WPC 480 FINAL EXAM ASU | COMPREHENSIVE WPC 480 STUDY
GUIDE, PRACTICE QUESTIONS & ANSWERS 2026/2027
Which of the following businesses is most likely to disrupt an existing industry?
A. GSX TechEd added advanced camera technology to it's premium line of smartphones so that they
would take the highest-quality photos of all phones on the market
B. Touch Tech Inc. reconfigured the components used in its touchscreen tablets to create a new type of
wearable device for use in restaurants and other service industries.
C. Stark and Son's developed a teleportation technology that can transport physical materials
instantaneously across great distances.
D. Black Rock developed an earphone that receives emails and text messages and converts them to voice
messages. The first models had poor reception, but they rapidly improved over time. - correct answer
✔✔D. Black Rock developed an earphone that receives emails and text messages and converts them to
voice messages.
In the decline stage, which of the following strategies involves a reduction of investments in product
support?
A. exit strategy
B. harvest strategy
C. maintain strategy
D. consolidate strategy - correct answer ✔✔B. harvest strategy
Which of the following is an example of social entrepreneurship? The committee approved the new
formula for an all-purpose cleaner because it
A. cleaned better than other cleaners and did not cost more to produce
B. cleaned as well as other cleaners and used organic ingredients
C. cleaned as well as the other cleaners and could be produced more effciently
D. cleaned better than other cleaners and used easy-to-obtain ingredients - correct answer ✔✔B.
cleaned as well as other cleaners and used organic ingredients
Revolve Group is a mobile platform that matches independent fashion designers with consumers who
want a personalized wardrobe. Which of the following initiatives would best allow Revolve Group to fine-
tune its offerings to better meet the needs of its consumers?
A. allowing users to provide feedback to producers on the style and fit of clothing
B. conducting anonymous phone surveys about consumers' fashion preferences
C. hiring an outside consultant to evaluate the offerings of Revolve Group's producers
D. studying the financial records of various fashion design companies to determine trends - correct
answer ✔✔A. allowing users to provide feedback to producers on the style and fit of clothing
Susan wants to create a networking site that would connect local artists to homeowners who are looking
for unique and original art. She knows that network effects will play a big role in her success and doesn't
want to build her business using a linear value chain. Susan would best be served by employing a(n)
A. innovative social networking website
B. razor-razor blade business model
C. platform business model
, D. pipeline business model - correct answer ✔✔C. platform business model
How does a conglomerate benefit from following an unrelated diversification strategy?
A. The conglomerate can share most of its competencies in products, services, technology, or
distribution between all its businesses.
B. the conglomerate can overcome institutional weaknesses such as a lack of capital markets in emerging
economies
C. the conglomerate can limit the learning and experience curve effects it faces
D. The conglomerate can soley depen on its primary business activity for a major portion of its revenues.
- correct answer ✔✔B. the conglomerate can overcome institutional weaknesses such as a lack of capital
markets in emerging economies
Vehement Capital Partners wanted its research partner, an R&D company, to develop a cancer vaccine.
However, the project required huge capital investments, and its research partner was not ready to solely
face the risks involved. Thus, to gain its partner's confidence and to prove its involvement, Vehement
Capital Partners invested $100 million in the project. This investment made by Vehement Capital
Partners will result in a
A. corrective action
B. cartel
C. credible commitment
D. Parent-subsidiary relationship - correct answer ✔✔C. credible commitment
Which of the following is an example of an internal transaction cost?
A. the cost of buying raw materials
B. the cost of signing a contract with a supplier
C. the cost of maintaining a production unit
D. the cost of searching for a contract manufacturer - correct answer ✔✔C. the cost of maintaining a
production unit
Pete E' Gee sell's Big Dog Choppers, a special type of motorcycle. His business generates roughly 80
percent of his revenues from selling these motorcycles and about 20 percent on motorcycle repair and
service. Pete E' Gee would be classified as a ________ firm.
A. dominate business
B. related diversification
C. single business
D. unrelated diversification - correct answer ✔✔A. dominate business
Billy is the CEO of Billy's Kicks, a soccer ball retailer. He decides to purchase the synthetic rubber
manufacturing firm so he can create his own soccer balls and sell them, nationally, in his retail stores. In
order to do this, Billy will need to engage in ________, which is a corporate level strategy.
A. forward vertical integration
B. differentiation
C. horizontal integration
D. backward vertical integration - correct answer ✔✔D. backward vertical integration
Which of the following statements is true of an equity alliance?
