Management 3300 Exam 1-3 Solutions

Early on, profit margins for disruptive innovations are usually worse than those for incumbent technologies. A. True B. False

A. True

The natural state of a market where network effects are present is for there to be intense competition between several rivals that come to an equilibrium where their respective market shares become roughly identical. A. True B. False

B. False

Based on the Chapter 1 video/discussion on 3D printing, which of the following was NOT mentioned as a benefit of 3D printing: A. Lower transportation costs B. Manufacturing job increases C. Faster production times D. Greater product quality and customization E. All of these were mentioned as benefits

B. Manufacturing job increases

Which of the following is NOT one of Amazon's "Three Pillars"? A. customer experience B. vast distribution C. lower prices D. large selection

B. vast distribution

Based on the Chapter 3 lecture, roughly how many times faster does Fresh Direct sell through their inventory than traditional grocers? A. 100 B. 10 C. 5 D. 2 E. At about the same rate

C. 5

In two decades, the nation of ________ tech sector has grown from "almost nothing" to a $200 billion industry, expanding even during the recent global recession A. Brazil B. South Korea C. Nigeria D. India E. None of these

D. India

Even if Netflix gave Cinematch away to its rivals, they would still not be able to make the same kind of accurate recommendations as Netflix. This is because of Netflix's _____. A. technological superiority B. customer loyalty C. movie expertise D. data advantage E. large inventory

D. data advantage

Which of the following statements is/are true about the relationship between Google and Apple? A. Apple and Google were largely friends until Google launched the rival Android phone in 2008 B. Google receives $8-$12 billion/year from Apple for advertising on its platforms C. Apple is currently suing Google over anti-trust and monopolization of the internet search space D. Both a and c E. All of these are true

A. Apple and Google were largely friends until Google launched the rival Android phone in 2008

How does Netflix's Cinematch recommendation system work? A. Cinematch develops a map of user ratings and steers users toward titles preferred by people with similar tastes. B. Cinematch gathers user ratings to calculate a gross average user rating which is continually updated with each subsequent user rating. C. Cinematch requests users to create profiles detailing their interests and preferences and serves recommendations accordingly. D. Cinematch uses a team of professional movie critics to create a comprehensive ranking system for each movie in its inventory. E. Cinematch ranks movies in two separate lists based on their critical and box office ratings, and subsequently alters user preferences.

A. Cinematch develops a map of user ratings and steers users toward titles preferred by people with similar tastes.

What is crowdsourcing? A. It is the act of taking a job traditionally performed by a designated agent and outsourcing it to an undefined generally large group of people in the form of an open call. B. It is the act of moving a job from a group of ineffective employees to an efficient employee. C. It is the process of selling products to people in the guise of conducting marketing research. D. It is the act where a group of people moves from one country to another while looking out for better work opportunities E. It is the movement of employees from one department to another with the aim of improving their skill sets.

A. It is the act of taking a job traditionally performed by a designated agent and outsourcing it to an undefined generally large group of people in the form of an open call.

Based on Prof C's lecture, how is cryptocurrency taxed in the continental US? A. Like equity securities with resulting gains and losses B. Just like regular income C. Like real estate D. The government has yet to determine the tax implications E. 0% until 2036

A. Like equity securities with resulting gains and losses

The phrase "time-based, data-driven results" refers to which of the following? A. More data collected over time, strengthens competitive advantage B. Some firms need more time to collect accurate data C. Firms can only make customer decisions if they wait for long time periods D. Data must be used within a specified timeframe E. None of the above are true

A. More data collected over time, strengthens competitive advantage

In the Chapter 4 lecture, what was NOT mentioned as a benefit of Zara's in-house manufacturing? A. Reduced labor costs B. Greater flexibility C. Increased speed D. Social responsibility E. All of these were cited as benefits of in-house production

A. Reduced labor costs

FreshDirect was able to correct system issues before the pandemic which resulted in A. Regaining lost customers and accelerated growth B. Being the exclusive online grocer for the area C. Decreasing market share because customers lost confidence D. Expanding to different regions E. Less customer retention

A. Regaining lost customers and accelerated growth

If a new entrant hopes to attract customers from an established incumbent, the new entrant must ensure that the value of their product/service exceeds the incumbent's product value plus any perceived _____. A. Switching costs B. Economies of Scale C. Inflation adjustments D. Transfer fees E. Network effects

A. Switching costs

Zara's IT expenditure is low by fashion industry standards and is also highly effective.Which of the following makes this possible? A. Targeting technology investment at points in the value chain where it has the most significant impact. B. Utilizing the money spent on IT infrastructure to improve the IT skills of its employees through training programs. C. Using the best and most expensive software and hardware in the market, as it lowers any maintenance costs later. D. Outsourcing IT management to third-party firms which provide IT services at lower costs. E. Investing IT funding in improving the infrastructure and cutting down employee overhead costs.

A. Targeting technology investment at points in the value chain where it has the most significant impact.

Amazon's Kindle and Fire businesses are meant to create a channel for media sales as that segment rapidly shifts from atoms to bits. A. True B. False

A. True

Based on Prof C's lecture, while bitcoin wallets and encryption keys have been stolen allowing theft of bitcoin, the blockchain ledger in of itself has never been hacked. A. True B. False

A. True

Many firms choose not to implement operational components of commercially available ERP software and instead elect to create their own propriety solutions in part because they see their uniqueness in certain operations areas as key to creating difficult-to-imitate competitive advantages. A. True B. False

A. True

In order to achieve a negative cash conversion cycle a firm would want to: A. increase its account payable period and its inventory turns. B. decrease its account payable period and its inventory turns. C. increase its account payable terms and decrease its inventory turns. D. decrease its account payable terms and increase its inventory turns E. analyze systems and stop whatever processes are causing this, since a negative cash conversion cycle is associated with losses, not profits.

