Question 1

Which of the following industries has a low barrier to entry?

Accepted Answer

A)   automotive
B)   computer chip
C)   national retailer
D)   airline
E)   restaurant

Question 2

All of the following statements are true about information technology's impact on business firms except

Accepted Answer

A)   it helps firms expand in size.
B)   it helps firms lower the cost of market participation.
C)   it helps reduce internal management costs.
D)   it helps reduce transaction costs.
E)   it helps reduce agency costs. A

Question 3

The competitive forces model cannot be used to analyze modern digital firms which face new competitive forces that are not true of traditional firms.

Accepted Answer

A) True 
 B)False

Question 4

The four major competitive strategies are

Accepted Answer

A)   low-cost leadership, substitute products and services, customers; and suppliers.
B)   low-cost leadership, product differentiation, focus on market niche, and customer and supplier intimacy.
C)   new market entrants, substitute products and services, customers, and suppliers.
D)   low-cost leadership, new market entrants, product differentiation, and focus on market niche.
E)   customers, suppliers, new market entrants, and substitute products.

Question 5

According to agency theory, the firm is viewed as a(n)

Accepted Answer

A)   unified, profit-maximizing entity.
B)   task force organization that must respond to rapidly changing environments.
C)   entrepreneurial endeavor.
D)   "nexus of contracts" among self-interested individuals.
E)   entrepreneurial structure.

Question 6

An organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment according to the ________ definition of organizations.

Accepted Answer

A)   microeconomic
B)   macroeconomic
C)   sociotechnical
D)   behavioral
E)   psychological A

Question 7

Routines are also called standard operating procedures.

Accepted Answer

A) True 
 B)False

Question 8

Value chain analysis is useful at the business level to highlight specific activities in the business where information systems are most likely to have a strategic impact. Discuss this model, identify the activities, and describe how the model can be applied to the concept of information technology.

Accepted Answer

The value chain model identifies specifi...

Question 9

All of the following are considered disruptive technologies except

Accepted Answer

A)   instant messaging.
B)   e-mail.
C)   Internet telephony.
D)   PCs.
E)   smartphones.

Question 10

A collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively is called a(n)

Accepted Answer

A)   industry value chain.
B)   business ecosystem.
C)   value web.
D)   consortia.
E)   synergy chain.

Question 11

The term business ecosystem describes the loosely coupled but interdependent networks of suppliers, distributors, outsourcing firms, transportation service firms, and technology manufacturers.

Accepted Answer

A) True 
 B)False

Question 12

A competitive force challenging the publishing industry is

Accepted Answer

A)   positioning and rivalry among competitors.
B)   low cost of entry.
C)   substitute products or services.
D)   customers' bargaining power.
E)   suppliers' bargaining power.

Question 13

The use of Internet technologies allows companies to more easily sustain competitive advantage.

Accepted Answer

A) True 
 B)False

Question 14

When two organizations pool markets and expertise that result in lower costs and generate profits, it is referred to as creating

Accepted Answer

A)   a value web.
B)   a value chain.
C)   net marketplaces.
D)   core competencies.
E)   synergies.

Question 15

An organization is a

Accepted Answer

A)   stable, formal social structure that takes resources from the environment and processes them to produce outputs.
B)   formal, legal entity with internal rules and procedures that must abide by laws.
C)   a collection of people and other social elements.
D)   B and C
E)   A, B, and C

Question 16

When a firm buys on the marketplace what it cannot make itself, the costs incurred are referred to as

Accepted Answer

A)   switching costs.
B)   network costs.
C)   procurement.
D)   agency costs.
E)   transaction costs.

Question 17

The effect of the Internet has been to decrease the bargaining power of customers.

Accepted Answer

A) True 
 B)False  False

Question 18

Walmart's continuous replenishment system allows it to

Accepted Answer

A)   provide mass customization.
B)   differentiate products.
C)   strengthen customer intimacy.
D)   achieve economy of scale.
E)   achieve low-cost leadership.

Question 19

The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output. This is referred to as

Accepted Answer

A)   the point of no return.
B)   the law of diminishing returns.
C)   supply and demand.
D)   network inelasticity.
E)   the invisible hand.

Question 20

A(n)  ________ is a collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service for a market.

Accepted Answer

A)   value chain
B)   support web
C)   value web
D)   consortium
E)   firm network

Exam 3: Information Systems, Organizations, and Strategy

Which of the following industries has a low barrier to entry?

Correct AnswerverifiedShow Answer

All of the following statements are true about information technology's impact on business firms except

Correct AnswerverifiedA

The competitive forces model cannot be used to analyze modern digital firms which face new competitive forces that are not true of traditional firms.

Correct AnswerverifiedShow Answer

The four major competitive strategies are

Correct AnswerverifiedShow Answer

According to agency theory, the firm is viewed as a(n)

Correct AnswerverifiedShow Answer

An organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment according to the ________ definition of organizations.

Correct AnswerverifiedA

Routines are also called standard operating procedures.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe value chain model identifies specifi...View AnswerShow Answer

All of the following are considered disruptive technologies except

Correct AnswerverifiedShow Answer

A collection of independent firms that use information technology to coordinate their value chains to produce a product or service for a market collectively is called a(n)

Correct AnswerverifiedShow Answer

The term business ecosystem describes the loosely coupled but interdependent networks of suppliers, distributors, outsourcing firms, transportation service firms, and technology manufacturers.

Correct AnswerverifiedShow Answer

A competitive force challenging the publishing industry is

Correct AnswerverifiedShow Answer

The use of Internet technologies allows companies to more easily sustain competitive advantage.

Correct AnswerverifiedShow Answer

When two organizations pool markets and expertise that result in lower costs and generate profits, it is referred to as creating

Correct AnswerverifiedShow Answer

An organization is a

Correct AnswerverifiedShow Answer

When a firm buys on the marketplace what it cannot make itself, the costs incurred are referred to as

Correct AnswerverifiedShow Answer

The effect of the Internet has been to decrease the bargaining power of customers.

Correct AnswerverifiedFalse

Walmart's continuous replenishment system allows it to

Correct AnswerverifiedShow Answer

The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output. This is referred to as

Correct AnswerverifiedShow Answer

A(n) ________ is a collection of independent firms that use information technology to coordinate their value chains to collectively produce a product or service for a market.

Correct AnswerverifiedShow Answer

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The value chain model identifies specifi...
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