BUS 270 EXAM 2 – DHIR –QUESTIONS WITH VERIFIED
ANSWERS
Which of the following is not true regarding the competitive dynamics of most sharing
economy marketplaces?
A. Ratings represent a switching cost built over time by early participants in sharing
economy marketplaces.
B. Late-movers have a substantial advantage in this market since inventory should be
cheaper to acquire for those firms that have entered markets more recently.
C. Network effects should grow over time, favoring firms that got a successful, early
start over rivals who arrived late doing the same thing.
D. These are two-sided markets.
E. None of the above - all statements are true. - Answers - B. Late-movers have a
substantial advantage in this market since inventory should be cheaper to acquire for
those firms that have entered markets more recently.
Social media profiles can also be used to fight online fraud. (T/F) - Answers - true
Which of the following is not an example of larger, conventional firms working with
sharing economy startups?
A. Apple's purchase of Beats to give new musical artists more exposure.
B. Condé Nast's investment in Rent the Runway.
C. Google's investment in Uber.
D. Walgreens' partnership with TaskRabbit.
E. W Hotel partnering with Desks Near Me. - Answers - A. Apple's purchase of Beats to
give new musical artists more exposure.
If eBay and Craigslist are included, some 40 percent of the US and Canadian
population have participated in the sharing economy. (T/F) - Answers - True
Uber prices services according to demand. This allows the company to increase rates
during peak periods in order to attract more potential suppliers into the market to meet
demand. - Answers - true
As per the chapter, firms classified as being part of the sharing economy and
collaborative consumption are still considered too risky to attract substantial venture
capital investment.(T/F) - Answers - False
Which of the following statements is true about Airbnb's revenue model?
A. Airbnb currently does not make money via transactions, only from advertising listings
on its website.
B. Airbnb only charges property owners who rent on the website.
C. Airbnb only charges guests who rent on the website.
D. Airbnb charges both property owners and guests as part of transactions on their
website.
, E. Airbnb doesn't charge transactions for the three years after it enters a market, so as
to generate two-sided network effects of property rents and guests searching for
properties to stay in. - Answers - D. Airbnb charges both property owners and guests as
part of transactions on their website.
What is the difference between collaborative consumption firms Zilok and Chegg.
A. Zilok has gone public, Chegg hasn't.
B. Zilok is a service where a person comes to your home to complete a task, Chegg is a
rental firm.
C. Zilok provides inventory provided by participating 'citizen suppliers', Chegg owns its
own inventory.
D. Zilok is the European equivalent of Chegg.
E. Zilok was purchased by Chegg underscoring the 'winner take all' dynamics of these
markets. - Answers - C. Zilok provides inventory provided by participating 'citizen
suppliers', Chegg owns its own inventory.
Uber's CEO views itself as software platform for shipping and logistics.(T/;F) - Answers -
True
Entrepreneurs are scrappy in their quest to gather market intelligence and understand
how customers respond to their offerings. How did Airbnb's CEO gather additional
intelligence on how the firm was being used?
A. He bought several apartments to rent out under Airbnb
B. He became an Uber driver
C. He lived out of Airbnb rentals full-time
D. He became a bell hop at a San Francisco Hilton Hotel
E. All of the above - Answers - He lived out of Airbnb rentals full-time
Control programs stored on chips (often used in embedded systems) are sometimes
referred to as - Answers - firmware
A(n)______t is a software program that makes requests of a server program. - Answers
- client
______refers to the practice of ensuring that an organization's systems operate within
required legal constraints, and organizational obligations. - Answers - Compliance
Which of the following technologies is being used to replace the older EDI for specifying
data standards? - Answers - C. Extensible markup language
Which of the following statements is true about information systems?
A. Most firms spend a huge portion of their information technology budgets on training
and system security.
B. New programs should be thoroughly tested across the range of a firm's hardware
after deployment.
ANSWERS
Which of the following is not true regarding the competitive dynamics of most sharing
economy marketplaces?
A. Ratings represent a switching cost built over time by early participants in sharing
economy marketplaces.
B. Late-movers have a substantial advantage in this market since inventory should be
cheaper to acquire for those firms that have entered markets more recently.
C. Network effects should grow over time, favoring firms that got a successful, early
start over rivals who arrived late doing the same thing.
D. These are two-sided markets.
E. None of the above - all statements are true. - Answers - B. Late-movers have a
substantial advantage in this market since inventory should be cheaper to acquire for
those firms that have entered markets more recently.
Social media profiles can also be used to fight online fraud. (T/F) - Answers - true
Which of the following is not an example of larger, conventional firms working with
sharing economy startups?
A. Apple's purchase of Beats to give new musical artists more exposure.
B. Condé Nast's investment in Rent the Runway.
C. Google's investment in Uber.
D. Walgreens' partnership with TaskRabbit.
E. W Hotel partnering with Desks Near Me. - Answers - A. Apple's purchase of Beats to
give new musical artists more exposure.
If eBay and Craigslist are included, some 40 percent of the US and Canadian
population have participated in the sharing economy. (T/F) - Answers - True
Uber prices services according to demand. This allows the company to increase rates
during peak periods in order to attract more potential suppliers into the market to meet
demand. - Answers - true
As per the chapter, firms classified as being part of the sharing economy and
collaborative consumption are still considered too risky to attract substantial venture
capital investment.(T/F) - Answers - False
Which of the following statements is true about Airbnb's revenue model?
A. Airbnb currently does not make money via transactions, only from advertising listings
on its website.
B. Airbnb only charges property owners who rent on the website.
C. Airbnb only charges guests who rent on the website.
D. Airbnb charges both property owners and guests as part of transactions on their
website.
, E. Airbnb doesn't charge transactions for the three years after it enters a market, so as
to generate two-sided network effects of property rents and guests searching for
properties to stay in. - Answers - D. Airbnb charges both property owners and guests as
part of transactions on their website.
What is the difference between collaborative consumption firms Zilok and Chegg.
A. Zilok has gone public, Chegg hasn't.
B. Zilok is a service where a person comes to your home to complete a task, Chegg is a
rental firm.
C. Zilok provides inventory provided by participating 'citizen suppliers', Chegg owns its
own inventory.
D. Zilok is the European equivalent of Chegg.
E. Zilok was purchased by Chegg underscoring the 'winner take all' dynamics of these
markets. - Answers - C. Zilok provides inventory provided by participating 'citizen
suppliers', Chegg owns its own inventory.
Uber's CEO views itself as software platform for shipping and logistics.(T/;F) - Answers -
True
Entrepreneurs are scrappy in their quest to gather market intelligence and understand
how customers respond to their offerings. How did Airbnb's CEO gather additional
intelligence on how the firm was being used?
A. He bought several apartments to rent out under Airbnb
B. He became an Uber driver
C. He lived out of Airbnb rentals full-time
D. He became a bell hop at a San Francisco Hilton Hotel
E. All of the above - Answers - He lived out of Airbnb rentals full-time
Control programs stored on chips (often used in embedded systems) are sometimes
referred to as - Answers - firmware
A(n)______t is a software program that makes requests of a server program. - Answers
- client
______refers to the practice of ensuring that an organization's systems operate within
required legal constraints, and organizational obligations. - Answers - Compliance
Which of the following technologies is being used to replace the older EDI for specifying
data standards? - Answers - C. Extensible markup language
Which of the following statements is true about information systems?
A. Most firms spend a huge portion of their information technology budgets on training
and system security.
B. New programs should be thoroughly tested across the range of a firm's hardware
after deployment.
