Question 1

Company C operates a fleet of plant and machinery that is leased to contractors working in the construction industry. The company keeps a risk register which contains the following information:Risks by vehicle categoryAn indication of the likelihood and impact of each riskStaff responsible for managing specific risksQuantifications of the costs associated with each riskWhich ONE of the following items would you be most likely to see alongside this information in Company C's risk register?

Options :

A : Responses to address each risk

B : Insurance arrangements for each risk

C : A board sponsor for each risk

D : Timescales associated with each risk

Answer: A

Question 2

Which of the following describes a Star business line in the BCG Growth-Share Matrix?

Options :

A : An undesirable business holding a small share of a market that isn't growing. This business may not require much cash to maintain, but there is often significant capital resources and valuable management attention tied up in these businesses. Unless there is an important purpose to remain in this market, organizations usually design divest strategies for this kind of business.

B : The business line holds a high share of a fast-growing market. The organization typically needs to spend significant resources in order to maintain its share of this market. Organizations usually design invest strategies for this kind of business.

C : By holding a small share of a fast-growing market, these products or services have a lot of potential to do well, but have yet to actually deliver strong results. Organizations usually design explore strategies for this kind of business.

D : Products, services, or business units that have a large share of an established (slower growing) market. These business lines require little investment and can generate a lot of cash that can be used in other business units. Organizations usually design harvest strategies for these kinds of business.

Answer: B

Question 3

A company produces a variety of food products including hot dogs and hot dog buns. Which one of the following best describes these products?

Options :

A : Substitute.

B : Complementary.

C : Value.

D : Standardized.

Answer: B

Question 4

The CEO of Chroma, Inc., a large multinational company, believes that the company should prepare strategic plans at least once a year. However, the company's president believes that strategic plans should not be changed frequently and should be prepared only every three years. Which of the following types of organization structures for Chroma would support the CEO's position on the time frame of strategic plans for Chroma?

Options :

A : Chroma is a leading provider of cutting-edge communication technology and functions in a fast-moving and highly competitive market.

B : Chroma is in the business of publishing a trade magazine for the woodworking machinery industry in Colorado.

C : Chroma-s business comes primarily from the long-term contracts it has with the U.S. government to carry out construction projects.

D : Chroma is the only seller of antique Asian musical instruments on the West Coast.

Answer: A

Question 5

Which of the following are possible disadvantages of a joint venture arrangement?(i) There may be disagreements between the venture partners over management and marketing strategy.(ii) Profits have to be shared among the venture partners.(iii) Confidential information about the partners could get shared between them.

Options :

A : (i) and (iii) only

B : (i), (ii) and (iii)

C : (i) and (ii) only

D : (ii) and (iii) only

Answer: B

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