WPC 480 (FINAL) Questions With Complete Solutions

Ackbar, Inc. has had high growth in profits for several years, and each year it has had the highest profits ever. What can you assess about Ackbar's strategic competitive advantage? correct answer: Can assess nothing about competitive advantage. Firms that outperform all their competitors must have a high quality strategy. correct answer: False It is not rare that a CEO of a large, public organizations will be given a raise and/or bonus even though the profitability of the firm has been negative for several years. What is the best explanation for this? correct answer: The firm has been growing rapidly in number of locations and factories. Why are theories of how to achieve a competitive advantage not about sufficient causes, but only necessary causes? correct answer: The causes of firm performance are not generalizable to all contexts. Firms are made more capable of achieving a competitive advantage by having strong competitors so they must adapt and become stronger in the market. correct answer: False Accounting Value correct answer: Based on historical data Shareholder Value correct answer: Based on predictions on the future