ch2 T/F
Application of knowledge 10) Scale economies are efficiencies that result from flattening the hierarchy of an organization.
FALSE
Application of knowledge 11) A company's strong linkages with its customers decrease switching costs.
FALSE
Application of knowledge 4) An asymmetry exists whenever all participants in a market have equivalent resources.
FALSE
Application of knowledge 5) First movers are always more successful than follower firms.
FALSE
Application of knowledge 8) Sharing economy companies are characterized by the free sharing of resources between the company and consumers.
FALSE
1) A value proposition defines how a company's product or service fulfills the needs of a customer.
TRUE
Application of knowledge 7) SaaS and PaaS providers can typically provide services at lower costs through scale economies.
TRUE
Application of knowledge 12) The Internet's universal standards can change industry structure by lowering barriers to entry and intensifying competition within an industry.
TRUE
Application of knowledge 13) Interactivity that enables product customization alters industry structure by reducing the threat of substitutes.
TRUE
Application of knowledge 14) E-commerce has increased price competition in nearly all markets.
TRUE
Application of knowledge 15) Social technologies change industry structure by shifting programming and editorial decisions to consumers and creating substitute entertainment products.
TRUE
Application of knowledge 2) The term unfit fitness refers to a situation in which employees of a firm have the wrong skills for the current environment.
TRUE
Application of knowledge 3) Firms that fail to produce returns greater than alternative investments typically go out of business.
TRUE
Application of knowledge 6) All firms need an organization to efficiently implement their business plans and strategies.
TRUE
Application of knowledge 9) The JOBS Act and issuance of enabling regulations by the Securities and Exchange Commission allows a start-up company to use crowdfunding to solicit accredited investors to invest in small and early-stage start-ups.
TRUE