WPC 480 FINAL EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026
Which of the following businesses is most likely to disrupt an existing industry? - Answers Closer
Connex developed an earphone that receives emails and text messages and converts them to voice
messages. The first models had poor reception, but they rapidly improved over time.
In the context of industrial growth, which of the following statements is true of standards? - Answers
As the size of a market expands, a standard signals the market's agreement on a common set of
engineering features and design choices.
Intel's Celeron chip and Atom chip are initiatives to - Answers guard the company against disruptive
innovation by protecting the low end of the market.
Which of the following most accurately describes a difference between incremental innovation and
radical innovation? - Answers Incremental innovation builds on an established knowledge base;
radical innovation uses an entirely different knowledge base.
Dominic is the founder of an innovative "impromptu catering" business that provides elegant, healthy
party food and decorations on less than 24 hours' notice. The company has grown by over 150
percent in the past year. Dominic credits some of the company's success to studying the strategies of
prominent social entrepreneurs, such as Wikipedia's Jimmy Wales. What can Dominic do to exemplify
the social entrepreneurship model? - Answers Provide free weekly catered meals for the homeless.
Ancho Corp. is an automobile company whose core competency lies in manufacturing petrol- and
diesel-based cars. The company realizes that more of its potential customers are switching to electric
cars. The R&D department of the company acquires competencies in developing electric cars and
launches its first hybrid car, which uses both gas and electricity. In this scenario, Ancho is primarily -
Answers building new core competencies to protect and extend current market position.
TL & Co. is following a related-linked diversification strategy, and Soar Inc. is following a related-
constrained diversification strategy. How do the two firms differ from each other? - Answers TL & Co.
will share fewer common competencies and resources between its various businesses when
compared to Soar Inc.
Managers in a firm hired to improve the firm's profitability and ultimately the shareholders' value will
add to the overall costs if they pursue their own self-interests. What does this best illustrate? -
Answers principal-agent problem
Which of the following is an example of an internal transaction cost? - Answers the cost of
maintaining a production unit
Which of the following best illustrates site specificity? - Answers equipment necessary for mining
bauxite and aluminum smelting
Which of the following is a result of horizontal integration in terms of Porter's five forces model? -
Answers There is a reduction of excess capacity in the market.
A drawback involved in using cross-border strategic alliances to enter new foreign markets is that -
Answers some of the firm's proprietary know-how may be appropriated by the foreign partner.
It is necessary for government authorities such as the Federal Trade Commission (FTC) and/or the
European Commission to approve any large horizontal integration activity because - Answers the
horizontal integration activity has the potential to reduce competitive intensity in an industry.
The managers at Speed Automobile Inc. want to diversify the business by acquiring a consumer
electronics company. This acquisition would mean increased job security, higher compensation, and
greater decision-making authority for the managers. The managers correlate this acquisition to
greater power for them rather than to the appreciation in shareholder value. In this scenario, this
acquisition by Speed Automobile is most likely a result of - Answers principal-agent problems.
Which of the following examples describes the task of an alliance manager? - Answers Hussein trained
the employees of his alliance partner in the skills needed to create a display for an e-notebook.
Amber is a strategist for a furniture manufacturer that has a large presence in the United States and
Canada. By checking economic and political reports, she knows that trade and investment barriers are
falling among wealthy nations. She also knows that the price of oil has dropped 50 percent in the
previous two years. Based on this information, what action should Amber and her company take? -
Answers They should seriously consider globalization because of the falling trade and investment
barriers.
A firm is said to be pursuing a polycentric innovation strategy when - Answers it draws from multiple,
equally important research facilities located throughout the world.
Which of the following businesses is most likely to disrupt an existing industry? - Answers Closer
Connex developed an earphone that receives emails and text messages and converts them to voice
messages. The first models had poor reception, but they rapidly improved over time.
In the context of industrial growth, which of the following statements is true of standards? - Answers
As the size of a market expands, a standard signals the market's agreement on a common set of
engineering features and design choices.
Intel's Celeron chip and Atom chip are initiatives to - Answers guard the company against disruptive
innovation by protecting the low end of the market.
Which of the following most accurately describes a difference between incremental innovation and
radical innovation? - Answers Incremental innovation builds on an established knowledge base;
radical innovation uses an entirely different knowledge base.
Dominic is the founder of an innovative "impromptu catering" business that provides elegant, healthy
party food and decorations on less than 24 hours' notice. The company has grown by over 150
percent in the past year. Dominic credits some of the company's success to studying the strategies of
prominent social entrepreneurs, such as Wikipedia's Jimmy Wales. What can Dominic do to exemplify
the social entrepreneurship model? - Answers Provide free weekly catered meals for the homeless.
Ancho Corp. is an automobile company whose core competency lies in manufacturing petrol- and
diesel-based cars. The company realizes that more of its potential customers are switching to electric
cars. The R&D department of the company acquires competencies in developing electric cars and
launches its first hybrid car, which uses both gas and electricity. In this scenario, Ancho is primarily -
Answers building new core competencies to protect and extend current market position.
TL & Co. is following a related-linked diversification strategy, and Soar Inc. is following a related-
constrained diversification strategy. How do the two firms differ from each other? - Answers TL & Co.
will share fewer common competencies and resources between its various businesses when
compared to Soar Inc.
Managers in a firm hired to improve the firm's profitability and ultimately the shareholders' value will
add to the overall costs if they pursue their own self-interests. What does this best illustrate? -
Answers principal-agent problem
Which of the following is an example of an internal transaction cost? - Answers the cost of
maintaining a production unit
Which of the following best illustrates site specificity? - Answers equipment necessary for mining
bauxite and aluminum smelting
Which of the following is a result of horizontal integration in terms of Porter's five forces model? -
Answers There is a reduction of excess capacity in the market.
A drawback involved in using cross-border strategic alliances to enter new foreign markets is that -
Answers some of the firm's proprietary know-how may be appropriated by the foreign partner.
It is necessary for government authorities such as the Federal Trade Commission (FTC) and/or the
European Commission to approve any large horizontal integration activity because - Answers the
horizontal integration activity has the potential to reduce competitive intensity in an industry.
The managers at Speed Automobile Inc. want to diversify the business by acquiring a consumer
electronics company. This acquisition would mean increased job security, higher compensation, and
greater decision-making authority for the managers. The managers correlate this acquisition to
greater power for them rather than to the appreciation in shareholder value. In this scenario, this
acquisition by Speed Automobile is most likely a result of - Answers principal-agent problems.
Which of the following examples describes the task of an alliance manager? - Answers Hussein trained
the employees of his alliance partner in the skills needed to create a display for an e-notebook.
Amber is a strategist for a furniture manufacturer that has a large presence in the United States and
Canada. By checking economic and political reports, she knows that trade and investment barriers are
falling among wealthy nations. She also knows that the price of oil has dropped 50 percent in the
previous two years. Based on this information, what action should Amber and her company take? -
Answers They should seriously consider globalization because of the falling trade and investment
barriers.
A firm is said to be pursuing a polycentric innovation strategy when - Answers it draws from multiple,
equally important research facilities located throughout the world.
