What is the main problem inside many companies regarding shareholder value creation?a. It is interpreted in such a way as to maximise executive remuneration, and thusshort-term profits.b. It is interpreted by management to mean the management of the firms long-termprospects.c. It is interpreted by management to mean the maximisation of growth.d. It is interpreted by management to mean the management of the firms marketshare.6. Which factors explain the corporate disasters of the last decade?a. Management opting for high-risk strategies which took little account of those risks,and which overestimated their capability.b. The uncertainty and the turbulence of the business environment in general.c. Top managers greed, the absence of any ethics, and human nature.d. The complexity of the environment, and a misfit between the marketing strategiesof the firms involved, and their product characteristics.7. If firms are social institutions that must identify with the values of society, then:a. when societys values change, the strategies and behaviours of firms must changeas well.b. there will need to be additional members of society on the board of directors.c. firms have no freedom to make profit.d. shareholders will invest elsewhere if their values are not met8. In option theory, an attractive resource is:a. one that can be deployed in different businesses.b. one that can support alternative strategies.c. the one that is able to generate the largest number of capabilities.d. Answers a and b.9. Ultimately, the only sustainable competitive advantage which matters is:a. the ability to perform better than rivals.b. the ability to be flexible.c. the ability to maintain an acceptable situation in terms of available cash.d. the ability to create new sources of competitive advantage, although this is notvery practically helpful.10. If a business is inherently unpredictable, then:a. only statistical management can achieve excellent results.b. the managerial challenge is to design a structure which is inherently flexible andadaptable.c. no one can act in any way to manage a firm.d. theres no longer any point in having a strategy