CBO Strategic Planning & Leadership 4

Question 1

Which type of diversification involves a company entering an industry unrelated to its current business?

Accepted Answer

Conglomerate diversification

Answer

Conglomerate (unrelated) diversification occurs when a company expands into industries with no operational or strategic connection to its existing business.

Question 2

A transformational leader primarily motivates followers by:

Accepted Answer

Appealing to higher ideals and inspiring a shared vision

Answer

Transformational leaders inspire change by appealing to followers' values and vision, elevating motivation beyond simple transactional exchanges.

Question 3

In a SWOT analysis, a company's aging technology infrastructure would be classified as a:

Accepted Answer

Weakness

Answer

An aging technology infrastructure is an internal limitation, placing it in the Weakness quadrant of a SWOT analysis.

Question 4

Strategic control differs from operational control primarily because strategic control:

Accepted Answer

Monitors whether the strategy itself remains valid as the environment changes

Answer

Strategic control evaluates whether the chosen strategy still fits the evolving competitive environment, not just whether execution meets short-term targets.

Question 5

Which growth strategy involves a company buying one of its suppliers to control inputs?

Accepted Answer

Backward vertical integration

Answer

Backward vertical integration occurs when a company acquires or controls its upstream suppliers to secure inputs and reduce dependency.

(CBO) Certified Business Operator Practice Test

(CBO) Certified Business Operator Practice Test

CBO Strategic Planning & Leadership 4