A of AFI

Company X produces a hotdog bun that goes extremely well with Company Y’s hotdog. X, therefore, is a _____ of Y.

• direct competitor

• complementor

• indirect competitor

• subsidiary

Lan thought a pair of shoes would cost around 1 mil. VND. The price was 2 mil. VND. This scenario describes the term:

• consumer surplus.

• producer surplus.

• reservation price.

• economic value created.

A firm's business strategy will lead to a competitive advantage if it allows the firm to

• execute the same activities performed by the rivals in a similar manner.

• reduce the value gap.

• perform different activities than its rivals.

• position itself below the productivity frontier.

Which of the following is a macroeconomic factor that can affect a firm's strategy?

• power of buyers

• power of suppliers

• threat of substitutes

• levels of employment

In the top-down strategic planning approach, strategic decision-making responsibilities rest primarily on

• functional managers.

• all managers.

• the chief executive officer.

• external stakeholders.

Which of the following summarizes the difference between a firm's vision and mission?

• Vision states what a firm wants to achieve; Mission states how they plan to do so.

• Vision states the managers' values; Mission states the workers' values.

• Vision states the ethical values; Mission states the monetary goals.

• Vision states how much a firm wants to earn; Mission states how to accomplish that.

Amazon sells its e-book readers at the cost price of $150 each. However, the company makes its profits when users have to buy e-books. Which of the following business models is Amazon implementing?

• subscription-based

• pay-as-you-go

• freemium

• razor-razor-blade

A paid 500,000đ for a dress she thought was worth 750,000đ. The cost of the dress was 300,000đ. The consumer surplus is

• 200,000đ

• 250,000đ

• 800,000đ

• 450,000đ

X had a return on revenue of 13%, Y had a return on revenue of 17%. But X had a higher return on invested capital than Y. Why?

• X had a higher cost structure than Y.

• X had a much higher selling, general, and administrative expense than Y.

• X was able to charge a higher margin for its products and services than Y.

• X spent more on R&D and marketing and sales than Y.

In the AFI strategy framework, deciding what markets the firm should compete is about choosing

• business strategy

• corporate strategy

• functional strategy

• global strategy