Question 1

Procurement and technology support are primary activities of a value chain.

Accepted Answer

A) True 
 B)False

Question 2

The activities that are directly related to the process by which products and services are created, marketed, sold, and delivered are called ________ activities.

Accepted Answer

A)  composite 
B)  support 
C)  compound 
D)  primary 
A)  composite 
B)  support 
C)  compound 
D)  primary

Question 3

Which of the following is a support activity of a consumer goods manufacturer?

Accepted Answer

A)  outbound logistics 
B)  marketing 
C)  customer service 
D)  research 
A)  outbound logistics 
B)  marketing 
C)  customer service 
D)  research

Question 4

The threat of substitutes is high when alternative products are available.

Accepted Answer

A) True 
 B)False

Question 5

Differentiating the product or service for a particular market niche is called a ________.

Accepted Answer

A)  market leadership strategy 
B)  focused strategy 
C)  market penetration strategy 
D)  cost leadership strategy 
A)  market leadership strategy 
B)  focused strategy 
C)  market penetration strategy 
D)  cost leadership strategy

Question 6

Which of the following is a strong reason to believe that IT is essential to manage nonprofit businesses?

Accepted Answer

A)  Some of the nonprofit organizations engage in sales and marketing. 
B)  Operational requirements for nonprofits are similar to for-profit businesses. 
C)  Most nonprofit organizations have a concealed profit motive. 
D)  Many nonprofit organizations are supported and funded by for-profit businesses. 
A)  Some of the nonprofit organizations engage in sales and marketing. 
B)  Operational requirements for nonprofits are similar to for-profit businesses. 
C)  Most nonprofit organizations have a concealed profit motive. 
D)  Many nonprofit organizations are supported and funded by for-profit businesses.

Question 7

Which of the following is the most accurate justification for the view that the Internet is the most important disruptive innovation of the twentieth century?

Accepted Answer

A)  The Internet created uncertainties in the market by providing a platform for online trade. 
B)  Switching costs have increased after the advent of the Internet as a medium of trade. 
C)  The Internet reduced entry barriers for newcomers and empowered buyers with more information. 
D)  Competition became oligopolistic with only a few companies investing in technology. 
A)  The Internet created uncertainties in the market by providing a platform for online trade. 
B)  Switching costs have increased after the advent of the Internet as a medium of trade. 
C)  The Internet reduced entry barriers for newcomers and empowered buyers with more information. 
D)  Competition became oligopolistic with only a few companies investing in technology.

Question 8

Network effects refer to the ________.

Accepted Answer

A)  increased value of a product or service resulting simply because there are more people using it 
B)  process of selling a product or service through well established networks and consumer chains 
C)  value obtained from providing fine services to a complex product or service 
D)  increased value attached with a product or service that can be used for networking purposes 
A)  increased value of a product or service resulting simply because there are more people using it 
B)  process of selling a product or service through well established networks and consumer chains 
C)  value obtained from providing fine services to a complex product or service 
D)  increased value attached with a product or service that can be used for networking purposes

Question 9

Why is it essential for organizations to reduce the dollars that they spend on IT?

Accepted Answer

A)  Increased IT spending is usually associated with investor dissatisfaction and reduces companies' market value. 
B)  Price competition for commodities is fierce and savings are essential for competitive advantage. 
C)  IT is only an operational requirement and is not a strategy enabler. 
D)  Organizations should spend money on things that create a comparative advantage rather than on IT. 
A)  Increased IT spending is usually associated with investor dissatisfaction and reduces companies' market value. 
B)  Price competition for commodities is fierce and savings are essential for competitive advantage. 
C)  IT is only an operational requirement and is not a strategy enabler. 
D)  Organizations should spend money on things that create a comparative advantage rather than on IT.

Question 10

Rivalry in an industry is high when the ________.

Accepted Answer

A)  industry is characterized by differentiation 
B)  market is in the development stage 
C)  purchasing power of buyers is low 
D)  companies compete on price 
A)  industry is characterized by differentiation 
B)  market is in the development stage 
C)  purchasing power of buyers is low 
D)  companies compete on price

Question 11

Companies are embedded in a complex ecosystem where events in one arena affect the whole community.

Accepted Answer

A) True 
 B)False

Question 12

Explain the importance of IT for nonprofit organizations.

Accepted Answer

While nonprofit organizations have no sh

Question 13

A disruptive innovation is ________.

Accepted Answer

A)  a new product or service that is harmful to the society or the people 
B)  a method used in production that raises environmental concerns 
C)  a new product or service that has the potential to reshape an industry 
D)  an immediate response to a difficulty or a threat to a product or service 
A)  a new product or service that is harmful to the society or the people 
B)  a method used in production that raises environmental concerns 
C)  a new product or service that has the potential to reshape an industry 
D)  an immediate response to a difficulty or a threat to a product or service

Question 14

What is a benchmark? Provide an example.

Accepted Answer

A benchmark is a reference point used as

Question 15

Why are the operational requirements to run nonprofits considered similar to for-profit businesses?

