COLEGIO DE STA. ANA DE VICTORIAS, INC.
Osmeña Avenue, Victorias City, Negros Occidental, 6119
Subject Code:
Name:__________________________________
Exam Period: PRELIM EXAMINATION PERIOD Course &
Section:_________________________
Prepared by: MS. MARITONI MEDALLA, MBA- HTM Score & Equivalent:
_______________________
I. MULTIPLE CHOICE: Choose the best answer and click the answer of your choice.
1. Which of the following best describes business policy?
A. The purpose or reason for a corporation's existence.
B. A statement of activities or steps needed to accomplish a single-use plan.
C. A broad guideline for making decisions that link the formulation of strategy with its
implementation.
D. A comprehensive master plan stating how a corporation will achieve its mission and
objectives.
2. Which of the following is an example of business policy?
A. A company sells exclusively on cash terms.
B. A company hires personnel with experience only.
C. A company will not consider hiring external managers.
D. All of the above.
3. The following best describes implied policy, except:
A. It is written to provide a complete understanding to convey to the employees at different
levels.
B. It is direct, more effective, and can be better understood and implemented.
C. It is not consciously formulated but emerge from recurring managerial decisions.
D. It is specified by the organization for providing guidelines to its members.
4. The following are examples of how oral policy can be implemented, except:
A. Telephone conversation
B. Face to face conversation
C. Discussion at business meetings
D. Email announcements
5. It is a policy where managers particularly at the higher levels provide guidelines for actions at
lower levels.
A. Formulated policy
B. Implemented Policy
C. General Policy
D. Appealed Policy
6. Which of the following is an example of imposed policy?
A. Mandatory Annual Physical Exam for all employees by DOH.
B. SSS payroll deduction for all employees.
C. Free health insurance for all employees.
D. The anti-backer policy in the company.
7. This policy is formulated by foremen and supervisors.
A. Implied policy
B. Specific policy
C. Basic policy
D. Appealed policy
8. These policies are the basis of the organization and are framed by the top management.
A. Implied policy
B. Specific policy
C. Basic policy
D. Appealed policy
9. Which of the following is an example of an actuating policy?
A. Vacation incentives to employees who can pass their monthly metrics or evaluation.
B. Free monthly professional training to employees.
C. Annual employee recognition programs.
COLEGIO DE STA. ANA DE VICTORIAS, INC.
Osmeña Avenue, Victorias City, Negros Occidental, 6119
D. All of the above
10. Which of the following is an example of controlling policy?
A. Appropriate dress code policy
B. Privacy Policy
C. Product remodel policy
D. None of the above
11. The general manager believes the main problem of the company is the lack of communication. He
thinks that the cause of the problem is that departmental managers refuse to share information
with other departments. Why is this an example pf problem identification?
A. The general manager has identified the issue and has an understanding of the cause of the
issue.
B. The general manager has addressed the issue with the departmental managers.
C. The departmental managers have noted that there are communication problems.
D. The departmental managers raised their concerns to the general manager.
12. Which of the following is an example of policy formulation as a step of the business policy
process?
A. Ana's team is trying to figure out what the main problem of the business. They are
brainstorming and several have mentioned slow economic growth, while others have
concluded that it is a bad foreign policy. They cannot agree on what the main problem is.
B. Ana's team knows that the main problem of the business is high debt. They are trying to
determine whether they reduce operating costs, ask for a research study to determine how to
best combat the debt, or ask for a loan from the bank.
C. Ana's team is trying to figure out what the main problem of the business is. They are
brainstorming and several have mentioned slow economic growth, while others have
concluded that it is a bad foreign policy. They have concluded that the problem is slow
economic growth caused by a very inefficient public sector.
D. None of the above.
13. What is the importance of business policy in learning the course?
A. It enables the learner to understand and make sense of the complex interaction that takes
place between different functional areas.
B. It enables the learner to create an appreciation of the complexities of the environment that the
business faces in policy formulation.
C. It enables the learner to make preparations for handling general management responsibilities.
D. It enables the learner to understand the value of how policies are formulated.
14. A strategy is a company’s
A. Value statement
B. Pricing policy
C. Game plan to outsmart competitor
D. Long-term objective
15. According to James Brain Quinn, a strategy is:
A. The pattern or plan that integrates an organization’s major goals, policies, and action
sequences into a cohesive whole.
B. The general program of action towards the attainment of comprehensive objectives.
C. The pattern of objectives, the purpose of goals, and major policies that define what business
the company is in or it is to be.
D. None of the above
16. How can strategic management provide more efficient guidelines to a company?
A. Employees know what they should do and what they are expected to do.
B. It encourages communication throughout the business level.
C. It enables the business to control operations and maximize their profits.
D. It allows group or individual interaction for better decision making.
17. How can strategic management improve the allocation of resources?
A. Employees know what they should do and what they are expected to do.
B. It encourages communication throughout the business level.
C. It enables the business to control operations and maximize their profits.
D. It allows group or individual interaction for better decision making.
COLEGIO DE STA. ANA DE VICTORIAS, INC.
Osmeña Avenue, Victorias City, Negros Occidental, 6119
18. Which of the following is not a benefit of strategic management?
A. To increase employee productivity.
B. To achieve commitment from all employees.
C. To achieve order and discipline to a business.
D. To increase customer interaction.
19. How can strategic management influence its environment?
A. It allows competitors to think of another strategy to counter attack the strategy of other
businesses.
B. It allows other businesses to create a clear set of goals and strategies.
C. It motivates all businesses to evoke discipline to create a competitive advantage in the
market.
D. It provides an overview of strategy that helps business to improve their processes.
II. Arrange the following business policy processes in order. Write the letter of your answer on the
space provided. Make sure to write your answers in lowercase (small letters).
A. Identify and create a list of existing problems.
B. Make policy guidelines and strategies to be implemented.
C. Inform the policy to everyone within the organization
D. Get approval of the draft of the policy statement.
E. Discuss the importance and processes of the policy to all persons concerned.
F. Turn policy into practice.
20. What is the first step in business policy process?
21. What is the second step in business policy process?
22. What is the third step in business policy process?
23. What is the fourth step in business policy process?
24. What is the fifth step in business policy process?
25. What is the sixth step in business policy process?
III. IDENTIFICATION. Identify what 5 P’s of strategy are described in the following examples.
Write the correct answer in the space provided. Make sure to write your answers in lowercase
(small letters).
26. It is a carefully created steps that an organization intends to follow to achieve its goal.
Answer:plan
27. It is a specific move by an organization to outwit the competition.
Answer:ploy
28. It is how a business looks over its decisions and action over time.
Answer:pattern
29. It refers to the organization's place in the industry relative to its competition.
Answer:position
30. It focuses on the organizational culture and the way the organization views itself.
Answer:perspective
