Question 1

A company made a long-term market plan to take a mobile app to villages. This is a form of which plan?

Accepted Answer

Strategy The correct answer is Strategy because the plan sets a broad, long-term direction for reaching a particular market. Taking a mobile application to villages would involve choices about target users, distribution channels, promotion, partnerships, pricing and the use of resources. Such an integrated course of action is strategic in nature. A budget would present the financial estimates for this expansion, but the statement does not provide figures. A rule would impose a specific command or prohibition, and a procedure would list the ordered steps for completing one activity. The key clues are long-term planning, market expansion and an overall course of action; together they identify a strategy.

Question 2

In planning strategy is considered what type of plan?

Accepted Answer

Broad and long-term plan The direct answer is A: Broad and long-term plan. In planning, strategy is a major plan that gives the organisation an overall direction for achieving important objectives. It normally considers competition, resources, markets, and the future rather than one small daily task. The reasoning is: strategy looks at the whole organisation → it guides major choices → major choices usually need time → therefore strategy is broad and generally long-term. Option A is correct. Option B, a small daily rule, is narrow and routine; it may be a procedure or operational instruction, not a strategy. Option C, a method of operating a machine, is a technical procedure and applies to a particular task. Option D, an expense list, is closer to a budget or financial record and does not explain the organisation’s overall direction. Strategy does not mean an exact daily instruction; it provides the larger route. Memory cue: strategy is the big map, while rules and procedures are small instructions.

Question 3

What is a broad plan formulated to deal with competitors and achieve an organisation’s objectives called?

Accepted Answer

Strategy The correct answer is B, Strategy. A strategy is a broad plan that guides an organisation’s response to competition and helps it pursue its objectives; a rule, method or procedure is more specific.

Question 4

A strategy is generally concerned with which of the following?

Accepted Answer

Long-term objectives and the use of resources The correct answer is C. A strategy sets a broad direction for achieving long-term objectives and involves deciding how resources will be used to pursue them.

Question 5

A large plan to expand market by opening new branches is an example of what?

Accepted Answer

Strategy The direct answer is D: Strategy. Opening new branches to expand the market is a large decision about the future direction and growth of an organisation. It involves deciding where and how the business will grow, so it is a strategy rather than a small operating instruction. The reasoning is: the aim is market expansion → the plan covers a major organisational choice → it affects the future and may require substantial resources → therefore it is a strategy. Option D is correct. Option A, policy, is a general guideline that helps managers make repeated decisions, such as a policy on customer returns; it is not necessarily a complete expansion plan. Option B, budget, is a numerical statement of expected income and expenditure, whereas the question describes a growth direction. Option C, rule, is a strict instruction that must be followed in a particular situation and is much narrower. Thus the scale, future orientation, and growth purpose identify strategy. Memory cue: a big growth route is strategy; a money table is budget; a fixed instruction is rule.

Question 6

Why does a company study the external environment when formulating a strategy?

Accepted Answer

To identify opportunities and threats The correct answer is A. Studying the external environment helps a company identify opportunities it may use and threats it may need to address while planning its strategy.

Question 7

Why is allocating resources important when implementing a strategy?

Accepted Answer

Because resources are needed to achieve objectives The correct answer is A. A strategy can be carried out only when resources such as people, funds and materials are directed toward the activities needed to achieve the organisation’s objectives.

Question 8

Which type of plan coordinates an organisation’s main objectives, course of action and resources?

Accepted Answer

Strategy The correct answer is C, strategy. A strategy is a comprehensive plan that sets a broad course of action for achieving objectives and involves allocating resources to carry it out.

Question 9

To compete with low-price rivals, a company plans to distinguish itself through high quality. What type of plan is this?

Accepted Answer

Strategy The correct answer is A, strategy. Choosing quality as the basis for competing is a broad course of action that responds to the competitive environment.

Question 10

Strategy is generally associated with decisions made at which level of management?

Accepted Answer

Top management level The correct answer is B, top management level. Strategies set broad organisational direction and allocate resources, so they are generally formulated by top management.

Question 11

What is the main purpose of a strategy?

Accepted Answer

Giving the organisation broad direction to achieve its goals The correct answer is C. A strategy provides a broad course of action that guides the organisation towards achieving its objectives.

Question 12

Which option is an example of strategy?

Accepted Answer

Price and distribution plan to enter rural market The direct answer is D: a price and distribution plan to enter a rural market. In business studies, strategy is a broad, long-term plan for achieving an important objective while considering the outside environment and competition. Entering a new customer market requires decisions about price, distribution and market approach, so option D is a strategy. Option A is a rule because it states what is allowed or prohibited. Option B is a procedure because it gives a sequence of steps: check first, then pay. Option C is a technique or method for doing a particular task, not a broad organizational plan. Option D is correct because it combines major market decisions to achieve market entry. Do not confuse a strategy with a routine instruction: strategy answers the large question of how an organization will reach an important goal. Memory cue: new market plus broad plan usually signals strategy.

Question 13

What is the basic difference between a strategy and an objective?

Accepted Answer

Strategy gives broad direction, while objectives state what is to be achieved. The correct answer is A. An objective states the result an organisation wants to achieve; a strategy sets the broad course of action for achieving it.

Question 14

A company develops a broad, coordinated plan for distributing and promoting a mobile app in villages. What type of plan is this?

Accepted Answer

Strategy The correct answer is B, strategy. The coordinated choices about distribution and promotion set a broad course of action for reaching the intended market.

Question 15

Why does an organisation assess its strengths and weaknesses when formulating a strategy?

