BA 320 BUSINESS INFORMATION
SYSTEMS FINAL EXAM WITH 100%
CORRECT ANSWERS { GRADED A+}
Which of the following statements is not consistent with "The Transaction
Cost Theory of the Firm (1937, Ronald Coase)" ?
According to this theory, the size of a firm increases as external transaction
cost increases
The theory reasons that people organize firms when external transaction
cost is smaller than internal transaction cost
The theory attempts to explain why a firm emerges from transaction cost's
perspective
,According to this view, as technologies for reducing transaction costs
proliferate, the amount of processes performed within a single firm will
decrease - ✔✔The theory reasons that people organize firms when
external transaction cost is smaller than internal transaction cost
According to Christensen, pursuing the improvement on the ratio based [
Select ] ["Effectiveness Metrics", "Efficiency Metrics", "", ""] such as IRR
(Internal Rate of Return) or RONA (Return on Net Asset) may sometimes
lead to a failure to note the [ Select ] ["Effectiveness Metrics", "Efficiency
Metrics"] such as maintaining innovation capacity or protecting future
market. - ✔✔Answer 1: Efficiency Metrics
Answer 2: Effectiveness Metrics
In Dell vs. Asus case, which of the following is consistent with C.
Christensen's arguments?
"As Dell increased its scope of outsourcing to Asus,
_________________________________"
Dell's IRR decreased
Dell's profitability decreased.
,Dell's potential profit from future-innovation decreased
Dell disappointed investors by lowering its ROA - ✔✔Dell's potential profit
from future-innovation decreased
According to C. Christensen, which of the following is true? "Established
market incumbents fail
because_____________________________________ "
They do not listen to their investors
They do not listen to their customers
They do not have access to the new technologies.
They fail to serve the unstated, future needs while focusing on explicit,
present demands - ✔✔They fail to serve the unstated, future needs while
focusing on explicit, present demands
Disruptive technologies typically cut into the low-end of the marketplace
and eventually evolve to displace high-end competitors and their reigning
technologies.
, True
False - ✔✔True
According to Clayton Christensen, disruptive technology is a technology
that always provides better, faster, and cheaper products.
True
False - ✔✔False
Which of the following is not correct in describing "Pareto Principle"?
In many contexts, 80% of effects come from the top 20% of sources
Vilfredo Pareto observed that 80% of Italian land was owned by 20% of its
population
It is also known as 80-20 rule or the law of the vital few
Its focus is consistent with C. Anderson's emphasis on the value of "long
tail". - ✔✔Its focus is consistent with C. Anderson's emphasis on the value
of "long tail".
SYSTEMS FINAL EXAM WITH 100%
CORRECT ANSWERS { GRADED A+}
Which of the following statements is not consistent with "The Transaction
Cost Theory of the Firm (1937, Ronald Coase)" ?
According to this theory, the size of a firm increases as external transaction
cost increases
The theory reasons that people organize firms when external transaction
cost is smaller than internal transaction cost
The theory attempts to explain why a firm emerges from transaction cost's
perspective
,According to this view, as technologies for reducing transaction costs
proliferate, the amount of processes performed within a single firm will
decrease - ✔✔The theory reasons that people organize firms when
external transaction cost is smaller than internal transaction cost
According to Christensen, pursuing the improvement on the ratio based [
Select ] ["Effectiveness Metrics", "Efficiency Metrics", "", ""] such as IRR
(Internal Rate of Return) or RONA (Return on Net Asset) may sometimes
lead to a failure to note the [ Select ] ["Effectiveness Metrics", "Efficiency
Metrics"] such as maintaining innovation capacity or protecting future
market. - ✔✔Answer 1: Efficiency Metrics
Answer 2: Effectiveness Metrics
In Dell vs. Asus case, which of the following is consistent with C.
Christensen's arguments?
"As Dell increased its scope of outsourcing to Asus,
_________________________________"
Dell's IRR decreased
Dell's profitability decreased.
,Dell's potential profit from future-innovation decreased
Dell disappointed investors by lowering its ROA - ✔✔Dell's potential profit
from future-innovation decreased
According to C. Christensen, which of the following is true? "Established
market incumbents fail
because_____________________________________ "
They do not listen to their investors
They do not listen to their customers
They do not have access to the new technologies.
They fail to serve the unstated, future needs while focusing on explicit,
present demands - ✔✔They fail to serve the unstated, future needs while
focusing on explicit, present demands
Disruptive technologies typically cut into the low-end of the marketplace
and eventually evolve to displace high-end competitors and their reigning
technologies.
, True
False - ✔✔True
According to Clayton Christensen, disruptive technology is a technology
that always provides better, faster, and cheaper products.
True
False - ✔✔False
Which of the following is not correct in describing "Pareto Principle"?
In many contexts, 80% of effects come from the top 20% of sources
Vilfredo Pareto observed that 80% of Italian land was owned by 20% of its
population
It is also known as 80-20 rule or the law of the vital few
Its focus is consistent with C. Anderson's emphasis on the value of "long
tail". - ✔✔Its focus is consistent with C. Anderson's emphasis on the value
of "long tail".
