Question 1

The idea that 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,is referred to as:

Accepted Answer

The law of diminishing returns describes the decrease in marginal gain in output as more resources are applied to production, eventually leading to a point where additional inputs produce no additional output.

Question 2

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

Accepted Answer

In network economics, the value of a commercial software vendor's software products increases as more people use them. This is because the more people that use the software, the more valuable it becomes to other users in the network, creating a positive feedback loop that can increase the value exponentially. This is known as the network effect or network externality.

Question 3

Which of the following statements about network economics is not true?

Accepted Answer

In network economics, the marginal cost of adding new members to the network is typically lower than the marginal gain, since the value of the network increases as more members join. Therefore, statement E is not true.

Question 4

The Internet increases the bargaining power of customers by:

Accepted Answer

The Internet increases the bargaining power of customers primarily by making information available to everyone. This transparency allows customers to compare prices, quality, and services more easily, thus giving them more leverage in their purchasing decisions.

Question 5

Which of the following is a competitive force challenging the publishing industry?

Accepted Answer

The answer of Which of the following is a competitive...

Question 6

Information systems enhance core competencies by:

Accepted Answer

The answer of Information systems enhance core competencies by:
...

Question 7

________ is a competitive strategy for creating brand loyalty by developing new and unique products and services that are not easily duplicated by competitors.

Accepted Answer

Product differentiation is a strategy where companies differentiate their products or services from their competitors by creating unique features or characteristics that are not easily replicated. This helps create brand loyalty among customers and increases competitiveness.

Question 8

Which of the following would a company employ to measure and compare its business processes to similar processes of other companies within their industry?

Accepted Answer

Benchmarking is the process of measuring and comparing a company's business processes to similar processes of other companies within their industry. This allows companies to identify areas where they can improve and adopt best practices from other successful companies.

Question 9

A virtual company:

Accepted Answer

The answer of A virtual company:
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Question 10

Which of the following is an example of a keystone firm within a business ecosystem?

Accepted Answer

Apple is a keystone firm in the mobile platform ecosystem as it sets the standard for design, innovation, and user experience, and other firms within the ecosystem often depend on Apple's technology or software to create their products.

Question 11

Which of the following is a support activity in a firm's value chain?

Accepted Answer

Technology is a support activity in a firm's value chain as it facilitates and enhances the primary activities. It includes research and development, information systems, and technology infrastructure. Inbound logistics, operations, sales and marketing, and service are all primary activities that directly add value to the product or service.

Question 12

The ________ model highlights the primary or support activities that add a margin of value to a firm's products or services where information systems can best be applied to achieve a competitive advantage.

Accepted Answer

The value chain model identifies the primary and support activities of a company that add value to its final product, and highlights the areas where information systems can be applied to gain a competitive advantage. The other options are related to the competitive forces that impact a company's position in the market, but they do not specifically address how information systems can be used to add value to a firm's products or services.

Question 13

Which of the following represent the primary activities of a firm?

Accepted Answer

Inbound logistics, operations, outbound logistics, sales and marketing, and service are the five primary activities of a firm according to the value chain model developed by Michael Porter. These activities involve the creation and delivery of a product or service, from acquiring raw materials to marketing and servicing the final product. Choices B, C, D, and E may include some of these primary activities, but they do not encompass all five.

Question 14

The expenses incurred by a customer or company in lost time and resources when changing from one supplier or system to a competing supplier or system are known as:

Accepted Answer

The expenses incurred by a customer or company in lost time and resources when changing from one supplier or system to a competing supplier or system are known as switching costs.

Question 15

Which of the following is an example of synergy in business?

Accepted Answer

Synergy refers to the combination of two or more factors to produce a result greater than the sum of their individual effects. Bank of America's acquisition of Countrywide Financial allowed it to reach a large pool of new customers and expand its business, which is an example of synergy in business. The other options do not necessarily involve synergy in the same way.

Question 16

When two organizations pool markets and expertise that result in lower costs and generate profits,they are creating:

Accepted Answer

Synergies occur when two organizations combine their resources and expertise to create a mutually beneficial outcome, such as lower costs and increased profits. The other options are not accurate descriptions of this situation.

Question 17

Procter and Gamble uses InnovationNet for which of the following?

Accepted Answer

InnovationNet is used by Procter and Gamble to enhance its core competencies by facilitating collaboration and knowledge sharing among its employees, which helps in driving innovation and improving their products and processes.

Question 18

The value chain model:

Accepted Answer

The value chain model highlights specific activities in the business where competitive strategies can best be applied. It divides a firm's activities into primary activities that add value directly to the product or service, and support activities that add value indirectly. By identifying which activities are most important to competitive advantage, firms can focus their resources on those areas to improve their overall performance.

Question 19

The most successful solutions or methods for achieving a business objective are called:

Accepted Answer

The term "best practices" refers to the most successful solutions or methods for achieving a business objective. It is a commonly used term in business management and is often used to improve efficiency and effectiveness in various areas, such as customer service, operations, and financial management.

Question 20

Information systems can be used at the industry level to achieve strategic advantage by:

Accepted Answer

The answer of Information systems can be used at the...

Quiz 3: Information Systems,organizations,and Strategy