BADM 350 Exam 1 Question and
answers rated A+ 2025/2026
Firms are increasingly shifting spending from the Web to other media such as print, radio, and television
as these are often easier to track and analyze.
True
False - correct answer ✔F
The __________ Act is a piece of U.S. legislation that raises executive and board responsibility and ties
criminal penalties to certain accounting and financial violations.
A. Civil Rights
B. Fair Labor Standards
C. Sherman Antitrust
D. Norris-LaGuardia
E. Sarbanes-Oxley - correct answer ✔E. Sarbanes-Oxley
According to the article on Productivity Paradox, decentralized IT organizations have a better chance of
seeing productivity increases from IT investments.
True
False - correct answer ✔T
According to the article on Productivity Paradox, complimentary investments in business processes and
organizational structure are just as important as technology in achieving returns on IT investments
True
False - correct answer ✔T
Price elasticity refers to the:
,A. change in the demand for a good in response to a change in income.
B. rate at which product prices vary in response to changes in customer demand.
C. range of production costs that change as a direct function of the availability of raw materials.
D. rate at which demand for a product or service fluctuates with price change.
E. numerical measure of the responsiveness of the supply of a product to a change in its production cost.
- correct answer ✔D. rate at which demand for a product or service fluctuates with price change
New entrants to a market must ensure that the value they offer exceeds the incumbents' value in
addition to any perceived:
A. customer switching costs.
B. market depreciation.
C. network effects.
D. advertising expenses.
E. scale advantages. - correct answer ✔A. customer switching costs.
Advantages related to a firm's size are referred to as:
A. network effects.
B. brand recall.
C. scale advantages.
D. vertical integration.
E. disintermediation. - correct answer ✔C. scale advantages.
The set of activities through which a product or service is created and delivered to customers is known
as a(n) _____.
A. marketing plan
B. value chain
C. inventory turnover
,D. strategic position
E. pure play - correct answer ✔B. value chain
Technology plays the most significant role in shaping and reshaping Porter's five forces.
True
False - correct answer ✔F
Firms that build an imitation-resistant value chaindevelop a way of doing business that others find
difficult to replicate.
True
False - correct answer ✔T
A value chain is a set of:
A. similarly profitable firms competing against each other in any given industry.
B. large firms that are vertically integrated.
C. interdependent activities that bring a product to the market.
D. profitable products or services, the market for which is dominated by a large number of small firms.
E. consumers who conform to industry-determined profiles of profitability for competing firms. - correct
answer ✔C. interdependent activities that bring a product to the market.
Priceline.com is a company and a commercial website that helps users obtain discount rates for travel-
related purchases such as airline tickets and hotel stays. The company facilitates the provision of travel
services by its suppliers to its customers. People can directly access a complete array of schedules and
fares. This process has, to a great extent, eliminated the travel agency as a middle man. This is an
example of:
A. disbarment.
B. repudiation.
C. annulment.
, D. disintermediation.
E. revocation - correct answer ✔D. disintermediation.
Collaborative filtering is a classification of software that:
A. is used to gather user ratings and calculate a gross average user rating for each movie.
B. provides Netflix users with parental controls and other options while streaming movies online.
C. selectively sorts movies based on their censor ratings and delivers age-appropriate search results.
D. monitors trends among customers to personalize an individual customer's experience.
E. collates user ratings for a movie and creates a ranked list of movies most liked by users. - correct
answer ✔D. monitors trends among customers to personalize an individual customer's experience.
In the absence of network effects, the value of a product or service increases as the number of users
grows.
True
False - correct answer ✔F
An instant messaging network is an example of a one-sided market.
True
False - correct answer ✔T
Network effects occur when:
A. the utility of large networks, particularly social networks, can scale exponentially with the size of the
network.
B. the value of a product or service increases as its number of users expands.
C. people do and believe things merely because many other people do and believe the same things.
D. a concept or idea is repeatedly asserted in a community, regardless of whether sufficient empirical
evidence has been presented to support it.
answers rated A+ 2025/2026
Firms are increasingly shifting spending from the Web to other media such as print, radio, and television
as these are often easier to track and analyze.
