Worksheets7. Analysing the Strategic Position of a Business
Total questions: 10
Worksheet time: 8mins
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
