Corporate Strategy Quiz
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Questions and Answers

Which factor influences transaction costs by making verification difficult?

  • Opportunism
  • Asset specificity
  • Uncertainty
  • Frequency (correct)
  • What type of asset specificity refers to investments specific to the transaction?

  • Human
  • Dedicated (correct)
  • Physical
  • Site specificity
  • Which assumption of Transaction Cost Economics (TCE) states that it's not possible to foresee and make provisions for all potential contingencies?

  • Opportunism
  • Frequency
  • Uncertainty
  • Bounded rationality (correct)
  • What does opportunism in TCE refer to?

    <p>Self-interest-seeking with guile</p> Signup and view all the answers

    Which determinant of transaction costs involves investments with lower value in their second-best use?

    <p>Asset specificity</p> Signup and view all the answers

    What is the main focus of strategic management?

    <p>Formulating and implementing major goals and initiatives</p> Signup and view all the answers

    According to Michael Porter, what is one of the principles underlying strategy?

    <p>Creating a unique and valuable market position</p> Signup and view all the answers

    What does corporate strategy primarily aim to answer?

    <p>What business should we be in</p> Signup and view all the answers

    What does strategic management involve after specifying the organization's objectives?

    <p>Developing policies and plans to achieve those objectives</p> Signup and view all the answers

    What has been developed to assist in strategic decision-making in complex environments and competitive dynamics?

    <p>Numerous models and frameworks</p> Signup and view all the answers

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