A. increase its account payable period and its inventory turns.

Uber and PayPal used similar strategies when trying to jumpstart network effects that were vital in creating their dominance. What did each do? A. leveraged viral customer promotions by giving incentives to consumers who helped recruit friends to the service B. operated in "Blue Ocean" that, to this day, remains free of competitors C. preannounced their products, discouraging rivals from entering with competing offerings D. created services that were backward-compatible with rivals E. reduced switching costs for anyone interested in leaving incumbents for their services

A. leveraged viral customer promotions by giving incentives to consumers who helped recruit friends to the service

Many pundits assumed Amazon would fail. Why? A. the firm was losing money and competing against established, well known, offline brands who were going online. B. Amazon was too short-term focused. C. the firm was based in Seattle, rather than Silicon Valley D. Amazon sales were not increasing. E. All of the above are true.

A. the firm was losing money and competing against established, well known, offline brands who were going online.

The acronym VoIP is considered by many to be a disruptive innovation. It refers to: A. the technology used in internet telephony B. cloud computing C. semiconductor manufacturing technology D. DWDM E. data grams

A. the technology used in internet telephony

Zara ensures they are selling items customers want by A. using PDAs to collect data from customers on what kind of clothes to stock in stores. B. sending surveys to their customers via email. C. completing rigorous research on items sold by their rivals. D. following trends created by influencers. E. hosting customer focus groups.

A. using PDAs to collect data from customers on what kind of clothes to stock in stores.

Based on Prof C's lecture, what % of approval from the network participants (aka nodes) is required to process a change to the blockchain ledger? A. 100% B. 51% C. 67% D. 75% E. None, as long as the central blockchain administrator approves it

B. 51%

________________ is/are helping to fuel the current age of fast-growth technology entrepreneurship. This technology means that a startup can rent the computing resources one previously had to buy at great expense A. Crowdsourcing B. Cloud computing C. The Internet of Things D. App Stores E. Consignment

B. Cloud computing

Based on the in-class Excel demonstration, which function was used to merge data residing in separate columns into a single column? A. VLOOKUP B. Concatenate C. HLOOKUP D. Text to Columns E. Pivot Tables

B. Concatenate

Based on the text and the Chapter 5 lecture, price-setting power in the streaming services industry resides with: A. Internet Service Providers because they control connectivity B. Content providers because of the abundance of distribution channels C. Customers because the industry is saturated and the product is a commodity D. Device manufacturers because they have a monopoly

B. Content providers because of the abundance of distribution channels

All types of products and services are subject to network effects. A. True B. False

B. False

Because of their robust failover controls, 99.99% uptime guarantees and recurring third-partySOC audits, AWS' systems have never experienced a significant outage. A. True B. False

B. False

Electronic waste is expected to decrease with the rise of living standards worldwide. A. True B. False

B. False

Envelopment is a management strategy where a dominant firm acquires all the layers in its value chain to increase profitability. A. True B. False

B. False

Firms with high churn rates are likely to be more profitable. A. True B. False

B. False

Founders should be wary of crowdfunding sites like Kickstarter, because these efforts require founders to give up large ownership stakes to a large number of contributors before they can raise funds to bring products to market. A. True B. False

B. False

In industries where competition is high and goods are commoditized (i.e. low differentiation amongst brands), the internet has shifted bargaining power to the suppliers A. True B. False

B. False

Maintaining large inventories is highly essential for the viability of the fashion industry. A. True B. False

B. False

ROM is fast chip-based volatile storage in a computing system. A. True B. False

B. False

The larger and more active a wiki community, the more likely it is that information will be distorted and that errors will creep in A. True B. False

B. False

Based on Prof C's lecture, how has bitcoin mining changed in recent years? A. It's becoming increasingly easy with more amateur miners using their laptops. B. It's extremely competitive and requires vast computing power. C. The likelihood of success is high. D. It's a worthwhile investment due to the stability of cryptocurrency values. E. All of these are true

B. It's extremely competitive and requires vast computing power.

Based on the Porter's 5 Forces Analysis of the brick-and-mortar music retail industry (e.g.CD sales), which of the following was not mentioned a risk factor that contributed to the industry's decline? A. Threat of substitutes - Consumers could replace CD's with digital options B. Quality - Digital music downloads were consistently higher quality than CD's C. Bargaining power of buyers - The internet gave consumers more choices including unlimited subscriptions and a la carte (single song) downloads D. New Entrants - Competition intensified with the influx of online music distributors (i.e.Apple, Spotify) E. All of these were mentioned as risks that led to the CD industry's decline.

B. Quality - Digital music downloads were consistently higher quality than CD's

The resource-based view of competitive advantage states that for a firm to maintain sustainable competitive advantage it must control a set of exploitable resources that have four critical characteristics. What are these characteristics? A. Inventory turns, high margins, long account payable periods, brand building relationships B. Rareness, value, imperfect imitability, non substitutability C. Operational effectiveness, strategic positioning, scale, distribution channels D. A website, an app, cloud-based systems, a savvy technology staff E. Low margin, high delivery, infrastructure, customizable

B. Rareness, value, imperfect imitability, non substitutability

Based on the Chapter 9/Python lecture, which of the following is NOT a characteristic of thePython programming language? A. Open-source B. Subscription-based C. High-level (plain English) D. Interoperable with different platforms E. All of these are characteristics of Python

B. Subscription-based

Yahoo!'s mobile team didn't have an executive champion to protect and nurture the team during the pioneering phase when financial results couldn't be realized. It couldn't show substantial results, so managers were reassigned. This is an example of: A. The Osborne effect B. The creosote bush effect C. network effects D. Amazon effect E. none of these

