Question 1

Switching costs increase when customers are strongly linked to products and platforms.

Accepted Answer

A) True 
 B)False

Question 2

In network economics,the value of a commercial software vendor's software products:

Accepted Answer

A)  increases as more people use them.
B)  decreases as more people use them.
C)  increases due to higher marginal gain in output.
D)  decreases according to the law of diminishing returns.
E)  is unrelated to the number of people that use them.F) A) and B)
G) All of the above

Question 3

Walmart's continuous replenishment system is an example of a firm using information systems to:

Accepted Answer

A)  strengthen ties to its customers.
B)  simplify the industry value chain.
C)  develop synergies.
D)  focus on market niche.
E)  achieve low-cost leadership.F) A) and B)
G) A) and E)

Question 4

A machine bureaucracy is a knowledge-based organization where goods and services depend on the expertise and knowledge of professionals.

Accepted Answer

A) True 
 B)False

Question 5

All organizations have bedrock,unquestioned assumptions that define their goals and products.

Accepted Answer

A) True 
 B)False

Question 6

Research has shown that the more successfully a firm can align its IT with its business goals,the more profitable it will be.What practical steps should a firm use in aligning IT with its goals?

Accepted Answer

Steps to align IT with your organization...

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements about disruptive technologies is not true?

Accepted Answer

A)  Disruptive technologies radically change the business landscape and environment.
B)  Disruptive technologies may be substitute products that perform better than other products currently being produced.
C)  Disruptive technologies may sometimes simply extend the marketplace.
D)  Disruptive technologies may put entire industries out of business.
E)  Firms that invent disruptive technologies as first movers always become market leaders.F) B) and E)
G) A) and D)

Question 9

Which of the following statements about business processes is not true?

Accepted Answer

A)  Business processes influence the relationship between an organization and information technology.
B)  Business processes are a collection of standard operating procedures.
C)  A business firm is a collection of business processes.
D)  Business processes are usually ensconced in an organization's culture.
E)  Business processes are typically unaffected by changes in information systems.F) A) and B)
G) All of the above

Question 10

Which of the following is not a major feature of organizations that impacts the use of information systems?

Accepted Answer

A)  Business processes
B)  Environments
C)  Structure of the organization
D)  Agency costs
E)  Leadership stylesF) A) and E)
G) C) and D)

Question 11

Which of the following substitute products would be of most concern for a cable TV distributor?

Accepted Answer

A)  Streaming music services
B)  Broadcast TV
C)  Satellite radio
D)  On-demand Internet television
E)  Terrestrial radioF) B) and D)
G) B) and C)

Question 12

The law of diminishing returns only applies to digital products.

Accepted Answer

A) True 
 B)False

Question 13

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.F) None of the above
G) A) and B)

Question 14

The text describes Michael Porter's view of the Internet as somewhat negative.What negative influences does Porter see? Describe several positive influences the Internet has on business.Do these outweigh the negative influences?

Accepted Answer

Answers will vary.An example of a possib...

Question 15

A firm can exercise greater control over its suppliers by having:

Accepted Answer

A)  more suppliers.
B)  fewer suppliers.
C)  global suppliers.
D)  local suppliers.
E)  only a single supplier.F) A) and E)
G) B) and E)

Question 16

The ability to offer individually tailored products or services using the same production resources as bulk production is known as:

Accepted Answer

A)  mass marketing.
B)  micromarketing.
C)  micro customization.
D)  niche customization.
E)  mass customization.F) B) and D)
G) C) and D)

Question 17

Why has the Internet made competitive rivalry more intense?

Accepted Answer

The Internet has made competitive rivalr...

Question 18

Define and describe a business ecosystem.Give an example of a business ecosystem.

Accepted Answer

A business ecosystem is a collection of ...

Question 19

The inventors of a disruptive technology typically benefit the most from the technology; it is rare that fast followers catch up quickly.

Accepted Answer

A) True 
 B)False

Question 20

What is agency theory? How does information technology enable a firm to reduce agency costs?

Accepted Answer

According to agency theory,the firm is v...

Exam 3: Information Systems,organizations,and Strategy

The text describes Michael Porter's view of the Internet as somewhat negative.What negative influences does Porter see? Describe several positive influences the Internet has on business.Do these outweigh the negative influences?

Correct AnswerverifiedAnswers will vary.An example of a possib...View AnswerShow Answer

What is agency theory? How does information technology enable a firm to reduce agency costs?

Correct AnswerverifiedAccording to agency theory,the firm is v...View AnswerShow Answer

The ability to offer individually tailored products or services using the same production resources as bulk production is known as:

Correct AnswerverifiedShow Answer

Which of the following statements about business processes is not true?

Correct AnswerverifiedShow Answer

All organizations have bedrock,unquestioned assumptions that define their goals and products.

Correct AnswerverifiedShow Answer

Which of the following statements about disruptive technologies is not true?

Correct AnswerverifiedShow Answer

The inventors of a disruptive technology typically benefit the most from the technology; it is rare that fast followers catch up quickly.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Research has shown that the more successfully a firm can align its IT with its business goals,the more profitable it will be.What practical steps should a firm use in aligning IT with its goals?

Correct AnswerverifiedSteps to align IT with your organization...View AnswerShow Answer

Switching costs increase when customers are strongly linked to products and platforms.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Why has the Internet made competitive rivalry more intense?

Correct AnswerverifiedThe Internet has made competitive rivalr...View AnswerShow Answer

Which of the following substitute products would be of most concern for a cable TV distributor?

Correct AnswerverifiedShow Answer

A machine bureaucracy is a knowledge-based organization where goods and services depend on the expertise and knowledge of professionals.

Correct AnswerverifiedShow Answer

A firm can exercise greater control over its suppliers by having:

Correct AnswerverifiedShow Answer

In network economics,the value of a commercial software vendor's software products:

Correct AnswerverifiedShow Answer

The law of diminishing returns only applies to digital products.

Correct AnswerverifiedShow Answer

Which of the following is not a major feature of organizations that impacts the use of information systems?

Correct AnswerverifiedShow Answer

Walmart's continuous replenishment system is an example of a firm using information systems to:

Correct AnswerverifiedShow Answer

Define and describe a business ecosystem.Give an example of a business ecosystem.

Correct AnswerverifiedA business ecosystem is a collection of ...View AnswerShow Answer

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Answers will vary.An example of a possib...
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According to agency theory,the firm is v...
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Steps to align IT with your organization...
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The Internet has made competitive rivalr...
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A business ecosystem is a collection of ...
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