CORPORATE STRATEGIES - OBJECTIVE QUESTIONS

Section A: General Concepts (Q1–Q20)

1. Corporate strategy is concerned with:
a) Functional decisions
b) Business-level strategies
c) The overall scope and direction of an organization
d) Marketing decisions
Ans: c
2. Which of the following is NOT a type of corporate strategy?
a) Growth
b) Stability
c) Functional
d) Retrenchment
Ans: c
3. A company adopting a stability strategy focuses on:
a) Rapid expansion
b) Mergers and acquisitions
c) Maintaining current business operations
d) Divesting business units
Ans: c
4. Retrenchment strategy involves:
a) Business diversification
b) Business expansion
c) Business downsizing
d) None of the above
Ans: c
5. A combination strategy involves:
a) A single strategy at all levels
b) Simultaneous pursuit of multiple strategies
c) Avoiding strategic planning
d) Total withdrawal from markets
Ans: b
6. Stability strategies are most suitable when:
a) The firm is growing rapidly
b) The external environment is highly volatile
c) The organization is satisfied with its current performance
d) The firm wants to diversify
Ans: c
7. Corporate strategy differs from business strategy by focusing on:
a) Individual business units
b) Functional departments
c) Entire organizational direction
d) Human resource policies
Ans: c
8. The BCG Matrix is used to analyze:
a) Economic indicators
b) Competitor’s performance
c) Product portfolio
d) Financial ratios
Ans: c
9. Which is NOT a quadrant in the BCG matrix?
a) Stars
b) Cash cows
c) Followers
d) Dogs
Ans: c
[Link] "Dogs" in BCG Matrix typically:
a) Generate high revenue
b) Are high growth products
c) Have low market share and low growth
d) Are considered future stars
Ans: c
[Link] GE McKinsey Matrix uses how many cells?
a) 2
b) 9
c) 5
d) 4
Ans: b
12.A "Star" in BCG Matrix has:
a) Low growth and low share
b) High market share and high growth
c) Low share, high growth
d) High share, low growth
Ans: b
[Link] integration involves:
a) Acquiring a competitor
b) Expanding into unrelated products
c) Opening retail stores
 d) Backward integration
Ans: a
[Link] integration refers to:
a) Selling raw materials
b) Acquiring suppliers
c) Moving closer to customers
d) Downsizing operations
Ans: c
[Link] a firm acquires its supplier, it is engaging in:
a) Forward integration
b) Backward integration
c) Horizontal integration
d) Lateral diversification
Ans: b
16.A conglomerate diversification involves:
a) Similar product lines
b) Similar markets
c) Completely unrelated businesses
d) Same geographic market
Ans: c
[Link] strategy is associated with:
a) Growth
b) Decline recovery
c) Business start-up
d) Diversification
Ans: b
18.A company focusing on adding new but related products is using:
a) Horizontal integration
b) Concentric diversification
c) Conglomerate diversification
d) Market penetration
Ans: b
[Link] a company decides to sell off part of its business, it is called:
a) Integration
b) Diversification
c) Divestment
d) Harvesting
Ans: c
 [Link] strategy involves slow withdrawal of investment?
a) Divestment
b) Liquidation
c) Harvesting
d) Expansion
Ans: c

Section B: Growth Strategies (Q21–Q40)

[Link] through internal development is also called:
a) Joint venture
b) Strategic alliance
c) Organic growth
d) Inorganic growth
Ans: c
[Link] growth means:
a) Hiring more employees
b) Improving processes
c) Acquiring another firm
d) Introducing new products internally
Ans: c
[Link] penetration strategy aims to:
a) Enter new geographic markets
b) Increase usage of current products
c) Develop new products
d) Exit a business
Ans: b
[Link] alliances are formed to:
a) Reduce competition
b) Share resources and risks
c) Eliminate products
d) Increase prices
Ans: b
[Link] is defined as:
a) Partnership with a government
b) The coming together of two companies to form a new entity
c) Selling of assets
d) Borrowing funds
Ans: b
Corporate Strategy Multiple Choice Questions and answers

