FREE Doctor of Business Administration MCQ Questions and Answers

Question 1

The extent to which a hierarchy's lower levels are granted decision-making power.

Accepted Answer

Decentralization

Answer

Decentralization refers to the delegation of decision-making authority to lower levels within an organizational hierarchy. This contrasts with centralization, where decision-making power is concentrated at the top. Decentralization can empower employees, improve responsiveness, and foster innovation by allowing those closest to the action to make relevant decisions.

Question 2

A strategy outlining how a division plans to compete with its competitors in a given industry.

Accepted Answer

business level strategy

Answer

A business-level strategy focuses on how a specific business unit or division will compete within its particular industry or market segment. It addresses questions of competitive advantage, such as how to differentiate products or achieve cost leadership. This is distinct from a corporate-level strategy, which deals with the overall scope and direction of the multi-business organization.

Question 3

Steps a business does to accomplish an objective, such maximizing revenues.

Accepted Answer

Business Strategy

Answer

A business strategy encompasses the comprehensive plan of action that a company develops to achieve its long-term goals and objectives, such as maximizing revenues, market share, or profitability. It involves making choices about resource allocation, competitive positioning, and operational approaches to gain a sustainable advantage.

Question 4

Groups departments based on similarity in process, region, consumer, or product.

Accepted Answer

divisional structure

Answer

A divisional structure organizes departments around specific products, services, geographic regions, or customer groups. This allows divisions to operate as semi-autonomous units, focusing on their particular market or offering. It contrasts with a functional structure, which groups departments by specialized functions like marketing or finance.

Question 5

Incentive compensation based on sales volume.

Accepted Answer

Commissions

Answer

Commissions are a form of incentive compensation directly tied to the volume or value of sales achieved by an individual or team. This payment structure motivates sales personnel to increase their sales efforts, as their earnings are directly proportional to their performance in generating revenue.

DBA - Doctor of Business Administration Practice Test

DBA - Doctor of Business Administration Practice Test

FREE Doctor of Business Administration MCQ Questions and Answers