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Management
Q:
Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of
A. not only explaining "where we are going and why" but, more importantly, also inspiring and energizing company personnel to unite to get the company moving in the intended direction.
B. helping company personnel understand why "making a profit" is so important.
C. making it easier for top executives to set strategic objectives.
D. helping lower-level managers and employees better understand the company's business model.
E. All of these choices are correct.
Q:
Whenever additional parties are included in payment card transaction processing, the system is called a(n) _____system.a. open loop b. offline transactionc. point of purchase d. direct payment
Q:
In the context of payment acceptance and processing, closed loop systems:a. include additional payment processing units. b. involve paying the merchants directly.c. work similar to an open loop system. d. make use of an intermediary, such as a bank.
Q:
Which of the following are common shortcomings of company vision statements?
A. too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives
B. unrealistic, unconventional, and unbusinesslike
C. too specific, too inflexible, and can't be achieved in five years
D. too broad, too narrow, and too risky
E. not customer-driven, out-of-step with emerging technological trends, and too ambitious
Q:
A set of connections between banks that issue credit cards, the associations that own the credit cards, and merchants' banks is called a(n) _____.a. check processing system b. zombie farmc. interchange network d. near field communication system
Q:
Which of the following is not a common shortcoming of company vision statements?
A. vague or incompleteshort on specifics
B. focused and narrowexclusive to a specific direction
C. bland or uninspiring
D. not distinctivecould apply to most any company (or at least several others in the same industry)
E. too reliant on superlatives (best, most successful, recognized leader, global or worldwide leader, first choice of customers)
Q:
A _____ handles chargebacks and any other reconciliation items.a. front-end processor b. back-end processorc. clearing house d. payment gateway
Q:
Which one of the following is not a characteristic of an effectively worded strategic vision statement?
A. directional (is forward-looking, describes the strategic course that management has charted and the kinds of product-market-customer-technology changes that will help the company prepare for the future)
B. easy to communicate (is explainable in 10 to 15 minutes, can be reduced to a memorable slogan)
C. graphic (paints a picture of the kind of company management is trying to create and the market position or positions the company is striving to stake out)
D. consensus-driven (commits the company to a "mainstream" directional path that most all stakeholders will enthusiastically support)
E. focused (is specific enough to provide guidance to managers in making decisions and allocating resources)
Q:
A _____, offered by companies such as American Express, carries no spending limit, and the entire amount billed to the card is due at the end of the billing period.a. credit card b. charge cardc. debit card d. smart card
Q:
Which of the following are characteristics of an effectively worded strategic vision statement?
A. graphic, directional, and focused
B. challenging, competitive, and "set in concrete"
C. balanced, responsible, and rational
D. realistic, customer-focused, and market-driven
E. achievable, profitable, and ethical
Q:
_____ are also called "electronic funds transfer at point of sale cards," especially outside the United States.a. Debit cards b. Credit cardsc. Gift cards d. Prepaid cards
Q:
Well-conceived visions are
A. distinctive.
B. specific to a particular organization.
C. free of generic, feel-good statements.
D. not innocuous one-sentence statements.
E. All of these choices are correct.
Q:
Payment cards with disposable numbers are known as _____.a. charge cards b. single-use cardsc. credit cards d. store-branded cards
Q:
Which one of the following is not an accurate attribute of an organization's strategic vision?
A. a clearly articulated view of "where we are going"
B. describing the company's future product-customer-market-technology focus
C. pointing an organization in a particular direction and charting a strategic path for it to follow
D. providing managers with a reference point for making strategic decisions
E. specifying how the company intends to implement and execute its business model
Q:
Top management's views about where the company is headed and what its future product-customer-market-technology will be
A. indicates what kind of business model the company is going to have in the future.
B. constitutes the strategic vision for the company.
C. signals what the firm's strategy will be.
D. serves to define the company's mission.
E. indicates what the company's long-term strategic plan is.
Q:
Which of the following is true about credit cards?a. It has no spending limit. b. It has no interest charged on unpaid balances.c. It is the same as a charge card. d. It protects the consumer by an automatic 30-day dispute period.
Q:
Management's strategic vision for an organization
A. charts a strategic course for the organization ("where we are going") and outlines the company's future product-customer-market-technology focus.
B. describes in fairly specific terms the organization's business model, strategic objectives, and strategy.
C. spells out how the company will become a big moneymaker and boost shareholder value.
D. addresses the critical issue of "why our business model needs to change and how we plan to change it."
E. spells out the organization's strategic moves that will be undertaken to achieve competitive advantage.
Q:
The term _____ refers to all payments less than $10.a. mini payments b. small paymentsc. minitransactions d. microtransactions
Q:
A company's strategic vision concerns
A. a company's directional path and future product-customer-market-technology focus.
B. why the company does certain things in trying to please its customers.
C. management's story line of how it intends to make a profit with the chosen strategy.
D. "who we are and what we do."
E. what future actions the enterprise will likely undertake to outmaneuver rivals and achieve a sustainable competitive advantage.