1. The term strategy is derived from a

word ‘strategos’
a. Latin
b. Greek
c. Chinese
d. German
Answer: b
2. The term strategy is derived from the word ‘strategos’which means
a. Tactics
b. Leadership
c. Generalship
d. Management
Answer: c
3. Strategic management does not involve
a. setting objectives
b. analyzing the competitive environment,
c. analyzing the internal organization
d. Analyzing the external organization
Answer: d
4. Ensures that management rolls out the
strategies across the organization is the role of
a. HR Department
b. Operations Management
c. Strategic Management
d. All of the above
Answer: c
5. Strategic management is the management of anorganization’s
resources to achieve its
a. Profit
b. Goals and objectives.
c. Market Share
d. Competitive Advantage
Answer: b
6. Different levels of strategic decision making andstrategy
formulation in any organization Does not include
a. Financial
b. Corporate
c. Functional
d. Business
Answer: a
7. is the strategy which includes Board ofDirectors and
the Chief Executive officer, is responsible for the organization’s financial
performance and other non-financial goals
a. Business
b. Functional
c. Corporate
d. Financial
Answer: c
8. Which of the following doesn’t describe CorporateStrategy
a. what business or businesses should we be in
b. How does the parent company add value to its subsidiaries
c. How does being in one business help us compete in otherbusinesses
d. How should we compete in other business
Answer: d
9. Different levels of strategic decision making andstrategy
formulation in any organization include
a. Corporate Level and Business Level
b. Corporate Level and Functional Level
c. Business Level and Functional Level
d. Corporate, Business and Functional Level
Answer: d
10. Which of the following does not include thecharacteristics of
Strategic Management?
a. Reactive
b. Multidimensional
c. Systematic
d. Dynamic
Answer: a
11. Which of the following denotes the characteristics ofStrategic
Management?
a. Decentralization
b. Wide-span of management
c. Searching for new sources of advantage
d. Multi operational
Answer: c
12. The role of stakeholders includes
a. Direct Management
b. Decision Making
c. Investments
d. All of the above
Answer: d
13. The process of strategic management is a/an
One that changes as the organizationalgoals and
objectives evolve
a. Continuous
b. Interesting
c. Systematic
d. Stable
Answer: a
14. Which of the following defines what business orbusinesses the firm
is in or should be in?
a. Business strategy
b. Corporate strategy
c. Functional strategy
d. National strategy
Answer: b
15. Which of the following defines how each individualbusiness unit will
attempt to achieve its mission?
a. Business strategy
b. Corporate strategy
c. Functional strategy
d. National strategy
Answer: a
16. Which of the following focuses on supporting thecorporate and
business strategies?
a. Competitive strategy
b. Corporate strategy
c. Operational strategy
d. National strategy
e. Mission strategy
Answer: c
17. Which one of the following is not a primary task ofstrategic managers?
a. Establishing strategic objectives
b. Developing the steps to follow in implementing operationallevel plans
c. Defining the business and developing a mission
d. Developing a strategy
Answer: b
18. The task of strategy choice involves:
a. developing plans and activities which will improve the
organisation’s performance and competitive position
b. determining how the organisation can be more market andefficiency
oriented
c. monitoring whether the organisation is achieving good financialperformance
d. keeping the organisation free of debt
Answer: a
19. Which one of the following is at the core of strategicmanagement?
a. Choosing which organisational objectives to focus on
b. Being alert for opportunities to change work responsibilities
c. Adapting the organisation to a changing external environment
d. Choosing whether to make decisions autocratically or on thebasis of
participation
Answer: c
20. The corporate level is where top managementdirects:
a. all employees for orientation
b. its efforts to stabilize recruitment needs
c. overall strategy for the entire organization
d. overall sales projections
Answer: c
21. The three organizational levels are:
a. corporate level, business level, functional level
b. corporate level, business unit level, functional level
c. corporate strategy level, business unit level, functional level
d. corporate strategy level, business level, specialist levelAnswer: a
22. Which of the following is an example of competingon quick response?
a. a firm produces its product with less raw material waste than itscompetitors
b. a firm offers more reliable products than its competitors
c. a firm’s products are introduced into the market faster than itscompetitors’
d. a firm’s research and development department generates manyideas for new
products
Answer: c
23. Which one of the following is NOT included in thePorter’s Five Forces
model:
a. Potential development of substitute products
b. Bargaining power of suppliers
c. Rivalry among stockholders
d. Rivalry among competing firms
Answer: c
24. What is meant by the term ‘Stakeholder’?
a. A person who is not related with a business.
b. A person who is related with a business.
c. A person who owns a business.
d. A person who purchases the shares of a business.
Answer: b
25. Of the following, which one would NOT be considered one of
the components of a missionstatement?
a. The target market for XYZ is oil and gas producers as well asproducers of
chemicals.
b. XYZ shall hire only those individuals who have with sufficienteducational
levels so as to be of benefit to our customers
c. The customers of XYZ shall include global and local consumersof gas and oil
products and domestic users of nontoxic chemicals
d. The technologies utilized by XYZ shall focus upon developmentof alternative
sources of gas and oil so as to remain competitive within the industry
Answer: b
26. The strategic management process is
a. A set of activities that will assure a temporary advantage and average
returns for the firm.
b. A decision-making activity concerned with a firm’s internal resources,
capabilities, and competencies, independent of the conditions in its external
environment.
c. A process directed by top-management with input from otherstakeholders
that seeks to achieve above-average returns for investors through effective
use of the organization’s resources.
d. The full set of commitments, decisions, and actions required forthe firm to
achieve above-average returns and strategic competitiveness..
Answer: d
27. The goal of the organization’s is to
capture the hearts and minds of employees, challengethem, and evoke
their emotions and dreams.
a. vision
b. mission
c. culture
d. strategy
Answer: a
28. A firm’s mission
a. Is a statement of a firm’s business in which it intends tocompete and
the customers which it intends to serve.
b. Is an internally-focused affirmation of the organization’sfinancial,
social, and ethical goals.
c. Is mainly intended to emotionally inspire employees and otherstakeholders.
d. Is developed by a firm before the firm develops its vision.
Answer: a
29. The environmental segments that comprise thegeneral
environment typically will NOT include
a. Demographic factors.
b. sociocultural factors.
c. Substitute products or services.
d. Technological factors.
Answer: c
30. An analysis of the economic segment of the externalenvironment would
include all of the following EXCEPT
a. Interest rates.
b. International trade.
c. The strength of the U.S. dollar.
d. The move toward a contingent workforce.
Answer: d
31. Product differentiation refers to the:
a. Ability of the buyers of a product to negotiate a lower price.
b. Response of incumbent firms to new entrants.
c. Belief by customers that a product is unique.
d. Fact that as more of a product is produced the cheaper itbecomes
per unit.
Answer: c
32. Which of the following is NOT an entry barrier to anindustry?
a. expected competitor retaliation
b. economies of scale
c. customer product loyalty
d. bargaining power of suppliers
Answer: d
33. Switching costs refer to the:
a. Cost to a producer to exchange equipment in a facility when newtechnologies
emerge.
b. Cost of changing the firm’s strategic group.
c. One-time costs suppliers incur when selling to a differentcustomer.
d. One-time costs customers incur when buying from a differentsupplier.
Answer: d
34. New entrants to an industry are more likely when(i.e., entry barriers
are low when…)
a. It is difficult to gain access to distribution channels.
b. Economies of scale in the industry are high.
c. Product differentiation in the industry is low.
d. Capital requirements in the industry are high.
Answer: c
35. Suppliers are powerful when:
a. Satisfactory substitutes are available.
b. They sell a commodity product.
c. They offer a credible threat of forward integration.
d. They are in a highly fragmented industry.
Answer: c
36. The highest amount a firm can charge for itsproducts is most
directly affected by
a. Expected retaliation from competitors.
b. The cost of substitute products.
c. Variable costs of production.
d. Customers’ high switching costs.
Answer: b
37. All of the following are forces that create high rivalrywithin an industry
EXCEPT
a. Numerous or equally balanced competitors.
b. High fixed costs.
c. Fast industry growth.
d. High storage costs.
Answer: c
38. According to the five factors model, an attractive industry would have
all of the following characteristicsEXCEPT:
a. Low barriers to entry.
b. Suppliers with low bargaining power.
c. A moderate degree of rivalry among competitors.
d. Few good product substitutes.
Answer: a
39. Internal analysis enables a firm to determine whatthe firm
a. Can do.
b. Should do.
c. Will do.
d. Might do.
Answer: a
40. An external
analysis enables a firm to determinewhat the firm
a. Can do.
b. Should do.
c. Will do.
d. Might do.
Answer: d
41. is/are the source of a firm’s ,
which is/are the source of the firm’s .
a. Resources, capabilities, core competencies
b. Capabilities, resources, core competencies
c. Capabilities, resources, above average returns
d. Core competencies, resources, competitive advantage
e. Answer: a
42. In the airline industry, frequent-flyer programs,ticket kiosks, and e-
ticketing are all examples of capabilities that are
a. rare.
b. causally ambiguous.
c. socially complex.
d. valuable.
Answer: d
43. Firms with few competitive resources are more likely
a. To not respond to competitive actions.
b. Respond quickly to competitive actions.
c. Delay responding to competitive actions.
d. Respond to strategic actions, but not to tactical actions.
Answer: c
44. Competitors are more likely to respond tocompetitive
actions that are taken by
a. Differentiators.
b. Larger companies.
c. First movers.
d. Market leaders.
Answer: d
45. What can be defined as the art and science offormulating,
implementing and evaluating
cross-functional decisions that enable an organization toachieve its objectives?
a. Strategy formulation
b. Strategy evaluation
c. Strategy implementation
d. Strategic management
e. Strategic leading
Answer: d
46. Which of the following is not a cultural product?
a. Rites
b. Emotions
c. Rituals
d. Sagas
e. Symbols
Answer: b
47. Which individuals are most responsible for thesuccess and failure
of an organization?
a. Strategists
b. Financial planners
c. Personnel directors
d. Stakeholders
e. Human resource managers
Answer: a
48. Which of the following is an element of a firm’sremote external
environment?
a. Competition
b. Political agencies
c. Suppliers
d. Trade union
Answer: b
49. Long-term objectives should be all of the followingexcept:
a. measurable.
b. continually changing.
c. reasonable.
d. challenging.
Answer: b
50. What are guides to decision making?
a. laws
b. rules
c. policies
d. procedures
e. goals
Answer: c
51. According to Greenley, strategic management offersall of these benefits
except that
a. It provides an objective view of management problems.
b. It creates a framework for internal communication amongpersonnel.
c. It encourages a favorable attitude toward change.
d. It maximizes the effects of adverse conditions and changes.
Answer: d
52. The vision and mission statement can often be found
a. In the SEC report.
b. In annual reports.
c. On customer receipts.
d. On supplier invoices.
e. on community news bulletins
Answer: b
53. Which group would be classified as a stakeholder?
a. Communities
b. Banks
c. Suppliers
d. Employees
e. All of these
Answer: e
54. The process of performing an external audit needs toinclude:
a. Only top level managers, as it’s a planning function.
b. As many managers and employees as possible.
c. primarily front-line supervisors
d. between 15 to 20 managers for it to be valid
Answer: b
55. Which of the following is not a stage of strategyformulation
techniques?
a. Formulation Framework
b. Matching stage
c. External factor evaluation
d. Decision stage
Answer: b
56. ST Strategies is an important strategy to
a. Match weakness with opportunities of the firm
b. Overcome external threats
c. Obtain benefit from its resources
d. Overcome its weakness and reducing threatsAnswer: b
57. The immediate external environment includes:
a. Divisions
b. S. B. U. s
c. Competitors
d. Management
Answer: c
58. The comprises economic and socialconditions,
political priorities and technological developments, all of which must
be anticipated, monitored, assessed and incorporated into the
executive’s decision making.
a. Internal environment
b. Task environment
c. Operating environment
d. Societal environment
Answer: d
59. Strategic management involves the ,
directing, and controlling of a company’sstrategy-
related decisions and actions.
a. Financing; marketing
b. Planning; financing
c. Planning; organizing
d. Marketing; planning
Answer: c
60. A strategy is a company’s
a. Value statement
b. Pricing policy
c. Game Plan to outsmart competitor
d. Long-term objective
Answer: c
61. Strategy-formulation concepts and tools
a. Do not differ greatly for different size and type of organizations
b. Differ greatly for different size and type of organizations
c. Do not differ greatly for profit or nonprofit organizations butdiffer in small
and large organizations
d. None of the mentioned options
Answer: a
62. Annual objectives
a. Are not critical to success
b. Serve as guidelines for action, directing and channeling effortsand activities
of organization members
c. Are not important for employee motivation and identification
d. Do not provide a basis for organizational design
Answer: b
63. Annual objectives
a. Need not to be consistent
b. Should be easily achievable
c. Should be measurable
d. Should be confidential and not to be communicated throughoutthe
organization
Answer: c
64. Which of the following resources is used by allorganizations to
achieve desired objectives?
a. Financial resources,
b. Physical resources,
c. Human resources
d. All of the mentioned options
Answer: d
65. Strategic management is
a. A pure science.
b. Based mainly on intuition.
c. Needed mainly when organizational performance falls.
d. Based on the use of quantitative and qualitative information.
Answer: d
66. Large-scale, future-oriented plans, for interacting with the competitive
environment to achieve companyobjectives refers to its
a. Strategy
b. Goals
c. Competitive analysis