B. The creosote bush effect

Based on Prof C's blockchain and cryptocurrency lecture, which of the following is NOT true of blockchain? A. Everyone on the network has a copy of the ledger B. The ledger cannot be modified without approval from the central blockchain administrator C. Bitcoin is just one of many applications of blockchain D. User identities are anonymized E. All of these are true

B. The ledger cannot be modified without approval from the central blockchain administrator

Which of the following is the best way to attempt to regain market share after losing customers to failed technology systems? A. Provide discounts and future credits to ensure the customers return B. Use internal and external resources to solve the technical issues and focus on meeting the immediate needs of customers C. Provide customers information about the challenges the organization is facing D. Remind customers of the better days and inform them of the costs of switching to a rival E. Keep information about any issues internal and do not allow customers to become awareof problems with failed technology

B. Use internal and external resources to solve the technical issues and focus on meeting the immediate needs of customers

Customers who owned Nintendo's 8-bit video game console were unable to play the same games on the firm's new 16-bit Super Nintendo system. There was little incentive for existing Nintendo fans to stick with the firm. In this case, Nintendo's new offering suffered from a lack of: A. switching costs B. backward compatibility C. staying power D. price elasticity E. network effects

B. backward compatibility

Amazon and Netflix are both in the digital distribution market. In addition, Netflix usesAmazon's cloud computing services to deliver streaming video. This phenomenon is known as A. cooperation B. coopetition C. simbiosis D. contesting E. codependence

B. coopetition

Three recent customers posted Tweets about their satisfaction with your products and as a result your website traffic has increased. This is an example of A. paid media B. earned media C. owned media D. mainstream media E. coerced media

B. earned media

Multicore processors are formed by: A. connecting identical processors in a parallel combination and drawing power from the same source. B. putting two or more lower power processor cores on a single chip. C. connecting a series of high powered processors through a single power source. D. slicing a flat chip into pieces and reconnecting the pieces vertically. E. connecting a combination of parallel and series-connected processors to a single larger processor to supplement its functioning.

B. putting two or more lower power processor cores on a single chip.

At Zara, clothes are ironed in advance and packed on hangers, with security and price tags affixed. This system means that employees in Zara stores simply move items from shipping box to store racks, spending most of their time on: A. outsourcing their sales activities. B. value-added functions like helping customers find what they want. C. wrestling with inventory during busy periods. D. packing unsold merchandise that need to be returned to the distribution center. E. whisking items from their stores to the staging areas.

B. value-added functions like helping customers find what they want.

In an industry where nearly every major player outsources manufacturing to low-cost countries, Zara is highly _____, keeping huge swaths of its production process in-house. A. privatized B. vertically integrated C. leveraged D. subsidized e. autonomous

B. vertically integrated

Due to limited production runs, Zara's customers: A. tend to delay their shopping until the products go on sale. B. visit the stores more often. C. buy products at discounted rates after a few weeks. D. visit stores less often. E. create a greater opportunity for increased markdowns and write-offs.

B. visit the stores more often.

Based on the Chapter 9 lecture, which company/product exemplified technological leapfrogging? A. TiVo over cable companies with their DVR device B. Sony over Xbox with their Playstation console C. Apple over Nokia with their rollout of the iPhone D. All of these. E. None of these.

C. Apple over Nokia with their rollout of the iPhone

Based on the in-class video and discussion, how is FreshDirect using data to speed up their order processing time? A. Performing customer-focused error handling B. Saving customer preferences/activity on the website to customize their experience C. Grouping commonly purchased items together at pick stations D. None of these

C. Grouping commonly purchased items together at pick stations

Which of the following is NOT a source of value derived from network effects? A. Staying power B. Exchange C. Information asymmetry D. Complementary benefits E. All of these are sources of value derived from network effects

C. Information asymmetry

Based on the Chapter 10 lecture, what concept is key to Wikipedia's (and other mainstream online forums) integrity and required of all contributors/editors? A. Net neutrality B. Bipartisanship C. Neutral point of view D. Network consensus E. Creative license

C. Neutral point of view

Based on the Chapter 7 lecture, which of the following disruptive technologies was/wereNOT considered one of PwC's "Essential Eight" disruptive technologies? A. Virtual and Augmented Reality B. Blockchain C. Quantum Computing D. 3D Printing E. All of these were part of the Essential Eight

C. Quantum Computing

Which of the following statements about technology is true? A. Technology alone is enough to provide sustainable competitive advantage to a firm B. Technology plays a marginal role in creating strategic differences C. Technological improvements can often be copied by rivals, leading to a profit-eroding arms race D. Technology cannot be used by late entrants to gain a share of the industry E. None of these are true

C. Technological improvements can often be copied by rivals, leading to a profit-eroding arms race

Which of the following statements holds true for electronic social networks? A. Their key use is to anonymously share ideas in an unattributed manner. B. Their key use is to share access to products and services as an alternative to ownership. C. Their key use is to discover and reinforce affiliations, identify experts, message individuals or groups, and virally share media. D. Their key use is to poll a diverse crowd and aggregate opinions to form a forecast of an eventual outcome E. Their key use is to collaborate on common tasks or to create a common knowledge base

C. Their key use is to discover and reinforce affiliations, identify experts, message individuals or groups, and virally share media.

Which of the following is true of Amazon's warehousing process? A. Autonomous robots are in charge of building an order from a warehouse's inventory without any human intervention. B. Amazon's items that produce the most sales volume are stocked on shelves, alphabetically, to speed selection and packing. C. When stacking shelves in its warehouses, Amazon ensures that no two similar products sit next to each other to limit picking errors D. Amazon's items that are heavily discounted and about to be written off as "unsellable inventory" are dropped in an area called "mass land" in one last-ditch effort to move under-performing warehouse stock. E. None of these are true

C. When stacking shelves in its warehouses, Amazon ensures that no two similar products sit next to each other to limit picking errors

A value chain is a set of: A. similarly profitable firms competing against each other in any given industry. B. large firms that are vertically integrated. C. activities through which a product or service is created and delivered to customers. D. a large number of small firms that dominate a given market. E. robotically controlled conveyor belts that deliver product quickly from manufacturing stations to shipping containers.

