wpc 480 midterm Exam 2026 Questions
and Answers
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. - Correct 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." - Correct answer-c. increase
customers' switching costs
A cost leadership strategy provides goods or services with features that are:
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,a-acceptable.
b-unique.
c-substandard.
d-mediocre. - Correct 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. - Correct 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. - Correct answer-c- employees
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,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 - Correct answer-a- business level
Capabilities that other firms cannot develop easily are classified as:
a. costly to imitate.
b. rare.
c. valuable.
d. nonsubstitutable. - Correct answer-a- costly to imitate
9. Capital market stakeholders include:
a. industry competitors.
b. shareholders.
c. employees.
d. government regulators. - Correct answer-b- shareholders
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, 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 - Correct 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. - Correct 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):
a. strategic mission.
b. inspiring vision.
c. core competence.
d. sustainable market niche. - Correct answer-c- core competence
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and Answers
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. - Correct 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." - Correct answer-c. increase
customers' switching costs
A cost leadership strategy provides goods or services with features that are:
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,a-acceptable.
b-unique.
c-substandard.
d-mediocre. - Correct 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. - Correct 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. - Correct answer-c- employees
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,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 - Correct answer-a- business level
Capabilities that other firms cannot develop easily are classified as:
a. costly to imitate.
b. rare.
c. valuable.
d. nonsubstitutable. - Correct answer-a- costly to imitate
9. Capital market stakeholders include:
a. industry competitors.
b. shareholders.
c. employees.
d. government regulators. - Correct answer-b- shareholders
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, 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 - Correct 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. - Correct 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):
a. strategic mission.
b. inspiring vision.
c. core competence.
d. sustainable market niche. - Correct answer-c- core competence
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