program for employees of a corporation
allowing them to buy its shares.

Ans:- True
D. The poor CFO is loyal to the management- not to the firm.

Ans:- True
9. State True or False:-
A. In England- Bankruptcy is automatically triggered

Ans:- False
B. American law learns in favour of maintaining the company as an ongoing
concern.

Ans:- True
C. Each state has modified the Federal Law to fit its special, local conditions

Ans:- True
D. Another well – known structure is the Employee Stock Ownership Plan where by
employees regularly sale shares and may ultimately assume control of the
company.

Ans- False
10. Write the Full Form of the folloeing:-

A. FCFE-_______________________________

Ans:- Free cash flow to equity

B. ATO- ___________________________

Ans:- Asset Turnover

C. CAPM- ____________________________

Ans:- Capital Asset Pricing Model

D. DDM- ____________________________

Ans:- Dividend Discount Models

11. State true or false:-

A.) The most widely used model to evaluate specific risks is the capital asset pricing
model.

Ans:- True
B.) Change in working capital= One year’s working capital plus previous year’s
working capital

Ans:- False
C.) The firm must have one voice.

Ans:- True
D.) Last 3 years income statements of the firm or of constituents of the firm, if the
firm is the result of a merger

Ans:- True
12. Write the full form of the following:-

A.) IAPA- __________________________________________

Ans:- International Air Passengers Association

B.) VAR-__________________________________________

Ans:- Value at Risk

C.) NI- _____________________________________

Ans: National Income

D.) DD-_____________________________________

Ans:- Due Diligence

13. State true or false:-
A. Venture capital and risk capital funds, for instance, are purely strategic investors.

Ans:- False
B. The Credit Card Company sends the transaction s to the issuing bank and
automatically debits it.

Ans;- True
C. The issuing bank debits the cardholder’s account. It issues monthly or transaction
related statements to the cardholder.
Ans:- True
D. A chargeback is a transaction disputed within the payment system.

Ans:- True
14. State True or False:-

A. Patent licenses and assignments of patent rights have to cover all patent rights
together.

Ans:- False
B. An assignment of intellectual property rights is the sale of a patent right, or a
share of the patent.

Ans:- True
C. A joint venture agreement involves a formal, legally binding commitment
between two or more partners to work together on a shared enterprise.

Ans: True
D. In a due diligence process, your commercial partner may undertake a range of
checks and need various forms of information.

Ans:- True
15. State True or False:-

A. The consultation process on the green paper has supported community action in
the field of CSR.

Ans:- True
B. The role of enterprise policy is to help create a business environment, which
support the Lisbon objective of becoming the world’s most dynamic knowledge-
driven economy, support entrepreneurship and sustainable economic growth.

Ans:- True
C. Consumers and their representative organizations have therefore an important
role to play in the evolution of CSR.

Ans:- True
D. Most respondents to green paper stressed the importance of education and
training of managers, employees, and other actors to promote CSR.

Ans:- True