C. activities through which a product or service is created and delivered to customers.

A low _____ is usually key to a firm's profitability because acquiring a customer is more expensive than keeping one. A. subscription fee B. customer lifetime value C. churn rate D. switching cost E. enrollment fee

C. churn rate

One of the implications of price elasticity of technology products is that: A. the cost of a semiconductor chip fabrication plant doubles every four years. B. he magnetic disk area storage density doubles annually. C. customers not only buy more products as they become cheaper, but whole new markets employing new technology open up. D. the price of chips in semiconductor-based devices appreciates every six months. E. firms stock up on tech products and sell them once their prices increase.

C. customers not only buy more products as they become cheaper, but whole new markets employing new technology open up.

Apple, which controlled over 75 percent of digital music sales, was able to dictate song pricing for years, despite the tremendous protests of the record labels. This implies that: A. despite the presence of network effects, the music industry is not dominated by any single leader. B. the presence of multiple new entrants forces leading firms to drop prices of their offerings. C. firms with strong market dominance can enjoy substantial bargaining power over partners. D. a dominant market share does not necessarily translate to greater profitability for a firm. E. there were cross-side network effects between the various music labels.

C. firms with strong market dominance can enjoy substantial bargaining power over partners.

Solid state components are less likely to fail because they: A. are driven by precise sets of software instructions. B. have the capability to both enable and inhibit the flow of electricity. C. have no moving parts like spinning disk drives D. are composed of carbon instead of silicon. E. contain storage that retains data even when powered down.

C. have no moving parts like spinning disk drives

If electronics now travel half the distance to make a calculation, that means the chip is ____. A. half as big B. easier to keep cool C. twice as fast D. twice as expensive E. at half of its prior storage capacity

C. twice as fast

Based on the Chapter 10 lecture, which of the following is/are best practice(s) in managing a company's social media presence? A. Establishing companywide social media policies B. Creating a social media team comprised entirely of IT team members C. Monitoring activity inside and outside the firm D. A & C E. All of these

D. A & C

Based on the Chapter 6&7 lectures, which of the following is/are true of Apple's M1 chips? A. They utilize ARM architecture originally intended for smartphones but have extended to other types of devices B. Gordon Moore's firm Intel also embraced the same chip architecture early on allowing them to keep pace with Apple C. They've helped keep Moore's Law going by reducing chip size and power/cooling burden D. A and C E. All of these are true

D. A and C

Which of the following is NOT true about the development of MyMagic+ bands? A. The firm had the backing of executive leadership who also provided resources to support the complex and expensive project B. Many disparate teams were impacted by the project, presenting political challenges in a project so large that had to be managed via cross-functional engagement and training C. It is estimated that Disney spent over $1 billion on these systems D. All of the above are true

D. All of the above are true

In the Chapter 4 lecture, which of the following was not listed as a benefit of online retailers maintaining their brick-and-mortar stores? A. To serve as "living billboards" for their products B. To function as satellite distribution centers C. To enable more e-commerce sales D. All of these were listed as benefits

D. All of these were listed as benefits

One contributor to the ease with which young entrepreneurs can have success is low-cost distribution to massive markets worldwide. This is enabled by: A. legacy systems B. Big data and business analytics C. Esoko and M-Pesa D. App Stores E. Sproxil

D. App Stores

Based on the Chapter 8 lecture, which of the following statements is/are true of Amazon'sWheel of Growth? A. While Amazon has higher per unit (variable) costs than most retailers, they still offer lower prices than competitors because of all of their excess cash B. Amazon attracts customers by offering lower prices and broader selection and keeps them with an unmatched customer experience. C. Amazon attracts suppliers, even though the business terms are largely favorable towardsAmazon, because of their unprecedented customer traffic and unmatched distribution D. B & C E. All of these are true

D. B & C

In what way(s) is FreshDirect able to incur less costs than traditional grocers: A. Aligning labor hours with forecasted demand B. Storing products at their ideal temperatures to minimize waste C. Using environmental-friendly biodiesel fuels D. Both a and b E. All of these

D. Both a and b

Inventory turnover is often calculated by: A. Annual Sales Revenue / Cost of Goods Sold B. The difference between beginning and end of year inventory C. The difference between inventory per the system and what is actually verified/counted D. Cost of Goods Sold / Average on hand inventory E. Purchased inventory less theft, breakage and obsolescence

D. Cost of Goods Sold / Average on hand inventory

Based on the Chapter 8 lecture, which of the following is NOT an advantage to moving your company's systems from in-house to 3rd party clouds like AWS? A. Reduced hardware and software capital investment B. Greater expertise on data center and IT asset management as it's the cloud service providers' core competency C. Ease of expanding capacity to match increased demand D. Greater visibility and control of your computing environment than before E. All of these are advantages of moving from in-house to the cloud

D. Greater visibility and control of your computing environment than before

The cash conversion cycle: A. Is very high for firms like FreshDirect and Amazon B. Is expressed in days and cannot be a negative number C. Is only important for firms with low levels of cash on hand D. Is calculated as the average duration between when suppliers are paid for goods and when firms receive cash for selling those goods to consumers E. All of these are true

D. Is calculated as the average duration between when suppliers are paid for goods and when firms receive cash for selling those goods to consumers

Which of the following is true about the Netflix streaming business? A. Its marginal cost for title acquisition is zero as it is currently focusing on distributing digital content. B. It has the support of major studios such as Fox and Warner that have allowed it to stream any content the firm buys on DVD. C. Its cost of acquiring streaming content has fallen in the recent past due to its long tail advantages. D. It has attempted to counter rivals with exclusive content by securing exclusive streaming rights for several popular shows. E. From the beginning it has experimented with various streaming revenue models, including pay-per-view, download-to-own, and ad-supported content.