Q:
Internet payments for items costing from a few cents to approximately a dollar are called _____.a. double spending b. micropaymentsc. money laundering d. chargebacks
Q:
A disadvantage of using paper checks isthe delay that occurs between the time that a person writes a check and the time thatcheck clears the person's bank.
a. True
b. False
Q:
The strategy-making, strategy-executing process
A. is usually delegated to members of a company's board of directors so as not to infringe on the time of busy executives.
B. includes establishing a company's mission, developing a business model aimed at making the company an industry leader, and crafting a strategy to implement and execute the business model.
C. embraces the tasks of developing a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and then monitoring developments and initiating corrective adjustments in light of experience, changing conditions, and new opportunities.
D. is principally concerned with sizing up an organization's internal and external situation, so as to be prepared for the challenge of developing a sound business model.
E. is primarily the responsibility of top executives and the board of directors; very few managers below this level are involved.
Q:
A company's strategic plan consists of
A. its balanced scorecard and its business model.
B. a vision of where it is headed, a set of performance targets, and a strategy to achieve them.
C. its strategy and management's specific, detailed plans for implementing it.
D. a company's plans for improving value-creating internal processes.
E. a strategic vision, a strategy, and a business model.
Q:
Magnetic strip cards can send and receive information.
a. True
b. False
Q:
Typically, server-sidedigital wallets store a customer's information on the customer's computer.
a. True
b. False
Q:
When a company is confronted with significant industry change that mandates radical revision of its strategic course, the company is said to have encountered a(n)A. learning and growth perspective.B. strategic inflection point.C. strategic roadblock.D. new strategic opportunity.E. opportunity for corporate entrepreneurship.
Q:
The strategic management process is shaped byA. management's strategic vision, strategic and financial objectives, and strategy.B. the decisions made by the compensation and audit committees of the board of directors.C. external factors such as the industry's economic and competitive conditions and internal factors such as the company's collection of resources and capabilities.D. a company's customer value proposition and profit formula.E. actions to strengthen competitive capabilities and correct weaknesses, actions to strengthen market standing and competitiveness by acquiring or merging with other companies, and actions to enter new geographic or product markets.
Q:
The Check Clearing for the 21st Century Act permits banks to eliminate the movement of physical checks entirely.
a. True
b. False
Q:
Smart cards are safer than magnetic strip credit cards because the information storedon a smart card can be encrypted.
a. True
b. False
Q:
When companies adopt the strategy making, strategy execution process, it requires they start by
A. developing a strategic vision, mission, and values.
B. developing a proven business model, deciding on the company's top management team, and crafting a strategy.
C. setting objectives, developing a business model, crafting a strategy, and deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage.
D. coming up with a statement of the company's mission and communicating it to all employees, setting objectives, selecting a business model, and monitoring developments and initiating corrective adjustments to the business model when necessary.
E. deciding on the company's board of directors, setting financial objectives, crafting a strategy, and choosing what business approaches and operating practices to employ.
Q:
In an offline cash storage system, a consumer does not personally possess digital cash, instead a trusted party holds the consumers' cash accounts.
a. True
b. False
Q:
Which of the following is an integral part of the managerial process of crafting and executing strategy?
A. developing a proven business model
B. setting objectives and using them as yardsticks for measuring the company's performance and progress
C. deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage
D. communicating the company's mission and purpose to all employees
E. deciding on the composition of the company's board of directors
Q:
Offline cash storage is similar to money kept in a wallet.
a. True
b. False
Q:
Which one of the following is not one of the five stages of an ongoing, continuous strategic management process?
A. forming a strategic vision of the company's future direction and focus
B. setting objectives to measure progress toward achieving the strategic vision
C. crafting a strategy to achieve the objectives and get the company where it wants to go
D. developing a profitable business model
E. implementing and executing the chosen strategy efficiently and effectively
Q:
Using digital cash provides an audit trail.
a. True
b. False
Q:
Explain what affects a company's ultimate success or failure in the marketplace.
Q:
Digital cash ought to be anonymous, just as currency is.
a. True
b. False
Q:
Payment card service companies charge merchants per-transaction fees andmonthly processing fees for processing payments.
a. True
b. False
Q:
Explain why some companies get to the top of industry rankings and stay there, while others do not.
Q:
For merchants, payment cards providefraud protection.
a. True
b. False
Q:
A two-part lock provides anonymous security but signals when someone is attempting to double spend cash.
a. True
b. False
Q:
Why are capabilities needed to build a sustainable competitive advantage so important to a winning business strategy?Cite one of the company examples in the chapter to illustrate your answer.
Q:
What are the three questions that managers can use to distinguish a winning strategy from a so-so or flawed strategy? Briefly explain why each question is important.
Q:
In an online storage system, the merchant must contact the consumer's bank to receive payment for a purchase.
a. True
b. False
Q:
What are the three criteria that determine whether or not a company has a winning strategy?
Q:
In an online cash storage system, a trusted thirdparty, such as an online bank, coordinates all transfers of digital cash and holds theconsumers' cash accounts.
a. True
b. False
Q:
Define and explain the importance of the two elements of a company's business model.
Q:
Digital cash can be easily traced back to its origin.
a. True
b. False
Q:
Provide at least two examples of a company's competitively valuable capabilities.
