Page 308 - GMAT 2017b_Neatb

Business Management Test

BUSINESS MANAGEMENT TEST

60 QUESTIONS
60 MINUTES

Each of the questions or incomplete statements below is followed by four
suggested answers or completions. In each case, select the one that is the
best of the choices offered and then mark the corresponding space on the
answer sheet.

1. Which of the following is true about business (C) They are formulated after strategies are
strategies? known.
(A) An organization should stick with its (D) They define a company's reason for
strategy for the life of the business. existence.
(B) All firms within an industry will adopt the (E) They provide guidance for functional area
same strategy. missions.
(C) Well defined missions make strategy
development much easier. 5. The impact of strategies on the general direction
(D) Strategies are formulated independently of and basic character of a company is
SWOT analysis. (A) short ranged
(E) Organizational strategies depend on (B) medium range
operations strategies. (C) long range
(D) temporal
2. The fundamental purpose for the existence of any (E) minimal
organization is described by its
(A) policies 6. The fundamental purpose of an organization's
(B) mission mission statement is to
(C) procedures (A) create a good human relations climate in
(D) strategy the organization
(E) tactics (B) define the organization's purpose in
society
3. Which of the following activities takes place once (C) define the operational structure of the
the mission has been developed?
(A) The firm develops alternative or back-up organization
missions in case the original mission fails. (D) generate good public relations for the
(B) The functional areas develop their organization
functional area strategies. (E) define the functional areas required by the
(C) The functional areas develop their organization
supporting missions.
(D) The ten OM decision areas are prioritized. 7. Which of the following is true?
(E) Operational tactics are developed.
(A) Corporate mission is shaped by functional
strategies.
4. Which of the following statements about
organizational missions is false? (B) Corporate strategy is shaped by functional
(A) They reflect a company's purpose. strategies.
(B) They indicate what a company intends to (C) Functional strategies are shaped by
contribute to society. corporate strategy.

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