Question 1

SaaS and PaaS providers can typically provide services at lower costs through scale economies.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is an unfair competitive advantage?

Accepted Answer

A)  brand name
B)  access to global markets
C)  lower product prices
D)  superior technology

Question 3

A firm's ________ describes how a firm will produce a superior return on invested capital.

Accepted Answer

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

Question 4

Which of the following features of e-commerce technology changes industry structure by lowering barriers to entry but greatly expands the market at the same time?

Accepted Answer

A)  global reach
B)  richness
C)  interactivity
D)  personalization

Question 5

Innovative entrepreneurs and their business firms that destroy existing business models are referred to as ________.

Accepted Answer

A)  crowdfunders
B)  venture capitalists
C)  disruptors
D)  angel investors

Question 6

Which of the following is not considered a portal?

Accepted Answer

A)  Yahoo
B)  MSN
C)  Amazon
D)  AOL

Question 7

A ________ specifically details how you plan to find customers and to sell your product.

Accepted Answer

A)  sales analysis
B)  business plan
C)  competitive strategy
D)  market strategy

Question 8

The overall retail market in the United States in 2015 was estimated at about:

Accepted Answer

A)  $48 trillion.
B)  $4.8 trillion.
C)  $480 billion.
D)  $48 billion.

Question 9

The existence of a large number of competitors in any one market segment may indicate:

Accepted Answer

A)  an untapped market niche.
B)  the market is saturated.
C)  no one firm has differentiated itself within that market.
D)  a market that has already been tried without success. B

Question 10

eBay uses all of the following business models except:

Accepted Answer

A)  B2C market creator.
B)  C2C market creator.
C)  content provider.
D)  e-commerce infrastructure provider.

Question 11

________ technologies are technologies that enable the incremental improvement of products and services.

Accepted Answer

A)  Sustaining
B)  Differentiating
C)  Disruptive
D)  Commodity

Question 12

A perfect market is one in which:

Accepted Answer

A)  there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.
B)  one firm develops an advantage based on a factor of production that other firms cannot purchase.
C)  one participant in the market has more resources than the others.
D)  competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage.

Question 13

Which of the following was not able to successfully implement a freemium business model?

Accepted Answer

A)  Pandora
B)  Dropbox
C)  LinkedIn
D)  Ning

Question 14

The Internet's universal standards can change industry structure by increasing barriers to entry and decreasing competition within an industry.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following companies uses a transaction fee revenue model?

Accepted Answer

A)  Yahoo
B)  E*Trade
C)  Twitter
D)  Sears

Question 16

If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would:

Accepted Answer

A)  enable individual customization of the product by consumers.
B)  implement a strategy of commoditization.
C)  adopt a strategy of cost competition.
D)  develop a scope strategy to compete within a narrower market segment.

Question 17

Organizations that typically provide an array of services to start-up companies along with a small amount of funding are referred to as:

Accepted Answer

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

Question 18

What is a B2B exchange, and what benefits do they offer? Given those benefits, why are they today only a small part of the overall B2B picture?

Accepted Answer

An exchange is an independent digital marketplace where hundreds of suppliers meet a smaller number of very large commercial purchasers. Exchanges are owned by independent, usually entrepreneurial startup firms whose business is making a market, and they generate revenue by charging a commission or fee based on the size of the transactions conducted among trading parties. They usually serve a single vertical industry, and focus on the exchange of direct inputs to production and short-term contracts or spot purchasing. For buyers, B2B exchanges make it possible to gather information, check out suppliers, collect prices, and keep up to date on the latest happenings all in one place. Sellers, on the other hand, benefit from expanded access to buyers. The greater the number of sellers and buyers, the lower the sales cost and the higher the chances of making a sale. In theory, exchanges make it significantly less expensive and time-consuming to identify potential suppliers, customers, and partners, and to do business with each other. As a result, they can lower transaction costs-the cost of making a sale or purchase. Exchanges can also lower product costs and inventory-carrying costs-the cost of keeping a product on hand in a warehouse. In reality, however, B2B exchanges have had a difficult time convincing thousands of suppliers to move into singular digital markets where they face powerful price competition, and an equally difficult time convincing businesses to change their purchasing behavior away from trusted long-term trading partners. As a result, the number of exchanges has fallen significantly.

Question 19

A wealthy individual who invests personal funds in a start-up in exchange for an equity stock in the business is referred to as a(n) ________.

