Question1) Capabilities of the Internet that have made it more difficult for companies to capture profitsinclude all of the following except:

1) Capabilities of the Internet that have made it more difficult for companies to capture profits
include all of the following except:
a. the Internet makes information widely available.
b. the Internet reduces the difficulty of purchasing, marketing, and distribution.
c. the Internet allows buyers and sellers to find and transact business with one another
more easily.
d. the Internet makes it easier to make secure payments.
2) All of the following are situations when a business plan should be done except:
a. when an existing business is deploying a CRM system.
b. when a new business is seeking start-up funds and other resources.
c. when an existing company is planning to create a separate division.
d. when an existing company is planning to launch the company in a new direction.
3) The most efficient way to expand an organization’s scope is _____________.
a. to introduce new products or services into new or existing markets without increasing
production facilities or staff.
b. by increasing the size or scale of the business.
c. by expanding the firm’s appeal to a new set of customers.
d. to buy a company with complementary products or services.
4) _____________ are the hottest applications in today’s business environment.
a. Virtual worlds
b. Rich media
c. Social networking technologies
d. Online brands
5) All of the following determine the degree of collaboration between offline and online activities
in a business except:
a. corporate culture.
b. the ability of top management to introduce change properly.
c. the pricing strategy.
d. the use of innovative processes that support collaboration.
Unit 4 Examination
171
BAM 570 E-Commerce Management
6) The ____________ pricing strategy means adding up all the costs involved, such as material,
labor, rent, overhead, and so forth and adding a percentage mark-up as profit.
a. cost-plus
b. competitor model
c. revenue markup
d. price percentage
7) Implementing EC often requires significant investments in infrastructure. Therefore, a good way
to start is to undertake ____________.
a. a large, non-trivial EC project
b. one or a few small EC pilot projects
c. a multi-divisional EC project
d. a single division EC project
8) A ________ is a form of business alliance composed of several business partners that share the
costs and resources for the development or production of a product or service.
a. temporary corporation
b. supply chain
c. virtual corporation
d. co-opetition
9) With the balanced scorecard approach, the term balance arises because the combined set of
measures is supposed to encompass indicators that are all of the following except:
a. core and non-core.
b. financial and nonfinancial.
c. leading and lagging.
d. quantitative and qualitative.
10) The relationship between EC investment and organizational performance is _____________.
a. direct
b. indirect
c. shared with other investments
d. not measurable
Unit 4 Examination
172
BAM 570 E-Commerce Management
11) The New York Metropolitan Transit Authority (MTA) did not need to open another airport for
almost two decades, even though air traffic had tripled because of productivity gains derived
from improved IT systems. IT systems added by the MTA played critical roles in ticket
reservations, passenger and luggage check-in, crew assignment and scheduling, runway
maintenance and management, and gate assignments. This case illustrates that ___________.
a. intangible benefits can be complex, yet substantial
b. tangible benefits can be complex, yet substantial
c. tangible costs can be high, yet payoffs can be achieved quickly
d. intangible costs can be high, yet payoffs can be achieved quickly
12) Justifying information security projects _____________.
a. is not needed because it is well-known that preventing network security problems is less
labor intensive than cleaning up virus infections.
b. is not done because ROI calculators are not available.
c. should focus on defending against external threats such as hackers and malware.
d. should be done because employee security training is usually poorly done.
13) The average-cost curves (AVC) of physical products and digital products are ____________.
a. different because the AVC of digital products declines as quantity increases forming
L-shape, while the AVC of physical products is U-shaped.
b. both U-shaped.
c. both L-shaped.
d. different because the AVC of physical products declines as quantity increases
forming an L-shape, while the AVC of digital products is U-shaped.
14) All of the following apply to EC in developing economies except:
a. developing economies often face power blackouts and unreliable infrastructure and
delivery mechanisms creating limitations that make it difficult for firms to predict
whether EC investments will pay off and when.
b. developing economies, such as China and India, represent a significant opportunity for
EC to connect businesses to customers, as well as other businesses.
c. developing economies struggle with various issues that create too many business and
technology risks to justify investment in those economies at this time.
d. the potential volume of transactions in developed countries can make EC investments
more attractive for established firms than new firms because established firms have
already recovered the costs of their IT infrastructures.
Unit 4 Examination

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