Question 1

A firm must avail itself of all dimensions of competition, which Michael Porter categorized into which of the following four components is NOT of "the diamond of national advantage"?

Accepted Answer

Michael Porter's "diamond of national advantage" comprises four components: factor conditions, related industries, firm strategy, and domestic demand. External economy is not one of the components.

Question 2

Which account makes sure that the balance of payments actually balances?

Accepted Answer

The net errors and omissions account is used to ensure that the balance of payments actually balances. It is used to account for any discrepancies or errors in recording transactions in the current and capital accounts. If the sum of all the current and capital account transactions does not match the change in the official reserve assets, the difference is recorded in the net errors and omissions account. Therefore, option B is the correct answer.

Question 3

An unincorporated business association of two or more persons to carry out a particular business enterprise for profit is known as:

Accepted Answer

A joint venture is an agreement between two or more parties to carry out a specific business project or enterprise for a profit. It allows multiple parties to pool their resources and expertise while sharing the risks and rewards of the venture. It is different from a corporation because it is not a separate legal entity and does not have shareholders.

Question 4

Which of the following is NOT the category of Current Account?

Accepted Answer

The current account includes goods trade, services trade, and income. Financial trade falls under the capital account.

Question 5

The ability of the organization to obtain from its environment scarce and valued resources, including financial resources, raw materials, human resources, knowledge and technology is called:

Accepted Answer

The ability of the organization to obtain scarce and valued resources from its environment is often determined by its bargaining position. This refers to the relative power and leverage that an organization has in negotiations with suppliers, customers, partners, and other stakeholders. A strong bargaining position can help the organization secure the resources it needs to achieve its goals, while a weak bargaining position can limit its options and hinder its competitiveness. Therefore, option A is the best choice. The other options do not relate to the concept of obtaining resources from the environment.

Question 6

Michael E. Porter introduced a framework describing which three competitive strategies?

Accepted Answer

Michael E. Porter introduced a framework describing three competitive strategies: Low-cost leadership, Differentiation and Focus.

Question 7

The measurement of all international economic transactions between the residents of a country and foreign residents is called:

Accepted Answer

The balance of payments measures all international economic transactions between the residents of a country and foreign residents.

Question 8

Which of the following are the main forms of business organizations?

Accepted Answer

The three main forms of business organizations are sole proprietorships, partnerships and corporations. Finance associations, capital ownerships and joint ventures are not widely recognized legal forms of business organizations.

Question 9

Many of the world's developing countries have long sought to create domestic industry by restricting imports of competitive products in order to allow smaller, less competitive domestic firms to grow and prosper, this is called:

Accepted Answer

This policy of restricting imports to promote domestic industry is called import substitution.

Question 10

________________ is not a separate taxable entity and only the single owner is taxed.

Accepted Answer

A sole proprietorship is a type of business where only one person owns and operates the business. In this type of business, the owner is personally responsible for all debts and obligations of the company, and thus there is no separate taxable entity. The income earned by the business is reported on the owner's personal income tax return, and the owner is taxed accordingly.

Question 11

An unincorporated business association of two or more persons to carry on as co-owners of a business for profit is called:

Accepted Answer

An unincorporated business association of two or more persons to carry on as co-owners of a business for profit is called a general partnership. Limited partnership, Limited Liability partnership, and Limited Liability Limited partnership are also business entities, but they have different characteristics and requirements than a general partnership.

Question 12

A plan for interacting with the competitive environment to achieve organizational goals is known as:

Accepted Answer

A plan for interacting with the competitive environment to achieve organizational goals is known as a strategy. This involves assessing the strengths and weaknesses of the organization and its competitors, identifying opportunities and threats, and determining the best course of action to pursue. A strategy helps the organization to focus its resources and efforts in a way that maximizes its chances of success in the marketplace.

Question 13

The organization's economy efficiency is the indicator of:

Accepted Answer

Economy efficiency refers to how well an organization uses its resources to achieve its goals, which is related to the effectiveness of its internal processes.

Question 14

What describes the organization's vision, its shared values and beliefs, and its reason for being?

Accepted Answer

The mission statement typically describes an organization's vision, shared values and beliefs, and reason for being.

Question 15

What typically defines business operations and may focus on values, markets and customers that distinguish the organization?

Accepted Answer

The official goal statement typically defines business operations and may focus on values, markets, and customers that distinguish the organization. A refers to the specific goals aimed at achieving specific outcomes, B refers to the statement of what needs to be achieved, and D refers to a statement that outlines the level of productivity required.

Question 16

What is made up of transfers if financial assets and the acquisition and disposal of nonproduced / nonfinancial assets?

Accepted Answer

The capital account tracks transfers of financial and nonfinancial assets between a country and its trading partners. The financial account specifically tracks the acquisition and disposal of financial assets, while the capital account tracks nonfinancial assets and transfers.

Question 17

A legal entity separate and distinct from its owners is called:

Accepted Answer

A corporation is a legal entity that is separate and distinct from its owners. It is created by filing articles of incorporation with the state and can engage in business activities, hold assets, and enter into contracts in its own name. This means that the corporation can sue and be sued, enter into agreements, and make business decisions on its own, without the need for the owners to be involved in every decision.

Question 18

What assess effectiveness by observing the beginning of the process and evaluating whether the organization effectively obtains means necessary for high performance?

Accepted Answer

The Resource-based approach assesses effectiveness by observing the beginning of the process and evaluating whether the organization effectively obtains means necessary for high performance. This approach focuses on the resources, skills, and capabilities of the organization and how effectively they are being utilized to achieve strategic goals. The other approaches listed (Goal approach, Internal process approach, and Stakeholder approach) have different focuses and do not specifically address the obtaining of necessary means for high performance.

Question 19

The degree to which an organization realizes its goals is called organizational:

Accepted Answer

Organizational effectiveness refers to the degree to which an organization achieves its goals, while efficiency refers to achieving goals with minimal waste of resources. Contingency refers to the adaptation of an organization to its environment, and productivity refers to the output per unit of input.

Question 20

______________ pertains to the acquisition of needed material and financial means from the environment.

Accepted Answer

Resources refer to the acquisition of needed material and financial means from the environment. The other options (market, innovation and change, employee development) do not specifically pertain to acquiring material and financial resources.

Exam 1: Certified Business Manager