WPC 480 Exam 2026 Questions and
Answers
A diagnosis of the competitive challenge, an element of a good strategy, is
primarily accomplished through strategy - Correct answer-analysis.
Which of the following does a firm possess when it can outperform other firms in
the same industry or the industry average over a prolonged period of time? -
Correct answer-sustainable competitive advantage
Revved Rider Inc., a motorcycle company, is the market leader due to its superior
engine technology and service orientation. These unique qualities have helped the
company generate revenues that are consistently higher than other firms in the
same industry. Which of the following can be concluded about Revved Rider Inc.
from this scenario? - Correct answer-It has a competitive advantage over the other
firms.
Which of the following statements about competitive advantage is not true? -
Correct answer-A firm's competitive advantage is always absolute, not relative.
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,A firm is likely to have a competitive advantage when it - Correct answer-provides
services that consumers will value more than those of its rivals.
The greater the difference between value creation and cost, the - Correct answer-
greater a firm's economic contribution.
When a firm integrates the competitive strategies of cost-leadership and
differentiation, it will most likely result in - Correct answer-trade-offs that work
against each other.
How has Threadless staked out a unique strategic position? - Correct answer-by
providing customers a voice in product design
Which of the following has contributed to Twitter's loss of a competitive
advantage? - Correct answer-Twitter does not allow advertisers to target their
online ads precisely enough.
Quick Eats is a fast-food restaurant that has recently entered the hospitality
industry. Since most of its competitors are pursuing a low-cost position and doing
well, Quick Eats also wants to adopt the same strategy. Which of the following will
be a likely implication of this decision? - Correct answer-Quick Eats will face low
profit potential.
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, Which of the following statements is true of strategy? - Correct answer-Actions
that allow a firm to address a competitive challenge are strategy.
Which of the following statements with regard to determining firm performance is
true? - Correct answer-External analysis will help understand the industry effects
that determine a firm's performance.
Which of the following forces are most closely related to firm effects within a
pharmaceutical industry? - Correct answer-the strategic actions taken by managers
of a firm in the industry
The metaphor of a black swan best applies to - Correct answer-events that are
considered highly unexpected and highly impactful when they do occur.
The black swan events in the past have demonstrated that - Correct answer-
stakeholders can affect or be affected by a firm's actions.
Widgets Inc. is a vendor who supplies machine parts to an appliance manufacturing
company. In return, Widgets Inc. relies on the company for its revenue and is
affected by any decisions taken by the company. In this scenario, Widgets Inc. is
a(n) _____ for the appliance manufacturing company. - Correct answer-external
stakeholder
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Answers
A diagnosis of the competitive challenge, an element of a good strategy, is
primarily accomplished through strategy - Correct answer-analysis.
Which of the following does a firm possess when it can outperform other firms in
the same industry or the industry average over a prolonged period of time? -
Correct answer-sustainable competitive advantage
Revved Rider Inc., a motorcycle company, is the market leader due to its superior
engine technology and service orientation. These unique qualities have helped the
company generate revenues that are consistently higher than other firms in the
same industry. Which of the following can be concluded about Revved Rider Inc.
from this scenario? - Correct answer-It has a competitive advantage over the other
firms.
Which of the following statements about competitive advantage is not true? -
Correct answer-A firm's competitive advantage is always absolute, not relative.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,A firm is likely to have a competitive advantage when it - Correct answer-provides
services that consumers will value more than those of its rivals.
The greater the difference between value creation and cost, the - Correct answer-
greater a firm's economic contribution.
When a firm integrates the competitive strategies of cost-leadership and
differentiation, it will most likely result in - Correct answer-trade-offs that work
against each other.
How has Threadless staked out a unique strategic position? - Correct answer-by
providing customers a voice in product design
Which of the following has contributed to Twitter's loss of a competitive
advantage? - Correct answer-Twitter does not allow advertisers to target their
online ads precisely enough.
Quick Eats is a fast-food restaurant that has recently entered the hospitality
industry. Since most of its competitors are pursuing a low-cost position and doing
well, Quick Eats also wants to adopt the same strategy. Which of the following will
be a likely implication of this decision? - Correct answer-Quick Eats will face low
profit potential.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, Which of the following statements is true of strategy? - Correct answer-Actions
that allow a firm to address a competitive challenge are strategy.
Which of the following statements with regard to determining firm performance is
true? - Correct answer-External analysis will help understand the industry effects
that determine a firm's performance.
Which of the following forces are most closely related to firm effects within a
pharmaceutical industry? - Correct answer-the strategic actions taken by managers
of a firm in the industry
The metaphor of a black swan best applies to - Correct answer-events that are
considered highly unexpected and highly impactful when they do occur.
The black swan events in the past have demonstrated that - Correct answer-
stakeholders can affect or be affected by a firm's actions.
Widgets Inc. is a vendor who supplies machine parts to an appliance manufacturing
company. In return, Widgets Inc. relies on the company for its revenue and is
affected by any decisions taken by the company. In this scenario, Widgets Inc. is
a(n) _____ for the appliance manufacturing company. - Correct answer-external
stakeholder
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
