Question 1: Why is doing strategic planning so difficult?

• People seldom agree on where the company stands right now and how it is performing because they are biased, have a limited perspective, and often have personal or hidden agendas, that is, politics gets in the way of candor and truth
• Information the company and its people possess is incomplete, dated, often inaccurate, and sometimes not useful, while the information they most need is often unavailable
• The planning horizon is typically three to five years into the future, a future that is unknown, ambiguous, and changing before our very eyes
• It takes too much effort, time, and money, and besides, "the company is doing fine"
• All of the above

Question 2: Which of the following is not a concentration strategy?

• Develop innovative products
• Invest in developing a new technology
• Acquire a company in another industry
• Expand internationally
• Conglomerate-diversification strategy

Question 3: Vision statements that include a timeframe in which the vision might be achieved are more useful than those that don't.

• True
• False

Question 4: Which of the following is a good reason to have a formal set of corporate values?

• It helps earn the public trust
• It communicates to all employees how to behave
• It fosters loyalty in consumers
• It develops a culture based on those values
• All of the above

Question 5: Which of the following is not a key personality trait of leadership?

• Being visionary
• Having strong moral and ethical principles
• Humility
• Being liked
• Having integrity

Question 6: Every company that does business in the US must have its financial statements audited.

• True
• False

Question 7: Mergers and acquisitions are the same.

• True
• False

Question 8: A company's purpose is its vision statement.

• True
• False

Question 9: Which of the following is not regulated?

• Education
• Electric utilities
• Computers
• Prescription drugs
• Airline safety

Question 10: A company's publicly stated underlying purpose has value because it:

• Motivates employees
• Attracts the right kind of person to want to work for the company
• Generates positive public relations
• Expresses values with which employees identify
• All of the above