Business Strategy & Advisory Flashcards
7 cards from real CA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Business Strategy & Advisory flashcards as text
A business advisor recommending a 'turnaround strategy' would most likely suggest:
Answer: Cost cutting, asset disposal, and refocusing on core operations
Turnaround strategies address declining performance through cost reduction, divestiture of non-core assets, and refocusing on profitable core activities.
In scenario planning, the primary purpose is to:
Answer: Explore multiple plausible future environments to test strategy robustness
Scenario planning creates several distinct, internally consistent future environments to stress-test strategic options rather than predict one outcome.
Which of the following best describes 'blue ocean strategy'?
Answer: Creating uncontested market space by making competition irrelevant
Blue ocean strategy focuses on value innovation to create new demand in uncontested market space rather than fighting over existing customers.
A CA advising on a business combination notes the acquirer is paying significantly above book value. The excess of purchase price over fair value of net assets is recorded as:
Answer: Goodwill
Goodwill represents the premium paid above the fair value of identifiable net assets and reflects intangible factors like brand and customer relationships.
The balanced scorecard's 'learning and growth' perspective primarily measures:
Answer: Employee capabilities, information systems, and organizational culture
The learning and growth perspective focuses on the human capital, technology, and culture that enable the organization to execute its strategy long-term.
In a stakeholder analysis matrix, a stakeholder with HIGH power and LOW interest should be:
Answer: Kept satisfied with minimal unnecessary engagement
High power/low interest stakeholders must be kept satisfied to prevent them from using their influence negatively, without overwhelming them with detail.
Which pricing strategy involves setting an initially high price and gradually reducing it as competitors enter the market?
Answer: Price skimming
Price skimming extracts maximum willingness-to-pay from early adopters before lowering prices to attract more price-sensitive segments.