D. It has attempted to counter rivals with exclusive content by securing exclusive streaming rights for several popular shows.

Based on the Chapter 6 lecture, which of the following is/are true of quantum computing? A. It's widely in use today thanks to the governing principles of Moore's Law B. Its base unit or qubit can function as either a 1 or a 0 unlike traditional bits C. It will make hacking more difficult and cybersecurity easier D. None of these are true (Note this question was thrown out. All received credit) E. All of these are true

D. None of these are true (Note this question was thrown out. All received credit)

Apple's dominance of smartphone and tablet markets has allowed the firm to lock up 60percent of the world's supply of advanced touch-screen displays, and to do so with better pricing than would be available to smaller rivals. This is an example of: A. Network externalities that make Apple valuable B. High switching costs for suppliers C. Vertical integration D. high bargaining power with its suppliers E. Disintermediation

D. high bargaining power with its suppliers

Citing Wikipedia as a reference is not considered a good practice because Wikipedia: A. leverages a neutral point of view B. hosts unopinionated entries C. is proprietary in nature D. is not original source material, but rather a clearinghouse of information E. offers limited content

D. is not original source material, but rather a clearinghouse of information

When firms enjoy economies of scale they: A. have a greater share of liquid assets than rivals. B. have bigger production facilities than their competitors. C. have a wider employee base than their competitors. D. leverage the cost of an investment across increasing units of production. E. leverage investment costs to decrease their subscriber acquisition costs.

D. leverage the cost of an investment across increasing units of production.

Collaborative filtering is a classification of software that: A. is used to gather user ratings and calculate a gross average user rating for each movie. B. provides Netflix users with parental controls and other options while streaming movies online. C. selectively sorts movies based on their censor ratings and delivers age-appropriate search results. D. monitors trends among customers to personalize an individual customer's experience. E. collates user ratings for a movie and creates a ranked list of movies most liked by users.

D. monitors trends among customers to personalize an individual customer's experience.

The long tail is a phenomenon whereby firms can make money by: A. selling the same product at different prices with only minor tweaks in their design. B. leveraging customers to promote their products or services. C. reselling multiple versions of a single product under different brand names. D. offering a selection of products or services vastly greater than conventional retailers. E. sell the same product to virtually every customer the Internet can reach.

D. offering a selection of products or services vastly greater than conventional retailers.

A prediction market involves: A. leveraging customers to virally promote a firm's products or services. B. aggregating the opinions of a specialized group of experts who analyze a problem and suggest solutions. C. making calculated estimates on the prices of goods and services based on the speculation of a group of experts. D. polling a diverse crowd and aggregating opinions to form a forecast of an eventual outcome. E. trading on essential goods and services with a view of making a profit by hiking prices ata time of high demand.

D. polling a diverse crowd and aggregating opinions to form a forecast of an eventual outcome.

E-waste is particularly difficult to address because of: A. multiple international agencies like the Fair Factories Clearinghouse. B. he abundance of federal and state regulations. C. environmental advocates being appointed to influential positions on company boards D. the complexity of the modern value chain. E. the increased longevity of electronic products

D. the complexity of the modern value chain.

Allowing third-party sellers to list their products on Amazon is controversial. Why wouldAmazon allow products sold by others to appear on its site? A. Selection attracts consumers. B. A network effect competitive advantage is created where more buyers attract more sellers, giving Amazon an advantage over any rival attempting to create a similar marketplace. C. Although products are sold by third parties, Amazon gains valuable data on things such as customer browsing habits and sales. D. B and C E. All of the above are true

E. All of the above are true

Based on the Chapter 7 lecture, which of the following industries was(were) specifically mentioned as being destined for technological disruption? A. Healthcare B. State and Local Governments C. Finance and Insurance D. A & B E. All of these

E. All of these

Based on the Chapter 9/Python lecture, which of the following was/were mentioned as use case(s) for the Python language A. Data Science B. Machine Learning C. Application Programming Interfaces D. A & B only E. All of these

E. All of these

Which of the following is NOT a component of switching costs? A. Learning costs B. Information and data C. Contract buyouts D. Loyalty programs E. All of these are components of switching costs

E. All of these are components of switching costs

Based on the Chapter 1 video and class discussion on Artificial Intelligence, what concern(s) was/were mentioned with respect to using AI to create jobs and recruit candidates? A. Candidate data privacy B. Deterioration in entry-level job quality/pay C. Bias in the application-screening algorithms D. Both a and b E. All of these were cited as concerns

E. All of these were cited as concerns

Netscape, which once controlled more than 80 percent of the market share in Web browsers, lost its dominant position when customers migrated to Internet Explorer, Microsoft's Web browser. Internet Explorer was easy to install and had no significant differences in terms of usability. This example serves to illustrate that: A. Fast-following smaller firms are always ready with newer and possibly superior products B. Customers of technology companies are becoming increasingly savvy and more demanding C. The open source nature of technology ensures that no firm can expect to monopolize a market D. Firms need to employ increasingly stringent intellectual property norms to guard against infringements from smaller, competitive rivals E. Firms with low switching costs can sometimes be rapidly overtaken by strong rivals with additional competitive advantages

E. Firms with low switching costs can sometimes be rapidly overtaken by strong rivals with additional competitive advantages

