NETW 583/ NETW583 Final Exam MCQs Test Bank_ Fall 2021/2022 ‘100% CORRECT GUARANTEED GRADE A+’

Question 1.1. (TCO A) The relationship between speed of innovation and product ob- solescence is (Points : 5) *direct (as innovation speed increases, products become obsolete more quickly). inverse (as innovation speed increases, products become obsolete more slowly). indirect (there is an effect, but it cannot be directly determined). nonexistent (there is no relationship at all). Question 2.2. (TCO A) While rapid innovation often benefits society, it often makes success for companies (Points : 5) *more complicated as they strive to keep up with the latest innovations. profitable as long as they do not innovate themselves, but rather use innova- tions of others to their advantage. easier since innovation always makes things simpler. less likely because customers will not be willing to pay as much for goods and services. Question 3.3. (TCO B) The scientists at Gerusa are former award-winning Soviet sci- entists who have all focused their attention on a cancer treatment. Working to- gether, they have come up with remarkable solutions. The knowledge base they have (Points : 5) is explicit. is easily imitable. *is socially complex. has a low degree of appropriability. Question 4.4. (TCO B) Absorptive capacity (Points : 5) is the result of effective strategic decisions by a firm's upper management. *increases a firm's future ability to assimilate information. is an essential component of a learning organization. is inversely proportionate to the size of the organization. Question 5.5. (TCO C) Natal Technologies is developing a superior ultrasound ma- chine for which it is required to invest $800,000. Based on the company's analysis, the product will generate $200,000 from the first year till perpetuity. According to this, the payback period is . (Points : 5) 10 years 6 years 3 months *4 years Question 6.6. (TCO C) For several years, Mountain Home University had used IBM computers. Recently, Apple Computers offered them a better machine at lower a price for one of the University's labs; however Mountain Home did not buy them be- cause the costs were too high. (Points : 5) transactional opportunity marginal *switching Question 7.7. (TCO C) Sheila Kessler is a retired millionaire who still likes to invest in new businesses and help other people get started in business. She would be called a(n) (Points : 5) loan shark. *angel investor. first generation mentor. venture investor. Question 8.8. (TCO D) Gerusa has developed a technology called Photodynamic Therapy (PDT) for cancer treatment. The scientists who started the company want to learn how to set up clinics and actually treat patients with this technology; hence they want to begin opening clinics quickly. To meet this objective Gerusa should (Points : 5) *collaborate with a company who has gone through a similar process to learn from them. hire marketing professionals to market the product and managers to run the clinics. go ahead with the project on its own to develop the desired capabilities and skills. seek the help of consultants. Question 9.9. (TCO E) Bob King is a Senior Vice President at Associated Grocers, and has been assigned to be the project champion for the development and implemen- tation of a software pricing program. Both the buying department and the pricing department have determined that the new software pricing program is worthless, but they do not tell Bob. This is probably because (Points : 5) *of Bob's seniority. they lack a sense of ownership for the project. they have different goals. they cannot prove that it is worthless. Question 10.10. (TCO E) Kate's supervisor called her to talk about her participation in a new product development team. The supervisor told Kate she had been engag- ing in social loafing. This meant that Kate (Points : 5) would work only when she was around other people. would engage in too much socializing while working. *would not put much effort into the team's work because it was a large team and she figured her effort would not be needed or recognized. would waste time on social networking sites. Question 11.11. (TCO F) When eBay developed its online auction service, a need arose for making online payments, and PayPal was born. This is an example of how moving commerce online (Points : 5) *can create additional intermediaries. reduces effectiveness. necessitates the need for virtual alliances. poses additional costs to suppliers and customers. Question 12.12. (TCO F) If a firm invests in continuous innovation and willingly can- nibalizes its existing products with more advanced products, the firm can (Points : 5) lose a significant number of customers.