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Free CPA-Business Exam Braindumps (page: 72)

Page 72 of 132
PDF with 530 Questions

Which of the following activities is considered a primary activity?

  1. Delivery of products.
  2. Procurement of materials.
  3. Human resources.
  4. Accounting.

Answer(s): A

Explanation:

Choice "a" is correct. Primary activities are those that are involved with the direct manufacture of products, the delivery of products through distribution channels, and the support of the product that exists after the sale is made (e.g., handling the raw materials, the manufacturing process, taking orders for the product, advertising the product, and servicing the product after it is sold).
Choices "b", "c", and "d" are incorrect, as these are all considered support activities. Support activities are those activities that are performed by the support staff of an organization (e.g., purchasing of materials and supplies, development of the technology used, management of employees, accounting, finance, strategic planning, etc.).



When applying value chain analysis, a firm asks it accounting department to perform an analysis of the sources of profits and costs of activities that exist within the firm. The firm is performing which form of value chain analysis?

  1. Internal differentiation analysis.
  2. Internal costs analysis.
  3. Vertical linkage analysis.
  4. None of the above.

Answer(s): B

Explanation:

Choice "b" is correct. Internal costs analysis includes analyzing the internal value-creating ability of a firm, so the sources of profit and costs of the internal activities of the firm must be analyzed.
Choices "a", "c", and "d" are incorrect, per the above Explanation.



If a nation has many rival domestic firms which are all competitive in the global marketplace for a product, which of the four major factors that Michael Porter has indicated impact the global competitive environment would allow this nation to fare better with respect to global competitive advantage?

  1. Conditions of the factors of production.
  2. Conditions of domestic demand.
  3. Related and supporting industries.
  4. Firm strategy, structure, and rivalry.

Answer(s): C

Explanation:

Choice "c" is correct. The factor of related and supporting industries deals with whether there are suppliers of material inputs that exist within a nation or whether there are rival firms who are competitive in the international environment, both of which would increase the nation's competitive advantage.
Choice "a" is incorrect. If a nation has a strong set of factors of production (such as low-cost, high quality raw material inputs), that are required in a given industry, it will fare better with regard to competitive advantage. However, this factor is different from the "many rival domestic firms which are all competitive in the global marketplace for a product" as stated in the question.
Choice "b" is incorrect. The factor of conditions of domestic demand related to the nation's domestic demand for the product, which is directly related to the ability of the nation to fare better with regard to competitive advantage. However, this factor is different from the "many rival domestic firms which are all competitive in the global marketplace for a product" as stated in the question.
Choice "d" is incorrect. The factor of firm strategy, structure, and rivalry relates to the practices of a nation with respect to how the companies are managed and organized, along with the laws of the nation that regulate the formation of the companies, and how intense the rivalry is with respect to competing firms in the nation.
However, this factor is different from the "many rival domestic firms which are all competitive in the global marketplace for a product" as stated in the question.



Which of the following is not an external factor that directly affects the competitive environment of the firm?

  1. Barriers to market entry.
  2. Bargaining power of suppliers.
  3. Political issues.
  4. Existence of substitute products.

Answer(s): C

Explanation:

Choice "c" is correct. Political issues are external factors that affect the overall industry, not simply the competitive environment of the firm.
Choices "a", "b", and "d" are incorrect, as all of these factors directly affect the competitive environment of the firm.



Page 72 of 132



Post your Comments and Discuss AICPA CPA-Business exam with other Community members:

Venkatesh commented on September 08, 2023
I don't see Internal Control/Information technology related questions
UNITED STATES
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Jay jain commented on May 25, 2023
This is nice platform
Anonymous
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