Q:
Concerns about electronic payment methods include privacy and security, independence, portability, and convenience.
a. True
b. False
Q:
Why is a company's realized strategy a blend of proactive and adaptive approaches?
Q:
Charge cards involve lines of credit and accumulate interest charges.
a. True
b. False
Q:
Credit card issuers charge interest on any unpaid balance.
a. True
b. False
Q:
Why does a company's strategy tend to evolve over time?
Q:
Why are capabilities critical to a company's quest for a sustainable competitive advantage?
Q:
A front-end processor handles chargebacks and any other reconciliation items through the interchange network and the acquiring and issuing banks.
a. True
b. False
Q:
Should a company's strategy be tightly connected to its quest for competitive advantage? Why or why not? What difference does it makes whether a company has a sustainable competitive advantage or not?
Q:
The level of fraud in online transactionsis much lower than either in-person or telephone transactions of the same nature.
a. True
b. False
Q:
What is the connection between a company's strategy and its quest for sustainable competitive advantage?
Q:
American Express and Discover Card are examples of open loop systems.
a. True
b. False
Q:
What is the nitty-gritty issue surrounding a company's business model?
Q:
A debit card removes the amount of the sale from the cardholder's bank account and transfers it to the seller's bank account.
a. True
b. False
Q:
Explain the difference between a company's business model and a company's strategy.
Q:
Online and telephone purchasesinclude a minimal degree of risk for merchants and banks.
a. True
b. False
Q:
List five elements of an enterprise's business strategy.
Q:
Credit cards provide assurances for both the consumer and the merchant.
a. True
b. False
Q:
Briefly define each of the following terms:a. strategyb. business modelc. sustainable competitive advantage
Q:
The use of mobile telephone carriers as a micropayment system has beenheld back by the mobile carriers' substantial charges for providing the service.
a. True
b. False
Q:
Which of the following questions ought to be used to distinguish a winning strategy from a so-so or flawed strategy?A. Does the strategy contain a sufficient number of emergent and/or reactive elements?B. Is the company putting too little emphasis on growth and profitability and too much emphasis on behaving in an ethical and socially responsible manner?C. Is the strategy built on a company's weakness, or does it require resources that are deficient in the company?D. Is the strategy well matched to the company's situation, helping the company achieve a sustainable competitive advantage and resulting in better company performance?E. Does the strategy strike a good balance between maximizing shareholder wealth and maximizing customer satisfaction?
Q:
_____ is pretending to be someone you are not or representing a Web site as an original when it is really a fake.a. Hash coding b. Spoofingc. Warchalking d. Cybervandalism
Q:
In evaluating proposed or existing strategies, managers shouldA. initiate new initiatives even though they don't seem to match the company's internal and external situation.B. scrutinize the company's existing strategies on a regular basis to ensure they offer a good strategic fit, create a competitive advantage, and result in above-average performance.C. evaluate the firm's business model at least every three years.D. ensure core capabilities are incorporated for establishing a competitive advantage.E. align existing strategies with new strategies to emphasize incremental gains.
Q:
_____ is the electronic defacing of an existing Web site's page.a. Spamming b. Masqueradingc. Phishing d. Cybervandalism
Q:
A well-conceived strategy builds a company'sA. profitability and financial strength.B. competitive strength and market standing.C. distinctive competencies and sustainability.D. competitive edge.E. All of these choices are correct.
Q:
A _____ is an element of a program thatallows users to run the program without going through the normal authenticationprocedure for access to the program.a. rogue app b. backdoorc. worm d. remote wipe
Q:
A winning strategy is one thatA. builds strategic fit, is socially responsible, and maximizes shareholder wealth.B. is highly profitable and boosts the company's market share.C. results in a company becoming the dominant industry leader.D. fits the company's internal and external situation, builds sustainable competitive advantage, and improves company performance.E. can pass the ethical standards test, the strategic intent test, and the profitability test.
Q:
Software applications called _____ provide the means to record information that passes through a computer or router that is handling Internet traffic.a. remote wipes b. digital certificatesc. sniffer programs d. plug-ins
Q:
A company's business model
A. details the manner in which the company will pass the three tests of a winning strategy.
B. indicates how the strategy will result in achieving the targeted strategic objectives.
C. clarifies (1) how the business will provide customers with value, and (2) why the business will generate revenues sufficient to cover costs and produce attractive profits.
D. explains how it intends to achieve high profit margins.
E. sets forth the actions and approaches that it will employ to achieve market leadership.
Q:
_____ is the protection of individual rights to nondisclosure.a. Secrecy b. Privacyc. Necessity d. Sensitivity
Q:
A viable business model includes a valuable customer value proposition thatA. is always partly deliberate or planned and partly emergent or reactive.B. is an essential component of pursuing the company's strategic intent.C. suggests the greater the value provided and the lower the price, the more attractive the value proposition.D. lays out the approach to satisfying buyer wants and needs at a premium price.E. must set forth management's long-term action plan for achieving market leadership.
Q:
The term _____ describes the process of hiding information within another piece of information.a. wiretapping b. steganographyc. authentication d. decryption