d. Dynamic policies
Answer: a
67. Strategic issues require which level of managementdecisions?
a. Operative
b. Top
c. Front-line
d. Middle
Answer: b
68. Which of these basic questions should a visionstatement answer?
a. What is our business?
b. Who are our employees?
c. Why do we exist?
d. What do we want to become?
Answer: d
69. is not part of an external audit.
a. Analyzing competitors
b. Analyzing financial ratios
c. Analyzing available technologies
d. Studying the political environment
Answer: b
70. Strategic management process activate in thesequence of
a. Environmental scanning, Strategy formulation,
Implementation, control and evaluation
b. Strategy formulation, Environmental scanning,
Implementation, control and evaluation
c. Environmental scanning, Strategy Implementation,formulation,
control and evaluation
d. Strategy formulation, Implementation, control, evaluation,
Environmental scanning
Answer: a
71. KAPKAL Power’s interested to achieve a 10 percentreturn on equity
(ROE) in their core electric utility, 14
percent ROE on water resource operations, and 15percent ROE on support
businesses. It is
a. Mission
b. Strategy
c. Objective
d. Policy
Answer: c
72. “A possible and desirable future state of anorganization” is
called:
a. Mission
b. Vision
c. Strategy implementation
d. None of above
Answer: b
73. Strategic decisions are based on what managers , rather
than on whatthey .
a. Know; forecast
b. React to; anticipate
c. Forecast; know
d. Compromise with; analyze
Answer: c
74. “To improve economic strength of society and function as a good
corporate citizen on a local, state, andnational basis in all countries in which we
do business”. This is a mission statement that contains:
a. Self-concept
b. Economic concern
c. Products or Services
d. Concern for Public Image
Answer: d
75. Strategic-management audit is known as:
a. Environmental scanning
b. Strategy formulation
c. Strategy control
d. Strategy evaluation
Answer: a
76. Forecasting tools can be broadly categorized into twogroups. Those are:
a. Qualitative, Operational
b. Quantitative, Operational
c. Qualitative, Quantitative
d. Regression and time series analysis
Answer: c
77. identifies a firm’s major competitorsand their
particular strengths and weaknesses in relation to a sample firm’s strategic
position.
a. Competitive Profile Matrix
b. External Factor Evaluation matrix
c. Internal Factor Evaluation Matrix
d. Boston consulting group matrix
Answer: a
78. Organizing means an identifiable group of peoplecontributing their
efforts towards the attainment of same goal. It is important at the time of:
a. Environmental scanning
b. Strategy formulation
c. Strategy Implementation
d. Strategy evaluation
Answer: c
79. In a turbulent and competitive free enterprise environment, a firm
will succeed only if it takes a(n)
stance towards change.
a. Reactive
b. Proactive
c. Anti-regulatory or anti-government
d. Vision and not mission
Answer: b
80. Which statement best describes intuition?
a. It represents the marginal factor in decision-making.
b. It represents a minor factor in decision-making integrated withanalysis.
c. It should be coupled with analysis in decision-making.
d. It is better than analysis in decision-making.
e. It is management by ignorance.
Answer: c
81. What are the means by which long-term objectiveswill be achieved?
a. Strategies.
b. Strengths.
c. Weaknesses.
d. Policies.
e. Opportunities.
Answer: a
82. Which of these basic questions should a visionstatement answer?
a. What is our business?
b. Who are our employees?
c. Why do we exist?
d. What do we want to become?
e. Who are our competitors?
Answer: d
83. When an industry relies heavily on government contracts, which
forecasts can be the most importantpart of an external audit.
a. Economic
b. political
c. technological
d. competitive
Answer: b
84. is not part of an external audit.
a. Analyzing competitors
b. Analyzing financial ratios
q. Analyzing available technologies
d. Studying the political environment
e. Analyzing social, cultural, demographic and geographic forcesAnswer: b
85. Which individuals are most responsible for thesuccess and failure
of an organization?
a. Strategists
b. Financial planners
c. Personnel directors
d. Stakeholders
e. Human resource managers
Answer: a
86. Long-term objectives should be all of the followingexcept:
a. Measurable.
b.
Continually changing.
c. Reasonable.
d. Challenging.
e. Consistent.
Answer: b
87. What are guides to decision making?
a. laws
b. rules
c. policies
d. procedures
e. goals
Answer: c
88. Which group would be classified as a stakeholder?
a. Communities
b. Banks
c. Suppliers
d. Employees
e. All of the given options
Answer: e
89. Typically how many strategic decision levels are inthe corporate
decision-making hierarchy?
a. 3
b. 4
c. could be more than 5
d. 2
Answer: a
90. Which type of trend can be exemplified by the increasing numbers
of two- income households in asociety?
a. Social
b. Economic
c. Cultural
d. Technological
Answer: b
91. External assessment is performed in which of thestrategic
management phase?
a. Strategy formulation stage
b. Strategy implementation stage
c. Strategy evaluation stage
d. All of the given options
Answer: a
92. Political variables have a significant effect on
a. Strategy formulation and implementation
b. Strategy formulation and evaluation
c. Strategy implementation and evaluation
d. Strategy formulation, implementation and evaluationAnswer: a
93. Strategic decisions ostensibly commit the firm for
a. 1 -2 years
b. The short term
c. one years
d. A long time, typically five years
Answer: d
94. Social responsibility is a critical consideration for acompany’s strategic
decision makers since
a. Stockholders demand it
b. The mission statement must express how the company intendsto contribute
to the societies that sustain it
c. It increases a company’s profits
d. It helps make decisions
Answer: b
95. “The perfect search engine would understand exactlywhat you mean and
give back exactly what you want”, this statement is included in the mission
statement of anonline firm and is showing which one of the following
components?
a. Self-concept
b. Concern for public image
c. A declaration of attitude
d. Philosophy
Answer: b
96. Which of the following are signs of weakness in acompany’s
competitive position?
a. A return-on-equity is below 25% and earnings per share of lessthan Rs. 2.00
b. A price set by the firm higher than its rivals
c. A declining market share, poor product quality and few sales inmarket
d. Lower revenues and profit margin and narrow product linethan the
market leader
Answer: c
97. It directs at developing new products before competitors do at
improving product quality or at improving manufacturing processes to
reduce costs.
a. Marketing
b. Opportunity analysis
c. Research and development
d. Management
Answer: c
98. “Identifying and evaluating key social, political, economic,
technological and competitive trends andevents”. Which of the
followings best describes this statement?
a. Developing an effective mission statement
b. Conducting an internal audit
c. Performing an external audit
d. Formulating strategy
Answer: c
99. What is the central purpose of strategic evaluation?
a. Evaluate effectiveness of strategy to achieve organisationalobjectives.
b. Evaluate effectiveness of control system to measure
achievements.
c. Evaluate effectiveness of strategies to be implementedefficiently.
d. Evaluate effectiveness of the strategy implementation process.
Answer: a
100. Strategy evaluation at the level
involves using specific performance
measures-qualitative and quantitative-for eachfunctional area.
a. organizational
b. operational
c. functional
d. production
Answer: c