Accepted Answer

To understand its internal position and capabilities The correct answer is A. Strengths and weaknesses reveal an organisation’s internal capabilities and limitations, which help it choose a realistic course of action.

Question 16

Which type of plan sets a broad course of action for gaining a competitive advantage?

Accepted Answer

Strategy The correct answer is C, strategy. It sets a broad course of action that can help an organisation use its resources and position itself to compete effectively.

Question 17

A company chooses a new brand image and an online sales channel to reach young customers. Which type of plan do these choices form part of?

Accepted Answer

Strategy The correct answer is D, strategy. Decisions about brand positioning and sales channels shape how the company will reach and compete for its target customers.

Question 18

In which situation does strategy become more important?

Accepted Answer

When competition in market is changing The direct answer is A: strategy becomes more important when competition in the market is changing. Strategy is a broad, long-term plan that helps an organisation decide where it wants to go and how it will compete. When competitors change their prices, products, technology, or customer service, an organisation cannot continue blindly with old decisions. It must study the environment, identify opportunities and threats, choose priorities, and use its resources in a suitable way. The reasoning is: changing competition creates uncertainty; uncertainty requires choices; coordinated choices about goals, resources, and competitive action form strategy. Option A is correct because changing market competition may require a new product, lower cost, better delivery, or a different customer group. Option B is wrong because closing a file is a small routine task, not a broad competitive decision. Option C is wrong because cleaning a chair is a physical activity with no strategic direction. Option D is wrong because writing a leave application is an individual administrative action, not a plan for competing in a market. Strategy does not mean performing every small task; it gives direction to major organisational decisions. Memory cue: changing competitors and changing markets call for strategic thinking.

Question 19

Which option is not strategy?

Accepted Answer

Entry without identity card prohibited The direct answer is C, entry without an identity card is prohibited. A strategy is a broad, long-term approach that helps an organisation compete, grow, or reach an important purpose. Option A is a strategy because entering a new market gives a broad direction for expansion. Option B is a strategy because choosing direction according to competitor prices concerns competitive positioning and decision-making. Option C is not a strategy: it is a rule because it says entry is prohibited without identification. A rule controls a particular behaviour; it does not describe the organisation’s broad route toward a long-term goal. Option D is a strategy because a long-term expansion plan gives future-oriented direction. The exact reasoning is therefore: A, B, and D guide future business choices; C merely restricts access. Do not select an option simply because it contains the word “plan”; examine whether it gives broad direction or imposes a rule.

Question 20

Strategy links an organisation’s objectives with what?

Accepted Answer

The external environment and available resources The correct answer is A. A strategy considers the organisation’s objectives, the external environment and available resources when setting a broad course of action.

Question 21

A plan to increase a company’s market share over the long term is an example of what?

Accepted Answer

Strategy The correct answer is Strategy. It is a broad plan for achieving major objectives, such as increasing market share over time.

Question 22

Why should a business understand customer preferences when formulating its strategy?

Accepted Answer

To shape its products and market approach to customer needs The correct answer is A. Knowing what customers prefer helps a business choose products and a market approach that are more likely to meet customer needs.

Question 23

Which type of plan selects a course of action for achieving major objectives?

Accepted Answer

Strategy The correct answer is Strategy. A strategy is a broad course of action selected to achieve important objectives; a budget instead expresses plans in financial or other numerical terms.

Question 24

A company decides to move away from the low-price market and focus on premium customers. What kind of plan does this decision represent?

Accepted Answer

Strategy The correct answer is Strategy. Choosing to serve a different market segment changes the company’s broad competitive direction.

Question 25

Which statement correctly distinguishes a strategy from a rule?

Accepted Answer

A strategy is a broad plan for objectives; a rule prescribes or prohibits a specific action The correct answer is A. A strategy provides a broad plan for achieving objectives, while a rule clearly states what must or must not be done in a particular situation.

Strategy

Practice questions

01 A company made a long-term market plan to take a mobile app to villages. This is a form of which plan?

02 In planning strategy is considered what type of plan?

03 What is a broad plan formulated to deal with competitors and achieve an organisation’s objectives called?

04 A strategy is generally concerned with which of the following?

05 A large plan to expand market by opening new branches is an example of what?

06 Why does a company study the external environment when formulating a strategy?

07 Why is allocating resources important when implementing a strategy?

08 Which type of plan coordinates an organisation’s main objectives, course of action and resources?

09 To compete with low-price rivals, a company plans to distinguish itself through high quality. What type of plan is this?

10 Strategy is generally associated with decisions made at which level of management?

11 What is the main purpose of a strategy?

12 Which option is an example of strategy?

13 What is the basic difference between a strategy and an objective?

14 A company develops a broad, coordinated plan for distributing and promoting a mobile app in villages. What type of plan is this?

15 Why does an organisation assess its strengths and weaknesses when formulating a strategy?

16 Which type of plan sets a broad course of action for gaining a competitive advantage?

17 A company chooses a new brand image and an online sales channel to reach young customers. Which type of plan do these choices form part of?

18 In which situation does strategy become more important?

19 Which option is not strategy?

20 Strategy links an organisation’s objectives with what?

21 A plan to increase a company’s market share over the long term is an example of what?

22 Why should a business understand customer preferences when formulating its strategy?

23 Which type of plan selects a course of action for achieving major objectives?

24 A company decides to move away from the low-price market and focus on premium customers. What kind of plan does this decision represent?

25 Which statement correctly distinguishes a strategy from a rule?

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