Business Strategies Are Impacted by the Widespread Use of the Internet

question 14

Multiple Choice

Business strategies are impacted by the widespread use of the Internet. Which statement best describes the Internet's impact?

• A) The Internet has eliminated all forms of substitution threats.
• B) The Internet has reduced barriers to market entry.
• C) The Internet has reduced the bargaining power of end-users.
• D) The Internet has reduced consumer awareness about the differences among competitors.

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Definitions:

Business Judgment Rule

A legal doctrine that protects corporate executives' decisions when made in good faith and believed to be in the best interest of the company.

Corporate Opportunity

A legal doctrine that restricts leaders of a corporation from taking personal advantage of an opportunity that should belong to the corporation.

Safe Harbor

A provision in a law or regulation that provides protection from liability or penalty under specific situations or conditions.

Corporate Manager

An individual responsible for leading, directing, and overseeing the operations and strategy of a corporation.