Students should practice Business Policy & Formulation of Functional Strategy – CS Executive Financial and Strategic Management MCQ Questions with Answers based on the latest syllabus.
Business Policy & Formulation of Functional Strategy – Financial and Strategic Management MCQ
Question 1.
Business Policy permits the___ management to deal with the problems and issues without consulting management every time for decisions.
(A) Top-level; Lower level
(B) Lower level; Top level
(C) Lower level; Subordinate
(D) Middle management; Lower level
Answer:
(B) Lower level; Top level
Question 2.
At the corporate level, an organization starts the strategic planning process by defining its overall purpose and
(A) Mission
(B) Values
(C) Vision
(D) All the above
Answer:
(D) All the above
Question 3.
Business policies are the___ developed by an organization to govern its actions.
(A) Ethics
(B) Roadmap
(C) Guidelines
(D) Actions
Answer:
(C) Guidelines
Question 4.
A clear mission statement acts as an invisible hand that guides people in the firm. It is a statement of___
(A) Fact
(B) Value
(C) Purpose
(D) Financial goals
Answer:
(C) Purpose
Question 5.
Which of the following is best identified as a statement that presents “a firm’s big picture statement, describing the desired end-state, general in scope, and not restrictive”?
(A) Corporate philosophy statement
(B) Company creed
(C) Vision statement
(D) Mission statement
Answer:
(C) Vision statement
Question 6.
Business policy also deals with –
(A) Process of conducting research on a company and its operating environment.
(B) The process that is conducted periodically to keep the strategies up to date
(C) Acquisition of resources with which organizational goals can be achieved.
(D) Products being offered by the business at present.
Answer:
(C) Acquisition of resources with which organizational goals can be achieved.
Question 7.
Which of the following statement is TRUE about a Vision statement of a company?
(A) It concentrates on future
(B) It defines the customers
(C) It identifies critical processes
(D) It informs about the desired level of performance
Answer:
(A) It concentrates on future
Question 8.
What does a market-oriented mission statement define about the business?
(A) Satisfying basic supplier needs
(B) Satisfying basic customer needs
(C) Satisfying basic stockholder needs
(D) Satisfying basic owner needs
Answer:
(B) Satisfying basic customer needs
Question 9.
Every policy must have a basic feature of being –
(A) Tailor-made
(B) Specific and definite
(C) Complex and stable
(D) Flexible and stable
Answer:
(B) Specific and definite
Question 10.
_____serves the purpose of stating what an organization wishes to achieve in the long run.
(A) Mission
(B) Value
(C) Vision
(D) Rule
Answer:
(C) Vision
Question 11.
“To be a global leader in promoting good corporate governance” is __ of ICSI.
(A) Vision
(B) Mission
(C) Rule
(D) Destination
Answer:
(A) Vision
Question 12.
An effective business policy –
(A) Must be unambiguous and as clear as possible in order to guide the subordinates effectively.
(B) Must be uniform and reliable enough to be efficiently followed by the subordinates.
(C) Should be appropriate to represent the organizational goals.
(D) All of the above
Answer:
(D) All of the above
Question 13.
A vision statement is a company’s –
(A) Profitability statement
(B) Road map
(C) Ethical thinking
(D) Policy statement
Answer:
(B) Road map
Question 14.
Which of the following is a feature of the vision statement?
(A) It motivates employees and is something that employees view as desirable
(B) It describes where the company is going from the current level.
(C) It offers a long-term perspective and is unlikely to be impacted by market or technology changes.
(D) All of the above
Answer:
(D) All of the above
Question 15.
The policy should be in the application.
(A) Rigid
(B) Complex
(C) Flexible
(D) Indecisive
Answer:
(C) Flexible
Question 16.
Vision statement –
(A) Is something that can be easily met and discarded.
(B) Is general enough to encompass all of the organization’s interests and strategic direction.
(C) Likely to be impacted by market or technology changes.
(D) Undergo maximum revisions during the life of a business.
Answer:
(B) Is general enough to encompass all of the organization’s interests and strategic direction.
Question 17.
Which of the following describes the desired future position of the company?
(A) Vision statement
(B) Mission statement
(C) Planning statement
(D) Forecasting statement
Answer:
(A) Vision statement
Question 18.
Assertion (A):
Strategic vision and mission statements are not needed in small business houses.
Reason (R):
Organizations irrespective of their size face similar business environments and have to work through competition. Small organizations have to plan strategies for their survival in the market where large organizations are also present
Select the correct answer from the options given below.
(A) A is true but R is false
(B) A and R both are true
(C) A and R both are true and R is the correct explanation of A.