Based on the Chapter 3 lecture, how likely would FreshDirect's successes in urban centers like Manhattan translate in smaller, less-dense communities like Columbia, MO? A. Even more successful because of the newness of the brand in a different region B. Even more successful because Fresh Direct's brand is declining in popularity on the EastCoast C. About the same because the quality speaks for itself D. Less successful because Amazon has taken control of the grocery market E. Less successful because the consumer needs and market do not fit the product as well

E. Less successful because the consumer needs and market do not fit the product as well

As an essential service during the pandemic, FreshDirect met the growing demands by A. Partnering with rival firms to ensure all orders were fulfilled B. Doubling their work force in order to leave operations otherwise unchanged C. Opening food pantries to provide food to displaced, laid-off food service employees D. Doing nothing; they did not adjust their practices and continued operating under the existing model E. Limiting variety, working with the boroughs to address food insecurity, and adding jobs

E. Limiting variety, working with the boroughs to address food insecurity, and adding jobs

The _____ is a piece of U.S. legislation that raises executive and board responsibility and ties criminal penalties to certain accounting and financial violations. A. Dodd-Frank Act B. Fair Labor Standards Act C. Sherman Antitrust Act D. Norris-LaGaurdia Act E. Sarbanes-Oxley Act

E. Sarbanes-Oxley Act

Contract manufacturers used by the apparel industry are often criticized because: A. they hike up the costs of producing goods. B. firms cannot maintain high profit margins by employing them. C. they charge exorbitant labor costs that drive down sales. D. they are known to grossly overprice their services. E. of poor working conditions.

E. of poor working conditions.

Peer production refers to: A. the process of tracking and responding to online mentions of a product, organization, or individual. B. graphical editing tools, such as those found in a wiki, page layout program, or other design tool. C. programming hooks, or guidelines published by firms that tell other programs how to get a service to perform a task such as send or receive data. D. content that is more complex than simple text or photos and includes animation, audio, and video. E. users collaboratively working to create content, products, and services.

E. users collaboratively working to create content, products, and services.

Which of the following is true of Amazon? A. Amazon made profits from the first year of its operation. B. It has limited its products to only electronic devices C. Its cloud computing business is one of the largest players in that category. D. Its profitability has remained constant over the years and analysts continue to predict profits for the firm's future. E. Amazon concentrates more on its quarterly results and is inflexible on details about its vision.

Its cloud computing business is one of the largest players in that category

Technology experts in the area of process design: A. Work to make sure systems are easy to use B. Leverage technology to make firms more efficient C. Specialize in technology to make firms more efficient D. Focus on systems dealing with critical business data E. Provide direction on technology-related security issues

B. Leverage technology to make firms more efficient

Many social media websites have emerged as top destinations on the Internet, however the category has remained volatile, with many one-time leaders losing popularity over time. A. True B. False

A. True

Rent the Runway sees a much higher conversion rate from friend referrals than from other marketing methods A. True B. False

A. True

Some of the largest enterprise software companies now support open source software initiatives. A. True B. False

A. True

The marginal cost to produce an additional copy of a cloud-based software product is effectively zero. A. True B. False

A. True

The rise of open source software has lowered computing costs for startup and blue chip companies worldwide A. True B. False

A. True

_____ is a term that refers to a closed network or single set of services controlled by one dominant firm. A. Walled garden B. Private cloud C. One-sided network D. Free rider problem E. Localization

A. Walled garden

Select the equation that is true of most firms with a profitable customer base: A. Customer Acquisition Costs < CLV = NPV (future customer profits) B. CLV < Customer Acquisition Costs = NPV (future customer profits) C. NPV (future customer profits) < CLV = Customer Acquisition Costs D. Customer Acquisition Costs < MVP = Product/Market Fit E. CLV < Customer Acquisition Costs = MVP

A. Customer Acquisition Costs < CLV = NPV (future customer profits)

A firm can mix and match software, linking software the firm has written with modules purchased from outside vendors. A. True B. False

A. True

Despite increasing sales, Rent the Runway has not had a profitable year since their IPO. A. True B. False

A. True

Expedia used APIs to increase the distribution of travel products that it sells, relying on partners to plug into its technology and inventory. A. True B. False

A. True

Many analysts were skeptical of Facebook's ability to create a business from mobile. Mobile revenue just before the IPO was essentially zero, but today it makes up the majority of their advertising revenue. A. True B. False

A. True

All of the costs associated with the design, development, testing, implementation, documentation, training and maintenance of a software system are collectively termed as: A. total cost of ownership. B. economies of scale. C. capitalizable costs. D. aggregate investment. E. hurdle rate.

A. total cost of ownership.

Based on the Cybersecurity lecture, which three principles should be at the heart of every cybersecurity program? A. Documentation, Testing, Approval B. Confidentiality, Integrity, Availability C. Security, Change Management and Operations D. Hardware, Software, People E. Mission Statement, Strategy, Protocol

B. Confidentiality, Integrity, Availability

Facebook's "no-beta" culture promotes caution and seldom tolerates mistakes A. True B. False

B. False

Payment continues to represent a barrier to widespread adoption of the sharing economy, since many consumers feel uncomfortable exchanging cash or financial information with strangers due to the lack of commercially-available, secure payment solutions. A. True B. False

B. False

Which of the following was considered a contributor to vulnerabilities in the OpenSSL security product, known as the Heartbleed bug: A. Overseas hackers modified the open source code and uploaded a compromise version to the Internet, which became widely used. B. Few developers were working on the project, so the ideal that "given enough eyeballs, all bugs are shallow" wasn't met with OpenSSL C. Developers failed to see a major incompatibility with versions of the Windows operating system and Chrome browser D. Developers failed to restrict access to the logging utility that supported the product E. While the corrective patch was quickly developed, deployment was slow and inconsistent

