Questions
1
Model of leadership based on which aspects of a leader’s decision is Vroom and Yetton’s contingency?
Answer: Both of these
2
An individual’s motivation is dependent on:
Answer: Expectations that increased effort to achieve an improved level of performance will be successful
3
A firm that chooses a cost-leadership business strategy focuses on gaining advantages by reducing its costs to a level equal to all of its competitors.
Answer: False
4
A cost-leadership competitive strategy helps reduce the threat of entry by creating cost-based barriers to entry.
Answer: True
5
Cost leadership and product differentiation are so widely recognized that they are often called generic business strategies.
Answer: True
6
Firms implementing cost-leadership strategies will generally adopt what is known as a functional organizational structure.
Answer: True
7
In general, economies of scale and diseconomies of scale are relatively easy-to-duplicate bases of cost leadership.
Answer: Likert.
8
The best example of a firm following a cost-leadership business strategy is
Answer: Wal-Mart
9
Cost-leadership and product-differentiation strategies are so widely recognized that they are often called
Answer: generic business strategies.
10
Compensation at cost-leadership firms is usually tied directly to product innovation and customer service efforts.
Answer: False
