WPC 480 MIDTERM COMPLETE TEST PAPER
WITH CORRECT ANSWERS
◉ True or False:
Above-average returns are returns in excess of what an investor
expects to earn from other investments with a similar amount of
risk.
Answer: True
◉ True or False:
To implement a firm's strategies, the firm takes actions to enact each
strategy with the intent of achieving strategic competitiveness and
above-average returns.
Answer: True
◉ (RNH) has been profitable in the past 10 years, providing its
investors higher returns than its direct competitors. RNH has a
reputation for providing high-paying managerial and hourly-
employee jobs. However, investigations have revealed the nursing
home residents have been provided substandard care, including
non-nutritious and unappetizing meals, non-functional medical
equipment, and inadequate patient-care staffing. Which of the
following statements best describes the situation?
,- RNH has been attempting to minimally satisfy the demands of all of
its stakeholders
-RNH has earned above-average returns and so has satisfied the
needs of all relevant stakeholders
-RNH has been earning below-average returns, so it has had to
prioritize the demands of its various stakeholders
-RNH has prioritized the demands of capital market stakeholders
and organizational stakeholders over the demands of product
market stakeholders
Answer: RNH has prioritized the demands of capital market
stakeholders and organizational stakeholders over the demands of
product market stakeholders.
◉ The primary drivers of hypercompetition are __________ and
__________.
a. the emergence of a global economy; rapid technological change
b. increased global competition; decreased tariffs
c. increased availability of capital; increased competition
d. rising global socio-economic instability; increased inflation
Answer: the emergence of a global economy; rapid technological
change
◉ True or False:
, The uniqueness of a firm's resources and capabilities is the basis for
a firm's strategy and its ability to earn above-average returns under
the industrial organization (I/O) model.
Answer: False
◉ The Princeton Alliance Church states on its website that "PAC
exists to help you live life to the fullest by knowing God, developing
community and bringing hope." This pronouncement is MOST
precisely a statement of organizational:
a. vision.
b. structure.
c. culture.
d. values.
Answer: Vision
◉ True or False:
The assumptions of the industrial organization model and the
resource-based model are contradictory. Therefore, organizational
strategists must choose one or the other model as the basis for
developing a strategic plan.
Answer: False
◉ Alibaba is a company in the Internet services industry that has
improved its performance by focusing on its unique abilities in the
WITH CORRECT ANSWERS
◉ True or False:
Above-average returns are returns in excess of what an investor
expects to earn from other investments with a similar amount of
risk.
Answer: True
◉ True or False:
To implement a firm's strategies, the firm takes actions to enact each
strategy with the intent of achieving strategic competitiveness and
above-average returns.
Answer: True
◉ (RNH) has been profitable in the past 10 years, providing its
investors higher returns than its direct competitors. RNH has a
reputation for providing high-paying managerial and hourly-
employee jobs. However, investigations have revealed the nursing
home residents have been provided substandard care, including
non-nutritious and unappetizing meals, non-functional medical
equipment, and inadequate patient-care staffing. Which of the
following statements best describes the situation?
,- RNH has been attempting to minimally satisfy the demands of all of
its stakeholders
-RNH has earned above-average returns and so has satisfied the
needs of all relevant stakeholders
-RNH has been earning below-average returns, so it has had to
prioritize the demands of its various stakeholders
-RNH has prioritized the demands of capital market stakeholders
and organizational stakeholders over the demands of product
market stakeholders
Answer: RNH has prioritized the demands of capital market
stakeholders and organizational stakeholders over the demands of
product market stakeholders.
◉ The primary drivers of hypercompetition are __________ and
__________.
a. the emergence of a global economy; rapid technological change
b. increased global competition; decreased tariffs
c. increased availability of capital; increased competition
d. rising global socio-economic instability; increased inflation
Answer: the emergence of a global economy; rapid technological
change
◉ True or False:
, The uniqueness of a firm's resources and capabilities is the basis for
a firm's strategy and its ability to earn above-average returns under
the industrial organization (I/O) model.
Answer: False
◉ The Princeton Alliance Church states on its website that "PAC
exists to help you live life to the fullest by knowing God, developing
community and bringing hope." This pronouncement is MOST
precisely a statement of organizational:
a. vision.
b. structure.
c. culture.
d. values.
Answer: Vision
◉ True or False:
The assumptions of the industrial organization model and the
resource-based model are contradictory. Therefore, organizational
strategists must choose one or the other model as the basis for
developing a strategic plan.
Answer: False
◉ Alibaba is a company in the Internet services industry that has
improved its performance by focusing on its unique abilities in the