CORPORATE STRATEGIES:
This section primarily covers mergers and acquisitions, types of integration, and international
growth strategies.

26.A merger in which two companies in the same industry and same stage of production
combine is called:
a) Forward integration
b) Backward integration
c) Horizontal merger
d) Conglomerate merger
Ans: c
[Link] a company acquires a supplier, it is an example of:
a) Horizontal merger
b) Backward integration
c) Forward integration
d) Concentric diversification
Ans: b
[Link] of the following best describes a forward integration strategy?
a) Acquiring raw material providers
b) Acquiring a direct competitor
c) Acquiring a distributor or retailer
d) Expanding product lines
Ans: c
29.A merger between firms at different stages of production in the same industry is called:
a) Horizontal merger
b) Vertical merger
c) Conglomerate merger
d) Strategic alliance
Ans: b
[Link] primary objective of a merger or acquisition is to:
a) Increase liabilities
b) Reduce business units
c) Achieve synergies and growth
d) Downsize the company
Ans: c
31.A hostile takeover occurs when:
a) Both firms agree to merge
b) Shareholders approve the acquisition
c) The acquiring company bypasses the target company's management
d) Two friendly companies merge
Ans: c
[Link] of the following is not an advantage of mergers?
a) Increased market share
b) Access to new markets
c) Increased competition
d) Economies of scale
Ans: c
[Link] strategy is most suitable for entering a foreign market with minimal risk?
a) Direct investment
b) Joint venture
c) Licensing
d) Acquisition
Ans: c
[Link] a joint venture, two or more firms:
a) Fully merge into one entity
b) Form a temporary partnership for a project or business
c) Acquire one another
 d) Outsource services
Ans: b
35.A company using a multidomestic strategy:
a) Offers standardized products globally
b) Treats each country market separately
c) Centralizes its operations
d) Ignores local customs and preferences
Ans: b
36.A global strategy focuses on:
a) Customizing products for each market
b) Diversifying into unrelated businesses
c) Offering standardized products worldwide
d) Exiting low-performing markets
Ans: c
37.A transnational strategy aims to:
a) Maximize local responsiveness
b) Maximize global integration
c) Achieve both global efficiency and local responsiveness
d) Avoid international expansion
Ans: c
[Link] of the following is a form of inorganic growth?
a) Franchising
b) Mergers and acquisitions
c) New product development
d) Market penetration
Ans: b
[Link] in mergers means:
a) Decrease in brand value
b) Value created by combining two firms is less than the sum of individual values
c) Combined performance exceeds individual contributions
d) Loss of control
Ans: c
[Link] main reason companies pursue international corporate strategies is to:
a) Avoid taxes
b) Gain access to new markets and customers
c) Eliminate global competition
d) Hire cheaper labor
Ans: b
Stability Strategies, Retrenchment Strategies, and Strategic Alternatives.
CORPORATE STRATEGIES:
41.A company following a pause/proceed strategy is:
a) Rapidly expanding into new markets
b) Taking a temporary break before continuing growth
c) Withdrawing completely from a business
d) Merging with a competitor
Ans: b
[Link] of the following is not a type of stability strategy?
a) No-change strategy
b) Profit strategy
c) Pause/proceed strategy
d) Liquidation strategy
Ans: d
43.A no-change strategy implies:
a) Slight expansion
b) Reduction of operations
c) Continuation of the existing business model
d) Aggressive marketing
Ans: c
44.A profit strategy is most often used when:
a) Growth is the top priority
b) Stability is irrelevant
c) Short-term profitability is needed due to poor performance
d) Government funding is available
Ans: c
[Link] retrenchment strategy involves:
a) Investing more in the business
b) Repositioning the product
c) Reducing operations and costs
d) Expanding to foreign markets
Ans: c
46.A turnaround strategy is a type of:
a) Growth strategy
b) Combination strategy
c) Retrenchment strategy
d) Integration strategy
Ans: c
47.A company undergoing a turnaround usually focuses on:
a) Process expansion
b) Cost reduction and revenue generation
c) Product diversification
d) New market entry
Ans: b
[Link] divestment strategy is used when a company:
a) Wants to grow
b) Exits an unprofitable division
c) Builds internal capabilities
d) Merges with another firm
Ans: b
49.A liquidation strategy results in:
a) Maximizing market share
b) Continuing core operations
c) Selling off all assets and exiting the business
d) Improving employee performance
Ans: c
[Link] retrenchment strategy leads to the complete closure of business?
a) Divestment
b) Turnaround
c) Harvesting
d) Liquidation
Ans: d
51.A harvesting strategy involves:
a) Investing in new products
b) Gradual withdrawal from a business to maximize short-term profits
c) Selling the entire business
d) Partnering with competitors
Ans: b
[Link] of the following is not a retrenchment strategy?
a) Turnaround
b) Divestment
c) Market penetration
d) Liquidation
Ans: c
53.A company adopting a stability strategy in a highly dynamic market may:
a) Risk losing market share
b) Innovate faster
c) Expand faster than competitors
 d) Increase investment
Ans: a
[Link] of the main risks of a no-change strategy is:
a) Rapid growth
b) Obsolescence
c) Too much innovation
d) Employee overload
Ans: b
[Link] strategy is most appropriate during a financial crisis in the organization?
a) Stability
b) Growth
c) Turnaround
d) Concentric diversification
Ans: c
[Link]-cutting, downsizing, and restructuring are all part of which strategic category?
a) Growth
b) Stability
c) Retrenchment
d) Horizontal integration
Ans: c
[Link] strategy may be adopted when the firm faces technological obsolescence?
a) Harvesting
b) Diversification
c) Divestment
d) Stability
Ans: a
[Link] term strategic alternatives refers to:
a) Compulsory changes
b) Government-mandated actions
c) Different courses of action available to achieve objectives
d) Financial investment choices
Ans: c
59.A strategy used to focus limited resources on key business areas is:
a) Divestment
b) Cost leadership
c) Retrenchment
d) Differentiation
Ans: c
 [Link] primary focus of retrenchment strategy is to:
a) Expand through alliances
b) Improve profitability through cost reduction
c) Diversify into new businesses
d) Create new SBUs
Ans: b

Questions 61 to 80, focusing on Portfolio Analysis Models such as the BCG Matrix, GE-McKinsey
Matrix, ADL Matrix, and other tools used in strategic decision-making.

Portfolio Analysis, Strategic Business Units (SBUs), and Strategic Tools

[Link] main purpose of portfolio analysis is to:
a) Identify employee strengths
b) Analyze financial ratios
c) Assess strategic business units (SBUs) and allocate resources
d) Monitor marketing campaigns
Ans: c
[Link] the BCG Matrix, Cash Cows are characterized by:
a) High market share, high growth
b) Low market share, low growth
c) High market share, low growth
d) Low market share, high growth
Ans: c
[Link] BCG Matrix, Stars eventually become:
a) Dogs
b) Cash Cows
c) Question Marks
d) Harvested
Ans: b
[Link] of the following has high market growth but low market share?
a) Star
b) Dog
c) Question Mark
d) Cash Cow
Ans: c
[Link] BCG Matrix is based on two dimensions:
a) Market share and profitability
 b) Market growth and competitive strength
c) Industry attractiveness and market share
d) Market growth rate and relative market share
Ans: d
66.A "Dog" in the BCG Matrix should typically be:
a) Invested in heavily
b) Turned into a Star
c) Harvested or divested
d) Given more R&D
Ans: c
[Link] GE-McKinsey Matrix uses which two key variables?
a) Competitive position and industry life cycle
b) Industry attractiveness and business strength
c) Market growth and financial performance
d) Marketing intensity and innovation level
Ans: b
[Link] the GE Matrix, the top left cell (high business strength, high industry attractiveness)
suggests:
a) Divestment
b) Harvesting
c) Investment and growth
d) Liquidation
Ans: c
69.A business unit with low business strength and low industry attractiveness in the GE matrix
should be:
a) Invested in
b) Maintained
c) Divested or exited
d) Rapidly expanded
Ans: c
[Link] GE-McKinsey Matrix contains how many strategic cells?
a) 4
b) 7
c) 9
d) 12
Ans: c
[Link] ADL Matrix is based on:
a) Market segmentation
b) Industry life cycle and competitive position
c) Organizational hierarchy
 d) Financial leverage and ROI
Ans: b
[Link] four stages of industry life cycle in the ADL matrix are:
a) Introduction, Growth, Maturity, Decline
b) Launch, Rise, Plateau, Fall
c) Start, Build, Harvest, Sell
d) Test, Market, Expand, Close
Ans: a
[Link] ADL matrix, a company in maturity stage with strong competitive position should:
a) Exit the business
b) Maximize profits and defend position
c) Invest in R&D
d) Shift to unrelated diversification
Ans: b
[Link] matrices help in:
a) Managing HR policy
b) Identifying which SBUs to grow, hold, or divest
c) Selecting advertisement channels
d) Training employees
Ans: b
75.A key limitation of BCG Matrix is:
a) Too many variables used
b) It ignores market share
c) It oversimplifies business reality by using only two factors
d) It focuses on long-term profitability
Ans: c
[Link] matrix helps firms allocate resources among business units?
a) SWOT Matrix
b) Ansoff Matrix
c) BCG Matrix
d) Balanced Scorecard
Ans: c
[Link] 'Build' strategy in GE Matrix is suggested when:
a) Business strength is low
b) Industry attractiveness is high
c) Both attractiveness and strength are high
d) Industry is in decline
Ans: c
 [Link] of the following is NOT a dimension of the GE Matrix?
a) Industry attractiveness
b) Business unit strength
c) Profit margin
d) Competitive advantage
Ans: c
79.A business with average business strength and average industry attractiveness is in which
GE Matrix zone?
a) Grow
b) Hold
c) Harvest
d) Exit
Ans: b
[Link] portfolio analysis, SBUs are:
a) Government-owned businesses
b) External vendors
c) Independent profit centers within a firm
d) Supplier contracts
Ans: c
Corporate Strategies Combination Strategies, International Strategies, Corporate
Restructuring, and Strategic Evaluation.

