WPC 470 TEST READY SUPPLY 2026 WIDE
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⫸ Effectively using executive compensation as a governance
mechanism is particularly challenging for firms implementing _____
strategies. Answer: international
⫸ By sharing resources and knowledge between units and network
partners across country borders, firms learn how to create Answer:
synergy
⫸ Which of the following criterion is most likely to be used to
measure the success of a small, new company, Hippolite Mud Resort,
which opened six months ago? Answer: Speed of growth
⫸ An appropriate guideline for competitor intelligence practices
includes which of the following? Answer: Respect the principles of
common morality.
⫸ Managing the business units of a geographically diverse
multinational firm requires skill, not only in managing a _____ set of
businesses, but also coordinating _____ points of view emerging from
businesses located in countries and regions. Answer: decentralized;
diverse
⫸ All of the following are value-creating reasons for diversification
EXCEPT: Answer: risk reduction for the firm
,⫸ Ted is one of the production managers at Agritech Industries. He
feels that changes to products are disruptive to the production
procedures that are currently in place. In general, therefore, Ted views
innovations as threats. Ted lacks: Answer: an entrepreneurial mind-
set.
⫸ Which of the following is a reason why it can be difficult for
boards of directors to effectively assess top-level managers' decisions
on a regular basis? Answer: Typically, the effects of top-level
managers' decisions are stronger on the firm's long-term performance
than its short-term performance.
⫸ International corporate-level strategy focuses on the scope of a
firm's operations through _____ diversification. Answer: geographic
⫸ A company that pursues a diversifying strategic alliance might be
motivated by the desire to: Answer: enter a new market.
⫸ What is the determinant of national advantage that fosters the
growth of certain industries and varies greatly from nation to nation?
Answer: Firm strategy, structure, and rivalry
⫸ Which of the following is one of the most effective strategic
leadership styles? Answer: Transformational leadership
, ⫸ When creating value through internal innovation processes, which
of the following is important for promoting integrated new product
design ideas? Answer: Cross-functional product teams
⫸ A firm should analyze the internal organization to identify its
strengths and weaknesses as reflected by all of the following
EXCEPT: Answer: competitors' capabilities
⫸ When a company has a homogeneous top management team and
external CEO succession, which of the following situations will
result? Answer: An ambiguous situation where there is potential for a
change in the top management team and the strategy
⫸ While U.S. firms use downscoping as a restructuring strategy,
Answer: many Asian and Latin American conglomerates have also
chosen to downscope.
⫸ Which of the following statements about a flexible manufacturing
system (FMS) is NOT true? Answer: An FMS allows a manufacturer
to connect with its suppliers, distributors, and customers, which
enables it to satisfy customer expectations in terms of product quality
and delivery speed.
⫸ _____ is change resulting from selecting and implementing a
firm's strategies. Answer: Strategic change
LOOK ALL ASK GROUP WITH MARKS
⫸ Effectively using executive compensation as a governance
mechanism is particularly challenging for firms implementing _____
strategies. Answer: international
⫸ By sharing resources and knowledge between units and network
partners across country borders, firms learn how to create Answer:
synergy
⫸ Which of the following criterion is most likely to be used to
measure the success of a small, new company, Hippolite Mud Resort,
which opened six months ago? Answer: Speed of growth
⫸ An appropriate guideline for competitor intelligence practices
includes which of the following? Answer: Respect the principles of
common morality.
⫸ Managing the business units of a geographically diverse
multinational firm requires skill, not only in managing a _____ set of
businesses, but also coordinating _____ points of view emerging from
businesses located in countries and regions. Answer: decentralized;
diverse
⫸ All of the following are value-creating reasons for diversification
EXCEPT: Answer: risk reduction for the firm
,⫸ Ted is one of the production managers at Agritech Industries. He
feels that changes to products are disruptive to the production
procedures that are currently in place. In general, therefore, Ted views
innovations as threats. Ted lacks: Answer: an entrepreneurial mind-
set.
⫸ Which of the following is a reason why it can be difficult for
boards of directors to effectively assess top-level managers' decisions
on a regular basis? Answer: Typically, the effects of top-level
managers' decisions are stronger on the firm's long-term performance
than its short-term performance.
⫸ International corporate-level strategy focuses on the scope of a
firm's operations through _____ diversification. Answer: geographic
⫸ A company that pursues a diversifying strategic alliance might be
motivated by the desire to: Answer: enter a new market.
⫸ What is the determinant of national advantage that fosters the
growth of certain industries and varies greatly from nation to nation?
Answer: Firm strategy, structure, and rivalry
⫸ Which of the following is one of the most effective strategic
leadership styles? Answer: Transformational leadership
, ⫸ When creating value through internal innovation processes, which
of the following is important for promoting integrated new product
design ideas? Answer: Cross-functional product teams
⫸ A firm should analyze the internal organization to identify its
strengths and weaknesses as reflected by all of the following
EXCEPT: Answer: competitors' capabilities
⫸ When a company has a homogeneous top management team and
external CEO succession, which of the following situations will
result? Answer: An ambiguous situation where there is potential for a
change in the top management team and the strategy
⫸ While U.S. firms use downscoping as a restructuring strategy,
Answer: many Asian and Latin American conglomerates have also
chosen to downscope.
⫸ Which of the following statements about a flexible manufacturing
system (FMS) is NOT true? Answer: An FMS allows a manufacturer
to connect with its suppliers, distributors, and customers, which
enables it to satisfy customer expectations in terms of product quality
and delivery speed.
⫸ _____ is change resulting from selecting and implementing a
firm's strategies. Answer: Strategic change
