WPC 480 Midterm 2025/2026 Exam
Questions and Answers | A+ Score
Assured
All of the following were traditional sources of competitive advantage
EXCEPT:
a. labor costs.
b. access to financial resources.
c. protected markets.
d. a highly educated labor market. - 🧠ANSWER ✔✔d
Customer loyalty programs such as airline frequent flyer miles are an
attempt to:
a. decrease competitors' access to distribution channels.
b. develop a cost advantage independent of scale.
,c. increase customers' switching costs.
d. overcome the perishability of the hotel "product." - 🧠ANSWER ✔✔c.
increase customers' switching costs
A cost leadership strategy provides goods or services with features that
are:
a-acceptable.
b-unique.
c-substandard.
d-mediocre. - 🧠ANSWER ✔✔a-acceptable
Valuable capabilities allow the firm to:
a. exploit opportunities in its external environment.
b. neutralize threats in its internal environment.
c. exploit opportunities or neutralize threats in its external environment.
d. neutralize opportunities in its internal environment. - 🧠ANSWER ✔✔c-
exploit opportunities or neutralize threats in its external environment
6. Organizational stakeholders include:
,a. unions.
b. host communities.
c. employees.
d. suppliers of capital. - 🧠ANSWER ✔✔c- employees
Competitive rivalry has more effect on a firm's __________ strategies than
the firm's other strategies.
a. business-level
b. corporate-level
c. acquisition
d. international - 🧠ANSWER ✔✔a- business level
Capabilities that other firms cannot develop easily are classified as:
a. costly to imitate.
b. rare.
c. valuable.
d. nonsubstitutable. - 🧠ANSWER ✔✔a- costly to imitate
9. Capital market stakeholders include:
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, a. industry competitors.
b. shareholders.
c. employees.
d. government regulators. - 🧠ANSWER ✔✔b- shareholders
10. The firm's capability will NOT be costly to imitate when it__________
a. was developed under a unique historical condition
b. was developed under ambiguous causes
c. is very rare
d. reflects social complexity - 🧠ANSWER ✔✔c- is very rare
The final responsibility for forming the firm's mission rests with the:
a. CEO.
b. mid-level managers.
c. employees.
d. stakeholders. - 🧠ANSWER ✔✔a- ceo
12. When capabilities serve as a source of competitive advantage for a firm
over its rivals, the firm has created a(n):
Questions and Answers | A+ Score
Assured
All of the following were traditional sources of competitive advantage
EXCEPT:
a. labor costs.
b. access to financial resources.
c. protected markets.
d. a highly educated labor market. - 🧠ANSWER ✔✔d
Customer loyalty programs such as airline frequent flyer miles are an
attempt to:
a. decrease competitors' access to distribution channels.
b. develop a cost advantage independent of scale.
,c. increase customers' switching costs.
d. overcome the perishability of the hotel "product." - 🧠ANSWER ✔✔c.
increase customers' switching costs
A cost leadership strategy provides goods or services with features that
are:
a-acceptable.
b-unique.
c-substandard.
d-mediocre. - 🧠ANSWER ✔✔a-acceptable
Valuable capabilities allow the firm to:
a. exploit opportunities in its external environment.
b. neutralize threats in its internal environment.
c. exploit opportunities or neutralize threats in its external environment.
d. neutralize opportunities in its internal environment. - 🧠ANSWER ✔✔c-
exploit opportunities or neutralize threats in its external environment
6. Organizational stakeholders include:
,a. unions.
b. host communities.
c. employees.
d. suppliers of capital. - 🧠ANSWER ✔✔c- employees
Competitive rivalry has more effect on a firm's __________ strategies than
the firm's other strategies.
a. business-level
b. corporate-level
c. acquisition
d. international - 🧠ANSWER ✔✔a- business level
Capabilities that other firms cannot develop easily are classified as:
a. costly to imitate.
b. rare.
c. valuable.
d. nonsubstitutable. - 🧠ANSWER ✔✔a- costly to imitate
9. Capital market stakeholders include:
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, a. industry competitors.
b. shareholders.
c. employees.
d. government regulators. - 🧠ANSWER ✔✔b- shareholders
10. The firm's capability will NOT be costly to imitate when it__________
a. was developed under a unique historical condition
b. was developed under ambiguous causes
c. is very rare
d. reflects social complexity - 🧠ANSWER ✔✔c- is very rare
The final responsibility for forming the firm's mission rests with the:
a. CEO.
b. mid-level managers.
c. employees.
d. stakeholders. - 🧠ANSWER ✔✔a- ceo
12. When capabilities serve as a source of competitive advantage for a firm
over its rivals, the firm has created a(n):
