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BUSIPOL External Audit Quiz

Test your knowledge of external audits and their various components with our BUSIPOL quiz. This quiz covers key concepts related to external audits, competitive advantages, and the impact of socio-economic trends on business strategy.

17 insightful questions
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17 Questions4 MinutesCreated by AnalyzingStrategy42

1. __________ is not part of an external audit.

A. Analyzing competitors

b. Analyzing financial ratios

C. Analyzing available technologies

D. Studying the political environment

E. Analyzing social, cultural, demographic and geographic forces

2. Identifying and evaluating key social, political, economic, technological and competitive trends and events comprise.

A. Developing an effective mission statement.

b. Conducting an internal audit.

C. Performing an external audit.

d. Formulating strategy.

E. Implementing strategy.

3. The process of performing an external audit needs to include:

A. Only top level managers, as it’s a planning function.

B. As many managers and employees as possible.

C. Primarily front-line supervisors

D. between 15 to 20 managers for it to be valid

E. Stockholders and external government agencies

4. To perform an external audit, a company first must:

A. Get an approval from the Securities and Exchange Commission

B. Perform an internal audit

C. Gather competitive intelligence and information about external trends

D. Hire a consultant to develop a comprehensive strategic plan.

e. All of these

5. The I/O approach to competitive advantage advocates that external factors are ________ internal factors in a firm achieving competitive advantage.

6. According to I/O theorists, which of the following contributes least to firm performance?

7. Which type of trend is exemplified by the increasing numbers of two-income households in America?

8. What happens to the demand for discretionary goods when interest rates rise?

9. When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit?

10. The term that refers to the EU’s effort to end competitive tax breaks among member countries is _______________.

11. Technological advancements can create new ______ advantages that are more powerful than existing advantages.

12. Collecting and evaluating information on competitors is essential for successful ____________.

13. A systematic and ethical process for gathering and analyzing information about the competition’s activities and general trends to further a business’ own goals is called ________.

14. Which statement about business intelligence is least accurate?

A. Intelligence gathering is an unethical business practice.

B. Running an intelligence program requires many people.

C. Running an intelligence program requires many computers and other resources.

D. Collecting intelligence about competitors violates antitrust laws.

E. Business intelligence is not equal to espionage.

15. All of these are risks that still restrain firms from initiating business with China except:

A. Absence of a legal system.

B. Severe human rights violations.

C. Freedom of press and religion.

D. Rampant corruption.

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BUSIPOL External Audit Quiz

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