Question 1

External audits attempt to identify key variables that offer actionable responses.

Accepted Answer

A) True 
 B)False

Question 2

Corporate intelligence can be defined as a systematic and ethical process for gathering and analyzing information about the competition's activities and general business trends to further a business' own goals.

Accepted Answer

A) True 
 B)False

Question 3

The aim of an external audit is to develop an exhaustive list of every possible factor that could influence the business.

Accepted Answer

A) True 
 B)False

Question 4

One difference between CPM and EFE is that

Accepted Answer

A)   CPM includes both internal and external issues.
B)   the weights and total weighted scores have different meanings.
C)   CPM ratings range from 1 to 10.
D)   CPM is performed only for the company, whereas EFE is performed for both the company and its competitors.
E)   CPM is only used in small firms.F) None of the above
G) B) and C)

Question 5

What is the range for a firm's total weighted score in an External Factor Evaluation Matrix?

Accepted Answer

A)   0 to 5
B)   0 to 4
C)   1 to 5
D)   1 to 4
E)   0 to 10F) A) and B)
G) D) and E) D

Question 6

Collecting and evaluating information on competitors is essential for successful

Accepted Answer

A)   internal analysis.
B)   strategy evaluation.
C)   strategy formulation.
D)   strategy implementation.
E)   strategy management.F) B) and C)
G) A) and B)

Question 7

The first step for using Porter's Five-Forces Model is to evaluate the relative strength of each competitive force.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following has largely refrained from protectionist measures?

Accepted Answer

A)   the EU
B)   the U.S.
C)   India
D)   Russia
E)   All of the aboveF) C) and E)
G) B) and E)

Question 9

A Competitive Profile Matrix allows strategists to summarize and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information.

Accepted Answer

A) True 
 B)False  False

Question 10

________ is not a basic mission of a competitive intelligence program.

Accepted Answer

A)   Providing a general understanding of an industry
B)   Providing a general understanding of a company's competitors
C)   Identifying industry executives who could be hired by the firm
D)   Identifying areas in which competitors are vulnerable and assessing the impact strategic actions would have on competitors
E)   Identifying potential moves a competitor might make that would endanger a firm's position in the marketF) C) and E)
G) A) and D)

Question 11

A characteristic that describes the most competitive companies in America is "whether it's broke or not, fix it - make it better; not just products, but the whole company if necessary."

Accepted Answer

A) True 
 B)False

Question 12

Changes in which of the following can significantly affect firms?

Accepted Answer

A)   Patent laws
B)   Antitrust legislation
C)   Tax rates
D)   Lobbying activities
E)   All of the aboveF) C) and D)
G) None of the above

Question 13

Organizations never develop their own projections.

Accepted Answer

A) True 
 B)False

Question 14

Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms tends to

Accepted Answer

A)   stay the same.
B)   increase.
C)   decrease.
D)   neutralize.
E)   fluctuate.F) A) and B)
G) All of the above B

Question 15

Freund argues that key external factors must not be hierarchical.

Accepted Answer

A) True 
 B)False

Question 16

Intelligence gathering is an unethical business practice.

Accepted Answer

A) True 
 B)False

Question 17

In practice, critical technology decisions are too often delegated to lower organizational levels or are made without an understanding of their strategic implications.

Accepted Answer

A) True 
 B)False

Question 18

Laser eye surgery would be considered a substitute product for eyeglasses and contact lenses.

Accepted Answer

A) True 
 B)False

Question 19

Who are the world's longest-living people?

Accepted Answer

A)   Americans
B)   Mexicans
C)   Indians
D)   Filipinos
E)   JapaneseF) B) and C)
G) B) and D)

Question 20

Political forecasts can be the most important part of an external audit for firms that depend heavily on government contracts.

Accepted Answer

A) True 
 B)False

Exam 3: The External Assessment

External audits attempt to identify key variables that offer actionable responses.

Correct AnswerverifiedShow Answer

Corporate intelligence can be defined as a systematic and ethical process for gathering and analyzing information about the competition's activities and general business trends to further a business' own goals.

Correct AnswerverifiedShow Answer

The aim of an external audit is to develop an exhaustive list of every possible factor that could influence the business.

Correct AnswerverifiedShow Answer

One difference between CPM and EFE is that

Correct AnswerverifiedShow Answer

What is the range for a firm's total weighted score in an External Factor Evaluation Matrix?

Correct AnswerverifiedD

Collecting and evaluating information on competitors is essential for successful

Correct AnswerverifiedShow Answer

The first step for using Porter's Five-Forces Model is to evaluate the relative strength of each competitive force.

Correct AnswerverifiedShow Answer

Which of the following has largely refrained from protectionist measures?

Correct AnswerverifiedShow Answer

A Competitive Profile Matrix allows strategists to summarize and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information.

Correct AnswerverifiedFalse

________ is not a basic mission of a competitive intelligence program.

Correct AnswerverifiedShow Answer

A characteristic that describes the most competitive companies in America is "whether it's broke or not, fix it - make it better; not just products, but the whole company if necessary."

Correct AnswerverifiedShow Answer

Changes in which of the following can significantly affect firms?

Correct AnswerverifiedShow Answer

Organizations never develop their own projections.

Correct AnswerverifiedShow Answer

Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms tends to

Correct AnswerverifiedB

Freund argues that key external factors must not be hierarchical.

Correct AnswerverifiedShow Answer

Intelligence gathering is an unethical business practice.

Correct AnswerverifiedShow Answer

In practice, critical technology decisions are too often delegated to lower organizational levels or are made without an understanding of their strategic implications.

Correct AnswerverifiedShow Answer

Laser eye surgery would be considered a substitute product for eyeglasses and contact lenses.

Correct AnswerverifiedShow Answer

Who are the world's longest-living people?

Correct AnswerverifiedShow Answer

Political forecasts can be the most important part of an external audit for firms that depend heavily on government contracts.

Correct AnswerverifiedShow Answer

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D

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False

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B

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