True
False - correct answer ✔F
The __________ Act is a piece of U.S. legislation that raises executive and board responsibility and ties
criminal penalties to certain accounting and financial violations.
A. Civil Rights
B. Fair Labor Standards
C. Sherman Antitrust
D. Norris-LaGuardia
E. Sarbanes-Oxley - correct answer ✔E. Sarbanes-Oxley
According to the article on Productivity Paradox, decentralized IT organizations have a better chance of
seeing productivity increases from IT investments.
True
False - correct answer ✔T
According to the article on Productivity Paradox, complimentary investments in business processes and
organizational structure are just as important as technology in achieving returns on IT investments
True
False - correct answer ✔T
Price elasticity refers to the:
,A. change in the demand for a good in response to a change in income.
B. rate at which product prices vary in response to changes in customer demand.
C. range of production costs that change as a direct function of the availability of raw materials.
D. rate at which demand for a product or service fluctuates with price change.
E. numerical measure of the responsiveness of the supply of a product to a change in its production cost.
- correct answer ✔D. rate at which demand for a product or service fluctuates with price change
New entrants to a market must ensure that the value they offer exceeds the incumbents' value in
addition to any perceived:
A. customer switching costs.
B. market depreciation.
C. network effects.
D. advertising expenses.
E. scale advantages. - correct answer ✔A. customer switching costs.
Advantages related to a firm's size are referred to as:
A. network effects.
B. brand recall.
C. scale advantages.
D. vertical integration.
E. disintermediation. - correct answer ✔C. scale advantages.
The set of activities through which a product or service is created and delivered to customers is known
as a(n) _____.
A. marketing plan
B. value chain
C. inventory turnover
,D. strategic position
E. pure play - correct answer ✔B. value chain
Technology plays the most significant role in shaping and reshaping Porter's five forces.
True
False - correct answer ✔F
Firms that build an imitation-resistant value chaindevelop a way of doing business that others find
difficult to replicate.
True
False - correct answer ✔T
A value chain is a set of:
A. similarly profitable firms competing against each other in any given industry.
B. large firms that are vertically integrated.
C. interdependent activities that bring a product to the market.
D. profitable products or services, the market for which is dominated by a large number of small firms.
E. consumers who conform to industry-determined profiles of profitability for competing firms. - correct
answer ✔C. interdependent activities that bring a product to the market.
Priceline.com is a company and a commercial website that helps users obtain discount rates for travel-
related purchases such as airline tickets and hotel stays. The company facilitates the provision of travel
services by its suppliers to its customers. People can directly access a complete array of schedules and
fares. This process has, to a great extent, eliminated the travel agency as a middle man. This is an
example of:
A. disbarment.
B. repudiation.
C. annulment.
, D. disintermediation.
E. revocation - correct answer ✔D. disintermediation.
Collaborative filtering is a classification of software that:
A. is used to gather user ratings and calculate a gross average user rating for each movie.
B. provides Netflix users with parental controls and other options while streaming movies online.
C. selectively sorts movies based on their censor ratings and delivers age-appropriate search results.
D. monitors trends among customers to personalize an individual customer's experience.
E. collates user ratings for a movie and creates a ranked list of movies most liked by users. - correct
answer ✔D. monitors trends among customers to personalize an individual customer's experience.
In the absence of network effects, the value of a product or service increases as the number of users
grows.
True
False - correct answer ✔F
An instant messaging network is an example of a one-sided market.
True
False - correct answer ✔T
Network effects occur when:
A. the utility of large networks, particularly social networks, can scale exponentially with the size of the
network.
B. the value of a product or service increases as its number of users expands.
C. people do and believe things merely because many other people do and believe the same things.
D. a concept or idea is repeatedly asserted in a community, regardless of whether sufficient empirical
evidence has been presented to support it.
