AI, Business Strategy, and Ethics Practice Exam

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• What is bargaining power of suppliers?
• What is the 'chicken-and-egg' problem in platforms?
• What is competition (Porter-style framing)?
• Which term describes a resource access that gives a firm long-term value because rivals cannot easily obtain it?
• What is a swimlane diagram used for?
• How is reinforcement learning (RL) different from supervised learning?
• Which powers are typically exclusive or winner-ish?
• What is a plausible strategic response when supplier power increases?
• What is a new entrant's advantage?
• In the 5Vs framework, what is vulnerability concerned with?
• What are fairness metrics?
• What is redundant encoding?
• In the 5Vs framework, what does variance measure?
• What is industry structure vs relative position?
• Which factor commonly enables long-tail business models by enabling profitability across many niches?
• What is sampling bias?
• What is a heuristic?
• What is the difference between one-sided and multi-sided platforms?
• In the Ethics mini-case template, which step involves proposing mitigation strategies?
• A company that designs GPUs but contracts manufacturing to a foundry like TSMC is best described as what?
• In the 5Vs framework, what does Value indicate?
• What does IDM stand for in semiconductors and what does it do?
• What is the threat of new entrants?
• Data generation that encodes real-world inequalities into the model can lead to which bias?
• Which statement best describes fairness through unawareness?
• What happens when a regulation makes it cheaper for startups to enter an industry?
• In the 5Vs framework, what does Volume refer to?
• Which scenario best describes a multilabel classification?
• What is multilabel classification?
• Which statement best distinguishes weak or narrow AI from Artificial General Intelligence (AGI)?
• What characterizes network economies?
• What is activity fit?
• What does strategic continuity refer to in a strategy context?
• The wedge definition of competitive advantage states that the wedge between customer willingness-to-pay and the firm's cost is wider than competitors.
• In machine learning, what is the distinction between training and inference?
• What is the purpose of the 'Calculate payoffs' step in the Expected Value template?
• What is the purpose of a confusion matrix in business decision-making?
• Which of the following is a step in the 5 Forces template?
• Relative position in a market helps explain differences in which area?
• Which AI category learns from labeled data to estimate probabilities and make predictions?
• Which statement best describes the alignment between AI strategy and business strategy in practice?
• What is representation bias?
• Indirectly using a protected attribute due to correlation with other features is an example of which bias?
• Which of the following is NOT one of the 5Vs in automation?
• What are tradeoffs in strategy?
• What defines an industry in business terms?
• Which statement best defines a multi-sided platform (MSP) business model pattern?
• What is corporate strategy?
• Balancing incentives in a platform strategy aims to ensure what?
• What is the relationship between AI, machine learning, and deep learning?
• What is model output-action pairing?
• What is bargaining power of buyers?
• In the Ethics mini-case template, which step follows 'Identify harm'?
• What best describes the difference between traditional programming and machine learning?
• Which phrase best encapsulates the primary purpose of a competitive strategy?
• Which statement correctly distinguishes ASI from AGI?
• In Helmer's framework, which option is one of the seven powers?
• Disintermediation in platform markets refers to what?
• What is counter-positioning?
• Which statement best defines competitive advantage?
• What best describes the difference between analytical AI and generative AI?
• What defines a fabless semiconductor company?
• In the Competitive Advantage template, which is a step?
• If a task occurs 50,000 times per day but saves only 2 seconds each time, which 5V is high and what about value?
• Which bias arises when data reflect existing societal inequities?
• What characterizes scale economies?
• Rising barriers to entry in an industry typically lead to:
• Which drift scenario is data drift?
• What is the expected value?
• A decision tree used for loan approvals is an example of which approach?
• What are same-side and cross-side network effects?
• Which statement accurately describes tasks, workflows, and jobs?
• If a firm focuses on performing similar activities more efficiently than competitors, this is an example of:
• What does competitive strategy focus on?
• Which sequence describes the stages of power progression?
• What is analytical AI?
• What is disparate impact?
• Which statement best defines network effects?
• If a dataset underrepresents certain groups, which bias is most likely to result?
• What is the key difference between rule-based AI and generative AI?
• What is a defining characteristic of rule-based AI?
• What is Occam's razor (principle of parsimony)?
• How is supervised learning different from heuristics?
• How many key components does the Business Model Canvas comprise?
• Which AI type would you use to create original artwork or text based on learned data?
• What is the threat of substitutes?
• In reinforcement learning, how does the model learn optimal behavior?
• Relative price and relative cost describe:
• What is ASI (Artificial Superintelligence)?
• To maximize expected value, one should:
• Lowering the targeting threshold in a marketing model can lead to which outcome?
