________ refers to the volatility of pricing conditions for major elements of the product, such as raw materials, purchased components and labor.
a. Process of technology uncertainty
b. Component market uncertainty
c. Market certainty
d. Component pricing uncertainty
e. None of the choices.
Question 2Marshall Industries, an electronics distributor, is an example of
a. a firm that is being very conservative about using the WWW.
b. a company that chose not to engage in e-business due to legal constraints.
c. a traditional firm that completely restructured itself to use the WWW's capabilities.
d. a company that went into bankruptcy because it did not jump into e-business.
e. a company that encourages it's customers to use the WWW, but does not do so itself.
Question 3Among the following which are the most important factor(s) to be considered when negotiating a contract with a supplier?
a. Long-term agreements
b. Supplier's ability to impact costs
c. All of the choices.
d. Process or technology uncertainty
e. Component market uncertainty
Question 4It is conceivable that the Internet could prove to be the most effective sales tool since the telephone because it allows
a. nice pictures of products.
b. paper forms to be transmitted to sellers.
c. a more personal way to do business.
d. sales persons to smile on photographs that can be placed on Web sites.
e. companies to reach millions of potential customers quickly and cheaply.
Question 5In which contact type the supplier receives reimbursement for all its allowable cost up to a predetermined amount plus a fixed fee, which usually represents a percentage of the targeted cost of the good or service being procured?
a. Cost plus incentive fee
b. Time and materials contract
c. None of the choices.
d. Cost sharing contract
e. Cost plus fixed fee contract
Question 6In order to get a perspective on how big business-to-business e-commerce will be is to remember that
a. business products are significantly more expensive than consumer products.
b. you must take 1995 business-to-business sales and multiply by 3.
c. U.S. consumer sales will only be about 9.5 of business-to-business sales in 2001.
d. more people work for business than work in retail stores.
e. consumer sales on the Internet will be larger than business-to-business sales.
Question 7Which type of contract is generally used in plant and equipment maintenance agreements?
a. Fixed price contract with incentives
b. Cost plus incentive fee
c. Time and Materials contract
d. None of the choices.
e. Cost plus fixed fee contract
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