Question 1

Who should perform an internal audit?

Accepted Answer

An internal audit should be performed by representative managers and employees from throughout the firm to provide an objective and comprehensive evaluation of the organization's operations and identify areas for improvement. This approach ensures that a variety of perspectives and expertise are taken into account and promotes buy-in from all levels of the organization. It also promotes transparency and accountability within the organization. While a private auditing firm or a small team of top-level managers may provide valuable insights, they may not have the same understanding of the organization's culture, processes, and day-to-day operations as internal stakeholders. The accounting department or the CEO may have a biased perspective and may not be able to provide an objective evaluation of the organization's operations.

Question 2

Which of the following are NOT mentioned as an example of cultural products?

Accepted Answer

Emotions are not cultural products, as they are psychological responses to various stimuli and are not created or produced by a particular culture. The other options listed are all examples of cultural products.

Question 3

A resource is valuable if it is rare,hard to imitate,or

Accepted Answer

A resource is valuable if it is not easily substitutable, which means it cannot be replaced easily by other resources. If it is easily substitutable, then it does not offer a unique advantage to the organization and can be easily replicated by competitors. Rarity and difficulty to imitate are also important criteria for a resource to be valuable, but they are not sufficient on their own. Therefore, the best choice is D) not easily substitutable.

Question 4

________ exemplifies the complexity of relationships among the functional areas of business.

Accepted Answer

The answer of ________ exemplifies the complexity of relationships among...

Question 5

Successful strategy formulation generally rests upon the ability of an organization to sell some product or service.

Accepted Answer

Successful strategy formulation does not necessarily depend on selling a product or service. It can also depend on providing a unique value proposition, improving internal processes, expanding into new markets, or other factors.

Question 6

A pattern of behavior developed by an organization as it learns to cope with its problems of external adaptation and internal integration,and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive,think,and feel is called

Accepted Answer

The definition provided describes organizational culture, which is the shared values, beliefs, assumptions, and practices that shape the behavior of individuals within an organization. Dysfunctional behavior refers to actions that are counterproductive or harmful to the organization, groupthink is a phenomenon where group members prioritize consensus over critical thinking, and behavior modification is a technique of changing behavior through rewards and punishments. The internal audit effect is not relevant to the definition provided.

Question 7

The process of performing an internal audit,compared to the external audit,provides more opportunity for participants to understand how their jobs,departments and divisions fit into the whole organization.

Accepted Answer

Internal audit involves reviewing and evaluating the operations of different departments and divisions within an organization, providing a deeper understanding of how they contribute to the overall goals and objectives. External audit, on the other hand, focuses on ensuring compliance with legal and regulatory requirements and provides less opportunity for understanding the internal workings of the organization.

Question 8

According to William King,a task force of managers from different units of the organization should be charged with determining the 20 most important strengths and weaknesses that should influence the future of the organization.

Accepted Answer

According to William King, a task force of managers from different units of the organization should be charged with determining the 20 most important strengths and weaknesses that should influence the future of the organization.

Question 9

Proponents of the resource-based view argue that external factors are more important than internal factors for a firm in achieving and sustaining competitive advantage.

Accepted Answer

Proponents of the resource-based view argue that internal factors such as a firm's unique resources and capabilities are more important than external factors in achieving and sustaining competitive advantage.

Question 10

Explain the resource-based view and its relation to strategic management.

Accepted Answer

The answer of Explain the resource-based view and its relation...

Question 11

Organizational resources include all of the following EXCEPT

Accepted Answer

Employee training is considered a process or activity aimed at developing skills and competencies within the workforce rather than a resource. Resources in an organization typically refer to tangible and intangible assets such as firm structure, planning processes, information systems, and copyrights, which can be utilized or leveraged to achieve strategic goals or competitive advantage.

Question 12

A standardized set of behaviors used to manage anxieties is called a

Accepted Answer

A ritual is a standardized set of behaviors used to manage anxiety. It provides a sense of control and predictability, reducing uncertainty and anxiety. Examples of rituals include saying a prayer before bed or performing a certain routine before a competition.

Question 13

What is the term for a historical narrative describing the unique accomplishments of a group and its leaders?

Accepted Answer

A saga is a historical narrative that typically recounts the unique accomplishments of a specific group or its leaders. It often includes elements of myth and legend, and may be passed down orally or through literature.

Question 14

The three all-encompassing internal resource categories used in the resource-based view are physical resources,human resources,and

Accepted Answer

The answer of The three all-encompassing internal resource categories used...

Question 15

The basic premise of the research-based view is that the mix,type,amount,and nature of a firm's internal resources should be considered first and foremost in devising strategies that can lead to sustainable competitive advantage.

Accepted Answer

The statement accurately reflects the key idea behind the research-based view.

Question 16

For a resource to be valuable,it must be either rare,hard to imitate,or not easily substitutable.

Accepted Answer

This is the definition of a valuable resource according to the Resource-Based View theory in strategic management.

Question 17

Any object,act,event,quality,or relation used to convey meaning is known as a

Accepted Answer

Symbols are objects or concepts that represent or stand for something else, often abstract or difficult to express through words. They are used to convey meaning in various contexts, such as language, art, religion, or culture. Examples include national flags, religious icons, mathematical equations, or logos of brands.

Question 18

Life-directing attitudes that serve as behavioral guidelines are called

Accepted Answer

Values are the core beliefs or principles that guide and direct attitudes and behaviors. They serve as a foundation from which individuals make decisions and behave in accordance with what they believe is right or wrong. Rites, beliefs, metaphors, and legends are all important cultural components, but they do not specifically serve as behavioral guidelines in the same way that values do.

Question 19

Opportunities are a firm's distinctive competencies that cannot be easily matched or imitated by competitors.

Accepted Answer

The answer of Opportunities are a firm's distinctive competencies that...

Question 20

A firm's strengths that cannot be easily matched or imitated by competitors are called

Accepted Answer

Distinctive competencies refer to a firm's unique strengths or capabilities that set it apart from competitors and cannot be easily replicated or imitated. This could include things like a strong brand reputation, proprietary technology, specialized skills or knowledge, or unique distribution channels. Conducting internal and external audits may help identify these competencies, but they themselves are not what distinguishes a firm from its competitors. Likewise, interrelated and internal properties do not necessarily speak to a firm's competitive advantage.

Quiz 6: The Internal Audit