ITEE ITEE-1 | Page 467

Q25. a Section 1-2 Legal affairs Answer Explanation Modification of software is prohibited under the right of avoidance of modification in the Copyright Act. However, modifications can be made if they are unavoidable in the range of use. a) does not fall under violation of copyright since the changes are necessary due to the replacement of the computers. Q26. d Section 2-1 Business strategy management Answer Explanation A core competence in business terminology refers to“capability (competence) in areas such as technology or capital that comprise a company’s core, which no other company can imitate.” Therefore, it is a strength to the corporation, and a management resource for differentiating the corporation from others by creating projects and products that cannot be imitated. It also provides a competitive edge over rival corporations in terms of business strategy, and plays a key role in influencing and leading partners when collaborating with other companies. Q27. b Section 1-1 Corporate activities Answer Explanation The break-even point is found by “Fixed cost ÷ (1 − Variable cost ÷ Revenues)”. Therefore, by substituting numerical values, the break-even point can be found using the following formulae: Fixed cost: 100 million yen (fixed subcontracting cost) + 50 million yen (fixed sales cost) = 150 million yen Variable cost: 250 million yen (materials cost (variable cost)) + 250 million yen (subcontracting cost (variable cost)) = 500 million yen Break-even point: 150 million yen ÷ (1 − 500 million yen ÷ 1,000 million yen) = 300 million yen Q28. b Section 3-1 System strategy Answer Explanation An ASP is a service that delivers software using the Internet. Using an ASP has advantages in terms of cost and management/operation as it makes it unnecessary to perform software installation work or version control in-house. It is characterized by the single-tenant system, which provides a server for each user. Q29. b Section 1-1 Corporate activities Answer Explanation A balance sheet displays the financial situation of a corporation at a certain point in time. In a balance sheet, everything including goods is converted into an amount of money, and entered as a transaction. 61