A. In an equity alliance, a standalone organization is created that is jointly owned by two or more parent
companies.
GUIDE, PRACTICE QUESTIONS & ANSWERS 2026/2027
Which of the following businesses is most likely to disrupt an existing industry?
A. GSX TechEd added advanced camera technology to it's premium line of smartphones so that they
would take the highest-quality photos of all phones on the market
B. Touch Tech Inc. reconfigured the components used in its touchscreen tablets to create a new type of
wearable device for use in restaurants and other service industries.
C. Stark and Son's developed a teleportation technology that can transport physical materials
instantaneously across great distances.
D. Black Rock developed an earphone that receives emails and text messages and converts them to voice
messages. The first models had poor reception, but they rapidly improved over time. - correct answer
✔✔D. Black Rock developed an earphone that receives emails and text messages and converts them to
voice messages.
In the decline stage, which of the following strategies involves a reduction of investments in product
support?
A. exit strategy
B. harvest strategy
C. maintain strategy
D. consolidate strategy - correct answer ✔✔B. harvest strategy
Which of the following is an example of social entrepreneurship? The committee approved the new
formula for an all-purpose cleaner because it
A. cleaned better than other cleaners and did not cost more to produce
B. cleaned as well as other cleaners and used organic ingredients
C. cleaned as well as the other cleaners and could be produced more effciently
D. cleaned better than other cleaners and used easy-to-obtain ingredients - correct answer ✔✔B.
cleaned as well as other cleaners and used organic ingredients
Revolve Group is a mobile platform that matches independent fashion designers with consumers who
want a personalized wardrobe. Which of the following initiatives would best allow Revolve Group to fine-
tune its offerings to better meet the needs of its consumers?
A. allowing users to provide feedback to producers on the style and fit of clothing
B. conducting anonymous phone surveys about consumers' fashion preferences
C. hiring an outside consultant to evaluate the offerings of Revolve Group's producers
D. studying the financial records of various fashion design companies to determine trends - correct
answer ✔✔A. allowing users to provide feedback to producers on the style and fit of clothing
Susan wants to create a networking site that would connect local artists to homeowners who are looking
for unique and original art. She knows that network effects will play a big role in her success and doesn't
want to build her business using a linear value chain. Susan would best be served by employing a(n)
A. innovative social networking website
B. razor-razor blade business model
C. platform business model
, D. pipeline business model - correct answer ✔✔C. platform business model
How does a conglomerate benefit from following an unrelated diversification strategy?
A. The conglomerate can share most of its competencies in products, services, technology, or
distribution between all its businesses.
B. the conglomerate can overcome institutional weaknesses such as a lack of capital markets in emerging
economies
C. the conglomerate can limit the learning and experience curve effects it faces
D. The conglomerate can soley depen on its primary business activity for a major portion of its revenues.
- correct answer ✔✔B. the conglomerate can overcome institutional weaknesses such as a lack of capital
markets in emerging economies
Vehement Capital Partners wanted its research partner, an R&D company, to develop a cancer vaccine.
However, the project required huge capital investments, and its research partner was not ready to solely
face the risks involved. Thus, to gain its partner's confidence and to prove its involvement, Vehement
Capital Partners invested $100 million in the project. This investment made by Vehement Capital
Partners will result in a
A. corrective action
B. cartel
C. credible commitment
D. Parent-subsidiary relationship - correct answer ✔✔C. credible commitment
Which of the following is an example of an internal transaction cost?
A. the cost of buying raw materials
B. the cost of signing a contract with a supplier
C. the cost of maintaining a production unit
D. the cost of searching for a contract manufacturer - correct answer ✔✔C. the cost of maintaining a
production unit
Pete E' Gee sell's Big Dog Choppers, a special type of motorcycle. His business generates roughly 80
percent of his revenues from selling these motorcycles and about 20 percent on motorcycle repair and
service. Pete E' Gee would be classified as a ________ firm.
A. dominate business
B. related diversification
C. single business
D. unrelated diversification - correct answer ✔✔A. dominate business
Billy is the CEO of Billy's Kicks, a soccer ball retailer. He decides to purchase the synthetic rubber
manufacturing firm so he can create his own soccer balls and sell them, nationally, in his retail stores. In
order to do this, Billy will need to engage in ________, which is a corporate level strategy.
A. forward vertical integration
B. differentiation
C. horizontal integration
D. backward vertical integration - correct answer ✔✔D. backward vertical integration
Which of the following statements is true of an equity alliance?
A. In an equity alliance, a standalone organization is created that is jointly owned by two or more parent
companies.