Accepted Answer

A)  Operations such as payroll, accounting and finance, and human resources are essential for nonprofits. 
B)  Most of the nonprofit organizations generate profit in some way, and operations are essential for tax planning. 
C)  The procedural objectives for for-profit organizations and nonprofit organizations are the same. 
D)  The branding requirements for for-profit organizations and nonprofit organizations are the same. 
A)  Operations such as payroll, accounting and finance, and human resources are essential for nonprofits. 
B)  Most of the nonprofit organizations generate profit in some way, and operations are essential for tax planning. 
C)  The procedural objectives for for-profit organizations and nonprofit organizations are the same. 
D)  The branding requirements for for-profit organizations and nonprofit organizations are the same.

Question 16

Explain the threat of new entrants to businesses.

Accepted Answer

The threat of new entrants in an industr

Question 17

Which of the following factors increases the power of suppliers?

Accepted Answer

A)  governmental regulations 
B)  high switching costs 
C)  low-scale operations 
D)  competitive pressures 
A)  governmental regulations 
B)  high switching costs 
C)  low-scale operations 
D)  competitive pressures

Question 18

In cloud computing, employees use information systems that are ________.

Accepted Answer

A)  designed to perform without an Internet connection 
B)  installed locally within an organization 
C)  hosted by a vendor in a data center 
D)  designed specifically for their organization 
A)  designed to perform without an Internet connection 
B)  installed locally within an organization 
C)  hosted by a vendor in a data center 
D)  designed specifically for their organization

Question 19

Network effects refers to the ability of a product to fit into a new system.

Accepted Answer

A) True 
 B)False

Question 20

IT enabled the creation of electric meters that run "backwards." Which of the following statements best explains this statement?

Accepted Answer

A)  IT allowed customers to manipulate their electricity bills. 
B)  IT has been instrumental in reducing the global power consumption. 
C)  IT has not made any significant contribution to the field of electricity distribution and measurement. 
D)  IT allowed customers to add electricity to the grid when they produce their own power. 
A)  IT allowed customers to manipulate their electricity bills. 
B)  IT has been instrumental in reducing the global power consumption. 
C)  IT has not made any significant contribution to the field of electricity distribution and measurement. 
D)  IT allowed customers to add electricity to the grid when they produce their own power.

Procurement and technology support are primary activities of a value chain.

The activities that are directly related to the process by which products and services are created, marketed, sold, and delivered are called ________ activities.

Which of the following is a support activity of a consumer goods manufacturer?

The threat of substitutes is high when alternative products are available.

Differentiating the product or service for a particular market niche is called a ________.

Which of the following is a strong reason to believe that IT is essential to manage nonprofit businesses?

Which of the following is the most accurate justification for the view that the Internet is the most important disruptive innovation of the twentieth century?

Network effects refer to the ________.

Why is it essential for organizations to reduce the dollars that they spend on IT?

Rivalry in an industry is high when the ________.

Companies are embedded in a complex ecosystem where events in one arena affect the whole community.

Explain the importance of IT for nonprofit organizations.

A disruptive innovation is ________.

What is a benchmark? Provide an example.

Why are the operational requirements to run nonprofits considered similar to for-profit businesses?

Explain the threat of new entrants to businesses.

Which of the following factors increases the power of suppliers?

In cloud computing, employees use information systems that are ________.

Network effects refers to the ability of a product to fit into a new system.

IT enabled the creation of electric meters that run "backwards." Which of the following statements best explains this statement?

Information Systems and People

Systems Development and Procurement

Project Management and Strategic Planning

Information and Communications Technologies: The Enterprise Architecture

Managing Information Resources with Databases

Information Systems for the Enterprise

The Web and E-Commerce

Ethics, Privacy, and Security

Business Intelligence and Decision Support

Collaborating with Technology

Knowledge Management and E-Learning

Filters

Exam 2: Information Systems and Strategy

Procurement and technology support are primary activities of a value chain.

The activities that are directly related to the process by which products and services are created, marketed, sold, and delivered are called ________ activities.

Which of the following is a support activity of a consumer goods manufacturer?

The threat of substitutes is high when alternative products are available.

Differentiating the product or service for a particular market niche is called a ________.

Which of the following is a strong reason to believe that IT is essential to manage nonprofit businesses?

Which of the following is the most accurate justification for the view that the Internet is the most important disruptive innovation of the twentieth century?

Network effects refer to the ________.

Why is it essential for organizations to reduce the dollars that they spend on IT?

Rivalry in an industry is high when the ________.

Companies are embedded in a complex ecosystem where events in one arena affect the whole community.

Explain the importance of IT for nonprofit organizations.

A disruptive innovation is ________.

What is a benchmark? Provide an example.

Why are the operational requirements to run nonprofits considered similar to for-profit businesses?

Explain the threat of new entrants to businesses.

Which of the following factors increases the power of suppliers?

In cloud computing, employees use information systems that are ________.

Network effects refers to the ability of a product to fit into a new system.

IT enabled the creation of electric meters that run "backwards." Which of the following statements best explains this statement?

Information Systems and People

Systems Development and Procurement

Project Management and Strategic Planning

Information and Communications Technologies: The Enterprise Architecture

Managing Information Resources with Databases

Information Systems for the Enterprise

The Web and E-Commerce

Ethics, Privacy, and Security

Business Intelligence and Decision Support

Collaborating with Technology

Knowledge Management and E-Learning

Filters