(D) A is false R is true and R correctly explains how A is false.
Answer:
(D) A is false R is true and R correctly explains how A is false.
Question 19.
A narrow market focus is to a differentiation-based strategy as a –
(A) Broadly-defined target market is to a cost leadership strategy
(B) Growth market is to a cost-based strategy
(C) Technological innovation is a cost-based strategy
(D) Growth market is to a differentiation-based strategy
Answer:
(A) Broadly-defined target market is to a cost leadership strategy
Question 20.
Vision Statement answers the question –
(A) What do we do?
(B) What makes us different?
(C) Where do we aim to be?
(D) Whether is it possible to make growth?
Answer:
(C) Where do we aim to be?
Question 21.
A defines the company’s business, its objectives, and its approach to reach those objectives.
(A) Vision statement
(B) Mission statement
(C) Planning statement
(D) Forecasting statement
Answer:
(B) Mission statement
Question 22.
One of the primary advantages of diversification is sharing core competencies. In order for diversification to be most successful, it is important that –
(A) The target market is the same, even if the products are very different.
(B) The products use similar distribution channels.
(C) The methods of production are the same.
(D) The similarity required for sharing core competencies must be in the value chain, not in the product.
Answer:
(D) The similarity required for sharing core competencies must be in the value chain, not in the product.
Question 23.
____ is a force that creates a sense of commonality that permeates the organization and gives coherence to diverse activities
(A) Right mission
(B) Shared vision
(C) Purpose statement
(D) Shares views
Answer:
(B) Shared vision
Question 24.
Mission and Vision Statements are NOT commonly used to:
(A) Guide management’s thinking on strategic issues, especially during times of significant change
(B) Create wider linkages with customers, suppliers, and alliance partners
(C) Help establish a framework for ethical behavior
(D) Inspire employees to work more productively by providing focus and common goals
Answer:
(B) Create wider linkages with customers, suppliers, and alliance partners
Question 25.
___of a company focuses on the question: ‘Who we are’ and ‘What we do’.
(A) Vision statement
(B) Mission statement
(C) Philosophy
(D) Statement of Philosophy
Answer:
(B) Mission statement
Question 26.
Human Resource strategy is that part of management which is –
(A) Concerned with how people at work use the various resources available in the organization.
(B) Concerned with people at work and with their relationship with an enterprise.
(C) Concerned with how the manager effectively uses the various resources available in the organization.
(D) Concerned with how the manager effectively controls the people in the organization.
Answer:
(B) Concerned with people at work and with their relationship with an enterprise.
Question 27.
Human resource strategy is concerned with the employed in an organization.
(A) Resources
(B) People
(C) Assets
(D) All of the above
Answer:
(B) People
Question 28.
Which of the following activity is not included in human resource management?
(A) Training and development
(B) Appraisal of performance of employees
(C) Resistance management
(D) Motivation of workforce
Answer:
(C) Resistance management
Question 29.
The human resource management functions aim at –
(A) Ensuring that the human resources possess adequate capital, tool, equipment, and material to perform the job successfully
(B) Helping the organization deal with its employees in different stages of employment
(C) Improving an organization’s creditworthiness among financial institutions
(D) None of the above
Answer:
(B) Helping the organization deal with its employees in different stages of employment
Question 30.
Which of the following statement is true?
(1) Human resource management aids in strategic management.
(2) human resource management helps the organization to effectively deal with external environmental challenges.
Select the correct answer from the options given below.
(A) (1) only
(B) (2) only
(C) Both (1) and (2)
(D) Neither (1) nor (2)
Answer:
(C) Both (1) and (2)
Question 31.
The prominent area where Human Resource Manager can play a strategic role –
(A) Providing purposeful direction
(B) Building a core competency
(C) Creating competitive advantage
(D) All of the above
Answer:
(D) All of the above
Question 32.
The prominent area where Human Resource Manager can play a strategic role –
(A) Managing workforce diversity
(B) Empowerment of human resources
(C) Development of works ethic and culture
(D) All of the above
Answer:
(D) All of the above
Question 33.
In relation to Human Resource management, ‘Empowerment’ means –
(A) Accomplishments rather than active
(B) Management of diverse work-force
(C) Authorizing every member of an organization to take up his own destiny realizing his full potential.
(D) All of the above
Answer:
(C) Authorizing every member of an organization to take up his own destiny realizing his full potential.
Question 34.
Restructuring Strategies relating to Human Resource includes –
(A) Providing the current staff with training and development oppor¬tunities to encompass new roles in the organization
(B) Reducing staff, regrouping tasks to create well-designed jobs, and reorganizing workgroups to per¬form more efficiently.