CORPORATE STRATEGIES
Combination Strategies, Global Strategies, and Restructuring
81.A combination strategy is used when:
a) The firm only wants to grow
b) The firm follows one strategy at a time
c) The firm pursues multiple strategies simultaneously across different units
d) Stability is maintained at all levels
Ans: c
82.A firm using combination strategy may apply:
a) Growth in one unit, stability in another
b) Retrenchment in all units
c) Diversification in all units
d) Same strategy across all SBUs
Ans: a
[Link] main reason for adopting combination strategy is:
a) Market exit
 b) Strategic flexibility across SBUs
c) Financial restructuring
d) Leadership change
Ans: b
84.A transnational strategy is best described as:
a) Customization in every market
b) Complete standardization globally
c) Balance between global efficiency and local responsiveness
d) Focus only on home country
Ans: c
85.A multidomestic strategy emphasizes:
a) Centralized control
b) Global brand identity
c) Local market responsiveness
d) Cost leadership
Ans: c
[Link] strategy aims to:
a) Customize for each local market
b) Use localized production
c) Standardize products and services across markets
d) Exit international markets
Ans: c
87.A firm following a home replication strategy:
a) Develops new products for foreign markets
b) Uses the same products and practices used at home
c) Focuses entirely on exports
d) Builds local subsidiaries
Ans: b
[Link] corporate-level strategy is concerned with:
a) National politics
b) Local trade unions
c) Coordinating strategy across multiple countries
d) Domestic marketing
Ans: c
[Link] is NOT a global strategy type?
a) Multidomestic
b) Global
c) Local cooperative
d) Transnational
Ans: c
[Link] restructuring involves:
a) Rebranding
b) Changing the logo
c) Reorganizing business structure, assets, or operations
d) Staff recreation programs
Ans: c
[Link]-off strategy results in:
a) Entering new markets
b) Launching a new unrelated product
c) Creating a new independent company from an existing division
d) Changing suppliers
Ans: c
[Link] parenting refers to:
a) Business lobbying
b) External consulting
c) How a corporate headquarters adds value to business units
d) Hiring new executives
Ans: c
[Link] of the following is a financial restructuring tool?
a) Employee training
b) Asset divestment
c) Vision and mission changes
d) Advertising
Ans: b
[Link] competencies are important in strategy because:
a) They offer short-term profits
b) They attract labor unions
c) They provide long-term competitive advantage
d) They simplify processes
Ans: c
95.A strategic control system focuses on:
a) Monitoring production schedules
b) Tracking employee attendance
c) Evaluating strategy implementation and performance
d) Approving product packaging
Ans: c
[Link] main objective of corporate-level strategy is to:
a) Supervise line workers
b) Improve customer service
c) Decide the scope and direction of the company as a whole
 d) Handle media relations
Ans: c
[Link] of the following is a strategic business unit (SBU) characteristic?
a) Dependent on central HQ for all decisions
b) Has independent objectives and strategies
c) Exists only in multinational companies
d) Functions only in finance
Ans: b
[Link] diversification typically aims at:
a) Increasing synergy
b) Risk reduction through portfolio expansion
c) Improving supply chain
d) Product differentiation
Ans: b
99.A strategy designed to make a company more efficient and cost-effective is called:
a) Retrenchment
b) Strategic outsourcing
c) Differentiation
d) Market development
Ans: a
[Link] of the following represents a grand strategy?
a) Divestment
b) Acquisition
c) Growth
d) Pricing
Ans: c

“Governance, Ethics, and Sustainability” — a key component of Strategic Management. These

questions are divided into categories for clarity:

✅ SECTION A: CORPORATE GOVERNANCE (Q1–Q30)

1. Corporate governance refers to:
a) Employee rights
b) The system by which companies are directed and controlled
c) Internal auditing only
 d) Government policies
Ans: b
2. The primary stakeholders in corporate governance are:
a) Customers
b) Shareholders
c) Employees
d) Media
Ans: b
3. The board of directors is responsible for:
a) Day-to-day management
b) Regulatory compliance only
c) Strategic direction and oversight
d) Hiring consultants
Ans: c
4. A key principle of good corporate governance is:
a) Insider trading
b) Lack of transparency
c) Accountability
d) Centralization of power
Ans: c
5. The Cadbury Report (1992) is associated with:
a) Financial accounting standards
b) Corporate governance best practices
c) Tax compliance
d) Auditing rules
Ans: b

CORPORATE GOVERNANCE
6. The role of the audit committee in corporate governance is to:
a) Develop marketing strategies
b) Handle legal disputes
c) Monitor financial reporting and disclosures
d) Recruit employees
Ans: c
7. An independent director is expected to:
a) Be involved in daily operations
b) Represent the promoters only
c) Bring objectivity and impartial judgment
d) Always agree with management
Ans: c
8. The separation of Chairman and CEO roles is suggested to:
a) Concentrate power
b) Improve profitability
c) Strengthen board independence
d) Increase executive bonuses
Ans: c
9. The Narayana Murthy Committee in India was formed to improve:
a) Marketing strategies
b) Corporate governance practices
c) Industrial growth
d) Environmental policy
Ans: b
10.A good corporate governance framework encourages:
a) Nepotism
b) Transparency and fairness
c) Insider trading
d) Monopoly creation
Ans: b
[Link] stakeholder theory of corporate governance emphasizes:
a) Only shareholders’ interests
b) Ignoring external communities
c) Considering interests of all stakeholders
d) Maximizing short-term profits
Ans: c
[Link] Companies Act, 2013 in India mandates CSR for companies that:
a) Are startups
b) Cross specific profit, turnover, or net worth thresholds
c) Are in agriculture
d) Export products
Ans: b
[Link] committee is mandatory for large listed companies in India under SEBI regulations?
a) Branding Committee
b) Nomination and Remuneration Committee
c) Public Relations Committee
d) Product Development Committee
Ans: b
[Link] role of a company secretary in governance includes:
a) Marketing
b) Ensuring legal and regulatory compliance
c) Product innovation
 d) Salary disbursement
Ans: b
15.A whistleblower policy is designed to:
a) Encourage non-disclosure
b) Suppress internal complaints
c) Protect employees reporting unethical practices
d) Deter transparency
Ans: c
[Link] of interest in corporate governance can be reduced by:
a) Promoting favoritism
b) Lack of documentation
c) Strong codes of conduct
d) Ignoring stakeholders
Ans: c
[Link]-class share structures may lead to:
a) Equal voting power
b) Better democratic control
c) Unequal voting rights among shareholders
d) Improved sustainability
Ans: c
[Link] primary responsibility for strategic oversight lies with:
a) HR team
b) External auditors
c) The Board of Directors
d) Product development team
Ans: c
[Link] governance ratings are issued to:
a) Grade students
b) Evaluate a company’s compliance with governance principles
c) Analyze production output
d) Estimate tax liabilities
Ans: b
[Link] major benefit of strong corporate governance is:
a) Reduced innovation
b) Poor investor confidence
c) Better access to capital
d) Higher legal costs
Ans: c
21.A nomination committee in governance:
a) Prepares the budget
b) Screens candidates for board membership
c) Handles tax matters
d) Evaluates raw materials
Ans: b
[Link] Remuneration Committee ensures:
a) Vendors are paid on time
b) Fair and performance-linked compensation for executives
c) Sales targets are met
d) Compliance with labor laws
Ans: b
[Link] in corporate governance leads to:
a) Miscommunication
b) Stakeholder trust and confidence
c) Decreased accountability
d) Insider dealing
Ans: b
[Link] trading is considered:
a) Ethical
b) Legal in some countries
c) An unethical and illegal governance failure
d) A shareholder right
Ans: c
[Link] party transactions must be:
a) Hidden from the board
b) Disclosed and approved
c) Avoided entirely
d) Signed off by employees
Ans: b
[Link] principles of corporate governance were developed to:
a) Regulate stock exchanges
b) Provide international standards for good governance
c) Promote trade
d) Monitor inflation
Ans: b
[Link] effective Board of Directors should have:
a) Only family members
b) No independent oversight
c) Diversity in skills and independence
 d) Minimum stakeholder representation
Ans: c
[Link] governance helps reduce:
a) Market efficiency
b) Management accountability
c) Agency problems
d) Compliance costs
Ans: c
[Link]’s role in corporate governance in India is to:
a) Increase taxes
b) Regulate film production
c) Protect investor interests and ensure transparency
d) Promote e-commerce
Ans: c
30.A well-governed company is more likely to:
a) Lose investors
b) Engage in fraud
c) Succeed in the long term
d) Be banned from stock markets
Ans: c