B. Few developers were working on the project, so the ideal that "given enough eyeballs, all bugs are shallow" wasn't met with OpenSSL

Which of the following sets of software represents the constituents of the LAMP stack? A. Log4j, Acrobat Reader, Mozilla, Perl B. Linux, Apache, MySQL, PHP/Python/Perl C. LDAP, Adobe, Mozilla, Python D. Linux, Android, MacOS, PHP E. LDAP, AppleScript, Magento, Python

B. Linux, Apache, MySQL, PHP/Python/Perl

Rent the Runway's rental and subscription models were a huge success until the COVID-19pandemic brought them to a screeching halt. To weather the decrease in business, they: A. Vertically integrated their entire supply chain B. Made drastic cuts to staff and operation with the risk that they would be unprepared if the economy rebounded C. Reduced their retail footprint to only their flagship stores D. Adjusted the subscription model to include unlimited monthly rentals E. All of these

B. Made drastic cuts to staff and operation with the risk that they would be unprepared if the economy rebounded

Which of the following factors has helped Facebook build up trust among its users? A. Superior technology compared to rivals B. Mutual and reciprocal approval of friend requests C. Free nature of applications available to users D. Low switching costs E. Stock price appreciation

B. Mutual and reciprocal approval of friend requests

Which of the following is/are characteristic(s) of using a software as a service? A. Visibility and customization of code B. Scalable C. More expensive than hosting your own software D. Lessened reliance on internet service providers E. All of these are characteristics of using SaaS

B. Scalable

Based on the Chapter 11 lecture and videos/discussions, which of the following was NOT mentioned as a way that Uber is using data? A. To continuously align pricing with supply and demand B. Sharing its pricing algorithms with the open-source developer community to foster innovation and improve their quality through crowdsourcing C. To investigate potential biases in their algorithms like gender pay equity D. Analyzing urban traffic congestion to help alleviate it and improve their service E. All of these were mentioned as ways Uber is using data

B. Sharing its pricing algorithms with the open-source developer community to foster innovation and improve their quality through crowdsourcing

Based on the Chapter 12 lecture, videos and discussions, which of the following is(are) true of the Cambridge Analytica Scandal? A. It involved a neglected piece of unpatched open source logging software that allowed hackers to target millions of major companies and their web applications worldwide B. While roughly 300K users took the data gathering survey, over 80 million user records were exposed to the application developer by virtue of the participating users' friend networks C. It posted user purchase activity from linked payment accounts to their newsfeeds unless the users explicitly opted out D. All of these are true E. None of these are true

B. While roughly 300K users took the data gathering survey, over 80 million user records were exposed to the application developer by virtue of the participating users' friend networks

A(n) _____ is an application that includes an editor, a debugger, and a compiler, among other tools. A. programming language B. integrated development environment C. operating system D. extensible markup language E. enterprise resource planning system

B. integrated development environment

Before their IPO, Rent the Runway reached a $1 billion valuation or "_________" status like other startups with similar valuations. A. emerging growth company B. unicorn C. large cap D. Fortune 500 E. too big to fail

B. unicorn

Investor groups that provide funding in exchange for an ownership stake in the firm are called _____. A. commercial lenders B. venture capital firms C. hedge fund managers D. greenfield investors

B. venture capital firms

Based on the Chapter 13 lecture, how does Rent the Runway (RTR) incentivize suppliers to. provide small batch (low quantity) orders? A. By locking into long-term contracts B. By holding the goods on a consignment basis C. By giving them promotional landing pages on the RTR site/app D. By picking up the goods direct from the suppliers using their own logistics fleet E. All of these

C. By giving them promotional landing pages on the RTR site/app

Which of the following issues raises advertiser concerns on promoting products and services on social networking sites and has led to advertiser boycotts of Facebook? A. Facebook's draconian security standards B. High per click costs which can exceed $2 C. Content adjacency D. Technological incompatibilities with Facebook's platform E. All of these

C. Content adjacency

Based on the Chapter 15 lecture, videos and discussions, which of the following is/are true of the Apache Log4j incident? A. It largely targeted individual PC users instead of companies B. It took several months for developers to create a patch to fix the vulnerability C. It resulted from a flaw in the code of a logging utility for an open source web application D. All of these are true E. None of these are true

C. It resulted from a flaw in the code of a logging utility for an open source web application

Which of the following refers to a variant of utility computing where vendors provide the operating system and supporting software like database management systems but where client firms write their own code? A. Software as a service B. Open Source C. Platform as a service D. Cloudbursting E. Infrastructure as a service

C. Platform as a service

Based on the Cybersecurity lecture, which of the following attacks can be successful without using sophisticated technology? A. DNS spoofing B. Ransomware C. Social Engineering D. Man in the Middle E. Denial of Service

C. Social Engineering

_____ allow(s) a server to run what amounts to a copy of a PC—OS, applications, and all—and simply deliver an image of what's executing to a PC or other connected device. A. Hybrid clouds B. Cloudbursting C. Virtualization D. Server farms E. Utility computing

C. Virtualization

Which of the following is/are NOT true of Rent the Runway's software development approach? A. Agile B. Continuous deployment C. Waterfall method D. Cross-functional teams E. All of these are characteristics of Rent the Runway's software development

C. Waterfall method

Based on the Chapter 15 lecture, what was meant by "Shadow IT"? A. Unpredictable events that can have devastating impacts B. Mirroring a data center at another location in the event of a natural disaster C. When business users make unauthorized purchases of cloud software services without input/signoff from Legal, Security and IT. D. Having business users learn traditional IT skills like coding to lessen the burden on corporate IT. E. Running the old and new systems in parallel to ensure everything is working before fullycutting over to the new system.

