1. An example of a tactical action taken by a firm would be:

a. Raising prices on all major products

b. Doubling the size of the firm and its resources

c. Initiating a major TQM program throughout the entire firm

d. None of the above applies

2. If a firm has more weaknesses than strengths and more opportunities than threats, it should be pursuing which type of competitive strategy?

a. defensive

b. diversification

c. aggressive

d. turn around

3. The market for corporate control serves as a means of governance when:

a. the value of the firm is too great.

b. internal controls have failed and the firm is weak

c. the corporation has exceeded performance expectations too much.

d. the top management team interests and the Board of Directors interests are not aligned