WPC 480 COMPLETE REVIEW & SUCCESS
GUIDE HIGH PERFORMANCE 2026.
◍ In the context of industrial growth, which of the following
statements is true of standards? Answer: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 Answer: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?
Answer: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? Answer: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
Answer: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? Answer: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?
Answer:principal-agent problem
◍ Which of the following is an example of an internal transaction
cost? Answer:the cost of maintaining a production unit
◍ Which of the following best illustrates site specificity?
Answer: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? Answer:There is a reduction of excess
capacity in the market.
GUIDE HIGH PERFORMANCE 2026.
◍ In the context of industrial growth, which of the following
statements is true of standards? Answer: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 Answer: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?
Answer: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? Answer: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
Answer: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? Answer: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?
Answer:principal-agent problem
◍ Which of the following is an example of an internal transaction
cost? Answer:the cost of maintaining a production unit
◍ Which of the following best illustrates site specificity?
Answer: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? Answer:There is a reduction of excess
capacity in the market.