C. When business users make unauthorized purchases of cloud software services without input/signoff from Legal, Security and IT.

Another major concern for firms in the sharing economy is uncertainty around the ability of these firms to continue to consider their workers as ____________ and not employees. A. union members B. agents C. independent contractors D. vendors E. shareholders

C. independent contractors

The term _______________________ is often used in entrepreneurship and new product development and refers to a bare-bones offering that allows entrepreneurs and product developers to collect customer feedback and to validate concepts and assumptions that underlie a business idea. A. Long tail B. De Minimis C. Reverse Logistics D. minimum Viable Product E. None of these

D. minimum Viable Product

Based on the Chapter 11 lecture, which of the following is/are characteristic(s) of efficient markets? A. Market prices reflect all available, relevant information B. Investors can't outperform the market because assets are valued/priced appropriately C. Temporary pricing differences of similar assets in different markets (e.g. stock traded on multiple exchanges) are quickly resolved because they are arbitraged away D. All of these E. None of these

D. All of these

Based on the Chapter 14 lecture, which of the following is/are true of SQL? A. It's often written in plain English and uses fundamental concepts from math and logic B. It can be used on many different operating systems including open-source platforms C. It can be used to create, manipulate or extract data D. All of these are true E. None of these are true

D. All of these are true

Based on the Chapter 12 lecture and discussions, which of the following is/are true ofFacebook's rebrand to Meta? A. Zuckerberg wanted to rebrand because his company was doing so many different things to be tied to one particular product B. The name is rooted in the concept of the metaverse, or an immersive VR/AR experience with applications including gaming, shopping and working. C. The company's stock tumbled around the time of the rebrand and operating losses mounted until recovering in mid-2022. D. All of these are true. E. None of these are true.

D. All of these are true.

Based on the Cybersecurity lecture, which defense technique involves dividing a network into several smaller and independently secured sub-networks? A. Defense in depth B. Hardening C. Whitelisting D. Segmentation E. Layering

D. Segmentation

_____ refers to a precise set of instructions that tell the computer hardware what to do. A. Middleware B. An input device C. An output device D. Software E. API

D. Software

What are the implications for firms that do not have common database systems with consistent formats across their enterprise? A. They can save infrastructural and operational costs. B. They can expect to leverage economies of scale by serving more customers. C. They can hedge against the risk of data redundancy. D. They struggle to manage their value chain efficiently. E. They profit from the aggregation of diverse data sets and enhance their repositories.

D. They struggle to manage their value chain efficiently.

_____ is/are considered to be the most persuasive and valuable method of promoting products and services. A. Affiliate networks B. Paid click search C. Traditional media (television, print, radio) D. Word of mouth / viral marketing

D. Word of mouth / viral marketing

Based on the Chapter 13 lecture, which company was Rent the Runway compared to and why? A. Kenneth Cole because of their well-managed social media presence B. Gap because of their unwavering adherence to "conventional retail wisdom" C. Amazon because of their vertical integration D. Zara because of their small batch inventories, testing strategies and ability to quickly pivot E. Yahoo because of their continued prioritization of desktop development over mobile apps

D. Zara because of their small batch inventories, testing strategies and ability to quickly pivot

Firmware refers to: A. computer hardware elements visible to the human eye. B. control software stored on RAM C. control software stored on removable disc D. control software stored on nonvolatile memory chips E. computer hardware elements invisible to the human eye

D. control software stored on nonvolatile memory chips

One of Facebook's key sources of competitive advantage is: A. their walled garden B. internet.org C. open source software D. high switching costs E. third party hosted data centers

D. high switching costs

The sharing economy consists of which of the following? A. recirculation of goods B. increased utilization of durable assets C. exchange of services D. sharing of productive assets E. All of the above are true

E. All of the above are true

Based on the Cybersecurity lecture, which of the following is NOT a potential cyber threat actor? A. National governments B. Hacktivists C. Disgruntled employees D. Drug cartels E. All of these are potential cyber threat actors

E. All of these are potential cyber threat actors

Based on the Cybersecurity lecture, which of the following was NOT mentioned as a common cyber defense/countermeasure? A. Anomalous activity scanning B. Cloud backup/storage of data and systems C. Pen Testing D. Patching E. All of these were mentioned as common cybersecurity defenses

E. All of these were mentioned as common cybersecurity defenses

_____ refers to a software package that integrates the many functions of a business, such as accounting, finance, inventory management, and human resources. A. Supply chain management B. Desktop Software C. Customer relationship management D. Business Intelligence E. Enterprise resource planning

E. Enterprise resource planning

Based on the Chapter 14 lecture, which of the following is/are true of the initial rollout ofHealthcare.gov in 2013? A. The cutover was completed gradually in phases to allow for sufficient testing and rollback to the old system in the event of issues. B. They accurately forecasted demand and aligned IT bandwidth accordingly. C. They used scrum tactics to manage the project, ensuring roles were clearly defined and project leadership had constant visibility into status and issues. D. All of these are true E. None of these are true

E. None of these are true

What is the most common function performed by electronic data interchanges? A. Querying data from organizational databases B. Extracting, transferring and loading data into an organization's data warehouse C. Providing electronic reporting and analysis for organizational decision making D. Integrating various electronic functions of a business, such as accounting, finance, inventory management, and human resources E. Sending electronic equivalents of structured documents between different organizations

E. Sending electronic equivalents of structured documents between different organizations

Based on the Chapter 13 lecture, which of the following is NOT a way that Rent the Runway is strategically using data? A. Tracking customer online engagement including click rates and searches across the website and mobile app B. Managing inventory levels and product assortment C. Determining the effectiveness of marketing campaigns/spend D. Managing pricing based on demand E. They're using data to do all of these things

E. They're using data to do all of these things