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Leadership Multiple Choice Questions and Answers | Leadership MCQs

(1) Cost leadership as a strategy requires a firm to __.
[A] aim at a cost advantage in a niche market
[B] be unique in its product offering
[C] aggressively search out efficiencies to maintain the lowest cost structure
[D] aim to be similar to its competition in most operations
Answer: aggressively search out efficiencies to maintain the lowest cost structure
(2) Firms implementing cost-leadership strategies will generally adopt a
[A] multidivisional structure.
[B] functional organizational structure.
[C] product divisional structure.
[D] matrix structure.
Answer: functional organizational structure.

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(3) Firms implementing cost-leadership strategies will have ________ layers in their reporting structure.
[A] relatively complex
[B] relatively simple
[C] relatively few
[D] many
Answer: many
(4) One aspect of using a cost leadership strategy is that experience effects may lead to lower costs.
[A] True
[B] False
Answer: True
(5) The typical risks of a cost leadership strategy includes:
[A] production and distribution processes becoming obsolete
[B] the inability to balance high differentiation and low price.
[C] excessive differentiation to
[D] loss of customer loyalty.
Answer: production and distribution processes becoming obsolete
(6) One aspect of using a cost leadership strategy is that experience effects may lead to lower costs.
[A] True
[B] False
Answer: True
(7) The typical risks of a cost leadership strategy includes:
[A] production and distribution processes becoming obsolete
[B] the inability to balance high differentiation and low price.
[C] the inability to balance high differentiation and low price.
[D] the inability to balance high differentiation and low price.
Answer: production and distribution processes becoming obsolete
(8) Firms pursuing a cost-leadership strategy are typically characterized by?
[A] loose cost control systems.
[B] close supervision of labor, raw materials, inventory, and other costs.
[C] Both A and B
[D] a de -emphasis on quantitative cost goals and costs.
Answer: close supervision of labor, raw materials, inventory, and other costs.
(9) What must a cost-leadership strategy accomplish to be successful?
[A] It must increase the firm’s cost above that of its competitors while offering adequate value.
[B] It must reduce the firm’s cost below that of its competitors while offering superior value.
[C] Both A and B
[D] It must reduce the firm’s cost below that of its competitors while offering adequate value.
Answer: It must reduce the firm’s cost below that of its competitors while offering adequate value.

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