Accepted Answer

A)  incubator
B)  angel investor
C)  venture capital investor
D)  crowdfunder

Question 20

Which of the following involves a company giving away a certain level of product or services without charge, but then charging a fee for premium levels of the product or service?

Accepted Answer

A)  advertising revenue model
B)  subscription revenue model
C)  freemium strategy
D)  transaction fee revenue model C

Exam 2: E-Commerce Business Models and Concepts

SaaS and PaaS providers can typically provide services at lower costs through scale economies.

Correct Answer
verified

Which of the following is an unfair competitive advantage?

Correct Answer
verified

A firm's ________ describes how a firm will produce a superior return on invested capital.

Correct Answer
verified

Which of the following features of e-commerce technology changes industry structure by lowering barriers to entry but greatly expands the market at the same time?

Correct Answer
verified

Innovative entrepreneurs and their business firms that destroy existing business models are referred to as ________.

Correct Answer
verified

Which of the following is not considered a portal?

Correct Answer
verified

A ________ specifically details how you plan to find customers and to sell your product.

Correct Answer
verified

The overall retail market in the United States in 2015 was estimated at about:

Correct Answer
verified

The existence of a large number of competitors in any one market segment may indicate:

Correct Answer
verified
B

eBay uses all of the following business models except:

Correct Answer
verified

________ technologies are technologies that enable the incremental improvement of products and services.

Correct Answer
verified

A perfect market is one in which:

Correct Answer
verified

Which of the following was not able to successfully implement a freemium business model?

Correct Answer
verified

The Internet's universal standards can change industry structure by increasing barriers to entry and decreasing competition within an industry.

Correct Answer
verified

Which of the following companies uses a transaction fee revenue model?

Correct Answer
verified

If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would:

Correct Answer
verified

Organizations that typically provide an array of services to start-up companies along with a small amount of funding are referred to as:

Correct Answer
verified

What is a B2B exchange, and what benefits do they offer? Given those benefits, why are they today only a small part of the overall B2B picture?

A wealthy individual who invests personal funds in a start-up in exchange for an equity stock in the business is referred to as a(n) ________.

Correct Answer
verified

Which of the following involves a company giving away a certain level of product or services without charge, but then charging a fee for premium levels of the product or service?

Correct Answer
verified
C

Exam 2: E-Commerce Business Models and Concepts

SaaS and PaaS providers can typically provide services at lower costs through scale economies.

Correct AnswerverifiedShow Answer

Which of the following is an unfair competitive advantage?

Correct AnswerverifiedShow Answer

A firm's ________ describes how a firm will produce a superior return on invested capital.

Correct AnswerverifiedShow Answer

Which of the following features of e-commerce technology changes industry structure by lowering barriers to entry but greatly expands the market at the same time?

Correct AnswerverifiedShow Answer

Innovative entrepreneurs and their business firms that destroy existing business models are referred to as ________.

Correct AnswerverifiedShow Answer

Which of the following is not considered a portal?

Correct AnswerverifiedShow Answer

A ________ specifically details how you plan to find customers and to sell your product.

Correct AnswerverifiedShow Answer

The overall retail market in the United States in 2015 was estimated at about:

Correct AnswerverifiedShow Answer

The existence of a large number of competitors in any one market segment may indicate:

Correct AnswerverifiedB

eBay uses all of the following business models except:

Correct AnswerverifiedShow Answer

________ technologies are technologies that enable the incremental improvement of products and services.

Correct AnswerverifiedShow Answer

A perfect market is one in which:

Correct AnswerverifiedShow Answer

Which of the following was not able to successfully implement a freemium business model?

Correct AnswerverifiedShow Answer

The Internet's universal standards can change industry structure by increasing barriers to entry and decreasing competition within an industry.

Correct AnswerverifiedShow Answer

Which of the following companies uses a transaction fee revenue model?

Correct AnswerverifiedShow Answer

If you wished to leverage the ubiquitous nature of the Web to differentiate your product, you would:

Correct AnswerverifiedShow Answer

Organizations that typically provide an array of services to start-up companies along with a small amount of funding are referred to as:

Correct AnswerverifiedShow Answer

What is a B2B exchange, and what benefits do they offer? Given those benefits, why are they today only a small part of the overall B2B picture?

A wealthy individual who invests personal funds in a start-up in exchange for an equity stock in the business is referred to as a(n) ________.

Correct AnswerverifiedShow Answer

Which of the following involves a company giving away a certain level of product or services without charge, but then charging a fee for premium levels of the product or service?

Correct AnswerverifiedC

Correct Answer
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B

Correct Answer
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C