WPC 480 - CHAPTER 7-12 QUIZ QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026
Which of the following scenarios would be characteristic of an entrepreneur? - Answers John
implemented a new and more efficient way to produce pottery.
Which of the following statements is true of the early majority section of consumers? - Answers They
weigh the benefits and costs carefully when adopting a new product.
Which of the following describes the group of customers referred to as the early majority? - Answers
They come into the market during the shakeout stage.
The type of customers vital to a firm introducing a new innovation are the________, who are willing
to buy early into new technology or product concept. - Answers early adopters
The strategic objective of a first mover during the introduction stage of the industry life cycle is to -
Answers achieve market acceptance
In the context of the Boston Consulting Group (BCG) growth-share matrix, if one of the strategic
business units of a conglomerate is categorized under "dog," the management should consider -
Answers divesting the strategic business unit.
The managers at Acme Corporation decided that their firm needed to diversify because of overall
falling sales and lower performance in one sector. How does diversifying compensate for the declining
performance in this sector? - Answers by having higher performance in another sector - Firms often
attempt to reduce risk by diversifying their product and service portfolio through competing in a
number of different industries. The rationale behind these diversification moves is that falling sales
and lower performance in one sector might be compensated by higher performance in another.
Which of the following best illustrates forward vertical integration? - Answers A firm that
manufactures and sells car engines to major automobile companies launches its own line of cars. -
Forward vertical integration involves moving ownership of activities closer to the end customer.
U.S.-based consumer electronics corporation DGM owns a smaller company in Taiwan where most of
DGM's cell phone technology is made before being released worldwide. Which of the following
alternatives to integration does this best illustrate? - Answers parent-subsidiary relationship
J-Texon Manufacturing is a large conglomerate that operates only in its home country. The company
competes in industries like the consumer electronics, health care, hotel, airlines, education, and steel
industries. Which of the following diversification strategies does this best illustrate? - Answers
product diversification - A firm that is active in several different product markets is pursuing a product
diversification strategy.
It is necessary for government authorities such as the Federal Trade Commission (FTC) and/or the
European Commission to approve any large horizontal integration activity because - Answers the
horizontal integration activity has the potential to reduce competitive intensity in an industry.
Lana Dubois Inc. is a large skincare company that made an initial small investment in a startup
company, Greener Tan, which was developing an organic sunscreen. This gave Lana Dubois controlling
interests in the startup company. However, Greener Tan soon began to have financial difficulties
because of principal-agent problems. As a result, Lana Dubois did not invest in the next stage of
development and pulled out of the company. This approach to strategic alliance is referred to as a -
Answers real-options perspective - breaks down a larger investment decision into a set of smaller
decisions that are staged sequentially over time. This approach allows the firm to obtain additional
information at predetermined stages. At each stage, after new information is revealed, the firm
evaluates whether to make further investments.
Codehow Inc. is a large firm involved in the highly competitive market of high-tech medical
equipment. In this market, promising startups that focus on research are constantly entering the
market with new technological developments. Which of the following approaches would best serve
the needs of Codehow? - Answers strategic preemption - to integrate potential competitors through
acquisitions.
Mars Tennis Equipment, Inc. wishes to pursue international markets such as Spain and France. In
order to do this, it may wish to consider a possible - Answers joint venture with another firm already
established in those markets - Joint ventures are frequently used to enter international markets.
Which of the following is true of acquisitions? - Answers They can be friendly or hostile - When a
target firm does not want to be acquired, the acquisition is considered a hostile takeover.
Which of the following scenarios best illustrates bundling? - Answers Warephase Inc. sells seed
packages, in which a person can buy a package of three types of seeds at a discounted price
compared to buying the seeds individually.
Which of the following scenarios would be characteristic of an entrepreneur? - Answers John
implemented a new and more efficient way to produce pottery.
Which of the following statements is true of the early majority section of consumers? - Answers They
weigh the benefits and costs carefully when adopting a new product.
Which of the following describes the group of customers referred to as the early majority? - Answers
They come into the market during the shakeout stage.
The type of customers vital to a firm introducing a new innovation are the________, who are willing
to buy early into new technology or product concept. - Answers early adopters
The strategic objective of a first mover during the introduction stage of the industry life cycle is to -
Answers achieve market acceptance
In the context of the Boston Consulting Group (BCG) growth-share matrix, if one of the strategic
business units of a conglomerate is categorized under "dog," the management should consider -
Answers divesting the strategic business unit.
The managers at Acme Corporation decided that their firm needed to diversify because of overall
falling sales and lower performance in one sector. How does diversifying compensate for the declining
performance in this sector? - Answers by having higher performance in another sector - Firms often
attempt to reduce risk by diversifying their product and service portfolio through competing in a
number of different industries. The rationale behind these diversification moves is that falling sales
and lower performance in one sector might be compensated by higher performance in another.
Which of the following best illustrates forward vertical integration? - Answers A firm that
manufactures and sells car engines to major automobile companies launches its own line of cars. -
Forward vertical integration involves moving ownership of activities closer to the end customer.
U.S.-based consumer electronics corporation DGM owns a smaller company in Taiwan where most of
DGM's cell phone technology is made before being released worldwide. Which of the following
alternatives to integration does this best illustrate? - Answers parent-subsidiary relationship
J-Texon Manufacturing is a large conglomerate that operates only in its home country. The company
competes in industries like the consumer electronics, health care, hotel, airlines, education, and steel
industries. Which of the following diversification strategies does this best illustrate? - Answers
product diversification - A firm that is active in several different product markets is pursuing a product
diversification strategy.
It is necessary for government authorities such as the Federal Trade Commission (FTC) and/or the
European Commission to approve any large horizontal integration activity because - Answers the
horizontal integration activity has the potential to reduce competitive intensity in an industry.
Lana Dubois Inc. is a large skincare company that made an initial small investment in a startup
company, Greener Tan, which was developing an organic sunscreen. This gave Lana Dubois controlling
interests in the startup company. However, Greener Tan soon began to have financial difficulties
because of principal-agent problems. As a result, Lana Dubois did not invest in the next stage of
development and pulled out of the company. This approach to strategic alliance is referred to as a -
Answers real-options perspective - breaks down a larger investment decision into a set of smaller
decisions that are staged sequentially over time. This approach allows the firm to obtain additional
information at predetermined stages. At each stage, after new information is revealed, the firm
evaluates whether to make further investments.
Codehow Inc. is a large firm involved in the highly competitive market of high-tech medical
equipment. In this market, promising startups that focus on research are constantly entering the
market with new technological developments. Which of the following approaches would best serve
the needs of Codehow? - Answers strategic preemption - to integrate potential competitors through
acquisitions.
Mars Tennis Equipment, Inc. wishes to pursue international markets such as Spain and France. In
order to do this, it may wish to consider a possible - Answers joint venture with another firm already
established in those markets - Joint ventures are frequently used to enter international markets.
Which of the following is true of acquisitions? - Answers They can be friendly or hostile - When a
target firm does not want to be acquired, the acquisition is considered a hostile takeover.
Which of the following scenarios best illustrates bundling? - Answers Warephase Inc. sells seed
packages, in which a person can buy a package of three types of seeds at a discounted price
compared to buying the seeds individually.
