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) Focussed 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