WPC 480 FINAL QUESTIONS AND ANSWERS
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 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
