Sm Sample Exam

Part A. Multiple choice quiz

1. A firm has a competitive advantage when:

|A. |the value-creating strategy be in a formulation stage. |

|B. |competitors be simultaneously implementing the strategy. |

|C. |competitors are not be able to duplicate the strategy. |

|D. |average returns be earned by the company. |

2. . Above-average returns are:

|A. |more profits than the firm earned last year. |

|B. |more profits than the industry average. |

|C. |profits in excess of what an investor expects to earn from a historical pattern of performance of the firm. |

|D. |profits in excess of what an investor expects to earn from other investments with a similar level of risk. |

3. Perpetual innovation is the term used to describe:

|A. |rapid technology diffusion. |

|B. |destroying the value of an existing technology. |

|C. |how rapidly new, information-intensive technologies replace old ones. |

|D. |knowledge gained through experience, observation and interference.. |

4. The executives’ ability to verify potential substitutes for technologies that are in current is a result of analysing the ____ segment of the general environment.

|A. |economic...