WGU D118 OBJECTIVE ASSESSMENT
PRACTICE EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS)
1. A company is evaluating its internal operations and discovers that its proprietary
manufacturing process is unique in the industry and cannot be easily copied by competitors.
According to the VRIO framework, which category does this fall into?
A. Valuable
B. Rare
C. Organized
D. Inimitable
Answer: D
Conceptual Explanation: Inimitable resources are those that are difficult or costly for
competitors to duplicate or substitute.
2. Which perspective of the Balanced Scorecard focuses on how the company’s internal
operations contribute to its strategic goals?
A. Financial Perspective
B. Customer Perspective
,C. Internal Process Perspective
D. Learning and Growth Perspective
Answer: C
Conceptual Explanation: The Internal Process perspective monitors the efficiency and
effectiveness of the business processes that create value for customers.
3. Which of the following describes a ‘Lagging Indicator’ in performance management?
A. Employee training hours completed
B. Net profit margin for the last fiscal year
C. Number of new product designs in the pipeline
D. Customer satisfaction survey response rate
Answer: B
Conceptual Explanation: Lagging indicators measure outcomes that have already
occurred, such as financial performance results.
4. In Porter’s Five Forces, which factor increases the bargaining power of buyers?
A. The industry’s products are standardized or undifferentiated
B. Buyers purchase in small volumes
C. High switching costs for the buyer
D. There are few substitute products available
, Answer: A
Conceptual Explanation: Standardized products allow buyers to switch between sellers
easily, increasing their bargaining power.
5. Which organizational structure is characterized by dual reporting relationships where
employees report to both a functional manager and a project manager?
A. Functional Structure
B. Divisional Structure
C. Matrix Structure
D. Network Structure
Answer: C
Conceptual Explanation: A Matrix structure involves dual reporting lines to optimize
resource sharing and project focus.
6. A firm decides to acquire one of its raw material suppliers to gain more control over its
supply chain. This is an example of:
A. Forward Vertical Integration
B. Horizontal Integration
C. Backward Vertical Integration
D. Conglomerate Diversification
Answer: C
PRACTICE EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS)
1. A company is evaluating its internal operations and discovers that its proprietary
manufacturing process is unique in the industry and cannot be easily copied by competitors.
According to the VRIO framework, which category does this fall into?
A. Valuable
B. Rare
C. Organized
D. Inimitable
Answer: D
Conceptual Explanation: Inimitable resources are those that are difficult or costly for
competitors to duplicate or substitute.
2. Which perspective of the Balanced Scorecard focuses on how the company’s internal
operations contribute to its strategic goals?
A. Financial Perspective
B. Customer Perspective
,C. Internal Process Perspective
D. Learning and Growth Perspective
Answer: C
Conceptual Explanation: The Internal Process perspective monitors the efficiency and
effectiveness of the business processes that create value for customers.
3. Which of the following describes a ‘Lagging Indicator’ in performance management?
A. Employee training hours completed
B. Net profit margin for the last fiscal year
C. Number of new product designs in the pipeline
D. Customer satisfaction survey response rate
Answer: B
Conceptual Explanation: Lagging indicators measure outcomes that have already
occurred, such as financial performance results.
4. In Porter’s Five Forces, which factor increases the bargaining power of buyers?
A. The industry’s products are standardized or undifferentiated
B. Buyers purchase in small volumes
C. High switching costs for the buyer
D. There are few substitute products available
, Answer: A
Conceptual Explanation: Standardized products allow buyers to switch between sellers
easily, increasing their bargaining power.
5. Which organizational structure is characterized by dual reporting relationships where
employees report to both a functional manager and a project manager?
A. Functional Structure
B. Divisional Structure
C. Matrix Structure
D. Network Structure
Answer: C
Conceptual Explanation: A Matrix structure involves dual reporting lines to optimize
resource sharing and project focus.
6. A firm decides to acquire one of its raw material suppliers to gain more control over its
supply chain. This is an example of:
A. Forward Vertical Integration
B. Horizontal Integration
C. Backward Vertical Integration
D. Conglomerate Diversification
Answer: C
