DBA Doctor of Business Administration/Business Management 2

Question 1

Which organizational structure gives functional managers authority over resources while project managers coordinate work across functions?

Accepted Answer

Matrix structure

Answer

A matrix structure shares authority between functional and project managers, enabling resource flexibility but creating dual-reporting complexity.

Question 2

In Porter's Five Forces model, which force is most directly reduced when a company achieves high customer switching costs?

Accepted Answer

Bargaining power of buyers

Answer

High switching costs reduce buyers' bargaining power because customers face significant costs or effort when changing to a competitor.

Question 3

A company's WACC (Weighted Average Cost of Capital) is best described as:

Accepted Answer

The blended required return across all capital sources weighted by market value

Answer

WACC weights the cost of each capital component (debt, equity, preferred) by its proportion of total market-value capital.

Question 4

Which decision-making framework explicitly maps decisions by their certainty of outcomes and agreement on goals?

Accepted Answer

Cynefin framework

Answer

The Cynefin framework categorizes decision contexts as simple, complicated, complex, or chaotic based on cause-effect clarity and consensus.

Question 5

In operations management, 'takt time' is defined as:

Accepted Answer

Available production time divided by customer demand rate

Answer

Takt time sets the production rhythm by dividing available work time by units demanded, aligning output to customer pull.

DBA - Doctor of Business Administration Practice Test