Each of the following apply to EC in developing economies except

Each of the following apply to EC in developing economies except 

A) developing economies struggle with various issues that create too many business and technology risks to justify investment in those economies at this time.
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 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.
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.




Answer: A

One of the strengths of EC is the ease with which its adopters can reach a global population of consumers. However, EC-driven businesses must consider the critical elements affecting the value of EC across cultures. These elements include each of the following except

One of the strengths of EC is the ease with which its adopters can reach a global population of consumers. However, EC-driven businesses must consider the critical elements affecting the value of EC across cultures. These elements include each of the following except 

A) perceived trust.
B) political influences.
C) consumer loyalty.
D) delivery delays.

Answer: D

Each of the following is a critical success factor (CSF) of the Old Economy except

Each of the following is a critical success factor (CSF) of the Old Economy except 

A) compete to sell product.
B) build market share to get economies of scale.
C) deliver high-value products.
D) create new partnerships, stay with core competency.

Answer: D

A structured approach to shifting/transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organizational process aimed at empowering employees to accept and embrace changes in their current business environment. This best describes

A structured approach to shifting/transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organizational process aimed at empowering employees to accept and embrace changes in their current business environment. This best describes 

A) usability testing.
B) change management.
C) employee empowerment.
D) acceptance testing.





Answer: B

Determining whether a website meets the original business objectives and vision best defines

Determining whether a website meets the original business objectives and vision best defines 

A) feasibility testing.
B) usability testing.
C) acceptance testing.
D) unit testing.





Answer: C

Referencing capabilities needed by Webstore users, sellers need the ability to do each of the following except

Referencing capabilities needed by Webstore users, sellers need the ability to do each of the following except 

A) select products to purchase and negotiate or determine their total price.
B) provide an electronic shopping cart in which buyers can assemble their purchases.
C) track shipments to ensure that they are delivered.
D) arrange product delivery.





Answer: A

Referencing the capabilities needed by Webstore users, buyers need the ability to

Referencing the capabilities needed by Webstore users, buyers need the ability to 

A) create the capability for cross-selling and up-selling.
B) analyze purchases in order to customize buyers' experiences.
C) provide Web-based postsale support.
D) track orders once they are shipped.




Answer: D

A Web-based seller of CDs carefully monitors the prices charged by its competitors for identical products. This company has the ability to change a given price within three minutes in response to changes by competitors. This is an example of EC

A Web-based seller of CDs carefully monitors the prices charged by its competitors for identical products. This company has the ability to change a given price within three minutes in response to changes by competitors. This is an example of EC 

A) core competency.
B) product or service differentiation.
C) competitive advantage.
D) agility.




Answer: D

The fair market value of a business or the price at which a property would change hands between a willing buyer and a willing seller who are both informed and under no compulsion to act best describes

The fair market value of a business or the price at which a property would change hands between a willing buyer and a willing seller who are both informed and under no compulsion to act best describes 

A) feasibility.
B) agility.
C) valuation.
D) reusability.




Answer: C

McAfee allows users of its VirusScan virus-detection software to automatically update the latest security patches online. This is an example of ________ to attract customers who value this automatic update.

McAfee allows users of its VirusScan virus-detection software to automatically update the latest security patches online. This is an example of ________ to attract customers who value this automatic update. 

A) agility
B) product or service differentiation
C) core competency
D) competitive advantage




Answer: B

Costs incurred in ensuring that the agent performs tasks as expected best defines

Costs incurred in ensuring that the agent performs tasks as expected best defines 

A) production costs.
B) agency costs.
C) time-on-task costs.
D) opportunity costs.




Answer: B

Transaction costs include each of the following except

Transaction costs include each of the following except 

A) negotiation costs.
B) production costs.
C) search costs.
D) monitoring costs.

Answer: B

An equation indicating that for the same quantity of production, Q, companies either can use a certain amount of labor or invest in more automation best describes

An equation indicating that for the same quantity of production, Q, companies either can use a certain amount of labor or invest in more automation best describes 

A) unit testing.
B) production function.
C) product valuation.
D) Q-model.




Answer: B

The average-cost curves (AVC) of physical products and digital products

The average-cost curves (AVC) of physical products and digital products 

A) are both L-shaped.
B) are different because the AVC of physical products declines as quantity increases forming an L-shape, while the AVC of digital products is U-shaped.
C) are different because the AVC of digital products declines as quantity increases forming an L-shape, while the AVC of physical products is U-shaped.
D) are both U-shaped.

Answer: C

Antivirus investments are easily justified because more than ________ percent of viruses enter business networks via e-mail.

Antivirus investments are easily justified because more than ________ percent of viruses enter business networks via e-mail. 

A) 85
B) 33
C) 50
D) 25



Answer: A

Justifying information security projects

Justifying information security projects 

A) is not done because ROI calculators are not available.
B) is not needed because it is well-known that preventing network security problems is less labor intensive than cleaning up virus infections.
C) should be done because employee security training is usually poorly done.
D) should focus on defending against external threats such as hackers and malware.




Answer: C

Each of the following metrics indicates excellence in e-procurement except

Each of the following metrics indicates excellence in e-procurement except

A) increased on-time deliveries.
B) increased order fulfillment rate.
C) increased production costs.
D) decreased number of rejects received from suppliers.

Answer: C

Which of the following advanced methods for EC justification and evaluation uses a combination of brainstorming and consensus-reaching methodologies to determine how much a company should invest in large EC infrastructures?

Which of the following advanced methods for EC justification and evaluation uses a combination of brainstorming and consensus-reaching methodologies to determine how much a company should invest in large EC infrastructures? 

A) balanced scorecard
B) management by maxim
C) benchmarks
D) scoring methodologies




Answer: B

Which of the following advanced methods for EC justification and evaluation uses the idea of critical success factors and focuses on key organizational objectives and the potential impacts of the proposed EC project on each of them?

Which of the following advanced methods for EC justification and evaluation uses the idea of critical success factors and focuses on key organizational objectives and the potential impacts of the proposed EC project on each of them? 

A) performance dashboard
B) management by maxim
C) benchmarks
D) information economics





Answer: D

Types of appraisal and justification methods for IT investments include each of the following except

Types of appraisal and justification methods for IT investments include each of the following except 

A) portfolio approaches.
B) ratio approaches.
C) real-time investment approaches.
D) financial approaches.





Answer: C