Global Business Today 4th Canadian Edition By Charles Hill – Test Bank

1. In the opening case, up until the financial crisis of 2008-09, Ford used a strategy of ____________.
A. price
B. quantity
C. quality
D. regional customization
E. centralizing firm decisions in Detroit

2. Profit can be defined as:
A. costs minus profits
B. the difference between time and money
C. quantity times profit
D. sales plus costs
E. the difference between TR and TC

3. A firm’s __________ can be defined as the actions that managers take to attain the goals of the firm.
A. systems
B. value chain
C. operations
D. strategy
E. plans

4. Sally creates _______ when she develops a way to maximize long-term profitability.
A. a strategy
B. a mission
C. competitors
D. a design
E. competitive advantage

5. _______ is the difference between total revenues and total costs.
A. Strategy
B. Profit
C. Asset
D. Economies of scale
E. Gross margin

6. A simple example of _______ is rate of return on sales.
A. strategy
B. economies of scale
C. profitability
D. primary activity
E. profit

7. A basic condition that determines a firm’s profits is:
A. the firm’s costs of distribution.
B. taxes.
C. the amount of value customers place on the firm’s goods.
D. government regulations.
E. variable costs

8. Actions that managers take to attain the firm’s goals are referred to as _____.
A. value chain activities
B. strategies
C. systems
D. operations
E. tactics

9. A company creates _______ by converting inputs that cost C into a product on which consumers place a value of V.
A. value
B. wants
C. profits
D. demand
E. profitability

10. According to the textbook, it is useful to think of the firm as a(n) __________ composed of a series of distinct activities, including production, marketing, materials management, R&D, human resources, information systems, and the firm infrastructure.
A. functional stream
B. momentum machine
C. inertia chain
D. value chain
E. business chain

11. Value chain activities can be categorized as:
A. primary activities and secondary activities
B. input activities and throughput activities
C. profitable activities and unprofitable activities
D. primary activities and support activities
E. value creation and value delivery

12. The ___________ activities of a firm have to do with creating the product, marketing and delivering the product to buyers, and providing support and after-sales service to the buyers of the product.
A. support
B. subordinate
C. ancillary
D. primary
E. distribution