WPC 480 Quiz UPDATED ACTUAL
Questions and CORRECT Answers
when one party delegates decision-making responsibility to a second party for compensation it's
called? - CORRECT ANSWER - agency relationship
Elected individuals whose primary responsibility is to act in the owners' best interest by formally
monitoring and controlling the firm's top-level managers is the definition for - CORRECT
ANSWER - board of directors
In the united states ________ are seen as the most important stakeholders - CORRECT
ANSWER - shareholders
The three pillars of corporate governance taxonomy are - CORRECT ANSWER - board of
directors, executive compensation and shareholder's rights
The complex set of ideologies, symbols, and core values that are shared throughout a firm that
influence how the firm conducts business - CORRECT ANSWER - organizational culture
when a firm is attempting to break into an international market it easily established alliances in
that foreign market and was able to successfully expand with this - CORRECT
ANSWER - social capital
Support from _____________________________ is crucial to successfully implementing a new
organizational culture - CORRECT ANSWER - -top management
-CEO
-middle level managers
What would happen to a company without corporate governance? - CORRECT
ANSWER - The company will fail because of legal issues, lack of strategic focus, and
risky behavior
, A telecommunications company is impacted by government regulations of the wireless spectrum,
cell tower locations, and internet accessibility. The company decides to hire a lobbying firm to
represent its interests with the U.S. government, specifically the FCC, FTC and Congress. This is
an example of a company managing which forces in the macro-environment? - CORRECT
ANSWER - political and legal forces
What is the term that is concerned with a population's size, age structure, geographic distribution,
ethnic mix, and income distribution? - CORRECT ANSWER - demographic segment
suppliers are most powerful when there - CORRECT ANSWER - would be switching
costs if it went to a different supplier because the current supplier's products are unique
The likelihood of entry of new competitors is affected by - CORRECT ANSWER -
barriers to entry and expected retaliation of current industry organizations
In the resource-based model of above-average returns, a core competency is - CORRECT
ANSWER - Something that gives a company an edge over the competition, something that
the company possesses that its competitors do not have, and something that is too difficult or
costly for competitors to copy or produce an alternative
An intangible resource is one that - CORRECT ANSWER - Is rooted deeply in the
company history, is gathered over time, and is difficult for competitors to analyze or imitate
all core competencies have the potential to become - CORRECT ANSWER - rigidities
A company that is analyzing its value chain to discover its value-creating activities. While
formulating its strategy the firm will - CORRECT ANSWER - Consider the operational
functions and support functions to determine which activities contribute the greatest value in the
product or service being sold to customers
Fed Ex and United Postal Service compete in many of the same markets and have similar types
of truck and airplane fleets, similar levels of financial capital and other similarities. These
Questions and CORRECT Answers
when one party delegates decision-making responsibility to a second party for compensation it's
called? - CORRECT ANSWER - agency relationship
Elected individuals whose primary responsibility is to act in the owners' best interest by formally
monitoring and controlling the firm's top-level managers is the definition for - CORRECT
ANSWER - board of directors
In the united states ________ are seen as the most important stakeholders - CORRECT
ANSWER - shareholders
The three pillars of corporate governance taxonomy are - CORRECT ANSWER - board of
directors, executive compensation and shareholder's rights
The complex set of ideologies, symbols, and core values that are shared throughout a firm that
influence how the firm conducts business - CORRECT ANSWER - organizational culture
when a firm is attempting to break into an international market it easily established alliances in
that foreign market and was able to successfully expand with this - CORRECT
ANSWER - social capital
Support from _____________________________ is crucial to successfully implementing a new
organizational culture - CORRECT ANSWER - -top management
-CEO
-middle level managers
What would happen to a company without corporate governance? - CORRECT
ANSWER - The company will fail because of legal issues, lack of strategic focus, and
risky behavior
, A telecommunications company is impacted by government regulations of the wireless spectrum,
cell tower locations, and internet accessibility. The company decides to hire a lobbying firm to
represent its interests with the U.S. government, specifically the FCC, FTC and Congress. This is
an example of a company managing which forces in the macro-environment? - CORRECT
ANSWER - political and legal forces
What is the term that is concerned with a population's size, age structure, geographic distribution,
ethnic mix, and income distribution? - CORRECT ANSWER - demographic segment
suppliers are most powerful when there - CORRECT ANSWER - would be switching
costs if it went to a different supplier because the current supplier's products are unique
The likelihood of entry of new competitors is affected by - CORRECT ANSWER -
barriers to entry and expected retaliation of current industry organizations
In the resource-based model of above-average returns, a core competency is - CORRECT
ANSWER - Something that gives a company an edge over the competition, something that
the company possesses that its competitors do not have, and something that is too difficult or
costly for competitors to copy or produce an alternative
An intangible resource is one that - CORRECT ANSWER - Is rooted deeply in the
company history, is gathered over time, and is difficult for competitors to analyze or imitate
all core competencies have the potential to become - CORRECT ANSWER - rigidities
A company that is analyzing its value chain to discover its value-creating activities. While
formulating its strategy the firm will - CORRECT ANSWER - Consider the operational
functions and support functions to determine which activities contribute the greatest value in the
product or service being sold to customers
Fed Ex and United Postal Service compete in many of the same markets and have similar types
of truck and airplane fleets, similar levels of financial capital and other similarities. These
