Question 1

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

Accepted Answer

A)  The Internet rejigged existing business processes and streamlined them, giving many companies marginal advantages. 
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 rejigged existing business processes and streamlined them, giving many companies marginal advantages. 
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 2

Why are the operational requirements to run nonprofits considered similar to 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 3

Which of the following is based on the cloud computing concept?

Accepted Answer

A)  an email system hosted locally in an organization's data center 
B)  an information system shared by two or more businesses and accessed via the Internet 
C)  a standard operating system that can be installed on many computers 
D)  a mobile connection that supports voice and video calls 
A)  an email system hosted locally in an organization's data center 
B)  an information system shared by two or more businesses and accessed via the Internet 
C)  a standard operating system that can be installed on many computers 
D)  a mobile connection that supports voice and video calls

Question 4

What impact do government policies have on business? How do businesses try to influence government policies?

Accepted Answer

Government policies and funding prioriti

Question 5

Which of the following best describes support activities?

Accepted Answer

A)  It refers to activities directly related to the process by which products and services are created, marketed, sold, and delivered. 
B)  It refers to activities that help the transformation of raw materials to finished products. 
C)  It refers to processes including administration and management, human resources, procurement, and technology assistance. 
D)  It refers to activities that comprise multiple tasks and are performed by one person or department. 
A)  It refers to activities directly related to the process by which products and services are created, marketed, sold, and delivered. 
B)  It refers to activities that help the transformation of raw materials to finished products. 
C)  It refers to processes including administration and management, human resources, procurement, and technology assistance. 
D)  It refers to activities that comprise multiple tasks and are performed by one person or department.

Question 6

E-government involves ________.

Accepted Answer

A)  a supply chain system specifically designed for governmental trade 
B)  governmental involvement in conducting e-commerce 
C)  a government elected through online voting 
D)  efforts to make unclassified information available to citizens online 
A)  a supply chain system specifically designed for governmental trade 
B)  governmental involvement in conducting e-commerce 
C)  a government elected through online voting 
D)  efforts to make unclassified information available to citizens online

Question 7

Melloc is one of many suppliers selling milk to retail customers. Since there are many sellers, price is a major determinant of market success. Which of the following statements about Melloc is true?

Accepted Answer

A)  Melloc's customers have to deal with higher switching costs. 
B)  Melloc will be in a position to dictate terms with its customers. 
C)  Melloc faces powerful buyers in the retail market. 
D)  Melloc has a strong control over the market. 
A)  Melloc's customers have to deal with higher switching costs. 
B)  Melloc will be in a position to dictate terms with its customers. 
C)  Melloc faces powerful buyers in the retail market. 
D)  Melloc has a strong control over the market.

Question 8

Lifetime Television, an American cable television company, specifically targets female viewers. The channel is devoted to movies, sitcoms, and dramas that are either geared toward women or feature women in lead roles. This is an example of a ________ strategy.

Accepted Answer

A)  market leadership 
B)  cost leadership 
C)  focused niche 
D)  price leadership 
A)  market leadership 
B)  cost leadership 
C)  focused niche 
D)  price leadership

Question 9

Which of the following strategies is devised to raise switching costs?

Accepted Answer

A)  A chain of supermarkets offers higher discounts to its regular customers. 
B)  A vendor reduces the range of products that it distributes to retailers. 
C)  An automotive company conducts a trade contest. 
D)  A company offers commission to its employees for pushing the company's products. 
A)  A chain of supermarkets offers higher discounts to its regular customers. 
B)  A vendor reduces the range of products that it distributes to retailers. 
C)  An automotive company conducts a trade contest. 
D)  A company offers commission to its employees for pushing the company's products.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

________ are the costs that customers incur when they change suppliers.

Accepted Answer

A)  Network costs 
B)  Switching costs 
C)  Overhead costs 
D)  Opportunity costs 
A)  Network costs 
B)  Switching costs 
C)  Overhead costs 
D)  Opportunity costs

Question 12

Alduro Plastics, a utensils manufacturing company, decides to extend its value chain by acquiring a manufacturer of raw materials. Which of the following, if true, would most support Alduro's decision?

Accepted Answer

A)  The company's major supplier displays a sloppy attitude while supplying materials. 
B)  The company's production schedule is seasonal. 
C)  The company has projected a growth of 8 percent for the current financial year. 
D)  The company's managing director has resigned recently. 
A)  The company's major supplier displays a sloppy attitude while supplying materials. 
B)  The company's production schedule is seasonal. 
C)  The company has projected a growth of 8 percent for the current financial year. 
D)  The company's managing director has resigned recently.

Question 13

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

Accepted Answer

A)  Nonprofit organizations are generally bigger than for-profit businesses. 
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)  Nonprofit organizations are generally bigger than for-profit businesses. 
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 14

All types of organizational strategies leverage information systems to succeed.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following typically is the biggest cost component in an organization's IT spending?

Accepted Answer

A)  cost of keeping the IT services running 
B)  cost of buying computer hardware 
C)  cost of buying new software 
D)  cost of building IT infrastructure other than computers 
A)  cost of keeping the IT services running 
B)  cost of buying computer hardware 
C)  cost of buying new software 
D)  cost of building IT infrastructure other than computers

Question 16

Which of the following is a fundamental characteristic of an ecosystem?

