MGT 449 EXAM 2 ALL ANSWERS ARE

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MGT 449 - EXAM 2 || ALL ANSWERS ARE

CORRECT 100%.

Question: Which of the following statements accurately explains

one of the main reasons for Nike's success?

• It made the unorthodox move to spend basically its entire

budget for a specific sport on a single star athlete.

• It focused on sponsoring future athletic superstars who

embodied a likely success story.

• It spread its marketing budget more widely.
• It stopped spending money on celebrity endorsements and

started restricting its expenditure for sponsoring only track and field sports stars.

Correct answer: It made the unorthodox move to spend basically

its entire budget for a specific sport on a single star athlete.

Question: What are best described as unique strengths,

embedded deep within a firm, that allow a firm to differentiate its products and services from those of its rivals, creating higher value for the customer or offering products and services of comparable value at lower cost?

• Resource leverages
• Equity reserves

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• Capital gains
• Core competencies

Correct answer: Core competencies

Question: Dandelions Max is a consumer electronics company.

It has acquired an edge over its competitors through its ability to provide breakthrough technology at the lowest price in the market. This advantage of Dandelions Max best exemplifies a

________.

• core competency
• resource flow
• capital gain
• markup

Correct answer: core competency

Question: Which of the following is an example of a firm's

resources?

• Liabilities such as bills payables and short-term debts
• Routine activities like order taking and invoicing customers,

performed in a firm

• Assets such as land and building owned by a firm

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• Assistance available from the government in the form of

rules and regulations

Correct answer: Assets such as land and building owned by a

firm

Question: The management of a company is assessing the value

of all the tangible resources the company owns. Which of the following will be included in this assessment?

• The company's machinery
• The company's patents
• The company's brand equity
• The company's copyrights

Correct answer: The company's machinery

Question: Intangible assets add great value to a firm primarily

because the firm's:

• tangible assets require a higher degree of capital than its

intangible assets.

• capabilities are by nature typically tangible.
• reputation and brand equity are accumulated quickly and can

be leveraged easily.

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• knowledge and culture take time to develop and are generally

difficult to imitate.

Correct answer: knowledge and culture take time to develop and

are generally difficult to imitate

Question: GN Corp. and BC Inc. are two competing firms in the

same industry. GN Corp.'s tangible assets are valued at $15 billion and its intangible assets are valued at $35 billion. BC Inc.'s tangible assets are valued at $5 billion and its intangible assets are valued at $45 billion. What can be concluded from this information?

• There is no resource heterogeneity between the two firms,

BC Inc. and GN Corp. as they operate in the same industry.

• It is easier to buy intangible assets with cash than tangible

assets.

• It takes longer time to build tangible assets than intangible

assets.

• It is likely that BC Inc. is better enabled than GN Corp. to

gain and sustain a competitive advantage.

Correct answer: It is likely that BC Inc. is better enabled than

GN Corp. to gain and sustain a competitive advantage