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E-Business Strategy
Paul Phillips, University of Surrey, UK

E-Business Risk Management

Self-Test Questions



1

Which of the following is most appropriate for pursuing an e-business strategy which seeks to modify a new product with high information intensity?
A)Diversify by developing a new e-business product for a new market
B)Extension of market served
C)Enhancing product/service offering
D)None of the above
2

Which of the following is a useful approach for integrated risk management?
A)Abandoning the use of any financial instruments
B)Changing the information technology hardware
C)Modifying business processes
D)None of the above
3

Which of the following should be performed when entering into any agreement for the purchase of assets of a failed e-business?
A)Ensure full adoption of all hidden obligations
B)Ensure full adoption of all hidden liabilities
C)Ensure full delivery and transfer of the targeted liabilities
D)None of the above
4

Which of the following best illustrates the concept of strategic dissonance?
A)In an e-business environment strategic actions will tend to either lead or lag strategic intent, which creates the divergence between intent and action
B)In an e-business environment strategic actions will tend to match strategic intent, which creates the convergence between intent and action
C)In an e-business environment strategic actions will tend to lag strategic intent, which creates convergence between intent and action
D)None of the above
5

Which of the following explains the scope of e-business risk management?
A)e-business risk management only relates to technological issues
B)e-business risk management is about the production of total risk-eliminating strategies
C)e-business risk management incorporates risk management and adopts a broader perspective by focusing on technology risk
D)None of the above
6

Which of the following explains the scope of e-business risk management?
A)e-business risks can be classified as strategic risk, which can be broken down into business and non business risk
B)e-business risks cannot be classified as strategic risk and can be broken down into business and non business risk
C)The boundaries of e-business risks are clear
D)None of the above
7

Which of the following explains the concept of financial risk?
A)Financial risk is symmetrical as the outcomes can be either a performance gain or a performance loss
B)Financial risk is unsymmetrical as the outcomes can be either a performance gain or a performance loss
C)Financial risk depends solely upon market risk and economic risk
D)None of the above
8

What are the perceived benefits of Internet project management techniques?
A)Enables managers to take a longer time to make decisions
B)Enables managers to conduct face-to-face meetings
C)Enables managers to deal with high speed, high change and high uncertain problems
D)None of the above
9

Which of the following statements provides a use for the Ansoff (1987) product matrix?
A)The Ansoff (1987) product matrix can be used to illustrate the sales of product innovation
B)The Ansoff (1987) product matrix can be used to illustrate the risk in product innovation
C)The Ansoff (1987) product matrix can be used to illustrate the risk of new suppliers
D)None of the above
10

According to the concept of economic value added strategies, which of the following statements will maximize shareholder value?
A)A strategy that moves the company below the shareholders' risk/return line
B)A strategy that moves the company above the shareholders' risk/return line
C)A strategy that moves the company onto the shareholders' risk/return line
D)None of the above
11

Which of the following describes the preferred environment for e-leadership?
A)By government adopting a prescriptive style for all members of the population
B)By government adopting an innovative style for all members of the population and ignoring the protection of consumer interests
C)By government adopting an inclusive style for all members of the population, but at the same time protecting consumer interests
D)None of the above
12

Kazim (1999) uses the term 'risks of inertia', which of the following explains 'risks of inertia'?
A)The cost of experimentation in an e-business, where alliances are rapidly becoming common, is significantly lower than doing nothing at all
B)The cost of doing business online, where alliances are ignored
C)The cost of experimentation in an e-business, where alliances are rapidly becoming common, is significantly higher than doing nothing at all
D)None of the above