(C) Outreaching to external individuals or organizations to complete certain tasks.
(D) Area of the employer-employee relationship in your organization deserves your attention.
Answer:
(B) Reducing staff, regrouping tasks to create well-designed jobs, and reorganizing workgroups to per¬form more efficiently.
Question 35.
Retention Strategy relating to Human Resource includes –
(A) Every area of the employer-employee relationship in your orga¬nization deserves your attention.
(B) Providing the current staff with training and development oppor¬tunities to encompass new roles in the organization
(C) Collaborating with other organizations to learn from how others do things, allows employees to gain skills and knowledge not previously available in their own organization.
(D) None of the above
Answer:
(A) Every area of the employer-employee relationship in your orga¬nization deserves your attention.
Question 36.
Which of the following cannot be classified as Business Strategies –
(A) Differentiation Strategy
(B) Delivery Strategy
(C) Cost Leadership Strategy
(D) Market Segmentation Strategy
Answer:
(B) Delivery Strategy
Question 37.
Under the company tries to be different and unique from its competitors.
(A) Low-Cost Strategy
(B) Product Mix Strategy
(C) Differentiation strategy
(D) Quality Strategy
Answer:
(C) Differentiation strategy
Question 38.
Under a cost leadership strategy –
(A) The company divides the market according to the cost associated with marketing.
(B) The company tries to reduce its cost of production.
(C) The company sells its product below cost.
(D) The company reduces cost by scarifying quality.
Answer:
(B) The company tries to reduce its cost of production.
Question 39.
Under___, the company produces and sells high-quality goods and services.
(A) Profit strategy
(B) Quality strategy
(C) Delivery Strategy
(D) Quantity Strategy
Answer:
(B) Quality strategy
Question 40.
Under eco-friendly strategy –
(A) The company keeps a friendly approach with its customers.
(B) The company keeps a friendly approach with its customers and suppliers.
(C) The company produces and sells agricultural products.
(D) The company produces and sells environment-friendly products also called Green Products.
Answer:
(D) The company produces and sells environment-friendly products also called Green Products.
Question 41.
In___importance is given to speed and reliability.
(A) Flexible response strategy
(B) Service Strategy
(C) Response strategy
(D) Low-Cost Strategy
Answer:
(A) Flexible response strategy
Question 42.
The purpose of supply chain management is –
(A) Provide customer satisfaction
(B) Improve the quality of a product
(C) Integrating supply and demand management
(D) Increase production
Answer:
(C) Integrating supply and demand management
Question 43.
The term supply chain refers to the linkages between –
(A) Seller, debtor, and creditor
(B) Issuer, investor, and broker
(C) Suppliers, manufacturers, and customers.
(D) Purchaser and supplier
Answer:
(C) Suppliers, manufacturers, and customers.
Question 44.
____ is an extension of
(A) Supply chain management; logistics management.
(B) Logistic management; Supply chain management; logistic management
(C) Supply chain management; purchase management
(D) Purchase management; Logistic management
Answer:
(A) Supply chain management; logistics management.
Question 45.
Which of the following statement is true?
1. Logistic Management is an extension of Supply Chain Management.
2. Supply chain management is a tool of business transformation and involves delivering the right product at the right time to the right place and at the right price.
Select the correct answer from the options given below.
(A) 2 only
(B) 1 only
(C) Both 1 and 2
(D) Neither 1 nor 2
Answer:
(A) 2 only
Question 46.
‘Inbound and Outbound logistics” are related to:
(A) Supply Chain Management
(B) Logistics Management
(C) Value Chain Analysis
(D) All of the above
Answer:
(D) All of the above
Question 47.
Geographical Diversification, Product Diversification, and Entry Mode are the domains of:
(A) Functional Strategy
(B) Business Strategy
(C) Corporate Strategy
(D) All of the Above
Answer:
(C) Corporate Strategy
Question 48.
An advertisement says, ‘Have Roohafza with milk and lassi too’. Which strategy is the company trying to use:
(A) Market Development
(B) Product Development
(C) Market Penetration
(D) All of the above
Answer:
(C) Market Penetration
Question 49.
A tool by which management identifies and evaluates the various businesses that make up a company is termed as:
(A) Value Chain Analysis
(B) Portfolio Analysis
(C) Competition Analysis
(D) Strategic Analysis
Answer:
(B) Portfolio Analysis
Question 50.
A campaign advocating the message of ‘SAVE WATER’ is:
(A) Services Marketing
(B) Holistic marketing
(C) Social Marketing
(D) Direct Marketing
Answer:
(C) Social Marketing