Accepted Answer

A)  It opposes any moves to make fundamental changes in an industry. 
B)  It decreases the impact of the five forces on an industry. 
C)  It includes the related industries making complementary products and services, the competitors themselves, the suppliers, and the consumers. 
D)  It groups together multiple unrelated industries to reduce a domino effect or a ripple effect. 
A)  It opposes any moves to make fundamental changes in an industry. 
B)  It decreases the impact of the five forces on an industry. 
C)  It includes the related industries making complementary products and services, the competitors themselves, the suppliers, and the consumers. 
D)  It groups together multiple unrelated industries to reduce a domino effect or a ripple effect.

Question 17

Which of the following governmental actions will increase the threat of new entrants in a market?

Accepted Answer

A)  The Federal Reserve reduces the interest rates on credit for small businesses. 
B)  The Department of Commerce offers a patent to an existing player. 
C)  The Government squeezes money from the market through open-market operations. 
D)  The Federal Reserve increases the cash reserve ratio to tackle inflation. 
A)  The Federal Reserve reduces the interest rates on credit for small businesses. 
B)  The Department of Commerce offers a patent to an existing player. 
C)  The Government squeezes money from the market through open-market operations. 
D)  The Federal Reserve increases the cash reserve ratio to tackle inflation.

Question 18

Southwest Airlines offers better fares compared to most of its competitors. This helps the company attract customers. Which of the following strategies is being used by Southwest Airlines?

Accepted Answer

A)  product differentiation 
B)  focused strategy 
C)  focused differentiation 
D)  low-cost leadership strategy 
A)  product differentiation 
B)  focused strategy 
C)  focused differentiation 
D)  low-cost leadership strategy

Question 19

Which of the following statements is true of the value chain?

Accepted Answer

A)  Understanding a customer's own value chain does not offer strategic advantages to a company. 
B)  As the extended value chain lengthens, responsibility for harmful consequences becomes more diffuse. 
C)  The value chain ends at product delivery and any extension to it has no bearing on strategic advantages. 
D)  A company's value chain is limited to the internal activities of the company and does not depend on external factors. 
A)  Understanding a customer's own value chain does not offer strategic advantages to a company. 
B)  As the extended value chain lengthens, responsibility for harmful consequences becomes more diffuse. 
C)  The value chain ends at product delivery and any extension to it has no bearing on strategic advantages. 
D)  A company's value chain is limited to the internal activities of the company and does not depend on external factors.

Question 20

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 mainly 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 mainly compete on price

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

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

Which of the following is based on the cloud computing concept?

What impact do government policies have on business? How do businesses try to influence government policies?

Which of the following best describes support activities?

E-government involves ________.

Melloc is one of many suppliers selling milk to retail customers. Since there are many sellers, price is a major determinant of market success. Which of the following statements about Melloc is true?

Lifetime Television, an American cable television company, specifically targets female viewers. The channel is devoted to movies, sitcoms, and dramas that are either geared toward women or feature women in lead roles. This is an example of a ________ strategy.

Which of the following strategies is devised to raise switching costs?

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

________ are the costs that customers incur when they change suppliers.

Alduro Plastics, a utensils manufacturing company, decides to extend its value chain by acquiring a manufacturer of raw materials. Which of the following, if true, would most support Alduro's decision?

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

All types of organizational strategies leverage information systems to succeed.

Which of the following typically is the biggest cost component in an organization's IT spending?

Which of the following is a fundamental characteristic of an ecosystem?

Which of the following governmental actions will increase the threat of new entrants in a market?

Southwest Airlines offers better fares compared to most of its competitors. This helps the company attract customers. Which of the following strategies is being used by Southwest Airlines?

Which of the following statements is true of the value chain?

Rivalry in an industry is high when the ________.

Information Systems and People

Information and Communications Technologies: The Enterprise Architecture

Databases and DataWarehouses

Information Systems for the Enterprise

The Web, E-Commerce, and M-Commerce

Business Intelligence and Decision Making

Collaborating with Technology

Knowledge Management and E-Learning

Ethics, Privacy, and Security

Systems Development and Procurement

Project Management and Strategic Planning

Filters

Exam 2: Information Systems and Strategy

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

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

Which of the following is based on the cloud computing concept?

What impact do government policies have on business? How do businesses try to influence government policies?

Which of the following best describes support activities?

E-government involves ________.

Melloc is one of many suppliers selling milk to retail customers. Since there are many sellers, price is a major determinant of market success. Which of the following statements about Melloc is true?

Lifetime Television, an American cable television company, specifically targets female viewers. The channel is devoted to movies, sitcoms, and dramas that are either geared toward women or feature women in lead roles. This is an example of a ________ strategy.

Which of the following strategies is devised to raise switching costs?

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

________ are the costs that customers incur when they change suppliers.

Alduro Plastics, a utensils manufacturing company, decides to extend its value chain by acquiring a manufacturer of raw materials. Which of the following, if true, would most support Alduro's decision?

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

All types of organizational strategies leverage information systems to succeed.

Which of the following typically is the biggest cost component in an organization's IT spending?

Which of the following is a fundamental characteristic of an ecosystem?

Which of the following governmental actions will increase the threat of new entrants in a market?

Southwest Airlines offers better fares compared to most of its competitors. This helps the company attract customers. Which of the following strategies is being used by Southwest Airlines?

Which of the following statements is true of the value chain?

Rivalry in an industry is high when the ________.

Information Systems and People

Information and Communications Technologies: The Enterprise Architecture

Databases and DataWarehouses

Information Systems for the Enterprise

The Web, E-Commerce, and M-Commerce

Business Intelligence and Decision Making

Collaborating with Technology

Knowledge Management and E-Learning

Ethics, Privacy, and Security

Systems Development and Procurement

Project Management and Strategic Planning

Filters