DBA Doctor of Business Administration MCQ 3 — Questions and Answers
Question 1: Which regression diagnostic statistic is used to detect multicollinearity among independent variables in a quantitative DBA study?
- Durbin-Watson statistic
- Variance Inflation Factor (VIF) (Correct answer)
- Cook's distance
- Cronbach's alpha
Correct answer: Variance Inflation Factor (VIF)
VIF measures how much the variance of a regression coefficient is inflated due to collinearity with other predictors; values above 10 are typically problematic.
Question 2: Porter's Five Forces model is primarily used to analyze:
- Internal resource strengths of the firm
- The structural attractiveness and competitive intensity of an industry (Correct answer)
- Financial leverage and capital structure decisions
- HR capability gaps within organizations
Correct answer: The structural attractiveness and competitive intensity of an industry
Porter's Five Forces assesses industry-level competition through threats of entry, substitutes, buyer/supplier power, and rivalry.
Question 3: A DBA researcher uses a mixed-methods design where qualitative findings are used to explain quantitative results. This is best described as:
- Convergent parallel design
- Sequential explanatory design (Correct answer)
- Embedded experimental design
- Transformative design
Correct answer: Sequential explanatory design
In a sequential explanatory design, quantitative data is collected first, then qualitative data explains or elaborates on the quantitative findings.
Question 4: Agency theory primarily addresses the problem arising from:
- Market externalities and public goods provision
- Separation of ownership and control in corporations (Correct answer)
- Oligopolistic pricing between competitors
- Information asymmetry in consumer markets
Correct answer: Separation of ownership and control in corporations
Agency theory examines conflicts of interest between principals (shareholders) and agents (managers) when ownership and control are separated.
Question 5: The VRIO framework evaluates firm resources based on value, rarity, imitability, and organization. A resource that meets all four criteria is classified as:
- A competitive parity resource
- A source of sustained competitive advantage (Correct answer)
- A temporary competitive advantage
- An organizational weakness
Correct answer: A source of sustained competitive advantage
Resources that are valuable, rare, costly to imitate, and supported by the organization generate sustained competitive advantage.
Question 6: In enterprise risk management (ERM), the COSO framework categorizes risk responses into which four options?
- Identify, Assess, Respond, Monitor
- Avoid, Reduce, Share, Accept (Correct answer)
- Transfer, Hedge, Diversify, Ignore
- Prevent, Detect, Correct, Report
Correct answer: Avoid, Reduce, Share, Accept
COSO ERM identifies four risk response strategies: avoid (exit the activity), reduce (mitigate), share (transfer to third party), and accept (no action).
Question 7: Institutional theory suggests that organizations adopt similar structures and practices primarily due to:
- Profit maximization pressures from capital markets
- Isomorphic pressures from regulatory, normative, and mimetic forces (Correct answer)
- Internal efficiency optimization algorithms
- Technology adoption curves and network effects
Correct answer: Isomorphic pressures from regulatory, normative, and mimetic forces
DiMaggio and Powell's institutional isomorphism describes how organizations conform to field-level norms through coercive, normative, and mimetic pressures.
Which regression diagnostic statistic is used to detect multicollinearity among independent variables in a quantitative DBA study?