Chapter 3 business vocab part 1

What is the role of affiliates in promoting a product or service?

• They create the product themselves.

• They promote a product or service in exchange for a cut of any sales.

• They provide customer support for the product.

• They manufacture the product.

What are APIs used for in the context of services?

• To create new programming languages.

• To allow other firms to tap into their services through programming hooks.

• To design user interfaces.

• To encrypt data.

What is a non-practicing entity commonly known as?

• A tech startup.

• A patent troll.

• A venture capitalist.

• A software developer.

What is the goal of firms that take another company private?

• To close the company permanently.

• To improve results so that the company can be sold or reissue shares on public markets.

• To merge with another company.

• To expand internationally.

Which of the following is NOT one of Porter's Five Forces?

• The intensity of the rivalry among existing competitors.

• The threat of new entrants.

• The bargaining power of the government.

• The bargaining power of the suppliers.

What does price transparency refer to?

• The ability to negotiate prices.

• The degree to which complete information is available.

• The fluctuation of prices over time.

• The secrecy of pricing strategies.

What is information asymmetry?

• A situation where both parties have equal information.

• A decision situation where one party has more or better information than its counterparty.

• A method of encrypting information.

• A type of data storage.

What is a sustainable competitive advantage?

• A temporary increase in sales.

• Financial performance that consistently outperforms industry averages.

• A short-term marketing strategy.

• A one-time cost reduction.

What does operational effectiveness mean?

• Creating new products.

• Performing the same tasks better than rivals.

• Reducing the workforce.

• Increasing advertising budget.

What is a commodity?

• A luxury item.

• A basic good that can be interchanged with nearly identical offerings by others.

• A unique product.

• A service-based product.