DBA Doctor of Business Administration MCQ 2 — Questions and Answers
Question 1: In dynamic capability theory, which element distinguishes a firm's ability to adapt to rapidly changing environments?
- Static resource allocation
- Sensing, seizing, and reconfiguring capabilities (Correct answer)
- Cost leadership positioning
- Vertical integration depth
Correct answer: Sensing, seizing, and reconfiguring capabilities
Teece's dynamic capabilities framework centers on sensing opportunities, seizing them, and reconfiguring assets to maintain competitive advantage.
Question 2: Which capital budgeting technique explicitly accounts for the time value of money and is most aligned with shareholder value maximization?
- Payback period
- Accounting rate of return
- Net present value (NPV) (Correct answer)
- Profitability index only
Correct answer: Net present value (NPV)
NPV discounts all future cash flows to present value, directly measuring wealth creation for shareholders.
Question 3: A DBA candidate proposes a grounded theory study of executive decision-making. The primary data collection method consistent with this methodology is:
- Randomized controlled surveys
- In-depth iterative interviews with theoretical sampling (Correct answer)
- Secondary archival document analysis only
- Standardized psychometric testing
Correct answer: In-depth iterative interviews with theoretical sampling
Grounded theory relies on iterative, in-depth interviews with theoretical sampling to build theory from data.
Question 4: The Balanced Scorecard introduced by Kaplan and Norton links financial outcomes to which three additional organizational perspectives?
- Marketing, HR, and Operations
- Customer, Internal Processes, and Learning & Growth (Correct answer)
- Supply chain, Risk, and Innovation
- Governance, Compliance, and Stakeholder
Correct answer: Customer, Internal Processes, and Learning & Growth
Kaplan and Norton's Balanced Scorecard adds customer, internal business processes, and learning & growth perspectives to the financial view.
Question 5: Under the Modigliani-Miller theorem in a world with no taxes, changing a firm's capital structure:
- Increases firm value by adding leverage
- Has no effect on total firm value (Correct answer)
- Decreases firm value through financial risk
- Optimizes WACC at 50% debt
Correct answer: Has no effect on total firm value
In a frictionless market without taxes, M&M theorem holds that capital structure is irrelevant to total firm value.
Question 6: Which organizational learning concept describes the tendency for firms to reduce exploration in favor of exploiting proven processes, potentially causing long-term decline?
- Organizational ambidexterity
- Competency trap (Correct answer)
- Absorptive capacity
- Path dependency paradox
Correct answer: Competency trap
The competency trap occurs when firms over-invest in refining existing competencies at the expense of exploring new capabilities.
Question 7: In stakeholder theory, Freeman's primary argument is that firms must create value for:
- Shareholders exclusively, as legal owners
- All groups who affect or are affected by the firm's activities (Correct answer)
- Government regulators as the primary accountability partner
- Customers first, with other groups considered secondarily
Correct answer: All groups who affect or are affected by the firm's activities
Freeman's stakeholder theory holds that sustainable firm success requires managing relationships with all affected parties, not shareholders alone.
DBA Doctor of Business Administration MCQ 2
In dynamic capability theory, which element distinguishes a firm's ability to adapt to rapidly changing environments?