1. Operational effectiveness is usually not enough to yield sustainable competitive advantage because:
a. it is not profitable for firms to perform the same tasks differently from their rivals.
b. technology can be easily duplicated.
c. firms adopting such an approach have high switching costs.
d. firms attempt to match the benefits of a successful position while maintaining their existing position.
e. it is unprofitable to perform tasks that are different from those of rivals.

2. Which of the following factors represents one of the sources of value derived from network effects?
a. Congestion
b. Price transparency
c. Information symmetry
d. Staying power
e. Complementary costs

3. If ‘V' represents the value of a network and ‘n,' the number of users of a network, then Metcalfe's Law is defined by the equation:
a. V= n2
b. V= 1/n
c. n= V1/3
d. n= 2/3V
e. V= 3/2n

4. The cost of producing an additional unit of a product is known as:
a. isocost.
b. transaction cost.
c. marginal cost.
d. redundancy cost.
e. implicit cost.

5. The software business is extremely profitable compared to the hardware business because:
a. the marginal cost of software products is effectively zero.
b. of the lack of market price regulation and guidelines.
c. software producers serve niche businesses sectors.
d. software development is a one-time process and carries no upgrade costs.
e. software firms benefit from special tax exemptions that aid profitability.

6. _____ refers to software that is free and available for anyone to look at and potentially modify the code.
a. Social software
b. Proprietary software
c. Licensed software
d. Open source software
e. Software as a service

7. Which of the following was an outdated notion regarding open source software and has been shown to be inaccurate?
a. Open source software is free and its code is available for anyone to look at and potentially modify.
b. Open source software code can be changed and redistributed, provided the modified software remains open and free.
c. Open source software is to technology what capitalism is to economics.
d. The majority of persons who work on open source projects are paid by commercially motivated employers.
e. Open source is fueled on the contributions of loners tooling away for the glory of contributing to better code.

8. Which of the following statements relating to open source software is true?
a. The flagship OSS product is the Linux operating system, now available on all scales of computing devices.
b. Open source software is available for anyone to download from the Internet, but the code should not be modified.
c. The vast majority of people who work on efforts like Linux are now paid to do so by non-profit organizations such as the Linux foundation.
d. The source code for open source software may be modified and redistributed, provided it is priced reasonably and part of the proceeds are contributed to the Linux Foundation.
e. Major hardware firms no longer employ paid staff who contribute to open source projects.

9. Organizations like schools, colleges, and offices are connected to the Internet by:
a. Internet Service Providers.
b. Local Area Networks.
c. Global Area Networks.
d. World Wide Web.
e. Localized Area Networks.

10. The Internet was designed to be _____ and _____--meaning that if one network, connecting wire, or server stops working, everything else should keep on running.
a. irredundant; compact
b. multi-layered; expansive
c. fault tolerant; redundant
d. compatible; flexible
e. functional; informative

11. One of the factors that accelerated the development of the Internet during the1990s was:
a. the introduction of the personal computer into households.
b. the government's taking over of the Internet's operating structure from private players.
c. Intel's invention of low power processors used in portable computers.
d. the creation of the Windows and Mac OS operating systems.
e. the invention of graphical web browsing.

12. The address one types into a web browser is also known as:
a. universal redirection link.
b. uniform resource locator.
c. unique resource locator.
d. universal redirection locator.
e. uniform resource link.

13. A _____ is a set of rules that enable communication by defining the format of data and rules for exchange.
i. nomenclature
ii. regulation
iii. protocol
iv. dialect
v. convention