Matt Miller MCQs, 3 or higher
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Matthew Miller
May 8, 2012, 1:56:40 AM5/8/12
to BUS479 MCQs
1. If you are making an acquisition, which of the following factors
would be a red flag to you?
A. You have variable criteria for evaluating and deciding which deals
to pursue
B. You don’t seek brand diversification when looking at which
companies to acquire
C. You are highly concerned about seeking “brand permission” from
customers
D. You acquire to improve weaknesses, not strengths
E. You primarily spend time and resources on smaller acquisitions and
rarely pursue larger ones.
D. Is the answer. Acquiring to improve a weakness rather than a
strength is a red flag.
2. What strategy would you avoid if you were an incumbent company
facing a free-based start-up attempting to enter the market?
A. Create a product that is better than the new entrant’s and give it
away.
B. Make top management accountable for profit and losses.
C. Ensure that products earn revenue.
D. Create a structure where those overseeing costs and those
overseeing revenues work on different teams.
E. Bringing in a third party and charging them for access to your
market share could help solve the problem.
C is the correct answer. Forcing every product to earn a revenue is a
mistake.
3. When faced with a prisoner’s dilemma (a price war), the following
are sound strategies for responding to the situation except,
A. Immediately react to the competitor’s price reduction.
B. Structurally preempt your competitor from reducing prices
C. Make it your top goal to find a way to drive down the market share
of the opponent.
D. Focus on increasing cash flows before market share.
E. The CEO needs to develop a culture that prizes profitability over
beating the competition.
C is the correct answer. Focusing on driving down the market share of
the opponent is not a helpful way of responding to a prisoner’s
dilemma.
4. You are the CEO of your company and you are looking to pursue
higher innovation within the firm. Your board comes to you with the
following strategies, which one are you NOT going to implement?
A. “Put a premium on radical innovation over disciplined
incremental innovation over time.”
B. “Create a small team of innovators and have them drive the
innovation of the company.”
C. “Focus more energy towards experimentation and incentivize
learning and research.”
D. “Spend more time getting innovative ideas from people outside
the company and less time from people within.”
E. “Reduce the number of your innovation goals and pursue them
relentlessly.”
The correct answer is B. A small team of innovators is not as
effective as having a large number of innovators within the company.
5. You are managing a company that continually finds itself caught off
guard by changes in customer purchasing trends and behind in adapting
to changes in competition. Of the following, which idea will keep you
from winning?
A. The best time to gather accurate customer information is at the
point of sale.
B. Broad experimentation is the expensive and risky alternative to
signals analysis and should be avoided.
C. Extensive experience in an industry is less valuable than
extensive experience in creating webs of broad partnerships and
supplier relationships.
D. Adaptation is best achieved in highly interconnected
environments on the front lines of the business, not at the top.
E. Identifying and overcoming uncertainty must be one of your top
priorities.
B is the correct answer.
6. You are an entrepreneur beginning a new venture. You and your
management team are committed to quarantining and eliminating as much
risk as possible. To do this, they suggest the following approaches.
Which is incorrect?
A. Decide first and foremost what is the most important uncertainty,
and eliminate it as fast as possible.
B. Don’t delay in picking your strategy and stick to it. Being
indecisive early on will kill you.
C. Leave the most expensive risks to quarantine until after you’ve
addressed your more inexpensive risks first.
D. When it comes to testing your risks, adopt the motto, “spend a
little to learn a lot”.
E. Too much capital early on can hurt you in the long run.
B is the correct answer
would be a red flag to you?
A. You have variable criteria for evaluating and deciding which deals
to pursue
B. You don’t seek brand diversification when looking at which
companies to acquire
C. You are highly concerned about seeking “brand permission” from
customers
D. You acquire to improve weaknesses, not strengths
E. You primarily spend time and resources on smaller acquisitions and
rarely pursue larger ones.
D. Is the answer. Acquiring to improve a weakness rather than a
strength is a red flag.
2. What strategy would you avoid if you were an incumbent company
facing a free-based start-up attempting to enter the market?
A. Create a product that is better than the new entrant’s and give it
away.
B. Make top management accountable for profit and losses.
C. Ensure that products earn revenue.
D. Create a structure where those overseeing costs and those
overseeing revenues work on different teams.
E. Bringing in a third party and charging them for access to your
market share could help solve the problem.
C is the correct answer. Forcing every product to earn a revenue is a
mistake.
3. When faced with a prisoner’s dilemma (a price war), the following
are sound strategies for responding to the situation except,
A. Immediately react to the competitor’s price reduction.
B. Structurally preempt your competitor from reducing prices
C. Make it your top goal to find a way to drive down the market share
of the opponent.
D. Focus on increasing cash flows before market share.
E. The CEO needs to develop a culture that prizes profitability over
beating the competition.
C is the correct answer. Focusing on driving down the market share of
the opponent is not a helpful way of responding to a prisoner’s
dilemma.
4. You are the CEO of your company and you are looking to pursue
higher innovation within the firm. Your board comes to you with the
following strategies, which one are you NOT going to implement?
A. “Put a premium on radical innovation over disciplined
incremental innovation over time.”
B. “Create a small team of innovators and have them drive the
innovation of the company.”
C. “Focus more energy towards experimentation and incentivize
learning and research.”
D. “Spend more time getting innovative ideas from people outside
the company and less time from people within.”
E. “Reduce the number of your innovation goals and pursue them
relentlessly.”
The correct answer is B. A small team of innovators is not as
effective as having a large number of innovators within the company.
5. You are managing a company that continually finds itself caught off
guard by changes in customer purchasing trends and behind in adapting
to changes in competition. Of the following, which idea will keep you
from winning?
A. The best time to gather accurate customer information is at the
point of sale.
B. Broad experimentation is the expensive and risky alternative to
signals analysis and should be avoided.
C. Extensive experience in an industry is less valuable than
extensive experience in creating webs of broad partnerships and
supplier relationships.
D. Adaptation is best achieved in highly interconnected
environments on the front lines of the business, not at the top.
E. Identifying and overcoming uncertainty must be one of your top
priorities.
B is the correct answer.
6. You are an entrepreneur beginning a new venture. You and your
management team are committed to quarantining and eliminating as much
risk as possible. To do this, they suggest the following approaches.
Which is incorrect?
A. Decide first and foremost what is the most important uncertainty,
and eliminate it as fast as possible.
B. Don’t delay in picking your strategy and stick to it. Being
indecisive early on will kill you.
C. Leave the most expensive risks to quarantine until after you’ve
addressed your more inexpensive risks first.
D. When it comes to testing your risks, adopt the motto, “spend a
little to learn a lot”.
E. Too much capital early on can hurt you in the long run.
B is the correct answer
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