QUESTION 11 In order to identify substitutes, you should first identify O A. Consumer demographics OB. Consumer needs OC. Competitors OD. Consumer satisfaction QUESTION 12 (T/F) HBR article, The knowledge-creating company" by Nonaka: Division of labor is a principle generally favored by companies to pursue higher work efficiency. The article suggests that this principle can be relaxed (can be pursued to a lesser degree) at innovating companies to facilitate knowledge sharing among employees. True False QUESTION 13 According to Porter's 5 forces model, firms in automobile industry will make higher profits if: A. there are many small automobile companies that make similar strategic decisions. B. there are few suppliers of parts and raw materials OC. there are few substitutes for automobiles. D. It is likely that many other companies join automobile industry as new competitors, QUESTION 14 Your company's gross margin has decreased. Which of the following is a possible explanation? A. Your company has been inefficient in managing General Operating Expenses. B. Your company has been efficient in managing General Operating Expenses. C. Your company has been inefficient in managing Cole of Goods Sold. OD. Your company has been efficient in managing Cost of Goods Sold. QUESTION 15 Which of the following is NOT a reason for cost reduction when you increase production size (when you make billions of board markers instead of making only one)? O A. You get to increase efficiency by hiring more employees and dividing the work. B. You don't need to purchase more fixed assets just because you are producing more o C. You get to lower switching costs for your customers D. You get to Increase bargaining power over your suppliers. QUESTION 16 According to Porter's Five Forces model, an industry will be more profitable when O A. consumers can switch easily from one product to another without additional costs, B. consumers have weak bargaining power over the industry. oc. the industry consists of many small companies. D.competitors offer standardized and identical products to consumers. 3 pc QUESTION 17 A firm may have several capabilities. Which of the following terms indicate a firm's best capability that it emphasues and performs particularly well? A. Core competence 8. Unique capability OC. Cultural distinctiveness OD. Tangible capability QUESTION 18 This firm's quick ratio is: Average total assets - $700 Current liabilities $120 Cash and cash equivalents - 30 Sales - $1800 Total assets: 800 Net current receivable = 40 Short-term investment: 50 Cost of goods sold - $550 Total liabilities (debt) - 5600 Net interest expenses $25 Average inventory - 560 EBIT-$500 Shareholders' equity: 200 Accounts Payable-580 General Operating Expenses 170 Net Earnings $300 O A. (25+30+60)/120 O B. (30+50+80)/120 O C.(30+25+40) / 120 O D. (30+50+40)/120 QUESTION 19 3 poi This firm's ROA is: Average total assets - $700 Current liabilities $120 Cash and cash equivalents - 30 Sales S1800 Total assets: 800 Net current receivable - 40 Short-term investment: 50 Cost of goods sold - $550 Total liabilities (debt) - 5600 Net interest expenses $25 Average inventory - 560 EBIT = $500 Shareholders' equity: 200 Accounts Payable-580 General Operating Expenser-170 Net Earnings - $300 O A 800/300 O B. 300/800 O C. 700/300 OD 300/700 QUESTION 20 is different from other kinds of tangible and intangible resources in the sense that it plays a critical role in shaping a firm's capabilities. In other words, it determines how a firm will employ its tangible and intangible resources and what kinds of capabilities a firm will build up in the long term. A Brand value OB. CEO leadership C. R&D facilities D. Financial resources