ITEE ITEE-1 | Page 466

Q19. c Section 2-3 Business industry Answer Explanation A reverse auction is a type of auction in which buyers show the amount of money that they wish to pay, and sellers then indicate the amount of money that their company can offer. The buyer ultimately enters into a transaction with the cheapest company. Reverse auctions are often used in bidding for public works and services. Q20. c Section 2-1 Business strategy management Answer Explanation M&A is an abbreviation for mergers and acquisitions of corporations. The purposes of M&A include entry into new businesses or markets, business tie-up, corporate reorganization, and management bailout. a): Describes OEM. b): Describes capital participation. d): Describes outsourcing. Q21. c Section 1-1 Corporate activities Answer Explanation Three (3) units of Part B and four (4) units of Part C are required in order to make one (1) unit of Product A. Therefore, in order to make 30 units of Product A, 90 units of Part B (3 units × 30) and 120 units of Part C (4 units × 30) are required. There are 10 units of Part B in the inventory, so the net requirement is 90 units −10 units = 80 units. Q22. c Section 1-2 Legal affairs Answer Explanation The use of platform-dependent characters such as Roman numerals and numbers enclosed in circles is discouraged in e-mails as they may not display correctly on the receiver’s side. Q23. c Section 3-1 System strategy Answer Explanation SOA is an approach that combines software functions and components to build a system. SOA makes it is possible to build a system in a flexible way by using services that are called upon according to standardized procedures, either individually or in combination. Q24. d Section 3-1 System strategy Answer Explanation Data flow in a DFD is represented by a straight line ending in an arrowhead with a written description of the information flowing there. Sometimes multiple data flows come from one process, and others times go into one process. Also, processes exist between files, and are connected by data flows. 60