Question : 41) Competition not severe in the telecommunication industry in Brazil. : 1283667

41) Competition is not severe in the telecommunication industry in Brazil. More than ninety percent of the market is dominated by four large players. Which of the following, if true, will increase the rivalry among these four players?

A)  A recent regulation by the government has made the entry of new players more difficult.

B) The market growth has slowed down significantly in recent months.

C) One of the dominant players decides to launch its products in Argentina.

D) In order to strengthen national security, the Brazilian government has banned the use of Internet telephony.

42) A disruptive innovation is ________.

A) a new product or service that is harmful to the society or the people

B) a method used in production that raises environmental concerns

C) a new product or service that has the potential to reshape an industry

D) an immediate response to a difficulty or a threat to a product or service

43) Which of the following is an example of a disruptive innovation?

A) LCD monitors replaced CRT monitors in televisions.

B) Apple launched iPhone 4 replacing iPhone 3.

C) Ford introduced small cars for the middle class.

D) Land Rover markets most of its four-wheel drives in high-altitude regions.

44) Which of the following is an example of a sustaining technology?

A) Digital cameras replaced chemical cameras that required film.

B) Digital music sold over the Internet allowed one song at a time downloads.

C) LCD monitors were introduced to replace analog monitors.

D) Car manufacturers invented airbags to improve safety of passengers.

45) Which of the following is most closely associated with sustaining technologies?

A) improvements that streamline existing processes

B) radical breakthrough that replaces low-end products

C) potential to reshape and reform an industry

D) association with new product or service led by technology

46) Which of the following is the most accurate justification for the view that the Internet is the most important disruptive innovation of the twentieth century?

A) The Internet created uncertainties in the market by providing a platform for online trade.

B) Switching costs have increased after the advent of the Internet as a medium of trade.

C) The Internet reduced entry barriers for newcomers and empowered buyers with more information.

D) Competition became oligopolistic with only a few companies investing in technology.

47) Creative destruction occurs when ________.

A) disruptive innovations threaten established players

B) sustaining technologies replace old procedures and processes

C) bad industrial practices are eradicated through government regulations

D) new products or services are introduced by underperforming players

48) Why were innovations like Apple’s iTunes considered to be disruptive innovations?

A) These innovations, when introduced, were not legal.

B) These innovations had a negative effect on all the existing market players.

C) These innovations allowed the parent company to benefit in other product categories.

D) These innovations involved more operational costs.

49) What impact will patents have on a business with respect to Porter’s five forces?

A) Patents will result in increased market competition.

B) Patents will result in increased rivalry within an industry.

C) Patents will result in reduced threat of new entrants.

D) Patents will result in increased bargaining power of buyers.

50) Which of the following governmental actions will increase the threat of new entrants in a market?

A) The Federal Reserve reduces the interest rates on credit for small businesses.

B) The Department of Commerce offers a patent to an existing player.

C) The Government squeezes money from the market through open-market operations.

D) The Federal Reserve increases the cash reserve ratio to tackle inflation.