Sample Test - 5 Questions

20 janeiro 2021, 12:17 • Diogo António Fernandes Gonçalves


Dear Students: 


  1. Compared to a differentiator, the cost leader has the advantage over its rivals of:                                                                                                            

           a)  Making higher profit margins
           b)  Being better able to withstand the negative influence of powerful suppliers and buyers
           c)  Having inimitable production methods
           d)  Enjoying higher brand loyalty

2. Two possible reasons for mergers and acquisitions are:

           a)  To increase managerial staff and to minimize economies of scale
           b)  To reduce product differentiation and to expand geographic coverage
           c)  To create seasonal trends in sales and to make better use of the sales force
           d)  To gain access to new technology and to extend to new product categories

3. Which is the best example of a reason that usually increases buyers' bargaining power?

            a)  Product is bought infrequently or in small quantities
            b)  Differentiated product
            c)  Low switching costs
            d)  Buyer demand is strong or increasing

4. Analysis suggests that a company’s existing markets are saturated. The company wants to exploit current products and capabilities. What strategy would you suggest?

            a) Diversification
            b) Retrenchment
            c) Market penetration                                                                                                                                                                                                      

            d) Market development 


5. Which indicator of power is exclusive for external stakeholders?

             a) Resource dependence 

             b) Status

             c) Symbols
             d) Representation


Kind regards, Paulo Caldas & Diogo Gonçalves