Interstate's Chief Information Officer Thinks That Improvements to the Company's

question 29

Multiple Choice

Interstate's Chief Information Officer thinks that improvements to the company's wide area network (WAN) should be a priority for the company. Which of the following, if True, would strengthen the CIO's position?

• A) Interstate's various branches rely greatly on information-sharing with each other.
• B) Much of the hardware that is used in Interstate's offices has not been upgraded in some time.
• C) Interstate sales reps rely on collaborative work with other reps in the same office.
• D) Existing e-mail servers at many of Interstate's locations are often full.
• E) Interstate is hiring many new sales reps who need extensive training.

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Definitions:

Externality

An externality is a cost or benefit caused by a producer that is not financially incurred or received by that producer.

Market Exchange

The process through which goods, services, or assets are traded between buyers and sellers at a determined price.

Negative Externalities

Unintended and unfavourable outcomes of an activity or transaction that affect third-party stakeholders who did not choose to be involved in that activity.

Positive Externalities

Benefits experienced by a third party not directly involved in the production or consumption of a good or service.