Question 1

Firms that fail to produce returns greater than alternative investments typically go out of business.

Accepted Answer

A) True 
 B)False

Question 2

All of the following are business models employed in the online music industry except:

Accepted Answer

A)  subscription.
B)  peer-to-peer streaming.
C)  download-and-own.
D)  cloud streaming.

Question 3

Which type of investor typically becomes interested in a start-up company after it has begun generating revenue?

Accepted Answer

A)  incubators
B)  angel investors
C)  crowdfunders
D)  venture capital investors

Question 4

Scale economies are efficiencies that result from flattening the hierarchy of an organization.

Accepted Answer

A) True 
 B)False

Question 5

A strategy designed to compete within a narrow market or product segment is called a ________ strategy.

Accepted Answer

A)  scope
B)  differentiation
C)  cost
D)  focus

Question 6

A company's strong linkages with its customers increase switching costs.

Accepted Answer

A) True 
 B)False

Question 7

An example of a company using the content provider model is:

Accepted Answer

A)  Priceline.
B)  Rhapsody.
C)  Dell.
D)  eBay.

Question 8

Why is the management team such an important element of a business model?

Accepted Answer

A strong management team gives a model i...

Question 9

The term unfit fitness refers to a situation in which employees of a firm have the wrong skills for the current environment.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not a community provider?

Accepted Answer

A)  LinkedIn
B)  Facebook
C)  Priceline
D)  Pinterest

Question 11

Stickiness is an important attribute for which of the following revenue models?

Accepted Answer

A)  advertising revenue model
B)  subscription revenue model
C)  transaction fee revenue model
D)  sales revenue model

Question 12

Which of the following is not an example of the bricks-and-clicks e-tailing business model?

Accepted Answer

A)  Walmart
B)  Sears
C)  Bluefly
D)  Staples

Question 13

Which of the following is an example of the subscription revenue model?

Accepted Answer

A)  eHarmony
B)  eBay
C)  E*Trade
D)  Twitter

Question 14

Which of the following is not a primary activity in a firm value chain?

Accepted Answer

A)  outbound logistics
B)  finance/accounting
C)  operations
D)  after-sales service

Question 15

________ create and sell access to digital markets.

Accepted Answer

A)  E-distributors
B)  Portals
C)  E-procurement firms
D)  Market creators

Question 16

Discuss the implications of each of the unique features of e-commerce technology for the overall business environment.

Accepted Answer

The ubiquity of e-commerce creates new m...

Question 17

The basic value proposition of community providers is:

Accepted Answer

A)  they offer a fast, convenient one-stop site where users can focus on their most important concerns and interests.
B)  they offer consumers valuable, convenient, time-saving, and low cost alternatives to traditional service providers.
C)  they create a digital electronic environment for buyers and sellers to meet, agree on a price, and transact.
D)  they increase customers' productivity by helping them get things done faster and more cheaply.

Question 18

Portals primarily generate revenue in all of the following ways except:

Accepted Answer

A)  charging advertisers for ad placement.
B)  collecting transaction fees.
C)  sales of goods.
D)  charging subscription fees.

Question 19

Which element of the business model addresses what a firm provides that other firms do not and cannot?

Accepted Answer

A)  revenue model
B)  competitive advantage
C)  market strategy
D)  value proposition

Question 20

Which of the following would be considered an indirect competitor of Priceline?

Accepted Answer

A)  Travelocity
B)  Expedia
C)  Orbitz
D)  TripAdvisor

Exam 2: E-Commerce Business Models and Concepts

Which element of the business model addresses what a firm provides that other firms do not and cannot?

Correct AnswerverifiedShow Answer

Scale economies are efficiencies that result from flattening the hierarchy of an organization.

Correct AnswerverifiedShow Answer

A strategy designed to compete within a narrow market or product segment is called a ________ strategy.

Correct AnswerverifiedShow Answer

Stickiness is an important attribute for which of the following revenue models?

Correct AnswerverifiedShow Answer

Which type of investor typically becomes interested in a start-up company after it has begun generating revenue?

Correct AnswerverifiedShow Answer

________ create and sell access to digital markets.

Correct AnswerverifiedShow Answer

Which of the following is an example of the subscription revenue model?

Correct AnswerverifiedShow Answer

An example of a company using the content provider model is:

Correct AnswerverifiedShow Answer

A company's strong linkages with its customers increase switching costs.

Correct AnswerverifiedShow Answer

All of the following are business models employed in the online music industry except:

Correct AnswerverifiedShow Answer

The basic value proposition of community providers is:

Correct AnswerverifiedShow Answer

Which of the following would be considered an indirect competitor of Priceline?

Correct AnswerverifiedShow Answer

Which of the following is not a primary activity in a firm value chain?

Correct AnswerverifiedShow Answer

Portals primarily generate revenue in all of the following ways except:

Correct AnswerverifiedShow Answer

Which of the following is not a community provider?

Correct AnswerverifiedShow Answer

The term unfit fitness refers to a situation in which employees of a firm have the wrong skills for the current environment.

Correct AnswerverifiedShow Answer

Discuss the implications of each of the unique features of e-commerce technology for the overall business environment.

Correct AnswerverifiedThe ubiquity of e-commerce creates new m...View AnswerShow Answer

Which of the following is not an example of the bricks-and-clicks e-tailing business model?

Correct AnswerverifiedShow Answer

Why is the management team such an important element of a business model?

Correct AnswerverifiedA strong management team gives a model i...View AnswerShow Answer

Firms that fail to produce returns greater than alternative investments typically go out of business.

Correct AnswerverifiedShow Answer

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The ubiquity of e-commerce creates new m...
View Answer

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A strong management team gives a model i...
View Answer

Correct Answer
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