MBA Strategic Management — practice questions
120 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice MBA Strategic Management in the app →Planning is best described as deciding in advance:Planning seeks to bridge the gap between where we are and:A firm sets goals so employees know what to do and work in one direction. This benefit is that planning:By anticipating change and preparing responses, planning:Planning gives the goals against which actual performance is measured, so it is a prerequisite for:Because all other managerial functions are performed within the framework of plans, planning is called the:Top management plans for the whole firm while supervisors plan day to day. This shows planning is:Planning looks ahead and is based on forecasting, which makes it:If only one course of action existed, there would be no need to plan because planning involves:Planning requires foresight, imagination and sound judgement, so it is called a:A well-defined plan that managers cannot change when conditions shift shows that planning leads to:Because top management makes the plans and others merely implement them, planning may:Boardroom meetings, expert consultations and preliminary investigations mean planning:A plan that worked before may not work again, which shows planning:The first step in the planning process is:The assumptions about the future on which plans are built are called:A plan developed for a one-time event or project, not likely to be repeated, is a:Policies, procedures, methods and rules are examples of:A comprehensive plan that sets long-term objectives, adopts a course of action and allocates resources is a:A general statement that guides thinking, such as a recruitment or pricing policy, is a:Specific statements that allow no flexibility or discretion, such as reporting for work on time, are:A statement of expected results expressed in numerical terms is a:Business environment means the sum total of all individuals, institutions and forces that are:Take the universe, subtract the organisation, and the remainder is the:Because business environment is the sum of everything external to a firm, it is called a:Investors, customers, competitors and suppliers, who affect a firm directly, are:Social, political, legal and technological conditions affecting all firms are:Longer life expectancy raised demand for health foods, which then changed lifestyles. This shows environment iBecause technology, tastes and competition keep changing, business environment is:It is hard to predict future happenings in fashion or information technology, so environment is:Environment is easier to understand in parts than as a whole, which shows it is:Demand for sarees is high in India but almost nil in France. This feature of environment is:Positive external trends that will help a firm improve performance are:Which company became the small car leader by spotting the need early?External trends and changes that will hinder a firm's performance are:Awareness of the environment lets managers spot dangers in time, acting as an:Finance, machines, raw materials, power and labour drawn from the environment are the firm's:Turbulent markets, weaker brand loyalty and intense global competition mean firms must be able to:Understanding opportunities and threats becomes the basis for deciding future courses of action, that is:The dimensions of business environment include economic, social, technological, legal and:Interest rates, inflation rates and the value of the rupee belong to which environment?A bulb that lasts twenty times as long as a standard bulb is an example of change in which environment?Low long-term interest rates help construction and automobile firms because they raise:Dharamveer Kamboj obtained funding of how much for his processing machine project?The Government of India defines small industries on the basis of investment in:Which Act of 2006 gave micro, small and medium enterprises a single legal framework?A manufacturing enterprise with investment in plant and machinery up to twenty-five lakh rupees is a:A manufacturing enterprise investing more than five crore but not above ten crore rupees is:For service enterprises, a micro unit has investment in equipment not exceeding:An industry located in a rural area, with fixed capital per artisan set by the central government, is a:Industries organised by individuals with family labour and simple equipment are:Small industries account for what share of the industrial units in India?Small industries are the second largest employers of human resources, after:Because they create more jobs per unit of capital, small industries are described as:Small units often depend on money lenders because they lack the credit worthiness to raise:Small firms have low bargaining power for raw materials mainly because they buy:A single owner with sound technical knowledge but weak marketing shows the problem of:Small firms often depend excessively on middlemen because their weak area is:Operating below full capacity raises operating costs and can lead to:India adopted liberalisation, privatisation and globalisation policies in:Access to developed country markets is limited by stringent quality certification such as:Which bank was set up in 1982 to promote integrated rural development?The National Small Industries Corporation was set up in:The scheme set up in 2005 to regenerate traditional industries in clusters is:The District Industries Centre was launched on:The process of setting up one's own business, rather than taking a job, is:A business owned, managed and controlled by one individual who takes all profits and risks is a:Sole proprietorship is most suitable for businesses that are:Starting a sole proprietorship needs hardly any legal formalities because:If a sole proprietor's firm owes 80,000 but its assets are only 60,000, the owner must bring in:The sole proprietor bears all the risk and in return receives:In the eyes of the law, a sole trader and the business have:Death, insanity or bankruptcy of the owner may close the firm, showing sole proprietorship suffers from:A sole proprietor can act on a market opportunity at once because of:A sole trader can keep business information secret partly because the law does not require him to:A major limitation of sole proprietorship is that resources are limited to personal savings and:Because creditors can reach personal assets, a sole proprietor is often less inclined to take risks in:One person rarely excels at purchasing, selling and financing together, which shows the limit of:Coca-Cola's syrup was created in Atlanta in 1886 by:Asa Candler achieved sole ownership of Coca-Cola in 1891 with an investment of:A business owned and carried on by members of a Hindu Undivided Family is a:Membership of a joint Hindu family business is acquired by:The head of a joint Hindu family business, who controls it, is called the:Members of a joint Hindu family business other than the karta are known as:In a joint Hindu family business, unlimited liability rests with the:When the karta dies, the joint Hindu family business:Which members can belong to a joint Hindu family business because membership comes by birth?Under the Hindu Succession Amendment Act of 2005, a daughter of a coparcener becomes:Social responsibility of business is its obligation to act in ways desirable in terms of the:Compared with legal responsibility, social responsibility is:Social responsibility involves an element of:Deceptive advertising, polluting the environment and exploiting workers are examples of:Which body defines corporate social responsibility as the responsibility of enterprises for their impacts on sIn India, corporate social responsibility is governed by which clause of the Companies Act, 2013?The CSR provisions apply to companies with an annual turnover of at least:CSR rules also apply to companies with a net profit of at least:Companies covered by the CSR rules must set up a CSR committee that includes at least one:The Act encourages companies to spend on CSR at least what share of average net profit of the previous three yWhich CSR activities are taken into consideration under the Indian rules?Which argument says prosperity and growth of business is possible only through continuous service to society?A firm that keeps service to society as its highest goal is said to gain maximum profits in the:Voluntarily assuming social responsibilities can help business avoid:The argument that business has managerial talent and capital that can help solve social problems is:Pollution, unsafe workplaces and discriminatory hiring support which argument for social responsibility?Which argument against social responsibility says business exists only to earn as much as possible?The claim that firms will pass the cost of pollution control to buyers is the argument of:The argument that businessmen lack the training to solve social problems is:Supplying good quality goods, safe working conditions and paying taxes honestly are:A society with fewer problems is said to provide business with a:Corporate sustainability entails a balanced approach to economic progress, social progress and:A set of moral standards for judging whether something is right or wrong is:A situation where a person must choose from actions that may be right or wrong is an:An official whose personal interest could shape a decision they must make faces a:What is considered fair by the prevailing standards of society is called:Rights to life, freedom and the pursuit of happiness, granted at birth, are called:Rights guaranteed by a government and its laws are:The philosophy judging an action by its consequences, seeking the greatest good for the greatest number, is:A criticism of that philosophy is that it always involves:The philosophy that a person should follow their duty because upholding it is correct is:A firm's written guidelines telling employees what is expected of their behaviour form a: