Strategic Management Theory & Cases: An Integrated Approach 13th Edition by Charles test bank

 
e. 
It refers to the non-monetary benefits that a company provides to its shareholders.

 
ANSWER:  
a


 
30. Daryl works for Delta Corp. He is involved in the important decision-making processes of the company and is also responsible for the overall performance of the company. In the context of strategic management, Daryl is most likely a: 
 
a. 
line manager.

 
b. 
functional manager.

 
c. 
general manager.

 
d. 
production supervisor.

 
e. 
project manager.

 
ANSWER:  
c


 
31. Which of the following is a difference between a general manger and a functional manager?
 
a. 
A general manager has no responsibility to the performance of the individuals of the company while the functional manager has an integral relationship with employee performance.

 
b. 
A general manager is responsible for overall performance while the functional manager is responsible for a specific task or activity.

 
c. 
A functional manager has the profit-and-loss responsibility for a product while the general manager is strictly dedicated to strategic planning.

 
d. 
A functional manager oversees the operation of an entire division while a general manager develops strategies that help fulfill strategic objectives.

 
e. 
General managers are closer to the customer than functional managers and their ideas may develop into effective strategic plans for the business.

 
ANSWER:  
b


 
32. Which of the following dimensions is encompassed by a company's business model?
 
a. 
Configuring resources

 
b. 
Avoiding focus on acquiring new customers

 
c. 
Reducing emphasis on product quality

 
d. 
Maintaining high costs

 
e. 
Restricting growth

 
ANSWER:  
a


 
33. Between 2010 and 2016, Blue Drinks, a multinational beverage corporation, increased its return on invested capital (ROIC) from $5 million to $25 million. The company was able to do this by expanding its product line to include a wider variety of flavors. The $20 million increase in its ROIC between 2010 and 2016 can be referred to as which of the following?
 
a. 
Shareholder value

 
b. 
Dividend payment

 
c. 
Profit growth

 
d. 
Profitability turnover

 
e. 
Risk capital

 
ANSWER:  
c


 
34. Which of the following statements about nonprofit organizations is true?
 
a. 
They compete for scarce resources, just as businesses do.

 
b. 
Their priority is to maximize shareholder value in order to attract risk capital.

 
c. 
Their managers do not need to develop careful strategies, because making a profit is not the organization's goal.

 
d. 
They do not have to worry about exceeding budgets.

 
e. 
They seldom set any performance goals like profit-seeking organizations.

 
ANSWER:  
a


 
35. Which of the following statements about strategic leadership is true?
 
a. 
It is the primary responsibility of the functional managers of an organization.

 
b. 
It does not consider the task of maximizing shareholder value.

 
c. 
It is involved with making decisions regarding how to create competitive advantage.

 
d. 
It is a concept that does not apply to multidivisional companies with several business units.

 
e. 
It is essentially about supervising workers at a manufacturing unit of an organization.

 
ANSWER:  
c


 
36. Which of the following refers to the investment that shareholders make in a company that cannot be recovered if the company fails and goes bankrupt?
 
a. 
Profitability

 
b. 
Shareholder value

 
c. 
Debt

 
d. 
Risk capital

 
e. 
Return on invested capital