Globus Final Exam | Latest Questions with
100% Correct Answers
32) As manager of a relatively new company, you are tasked with analyzing company resources
to identify core competencies capable of supporting a competitive advantage. Which of the
following resources is most likely to generate a competitive advantage?
A) new production facilities
B) large cash holdings
C) stockpile of supplies
D) enthusiastic company culture - ✔️✔️D
33) Which of the following statements accurately brings out the difference between tangible
and intangible resources?
A) Tangible resources contribute to a company''s competitive advantage, whereas intangible
resources have little effect on competitive advantage.
B) Tangible assets can be bought on the open market by anyone with the necessary cash,
whereas intangible assets cannot be easily purchased.
C) Tangible resources take a longer time to build, whereas intangible assets can be built
comparatively easily.
D) Tangible assets are difficult for competitors to imitate, whereas intangible assets can be
easily replicated. - ✔️✔️B
34) Due to resource immobility, a critical assumption in the resource-based model of a firm, the
A) competitive advantage of a firm exists for a short period of time.
,B) resource bundles of a firm can be easily imitated by competitors.
C) resource differences between firms last for a long time.
D) competencies and capabilities of all firms in an industry are similar. - ✔️✔️C
35) The competitive advantage that one firm has will be short-lived in an industry in which
A) resource immobility is high.
B) perfect competition exists.
C) resource heterogeneity is high.
D) capabilities of a firm are not easily replicable. - ✔️✔️B
36) Gladiator Apparel is the market leader in the sportswear industry. Though most of its
resources are common to those of its competitors, a few rare resources have helped the
company gain and sustain a competitive advantage. Which of the following assets of Gladiator
Apparel is most likely to be considered a rare resource that is contributing to its competitive
advantage?
A) the company''s land and buildings
B) the company''s plant and machinery
C) the company''s raw material supplies
D) the company''s design patents - ✔️✔️D
37) Salubre Pharmaceuticals invested $3.4 billion dollars to develop a new drug for individuals
with diabetes. After Salubre receives FDA approval of the drug, its marginal cost to produce the
drug for market will be
A) low.
B) high.
C) moderate.
, D) unpredictable. - ✔️✔️A
38) According to an evaluation using the VRIO framework, Crocs Shoes was unable to sustain its
competitive advantage primarily because its products were
A) invaluable and common.
B) easy to imitate.
C) extremely rare.
D) non-substitutable. - ✔️✔️B
39) Riya has recently started a restaurant in a commercial area that already has many other
established restaurants and popular fast-food chains. Riya owns the building in which her
restaurant is located, rather than leasing premises as her competitors do. This factor allows her
to offer her products at a more competitive price. Riya has also invested a huge amount in
designing the restaurant''s interior and in equipping the kitchen with the appliances that are
most widely used in her industry. In this scenario, which of the following is the most valuable
resource for Riya''s business?
A) the investments made by Riya on the restaurant''s interior
B) the type of kitchen equipment widely used in her industry
C) the restaurant''s late entry into the market
D) the building owned by Riya, which reduces cost of operations - ✔️✔️D
39) Riya has recently started a restaurant in a commercial area that already has many other
established restaurants and popular fast-food chains. Riya owns the building in which her
restaurant is located, rather than leasing premises as her competitors do. This factor allows her
to offer her products at a more competitive price. Riya has also invested a huge amount in
designing the restaurant''s interior and in equipping the kitchen with the appliances that are
most widely used in her industry. In this scenario, which of the following is the most valuable
resource for Riya''s business?
100% Correct Answers
32) As manager of a relatively new company, you are tasked with analyzing company resources
to identify core competencies capable of supporting a competitive advantage. Which of the
following resources is most likely to generate a competitive advantage?
A) new production facilities
B) large cash holdings
C) stockpile of supplies
D) enthusiastic company culture - ✔️✔️D
33) Which of the following statements accurately brings out the difference between tangible
and intangible resources?
A) Tangible resources contribute to a company''s competitive advantage, whereas intangible
resources have little effect on competitive advantage.
B) Tangible assets can be bought on the open market by anyone with the necessary cash,
whereas intangible assets cannot be easily purchased.
C) Tangible resources take a longer time to build, whereas intangible assets can be built
comparatively easily.
D) Tangible assets are difficult for competitors to imitate, whereas intangible assets can be
easily replicated. - ✔️✔️B
34) Due to resource immobility, a critical assumption in the resource-based model of a firm, the
A) competitive advantage of a firm exists for a short period of time.
,B) resource bundles of a firm can be easily imitated by competitors.
C) resource differences between firms last for a long time.
D) competencies and capabilities of all firms in an industry are similar. - ✔️✔️C
35) The competitive advantage that one firm has will be short-lived in an industry in which
A) resource immobility is high.
B) perfect competition exists.
C) resource heterogeneity is high.
D) capabilities of a firm are not easily replicable. - ✔️✔️B
36) Gladiator Apparel is the market leader in the sportswear industry. Though most of its
resources are common to those of its competitors, a few rare resources have helped the
company gain and sustain a competitive advantage. Which of the following assets of Gladiator
Apparel is most likely to be considered a rare resource that is contributing to its competitive
advantage?
A) the company''s land and buildings
B) the company''s plant and machinery
C) the company''s raw material supplies
D) the company''s design patents - ✔️✔️D
37) Salubre Pharmaceuticals invested $3.4 billion dollars to develop a new drug for individuals
with diabetes. After Salubre receives FDA approval of the drug, its marginal cost to produce the
drug for market will be
A) low.
B) high.
C) moderate.
, D) unpredictable. - ✔️✔️A
38) According to an evaluation using the VRIO framework, Crocs Shoes was unable to sustain its
competitive advantage primarily because its products were
A) invaluable and common.
B) easy to imitate.
C) extremely rare.
D) non-substitutable. - ✔️✔️B
39) Riya has recently started a restaurant in a commercial area that already has many other
established restaurants and popular fast-food chains. Riya owns the building in which her
restaurant is located, rather than leasing premises as her competitors do. This factor allows her
to offer her products at a more competitive price. Riya has also invested a huge amount in
designing the restaurant''s interior and in equipping the kitchen with the appliances that are
most widely used in her industry. In this scenario, which of the following is the most valuable
resource for Riya''s business?
A) the investments made by Riya on the restaurant''s interior
B) the type of kitchen equipment widely used in her industry
C) the restaurant''s late entry into the market
D) the building owned by Riya, which reduces cost of operations - ✔️✔️D
39) Riya has recently started a restaurant in a commercial area that already has many other
established restaurants and popular fast-food chains. Riya owns the building in which her
restaurant is located, rather than leasing premises as her competitors do. This factor allows her
to offer her products at a more competitive price. Riya has also invested a huge amount in
designing the restaurant''s interior and in equipping the kitchen with the appliances that are
most widely used in her industry. In this scenario, which of the following is the most valuable
resource for Riya''s business?
