Homework

1. The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as (Points : 1) | switching costs. transaction costs. procurement. agency costs. | 2. Disintermediation (Points : 1) | results from the speed of the Internet. is defined as the elimination of layers in the distribution process. is a result of social networking. All of the above | 3. The four major types of competitive strategy are: (Points : 1) | low-cost leadership; substitute products and services; customers; and suppliers. low-cost leadership; product differentiation; focus on market niche; and customer and supplier intimacy. new market entrants; substitute products and services; customers; and suppliers. low-cost leadership; new market entrants; product differentiation; and focus on market niche. | 4. Information asymmetry exists when (Points : 1) | the network is overloaded. sellers and buyers have the same information. one party in a transaction has more important information than the other. manufactures provide online data to customers. | 5. When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a (Points : 1) | product differentiation strategy. market niche strategy. mass customization strategy. process efficiency strategy. | 6. Internet technology (Points : 1) | makes it easy for rivals to compete on price alone. imposes a significant cost of entry, due to infrastructure requirements. increases the difference between competitors because of the wide availability of information. makes it easy to sustain operational advantages. | 7. The Internet raises the bargaining power of customers by (Points : 1) | creating new opportunities for building loyal customer bases. making more products available. making information available to everyone. lowering transaction costs. | 8. Cloud computing (Points : 1) | is the same as e-commerce. reduces the size of IT organizations. increases business costs. requires special software, other than a browser, to be installed on each computer. | 9. Benchmarking (Points : 1) | compares the efficiency and effectiveness of your business processes against strict standards. allows industry participants to influence industry-wide standards. is used to measure the speed and responsiveness of information technology. synchronizes the business processes of customers, suppliers, and trading partners. | 10. The most successful solutions or methods for achieving a business objective are called (Points : 1) | value activities. best processes. core competencies. best practices. | 11. An information system can enhance core competencies by (Points : 1) | providing better reporting facilities. creating educational opportunities for management. allowing operational employees to interact with management. encouraging the sharing of knowledge across business units. | 12. The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached at which the additional inputs produce no additional output. This is referred to as (Points : 1) | the point of no return. the law of diminishing returns. supply and demand. network inelasticity. | 13. Network economics (Points : 1) | applies the law of diminishing returns to communities of users. applies traditional economics to networked users. sees the cost of adding new members as inconsequential. balances the high cost of adding new members to a community against the lower cost of using network infrastructure. | 14. In network economics, the value of a commercial software vendor's software products (Points : 1) | increases as more people use them. decreases as more people use them. increases due to higher marginal gain in output. decreases according to the law of diminishing returns. | 15. Current technology trends will result in (Points : 1) | IT organizations being more structured. organizations with fewer levels of management. an increased need for IT staffing. an increased number of servers within an enterprise. | 16. The quality of ubiquity, as it relates to e-commerce, is illustrated by (Points : 1) | the same set of standards being used across the globe. plentiful, cheap information. the enabling of commerce worldwide. the availability of Internet technology everywhere and anytime. | 17. Which of the following is not a recent development in e-commerce? (Points : 1) | Growth of wireless Internet connections Online, interactive models for newspapers and other traditional media Use of social media within a business Lack of growth of e-commerce retail sales | 18. What term best describes consumers selling goods and services electronically to other? (Points : 1) | Disintermediation C2C electronic commerce M-commerce B2C electronic commerce | 19. Where there is no well understood or agreed-on procedure for making a decision, it is said to be (Points : 1) | undocumented. unstructured. documented. semi-structured. | 20. The type of decision that can be made by following a definite procedure is called a(n) (Points : 1) | structured decision. unstructured decision. semi-structured decision. procedural decision. | |