WPC 480 FINAL QUESTIONS AND
CORRECT ANSWERS
Dominic is the founder of an innovative "impromptu catering" business that provides elegant,
healthy party food and decorations on less than 24 hours' notice. The company has grown by over
150 percent in the past year. Dominic credits some of the company's success to studying the
strategies of prominent social entrepreneurs, such as Wikipedia's Jimmy Wales. What can Dominic
do to exemplify the social entrepreneurship model? ✅✅CORRECT ANSW-Provide free weekly
catered meals for the homeless.
Ancho Corp. is an automobile company whose core competency lies in manufacturing petrol- and
diesel-based cars. The company realizes that more of its potential customers are switching to
electric cars. The R&D department of the company acquires competencies in developing electric cars
and launches its first hybrid car, which uses both gas and electricity. In this scenario, Ancho is
primarily ✅✅CORRECT ANSW-building new core competencies to protect and extend current
market position.
TL & Co. is following a related-linked diversification strategy, and Soar Inc. is following a related-
constrained diversification strategy. How do the two firms differ from each other? ✅✅CORRECT
ANSW-TL & Co. will share fewer common competencies and resources between its various
businesses when compared to Soar Inc.
Managers in a firm hired to improve the firm's profitability and ultimately the shareholders' value
will add to the overall costs if they pursue their own self-interests. What does this best illustrate?
✅✅CORRECT ANSW-principal-agent problem
Which of the following businesses is most likely to disrupt an existing industry? ✅✅CORRECT
ANSW-Closer Connex 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.
In the context of industrial growth, which of the following statements is true of standards?
✅✅CORRECT ANSW-As the size of a market expands, a standard signals the market's agreement
on a common set of engineering features and design choices.
Intel's Celeron chip and Atom chip are initiatives to ✅✅CORRECT ANSW-guard the company
against disruptive innovation by protecting the low end of the market.
CORRECT ANSWERS
Dominic is the founder of an innovative "impromptu catering" business that provides elegant,
healthy party food and decorations on less than 24 hours' notice. The company has grown by over
150 percent in the past year. Dominic credits some of the company's success to studying the
strategies of prominent social entrepreneurs, such as Wikipedia's Jimmy Wales. What can Dominic
do to exemplify the social entrepreneurship model? ✅✅CORRECT ANSW-Provide free weekly
catered meals for the homeless.
Ancho Corp. is an automobile company whose core competency lies in manufacturing petrol- and
diesel-based cars. The company realizes that more of its potential customers are switching to
electric cars. The R&D department of the company acquires competencies in developing electric cars
and launches its first hybrid car, which uses both gas and electricity. In this scenario, Ancho is
primarily ✅✅CORRECT ANSW-building new core competencies to protect and extend current
market position.
TL & Co. is following a related-linked diversification strategy, and Soar Inc. is following a related-
constrained diversification strategy. How do the two firms differ from each other? ✅✅CORRECT
ANSW-TL & Co. will share fewer common competencies and resources between its various
businesses when compared to Soar Inc.
Managers in a firm hired to improve the firm's profitability and ultimately the shareholders' value
will add to the overall costs if they pursue their own self-interests. What does this best illustrate?
✅✅CORRECT ANSW-principal-agent problem
Which of the following businesses is most likely to disrupt an existing industry? ✅✅CORRECT
ANSW-Closer Connex 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.
In the context of industrial growth, which of the following statements is true of standards?
✅✅CORRECT ANSW-As the size of a market expands, a standard signals the market's agreement
on a common set of engineering features and design choices.
Intel's Celeron chip and Atom chip are initiatives to ✅✅CORRECT ANSW-guard the company
against disruptive innovation by protecting the low end of the market.
