Business Policy and Strategy Multiple Choice

Business policy and strategy refers to the set of decisions and actions taken by a company’s top management to achieve its long-term goals and objectives. It involves the identification of the company’s mission, vision, and values, as well as the developing and implementing of plans and strategies to achieve those objectives.

MCQ: Multiple Choice

– What is the difference between a policy and a strategy?

1. a) A policy is a set of rules and procedures, while a strategy is a plan of action.
2. b) A policy is a plan of action, while a strategy is a set of rules and procedures.
3. c) A policy and a strategy are the same things.
4. d) A policy and a strategy are both vague concepts.

Answer: A) A policy is a set of rules and procedures, while a strategy is a plan of action.

2- What is SWOT analysis used for?

1. a) To identify an organization’s strengths, weaknesses, opportunities, and threats.
2. b) To identify the competition’s strengths, weaknesses, opportunities, and threats.
3. c) To identify an organization’s long-term goals.
4. d) To identify the resources needed for an organization to succeed.

Answer: A) To identify an organization’s strengths, weaknesses, opportunities, and threats.

3- What is the purpose of a mission statement?

1. a) To outline an organization’s goals and objectives.
2. b) To identify the competition’s strengths, weaknesses, opportunities, and threats.
3. c) To provide guidance for an organization’s decision-making and actions. d) To assess an organization’s internal and external environments.

Answer: C) To provide guidance for an organization’s decision-making and actions.

4- What is a competitive advantage?

1. a) A unique strength or advantage that a business has over its competitors.
2. b) A weakness that a business has that puts it at a disadvantage compared to its competitors.
3. c) The ability of a business to change its policies and strategies quickly.
4. d) The resources that a business has at its disposal.

Answer: B) A unique strength or advantage that a business has over its competitors.

5- Which of the following is a step in the strategy development process?

1. a) Monitoring progress
2. b) Assessing an organization’s internal and external environments
3. c) Evaluating the success of the plan
4. d) Identifying an organization’s resources

Answer: B) Assessing an organization’s internal and external environments.

6- What is the purpose of a business strategy?

1. a) To create a detailed set of rules and procedures for the organization.
2. b) To provide a long-term plan of action to achieve the organization’s goals.
3. c) To evaluate the organization’s internal and external environments.
4. d) To analyze the competition’s strengths and weaknesses.

Answer: B) To provide a long-term plan of action to achieve the organization’s goals.

7- Which of the following is not a component of SWOT analysis?

1. a) Strengths
2. b) Opportunities
3. c) Weaknesses
4. d) Trade-offs

Answer: D) Trade-offs

8- What is the difference between a mission and a vision statement?

1. a) A mission statement outlines the organization’s long-term goals, while a vision statement provides guidance for decision-making.
2. b) A mission statement provides guidance for decision-making, while a vision statement outlines the organization’s long-term goals.
3. c) A mission statement and a vision statement are the same things.
4. d) A mission statement is focused on internal operations, while a vision statement is focused on external factors.

Answer: B) A mission statement provides guidance for decision-making, while a vision statement outlines the organization’s long-term goals.

9- Which of the following is not a type of competitive advantage?

1. a) Cost leadership
2. b) Differentiation
3. c) Focus
4. d) Inflexibility

Answer: D) Inflexibility.

10- What is the purpose of evaluating a strategic plan?

1. a) To identify the organization’s long-term goals.
2. b) To assess the plan’s success and make adjustments as needed. c) To identify the competition’s strengths and weaknesses.
3. d) To assess the organization’s internal and external environments.

Answer: B) To assess the plan’s success and make adjustments as needed.

11-The goal of the organization’s vision is to ——-the hearts and minds of employees, challenge them, and evoke their emotions and dreams.

1.     a) Capture
2.      b) Mission
3. c) Culture
4. d) Strategy

Ans: A) Capture

12- Societal environment comprises ———conditions, political priorities, and technological developments, all of which must be anticipated, monitored, assessed, and incorporated into the executive’s decision-making.

1. a) Internal environment
2. b) Task environment
3. c) Operating environment
4. d) Economic and social

Ans. D) Economic and social

13- Strategic management involves the Planning, directing, organizing, and controlling of a company’s strategy-related —— and——-.

1. a) Financing; marketing
2. b) Planning; financing
3. c) decisions; actions
4. d) Marketing; planning

Ans. C) Decisions; actions

14- ——-ratios are not part of an external audit.

1. a) Analyzing competitors
2. b)  Analyzing financial
3. c) Analyzing available technologies
4. d) Studying the political environment

Ans. B) Analyzing financial

15– The strategic management process activates in the sequence of_______ a.

1. a) Environmental scanning, Strategy formulation, Implementation, control, and evaluation
2. b) Strategy formulation, Environmental scanning, Implementation, control, and evaluation
3. c) Environmental scanning, Strategy Implementation, formulation, control, and evaluation
4. d) Strategy formulation, Implementation, control, evaluation, Environmental scanning

Ans. A) Environmental scanning, Strategy formulation, Implementation, control, and evaluation

16- KAPKAL Power’s interested to achieve a ——-return on equity (ROE) in their core electric utility, 14 percent ROE on water resource operations, and 15 percent ROE on support businesses.

1. a) 20 %
2. b) 40 %
3. c) 10 %

Ans. C ) 10%

17- Mission statement identifies the ——-of business operations in product & market terms.
a) Purpose
b) Objective
c) Scope
d) Goal

Ans: C ) Scope

18- WO represents maxi mini strategy in the ———–matrix.
a) Maxi Mega
b) Mini Small
c) REO
d) TOWS

Ans: D ) TOWS

19- Conservation of ————— resources is an example of a Strategic factor.
a) Ecological
b) Demographic
c) non-replenishable
d) Social

Ans: C) On-replenishable

20– When a firm’s basic strategy is reconsidered on the ——–of a sudden, unexpected event, then the type of control needed is operational.
a) occurrence
b) Special alert
c) Implementation
d) Strategic
Ans: A ) Occurrence

About Business Policy and Strategy

The main objective of business policy and strategy is to ensure that the company maintains a competitive advantage in the marketplace, by analyzing the company’s internal and external environment, understanding the market trends, and developing plans that leverage the company’s strengths and opportunities.