BUSİNESS MANAGEMENT - Deneme Sınavı - 3

Production strategy plays the leading role when a company adopts a cost leadership strategy. There are three major tools utilized by production department for achieving lower costs: economies of scale, experience effects, and process innovation. Economies of scale which refers to decreases in average costs per unit of production as output increases, have important effects on lowering costs. For this reason, the correct answer is B.

Based on the integration-responsiveness framework, there are four strategic choices for companies: home replication, localization, global standardization, and transnational strategy. For this reason, the correct answer is B.

A standard is a predetermined price, cost, or quantity which is expected under regular conditions.

Internal control is a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.

In an “effective” internal control system, the following five components work to support the achievement of an entity’s mission, strategies, and related business objectives:

1. Control Environment

2. Risk Assessment

3. Control Activities

4. Information and Communication

5.  Monitoring

Internal control consists of a set of rules, procedures and organizational structures which aim to:

• Protect the company’s assets against waste, fraud, and inefficiency.

• Ensure the reliability and integrity of accounting and operating data.

• Promote operational efficiency.

• Ensure that operations comply with all existing rules and regulations.

Concurrent controls apply to business operations as they happen. In order to increase the profitability of Service X, concurrent controls must be used, since the operations are already ongoing. 

Feedforward controls or pre controls are designed to detect and anticipate deviations from standards at various points before relevant work is performed. Therefore Company A should use feedforward controls before they launch Service Y to the market.

Strategic control deals with determination of overall organizational strategy and tactical controls are used to implement that strategy.

The four perspectives of the balanced scorecard are financial performance; customer service; internal business processes; and the organization’s capacity for learning and growth.

Sustainable competitive advantage is either being ahead of competitors or achieving higher performance than the industrial average for a long time. The correct answer is E.

Internal stakeholders are stockholders, board of directors, executive officers, other managers, and employees. External stakeholders are all other individuals and groups that have some claim on the company. This group includes customers, suppliers, alliance partners, creditors, local and national governments, unions, local communities, media, and the public. The correct answer is E.

Stakeholders can be divided into two groups: internal stakeholders and external stakeholders. Internal stakeholders are stockholders, board of directors, executive officers, other managers, and employees. External stakeholders are all other individuals and groups that have some claim on the company. This group includes customers, suppliers, alliance partners, creditors, local and national governments, unions, local communities, media, and the public. The correct answer is D.

A vision is a statement about where the company wants to be in the future. It is composed of the desired achievements of the company. The correct answer is D.

In a monopoly, a single producer sells an undifferentiated product such as water, natural gas, and rail transportation in Turkey with a large degree of pricing power in a consolidated market. The correct answer is C.

Liquidity ratios measure an organization’s ability to meet its current debt obligations. For example, the current ratio (current assets divided by current liabilities) tells whether a company has sufficient current assets to convert into cash to pay off its debts. The acid-test ratio is a more focused version of current ratio, as explained in the question.

Inamonopoly, a single producer sells an undifferentiated product such as water, natural gas, and rail transportation in Turkey with a large degree of pricing power in a consolidated market. The correct answer is C.

Perfect competition markets have many producers which sell an undifferentiated product with a little or no pricing power in a fragmented market. The correct answer is B.

There are two different approaches to evaluating and controlling a team or individual performance and allocating rewards. One approach focuses primarily on how people do their jobs, whereas the other focuses primarily on the outcomes that people produce. First is behavior control and the second is outcome control.

The implementation of total quality management involves the use of many techniques such as quality circles, benchmarking, Six Sigma principles, reduced cycle time, and continuous improvement.

Margin is the difference between value and total costs. The correct answer is A.