BUSINESS ETHICS (Q31–Q60)

[Link] ethics refers to:
a) Legal compliance only
b) Moral principles guiding business behavior
c) Tax evasion strategies
d) HR policies
Ans: b
[Link] relativism means:
a) Ethics are fixed and universal
b) Ethics differ based on cultural context
c) Ethics should not be taught
d) Only laws determine ethics
Ans: b
33.A code of ethics is:
a) Legal mandate
b) A document outlining ethical principles of an organization
c) Always confidential
 d) A financial report
Ans: b
[Link] of the following is an unethical business practice?
a) Transparent pricing
b) Fair trade
c) False advertising
d) Equal opportunity hiring
Ans: c
[Link] "triple bottom line" refers to:
a) Cost, revenue, and tax
b) Profits, people, and planet
c) Audit, ethics, and compliance
d) Net income, ROI, and dividends
Ans: b

BUSINESS ETHICS (Q36–Q60)

[Link] decision-making in business typically involves:
a) Maximizing profits at any cost
b) Considering laws only
c) Evaluating consequences for all stakeholders
d) Ignoring social impact
Ans: c
[Link] concept of “moral intensity” in ethical decision-making refers to:
a) The importance of profitability
b) The degree of ethical urgency in a situation
c) Legal enforceability
d) Pressure from management
Ans: b
[Link] promotes decisions that:
a) Benefit the largest number of people
b) Follow strict rules regardless of outcomes
c) Are best for the CEO
d) Focus on short-term gains
Ans: a
[Link] to deontological ethics, actions are ethical if:
a) They generate high profits
b) They follow moral rules and duties
c) They avoid regulations
d) They are secret
Ans: b
40.A conflict of interest occurs when:
a) An employee acts in the company’s interest
b) Personal interests interfere with professional responsibilities
c) A customer disagrees
d) Audits are conducted
Ans: b
41.A code of conduct serves to:
a) Outline ethical behavior expectations
b) Advertise products
c) Define stock prices
d) Set tax policies
Ans: a
[Link] Social Responsibility (CSR) is best defined as:
a) Legal compliance
b) Charitable donations only
c) Company’s responsibility to society beyond profit-making
d) Employee incentives
Ans: c
[Link] protection laws exist to:
a) Fire disloyal employees
b) Encourage the reporting of unethical practices without retaliation
c) Silence complaints
d) Promote internal fraud
Ans: b
[Link] ethical organization is most likely to:
a) Focus only on ROI
b) Have a toxic culture
c) Build long-term stakeholder trust
d) Avoid social responsibilities
Ans: c
[Link] stakeholder approach to ethics considers:
a) Only investors’ needs
b) The impact of decisions on all stakeholders
c) Marketing budgets
d) CEO interests
Ans: b
[Link] ethical dilemma arises when:
a) The law is unclear
b) Multiple ethical principles conflict in a decision
c) Profits are high
 d) Leaders agree
Ans: b
[Link] leadership involves:
a) Authoritarian decision-making
b) Leading through values, integrity, and accountability
c) Delegating all ethical matters to HR
d) Avoiding corporate social responsibility
Ans: b
[Link] benefit of ethical business behavior is:
a) Lawsuits
b) Brand damage
c) Employee turnover
d) Improved reputation and customer loyalty
Ans: d
[Link] triple bottom line evaluates a company’s performance in:
a) Profit, cost, and turnover
b) Finance, tax, and dividends
c) People, planet, and profit
d) Products, people, and policy
Ans: c
[Link] marketing refers to:
a) Selling only organic food
b) Promoting environmentally sustainable products or practices
c) Painting advertisements green
d) Targeting agricultural workers
Ans: b
[Link] of the following is not a characteristic of an ethical business?
a) Transparency
b) Accountability
c) Exploitation
d) Fairness
Ans: c
52.A values-based culture in an organization is shaped by:
a) Top management’s behavior and ethics
b) Customer complaints
c) Government incentives
d) HR manuals only
Ans: a
[Link] relativism supports the idea that:
a) Ethics are universal
b) Business should be profit-focused
c) Ethical standards vary by culture or context
d) Ethics don’t matter in business
Ans: c
54.A compliance-based ethics program is driven by:
a) Voluntary values
b) Legal requirements and rules
c) Community feedback
d) Sustainability reports
Ans: b
[Link] of the following encourages ethical conduct in organizations?
a) Punishing ethical behavior
b) Promoting blind obedience
c) Providing ethics training programs
d) Rewarding misconduct
Ans: c
[Link] businesses contribute to:
a) Financial instability
b) Sustainable long-term growth
c) Unfair practices
d) Increased corruption
Ans: b
[Link] stakeholder group is directly affected by workplace ethics?
a) Customers
b) Employees
c) Government
d) Media
Ans: b
[Link] culture influences ethics by:
a) Ignoring employee behavior
b) Setting informal norms and expectations
c) Mandating legal penalties
d) Only promoting marketing
Ans: b
[Link] ethical principle says “do no harm”?
a) Utilitarianism
b) Justice theory
c) Non-maleficence
 d) Hedonism
Ans: c
[Link] example of ethical behavior in marketing is:
a) Misleading ads
b) Overcharging customers
c) Honest product labeling
d) Data misuse
Ans: c

