Question 1

The balanced scorecard helps a firm formulate strategy.

Accepted Answer

A) True 
 B)False

Question 2

__________ is measured by a product's performance characteristics and its attributes for which customers are willing to pay.

Accepted Answer

A)   Competitive advantage
B)   Profit potential
C)   Contribution
D)   ValueE) A) and D)
F) A) and C)

Question 3

To _________ a stock return means to compare the percentage change of a stock price over the course of a certain time period from a common base year.

Accepted Answer

A)   Normalize
B)   Standardize
C)   Regulate
D)   StabilizeE) B) and D)
F) A) and B)

Question 4

"What is our social impact?" is a question most relevant to:

Accepted Answer

A)   The balanced scorecard.
B)   The triple bottom line.
C)   Value creation.
D)   Shareholder value.E) B) and C)
F) A) and D)

Question 5

Under the triple-bottom-line framework,being proactive with __________ dimensions makes good business sense.

Accepted Answer

A)   Economic
B)   Non-economic
C)   Technological
D)   OperationalE) A) and D)
F) B) and C)

Question 6

Assets such as innovation and quality are ________ assets that contribute to growth potential but are typically not included in a firm's book value.

Accepted Answer

A)   Intangible
B)   Off-balance sheet
C)   Tangible
D)   HistoricalE) C) and D)
F) B) and D)

Question 7

When viewed from an economic value creation perspective,the major strategic objective for a firm is to:

Accepted Answer

A)   Distribute the value created to the consumer.
B)   Maximize the economic value created.
C)   Improve the qualitative attributes of the product/service.
D)   Decrease the producer surplus.E) B) and C)
F) None of the above

Question 8

The triple bottom line and the balanced scorecard are ____________ frameworks that help a firm evaluate whether its strategy is working.

Accepted Answer

A)   Short-term
B)   Transitory
C)   Holistic
D)   NarrowE) B) and C)
F) None of the above

Question 9

From an economic value created perspective,the volume of a firm's goods or services sold is generally driven by the relationship between ___________ and __________.

Accepted Answer

A)   The value created for customers; the price of the good or service
B)   How value is created; how customers view the firm
C)   The firm's core competencies; how shareholders view the firm
D)   The unemployment rate; shareholder valueE) A) and D)
F) A) and B)

Question 10

The effectiveness of the balanced scorecard is contingent upon all of the following EXCEPT:

Accepted Answer

A)   The type of technology used.
B)   The skills of the managers using it.
C)   The metrics chosen.
D)   Asking the right questions.E) B) and C)
F) A) and B)

Question 11

What is producer surplus? Give a brief example of it.

Accepted Answer

Producer surplus equals the profit of th...

Question 12

In the economic value creation framework of measuring competitive advantage (VPCs) ,V - P = __________.

Accepted Answer

A)   Profits
B)   Deadweight loss
C)   Goodwill
D)   Consumer surplusE) B) and D)
F) B) and C)

Question 13

A drawback to evaluating competitive advantage under the shareholder valuation perspective is:

Accepted Answer

A)   The effectiveness of a firm's strategy cannot be reflected in its stock price.
B)   It is not as effective as the accounting profitability approach to measuring competitive advantage.
C)   The psychological mood of investors does not necessarily reflect how effective a firm's strategy actually is.
D)   It is the only "one-dimensional" framework that does not compare the firm to its rivals.E) B) and C)
F) None of the above

Question 14

"Stakeholders" under the stakeholder theory are:

Accepted Answer

A)   Only concerned with return on risk.
B)   Governmental bodies who oversee industry regulations.
C)   Interested in maximizing profit.
D)   Anyone who makes contributions to a firm and expects inducement in return.E) C) and D)
F) None of the above

Question 15

Microsoft compares its stock performance annually to two stock indices: NASDAQ and the S&P 500.The NASDAQ covers over 400 high-tech companies,including Apple,Dell,and Intel.The S&P is a broader index and includes stocks from many industries.These stock indices are useful ________ that allow the public to assess whether Microsoft has a competitive advantage.

Accepted Answer

A)   Targets
B)   Benchmarks
C)   Reports
D)   MarketsE) None of the above
F) C) and D)

Question 16

Under the accounting profitability framework to competitive advantage,comparing return on revenue (ROR) between companies is important because:

Accepted Answer

A)   It adjusts for size differences and provides a relative comparison.
B)   It reflects the firm's stock price.
C)   It includes the value of the firm's intangible asset base.
D)   All of these.E) A) and B)
F) None of the above

Question 17

The ___________ is related to the stakeholder theory in that it attempts to fulfill obligations to constituencies,including employees,customers,suppliers,and communities.

Accepted Answer

A)   Triple bottom line
B)   Shareholder bottom line
C)   Balanced bottom line
D)   Integrative bottom lineE) A) and B)
F) All of the above

Question 18

Name two important limitations of using shareholder value data to measure competitive advantage.

Accepted Answer

The three major drawbacks are: (1)stock ...

Question 19

Economic value can be viewed as the amount of the total value created that is captured and distributed between ________ and ________.

