1. Movement from Unit Production to the Batch/Assembly/Process Production is typically associated with:

1. Increase in efficiency, increase in capital intensity, and decrease in flexibility
2. Increase in efficiency, increase in labor intensity, and decrease in flexibility
3. Increase in efficiency, decrease in labor intensity, and increase in flexibility
4. Increase in efficiency, no change in either labor intensity or flexibility

2. "Tall", "Mechanistic", "Bureaucratic" type of an organizational design is more likely to be applicable at the ________ stage of the Product Life Cycle, whereas: "Flat", "Pancake", "Organic" type at the _________ stage of the Product Life Cycle:

1. Introduction : Growth
2. Growth : Maturity
3. Maturity : Decline
4. Crystallization : Take-off
5. Maturity : Introduction

3. Which of the following represent potential danger(s) to the "Pre-emptive Capacity Strike" strategy:

1. Unanticipated change in technology
2. Unanticipated surge in demand
3. Unanticipated entry of competitors
4. Unanticipated change in the product form, without a significant change in
   1. technology
5. All of the above

4. "Equity" Vs "Long Term Debt" financing are most likely to be used at __________ and __________ stages of the Product Life Cycle, respectively.

1. Introduction/growth and Maturity
2. Growth and Maturity
3. Maturity and Decline
4. Re-crystallization and Take-off
5. Maturity and Introduction

5. Which of the following render Product Life Cycle a tautology?
   1. Stages of PLC are defined in terms of themselves
   2. Forecasts about future are made without specifying the time of occurrence
   3. Brand level sales cannot be determined from the PLC model
   4. All of the above
   5. and b. only

6. Which of the following is (are) a subject to the Product Life Cycle?
   1. Product Class
   2. Product Category
   3. Product Form
   4. All of the above
   5. b. and c. only

7. In the Iron triangle of pricing the 3Cs are described in terms of:
   1. Customization, Criteria determination, Cross-elasticity
   2. Communality, Competitive Advantage, Comprehension (of a brand)
   3. Customization, Criteria determination, Competitive Advantage
   4. Price elasticity, Barriers to Entry, Experience Curve Effects
   5. Criteria determination, Competitive Advantage, Economies of Scale

8. Which of the following are most likely to trigger "price war"?

1. Too few dollars chasing too many goods
2. Act of Congress requiring price competition
3. Prohibition to advertise in major media (as in case of cigarettes)
4. Industry-wide excess capacity
5. Any of the above

9. Which of the following is(are) true about "price war":

1. Could occur at any stage of the Product Life Cycle (explain)
2. Severity of a price war is related to the capital intensity of the industry
3. Price war lead to "competitive turbulence"
4. All of the above
5. a. and c. only

10. Which of the following describe(s) the Growth Vector component of the corporate strategy:

1. It addresses the changes in Product/Market Scope
2. It defines the sustainable growth for a given set of market conditions
3. It delineates the growth requirements in marketing, financial and
   1. organizational terms
4. Is the present competitive advantage, leveraged in a growing market
5. b. and d. only

11. Which of the following differentiate between the Economies of Scale and Economies of Scope:
    1. Economies of scale involve spreading cost over a large number of units of production of the same product whereas Economies of scope involve spread of cost of a set of resources or skills over two or more products.
    2. Economies of Scope involve spreading cost over a large number of units of production of different products whereas Economies of Scale involve spread of cost of a set of resources or skills over the same product.
    3. Economies of Scale speak to the Unit Cost, whereas the Economies of Scope address the Total Cost
    4. Economies of Scale rely on fixed cost utilization, whereas Economies of Scope skills and capabilities
    5. a) and d) only

1. Which of the following recommendation(s) is(are) likely to allow a small firm to grow without a significant drop in ROI:

1. Invest in the "state of the art" plant and equipment
2. Target segments which are similar (or otherwise synergistic) to the ones the firm is targeting presently
3. Keep the rate of growth close to the Rate of Sustainable Growth
4. All of the above
5. Only b. and c.

2. Monopoly pricing applies to the area of new product in the case of:

1. Excess supply in the market
2. Strong patent-protection
3. Perfectly price-elastic demand
4. All of the above
5. a and c are true

3. "Price-Leadership" and "price fixing" type of pricing:

1. Arises most often in the case of monopolistic competition
2. Is always exercised by the largest share firm
3. Often characterizes the behavior of oligopolies
4. Leads to a "kinked" demand curve
5. All of the above are true

4. In Perfect Competition the demand curve for a product category is perfectly elastic (horizontal) due to the fact that the consumers perceive:

1. All brands as close complements
2. All brands as unsatisfactory
3. All brands as close substitutes
4. The supply curve as horizontal
5. Any of the above

5. The Rate of Sustainable Growth depends on:

1. Retention rate, Profit Margin, Assets Turnover, Leverage
2. Rate of market growth and Profit Margins
3. Rate of market growth, Retention rate, and Initial Market Share
4. Retention rate and past Return on Investment
5. Assets Turnover, Rate of market growth and Profit Margins

6. In essence, the Rate of Sustainable Growth is the Retention Rate multiplied by the Return on the last periods Equity:

1. True
2. False

7. In order to grow faster than the Rate of Sustainable Growth, a firm may increase one or more levers (variables in the Rate of Sustainable Growth equation). The nice thing about them (the levers) is that they could be changed independently of each other, in accordance with the selected path of growth.

1. True
2. False