SUSTAINABILITY (Q61–Q100)
[Link] in business means:
a) Maximizing short-term profits
b) Meeting current needs without compromising future generations
c) Reducing employee count
d) Using non-renewable resources
Ans: b
[Link] sustainability involves:
a) Resource depletion
b) Pollution increase
c) Long-term ecological balance
d) Disposing plastic into water
Ans: c
[Link] UN’s 17 Sustainable Development Goals (SDGs) aim to:
a) Increase GDP
b) Promote global sustainability and equity
c) Reduce corporate taxes
d) Limit education
Ans: b
[Link] 14001 is a standard for:
a) Social accountability
b) Environmental management systems
c) Quality assurance
d) Financial audits
Ans: b
[Link] refers to:
a) Green certification process
b) Misleading marketing about sustainability
c) Organic farming
 d) Environmental education
Ans: b

SUSTAINABILITY (Q66–Q100)
[Link] development aims to:
a) Reduce the number of employees
b) Meet current needs without compromising future generations
c) Use all available natural resources
d) Focus only on profitability
Ans: b
[Link] of the following is a pillar of sustainability?
a) Technological sustainability
b) Economic, environmental, and social sustainability
c) Financial sustainability only
d) Legal compliance only
Ans: b
[Link] footprint refers to:
a) The number of carbon atoms in a product
b) A company’s office size
c) Total greenhouse gases emitted by an activity or product
d) Carbon stored underground
Ans: c
[Link] circular economy model focuses on:
a) Increasing waste
b) Minimizing recycling
c) Reuse, reduce, and recycle to eliminate waste
d) Linear supply chains
Ans: c
70.A sustainability report discloses:
a) Tax planning
b) Profits and losses only
c) Environmental, social, and governance performance
d) Competitive pricing
Ans: c
[Link] 14001 provides guidance on:
a) Quality management
b) Information security
c) Environmental management systems
d) Financial auditing
Ans: c
[Link] Global Reporting Initiative (GRI) is known for:
a) GDP forecasting
b) Financial auditing standards
c) Sustainability reporting standards
d) HR policies
Ans: c
[Link] is the act of:
a) Recycling products
b) Using renewable energy
c) Misleading claims about environmental practices
d) Cleaning office spaces
Ans: c
[Link] of the following is an example of sustainable business practice?
a) Overproduction
b) Use of renewable energy
c) Single-use plastic packaging
d) Dumping waste illegally
Ans: b
[Link] Environmental Responsibility (CER) is a part of:
a) Financial audits
b) Legal acts
c) Corporate social responsibility (CSR)
d) Consumer rights
Ans: c
[Link] of the following is NOT a benefit of sustainable practices?
a) Improved brand image
b) Increased waste
c) Resource conservation
d) Risk reduction
Ans: b
77.A business that prioritizes environmental sustainability will likely:
a) Ignore regulations
b) Use fossil fuels only
c) Reduce emissions and conserve resources
d) Increase deforestation
Ans: c
[Link] innovation refers to:
a) Cost-cutting only
b) Designing products that are eco-friendly and socially responsible
c) Avoiding R&D
 d) Outsourcing
Ans: b
79.A green product is one that:
a) Costs more
b) Is made using harmful chemicals
c) Has minimal negative impact on the environment
d) Is not recyclable
Ans: c
80.A key principle of environmental stewardship is:
a) Increasing pollution
b) Using all natural resources immediately
c) Responsible use and protection of the natural environment
d) Disregard for future generations
Ans: c
[Link] Sustainable Development Goal (SDG) 13 focuses on:
a) Zero hunger
b) Clean water
c) Climate action
d) Gender equality
Ans: c
[Link] in sustainability reporting stands for:
a) Energy, Society, Growth
b) Environment, Social, and Governance
c) Economy, Security, and Growth
d) Environment, Stakeholder, and Growth
Ans: b
83.A company that integrates sustainability into strategy:
a) Avoids innovation
b) Focuses only on financial returns
c) Considers long-term impact on people and planet
d) Ignores risk
1
Ans: c
[Link] cycle assessment (LCA) evaluates:
a) Employee retention
b) Product environmental impact from production to disposal
c) Customer satisfaction
d) Inventory costs
Ans: b

1
[Link] precautionary principle in environmental policy suggests:
a) Waiting for full scientific proof before acting
b) Taking action to prevent harm even if some cause-effect relationships are not fully
established
c) Avoiding change
d) Ignoring community input
Ans: b
86.A net-zero carbon company:
a) Has no offices
b) Produces zero emissions
c) Balances emitted and removed carbon
d) Operates in rural areas only
Ans: c
[Link] marketing aims to:
a) Increase consumption
b) Promote socially and environmentally beneficial products
c) Advertise traditional methods
d) Focus only on pricing
Ans: b
88.A key driver of corporate sustainability is:
a) Government subsidies only
b) Pressure from NGOs
c) Stakeholder expectations and global environmental risks
d) Consumer ignorance
Ans: c
[Link] Producer Responsibility (EPR) means producers are:
a) Responsible only for selling
b) Required to manage disposal of their products
c) Not liable for waste
d) Free from compliance
Ans: b
[Link] “polluter pays” principle suggests:
a) Polluters should be rewarded
b) Polluters must bear the cost of environmental damage
c) Government should pay
d) Ignore environmental damage
Ans: b
[Link] of the following is a social aspect of sustainability?
a) Reducing emissions
b) Community development and fair labor practices
 c) Inventory management
d) Carbon capture
Ans: b
[Link] procurement emphasizes:
a) Buying the cheapest materials
b) Considering environmental and social criteria in sourcing
c) Ignoring supplier practices
d) Reducing logistics cost only
Ans: b
[Link] country was the first to make CSR spending mandatory by law?
a) USA
b) Germany
c) India
d) Japan
Ans: c
[Link] Business Responsibility and Sustainability Report (BRSR) in India is mandated by:
a) RBI
b) NITI Aayog
c) SEBI
d) Ministry of Finance
Ans: c
95.A sustainability-focused mission statement should:
a) Be generic and vague
b) Focus only on internal operations
c) Reflect social and environmental values
d) Mention tax objectives
Ans: c
[Link]-efficiency in business means:
a) Higher costs
b) More waste
c) Doing more with less environmental impact
d) Energy wastage
Ans: c
[Link] supply chains include:
a) Only the manufacturer
b) Ignoring supplier ethics
c) Ethical sourcing, low emissions, and waste reduction
d) Higher consumer costs
Ans: c
[Link] can support sustainability by:
a) Avoiding local communities
b) Dumping untreated waste
c) Investing in renewable energy
d) Promoting overconsumption
Ans: c
[Link] risks include:
a) Profit maximization
b) Climate change, resource scarcity, and social unrest
c) Customer loyalty
d) Cash flow
Ans: b
[Link] organization can ensure long-term sustainability by:
a) Prioritizing only shareholder value
b) Ignoring ESG risks
c) Embedding ESG goals into its core strategy
d) Avoiding innovation
Ans: c