Accepted Answer

A)   Stakeholder; shareholder
B)   Consumer; producer
C)   Employees; consumer
D)   Producer; supplierE) A) and D)
F) A) and C)

Question 20

If Microsoft continues to outsell all other rivals in the smartphone industry for the next five years,it will have achieved a:

Accepted Answer

A)   Parity advantage.
B)   Sustained competitive advantage.
C)   Competitive parity.
D)   Competitive disadvantage.E) B) and C)
F) A) and B)

Exam 5: Competitive Advantage and Firm Performance

The ___________ is related to the stakeholder theory in that it attempts to fulfill obligations to constituencies,including employees,customers,suppliers,and communities.

Correct Answer
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Under the triple-bottom-line framework,being proactive with __________ dimensions makes good business sense.

Correct Answer
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"Stakeholders" under the stakeholder theory are:

Correct Answer
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The balanced scorecard helps a firm formulate strategy.

Correct Answer
verified

Assets such as innovation and quality are ________ assets that contribute to growth potential but are typically not included in a firm's book value.

Correct Answer
verified

Name two important limitations of using shareholder value data to measure competitive advantage.

Correct Answer
verified
The three major drawbacks are: (1)stock ...
View Answer

"What is our social impact?" is a question most relevant to:

Correct Answer
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What is producer surplus? Give a brief example of it.

Correct Answer
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Producer surplus equals the profit of th...
View Answer

To _________ a stock return means to compare the percentage change of a stock price over the course of a certain time period from a common base year.

Correct Answer
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From an economic value created perspective,the volume of a firm's goods or services sold is generally driven by the relationship between _ and .

Correct Answer
verified

In the economic value creation framework of measuring competitive advantage (VPCs) ,V - P = __________.

Correct Answer
verified

The effectiveness of the balanced scorecard is contingent upon all of the following EXCEPT:

Correct Answer
verified

Economic value can be viewed as the amount of the total value created that is captured and distributed between and .

Correct Answer
verified

Correct Answer
verified

When viewed from an economic value creation perspective,the major strategic objective for a firm is to:

Correct Answer
verified

Under the accounting profitability framework to competitive advantage,comparing return on revenue (ROR) between companies is important because:

Correct Answer
verified

__________ is measured by a product's performance characteristics and its attributes for which customers are willing to pay.

Correct Answer
verified

The triple bottom line and the balanced scorecard are ____________ frameworks that help a firm evaluate whether its strategy is working.

Correct Answer
verified

If Microsoft continues to outsell all other rivals in the smartphone industry for the next five years,it will have achieved a:

Correct Answer
verified

A drawback to evaluating competitive advantage under the shareholder valuation perspective is:

Correct Answer
verified

Exam 5: Competitive Advantage and Firm Performance

The ___________ is related to the stakeholder theory in that it attempts to fulfill obligations to constituencies,including employees,customers,suppliers,and communities.

Correct AnswerverifiedShow Answer

Under the triple-bottom-line framework,being proactive with __________ dimensions makes good business sense.

Correct AnswerverifiedShow Answer

"Stakeholders" under the stakeholder theory are:

Correct AnswerverifiedShow Answer

The balanced scorecard helps a firm formulate strategy.

Correct AnswerverifiedShow Answer

Assets such as innovation and quality are ________ assets that contribute to growth potential but are typically not included in a firm's book value.

Correct AnswerverifiedShow Answer

Name two important limitations of using shareholder value data to measure competitive advantage.

Correct AnswerverifiedThe three major drawbacks are: (1)stock ...View AnswerShow Answer

"What is our social impact?" is a question most relevant to:

Correct AnswerverifiedShow Answer

What is producer surplus? Give a brief example of it.

Correct AnswerverifiedProducer surplus equals the profit of th...View AnswerShow Answer

To _________ a stock return means to compare the percentage change of a stock price over the course of a certain time period from a common base year.

Correct AnswerverifiedShow Answer

From an economic value created perspective,the volume of a firm's goods or services sold is generally driven by the relationship between ___________ and __________.

Correct AnswerverifiedShow Answer

In the economic value creation framework of measuring competitive advantage (VPCs) ,V - P = __________.

Correct AnswerverifiedShow Answer

The effectiveness of the balanced scorecard is contingent upon all of the following EXCEPT:

Correct AnswerverifiedShow Answer

Economic value can be viewed as the amount of the total value created that is captured and distributed between ________ and ________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When viewed from an economic value creation perspective,the major strategic objective for a firm is to:

Correct AnswerverifiedShow Answer

Under the accounting profitability framework to competitive advantage,comparing return on revenue (ROR) between companies is important because:

Correct AnswerverifiedShow Answer

__________ is measured by a product's performance characteristics and its attributes for which customers are willing to pay.

Correct AnswerverifiedShow Answer

The triple bottom line and the balanced scorecard are ____________ frameworks that help a firm evaluate whether its strategy is working.

Correct AnswerverifiedShow Answer

If Microsoft continues to outsell all other rivals in the smartphone industry for the next five years,it will have achieved a:

Correct AnswerverifiedShow Answer

A drawback to evaluating competitive advantage under the shareholder valuation perspective is:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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The three major drawbacks are: (1)stock ...
View Answer

Correct Answer
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Correct Answer
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Producer surplus equals the profit of th...
View Answer

Correct Answer
verified

From an economic value created perspective,the volume of a firm's goods or services sold is generally driven by the relationship between _ and .

Correct Answer
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Correct Answer
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Correct Answer
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Economic value can be viewed as the amount of the total value created that is captured and distributed between and .

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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