7. Analysing the Strategic Position of a Business

Possible evidence of a short-termist approach by a publicly-quoted business would be:

• Emphasis on long-term investment returns

• A refusal to undertake takeovers as a method of growth

• High dividend payments rather than reinvesting profits

• Focus on CSR as a business objective rather than profit maximisation

Which of the following would NOT improve the current ratio?

• Increase cash balances following a new share issue

• Sell surplus fixed assets for cash

• Reduce levels of inventories

• Buy fixed assets by increasing the bank overdraft

When will a business's corporate objectives be agreed?

• After its mission and after its financial objectives

• After its mission and before its financial objectives

• Before its mission and after its financial objectives

• Before its mission and before its financial objectives

The need for businesses to take account of their environmental impact is most closelyassociated with which part of Elkington’s Triple Bottom Line model?

• People

• Planet

• Process

• Profit

Which profitability ratio would provide the best insights into whether a business keeping control of its overheads?

• Gross profit margin

• ROCE

• Operating profit margin

• Current ratio

Which parts of SWOT analysis are outside the control of a business?

• Strengths and weaknesses

• Strengths and opportunities

• Opportunities and threats

• Weaknesses and threats

A custom duty levied on the value of imported goods entering a country is known as a:

• Protection tax

• Import subsidy

• Tariff

• Quota

According to Porter’s Five Forces Model, a significant reduction in barriers to entry should result in:

• Lower availability of substitute products

• Higher industry profits

• Greater intensity of competitive rivalry

• Higher bargaining power of suppliers

According to Carroll’s CSR Pyramid, which activities are the foundation of CSR?

• Ethical

• Economic

• Legal

• Philanthropic

Which of the following would make UK goods and services more price competitive in Germany and France?

• A rise in the £ / Euro exchange rate

• An increase in economic growth in the Euro Zone

• An increase in interest rates in Germany and France

• A fall in the £ / Euro exchange rate