CS Study Guide 2026

Everything you need to pass the CS exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.

📚 CS Topics to Study (38)

✍️ Sample CS Questions & Answers

1. A competitive moat in strategic analysis refers to:
Durable advantages that protect a firm's market position and profitability

A competitive moat encompasses all structural advantages — brand, switching costs, network effects, cost advantages — that protect a firm from competitive erosion.

2. A company's strategy map is primarily used to:
Visualize cause-and-effect relationships between strategic objectives

A strategy map illustrates how value is created by showing the causal links between objectives across the four BSC perspectives.

3. What is the role of risk assessment in decision making?
To evaluate risks and make informed decisions

Risk assessment is an integral part of informed decision-making as it involves identifying, analyzing, and evaluating potential risks associated with various choices. By understanding the potential negative consequences and their likelihood, leaders can make more informed decisions that minimize adverse impacts. This proactive approach helps to maximize positive outcomes and ensure the sustainability of chosen strategies.

4. A strategist notices that two variables — ad spend and sales volume — have a correlation coefficient of 0.91. What conclusion is MOST appropriate?
There is a strong positive association between ad spend and sales volume

Correlation measures association strength but does not establish causation; additional analysis (e.g., regression, controlled experiments) is needed before claiming a causal link.

5. An organization with high operating leverage should be especially cautious about strategies that:
Increase fixed costs further without corresponding revenue growth

High operating leverage means fixed costs already dominate, so adding more fixed costs amplifies losses if revenue falls short of projections.

6. Which risk response strategy is most appropriate when the cost of mitigating a risk exceeds its potential impact?
Accept

Risk acceptance is appropriate when mitigation costs outweigh the financial or strategic impact of the risk materializing.

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