BMBA 5009 Midterm Definitions Exam
Questions and Answers Graded A+
Internet of Things - Correct answer-a vision where low-cost sensors, processors,
and communication are embedded into a wide array of products and our
environment, allowing a vast network to collect at, analyze input, and
automatically coordinate collective action.
IPO - Correct answer-initial public stock offering, the first time a firm makes
shares available via a public stock exchange; "going public"
Sarbanes-Oxley Act - Correct answer-Sarbox or SOX; US Legislation enacted in
the wake of the accounting scandals of the early 2000s. The act raises executive
and board responsibility and ties criminal penalties to certain accounting
violations.
strategic positioning - Correct answer-performing different tasks than rivals, or the
same tasks in a different way
straddling - Correct answer-attempts to occupy more than one position, while
failing to match the benefits of a more efficient, singularly focused rival
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,fast follower problem - Correct answer-exists when savvy rivals watch a pioneer's
efforts, learn from their successes and missteps, then enter the market quickly with
a comparable or superior product at a lower cost before the first mover can
dominate
commodity - Correct answer-A basic good that can be interchanged with nearly
identical offerings by others—think milk, coal, orange juice, or to a lesser extent,
Windows PCs and Android phones. The more commoditized an offering, the
greater the likelihood that competition will be based on price.
Sustainable Competitive Advantage - Correct answer-Financial performance that
consistently outperforms industry averages.
Inventory Turns - Correct answer-Sometimes referred to as inventory turnover,
stock turns, or stock turnover. It is the number of times inventory is sold or used
during a given period. A higher figure means that a firm is selling products quickly.
Resource-based View of Competitive Advantage - Correct answer-The strategic
thinking approach suggesting that if a firm is to maintain sustainable competitive
advantage, it must control an exploitable resource, or set of resources, that have
four critical characteristics. These resources must be (1) valuable, (2) rare, (3)
imperfectly imitable, and (4) nonsubstitutable.
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, Augmented-Reality - Correct answer-A technology that superimposes content,
such as images and animation, on top of real-world images.
Operational Effectiveness - Correct answer-Performing the same tasks better than
rivals perform them.
Dense Wave Division Multiplexing (DWDM) - Correct answer-A technology that
increases the transmission capacity (and hence speed) of fiber-optic cable.
Transmissions using fiber are accomplished by transmitting light inside "glass"
cables. The light inside fiber is split into different wavelengths in a way similar to
how a prism splits light into different colors.
Scale Advantages - Correct answer-Advantages related to size.
Value Chain - Correct answer-The set of activities through which a product or
service is created and delivered to customers.
Distribution Channels - Correct answer-The path through which products or
services get to customers.
Brand - Correct answer-The symbolic embodiment of all the information
connected with a product or service.
Economies of Scale - Correct answer-When costs can be spread across increasing
units of production or in serving multiple customers. Businesses that have
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
Questions and Answers Graded A+
Internet of Things - Correct answer-a vision where low-cost sensors, processors,
and communication are embedded into a wide array of products and our
environment, allowing a vast network to collect at, analyze input, and
automatically coordinate collective action.
IPO - Correct answer-initial public stock offering, the first time a firm makes
shares available via a public stock exchange; "going public"
Sarbanes-Oxley Act - Correct answer-Sarbox or SOX; US Legislation enacted in
the wake of the accounting scandals of the early 2000s. The act raises executive
and board responsibility and ties criminal penalties to certain accounting
violations.
strategic positioning - Correct answer-performing different tasks than rivals, or the
same tasks in a different way
straddling - Correct answer-attempts to occupy more than one position, while
failing to match the benefits of a more efficient, singularly focused rival
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,fast follower problem - Correct answer-exists when savvy rivals watch a pioneer's
efforts, learn from their successes and missteps, then enter the market quickly with
a comparable or superior product at a lower cost before the first mover can
dominate
commodity - Correct answer-A basic good that can be interchanged with nearly
identical offerings by others—think milk, coal, orange juice, or to a lesser extent,
Windows PCs and Android phones. The more commoditized an offering, the
greater the likelihood that competition will be based on price.
Sustainable Competitive Advantage - Correct answer-Financial performance that
consistently outperforms industry averages.
Inventory Turns - Correct answer-Sometimes referred to as inventory turnover,
stock turns, or stock turnover. It is the number of times inventory is sold or used
during a given period. A higher figure means that a firm is selling products quickly.
Resource-based View of Competitive Advantage - Correct answer-The strategic
thinking approach suggesting that if a firm is to maintain sustainable competitive
advantage, it must control an exploitable resource, or set of resources, that have
four critical characteristics. These resources must be (1) valuable, (2) rare, (3)
imperfectly imitable, and (4) nonsubstitutable.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, Augmented-Reality - Correct answer-A technology that superimposes content,
such as images and animation, on top of real-world images.
Operational Effectiveness - Correct answer-Performing the same tasks better than
rivals perform them.
Dense Wave Division Multiplexing (DWDM) - Correct answer-A technology that
increases the transmission capacity (and hence speed) of fiber-optic cable.
Transmissions using fiber are accomplished by transmitting light inside "glass"
cables. The light inside fiber is split into different wavelengths in a way similar to
how a prism splits light into different colors.
Scale Advantages - Correct answer-Advantages related to size.
Value Chain - Correct answer-The set of activities through which a product or
service is created and delivered to customers.
Distribution Channels - Correct answer-The path through which products or
services get to customers.
Brand - Correct answer-The symbolic embodiment of all the information
connected with a product or service.
Economies of Scale - Correct answer-When costs can be spread across increasing
units of production or in serving multiple customers. Businesses that have
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