• What is the productivity frontier?
• Which statement best defines disparate treatment?
• What is the primary goal of corporate strategy in a multi-business firm?
• What are the five forces in Porter’s Five Forces framework?
• What is the difference between a pipeline and a platform business?
• Global vs local network effects: which statement is correct?
• Which description best defines a long-tail business model pattern?
• High multi-homing and low switching costs create what effect for platform competition?
• The concept that a model's output must be mapped to an action in the real world, with potential harms from that action, is called what?
• Which of the following is NOT a component of the Business Model Canvas?
• Which AI category focuses on generating new content such as text or images?
• Which item is NOT part of the AI Canvas framework?
• Trust/safety and quality control are platform challenges because they affect what?
• In the 7 Powers template, which step involves evaluating whether the advantage is exclusive?
• Rivalry among existing competitors is best described as:
• What is multi-homing in platform markets?
• What is a key benefit of using a swimlane diagram in process design?
• What is the primary purpose of a barrier in a strategic context?
• Which statement correctly describes IDM as opposed to fabless?
• Which scenario illustrates asymmetric cross-side network effects?
• The Business Model Canvas helps teams:
• What is a cornered resource?
• What best describes the profitability mechanism in Porter’s Five Forces?
• Which statement best describes the relationship between customer willingness-to-pay and cost in competitive advantage?
• What is platform governance?
• Which of the following best describes reinforcement learning?
• How is unsupervised learning different from supervised learning?
• What does Value Capture consist of in the Business Model Canvas?
• Which term describes an AI system that can understand and learn across a broad range of tasks, not limited to one function?
• What are switching costs?
• Which of the following is NOT a step in the Porter 5 tests checklist?
• What is automation bias?
• Which of the following is NOT one of Porter's five tests of a good strategy?
• What does verifiability mean in the 5Vs framework?
• Which statement correctly differentiates innovation platforms from transaction platforms?
• Which of the following are commonly cited platform challenges?
• Which description best captures process power?
• What is historical bias?
• What is the AI Canvas?
• What is the primary purpose of setting pricing in platform strategy?
• Data drift vs concept drift?
• In a network economy, why is copying the installed base difficult for followers?
• Cold start is a platform challenge primarily due to which problem?
• What is the difference between operational effectiveness and strategic positioning?
• In a scenario where a firm charges the same price as rivals but has lower costs than rivals, the firm has a favorable...
• Which statement best describes bias in AI?
• Power progression timing stages include origination, takeoff, and stability. Which of the following is NOT a stage?
• Platform strategy is best described as what?
• Which platform type primarily enables exchanges between users such as buyers and sellers?
• Which describes the difference between differentiation strategy and cost advantage?
• Which of the following is a common pattern in business models?
• What is multiclass classification?
• Which scenario best illustrates a platform?
• Bias in AI typically results in unfair outcomes due to which root cause?
• Which force in Porter’s Five Forces framework is primarily concerned with customers who could switch to substitutes?
• Which option is not one of Porter’s five forces?
• What is binary classification?
• Which learning paradigm uses historical labeled examples to learn a mapping from inputs to outputs?
• In the Business Model Canvas template, which is a step?
• In a confusion matrix, which term represents a correct positive prediction?
• Which power is primarily about reducing average costs as output increases?
• What is the relationship between business strategy and AI strategy?
• Which of the following best represents a differentiation strategy in practice?
• Which business model describes a company that both designs and manufactures its own chips?
• Which is an example of a binary classification task?
• What is the final step in the Expected Value template?
• In markets with strong scale economies, why is catch-up by followers often economically prohibitive?
• Which statement correctly describes a multi-sided platform?
• Which description matches branding as a concept?
• Which set correctly describes Value Creation, Value Delivery, and Value Capture?
• In Porter's framework, which force concerns the bargaining power of buyers?
• Which statement best captures the new entrant advantage?
• Which option illustrates Value Delivery in the Business Model Canvas?
• What is noise in human judgment?
• What are the three levers driving AI?
• In Porter’s framework, what is a primary implication when buyers have high bargaining power?
• What is Weak (Narrow) AI?
• How do a Benefit and a Barrier differ in Helmer's terms?
• Fairness metrics and explicit tradeoffs: which statement is most accurate?
• What is Strong AI / AGI?
• What is a tailored value chain?
• Which description best matches the three AI categories: rule-based, analytical, and generative?
• Which description best captures the FREE business model pattern?
• What is branding?
• Which model typically involves owning fabrication facilities?
• In Helmer's strategy framework, how is power defined?
• What do symmetric network effects mean in platform markets?
• Which lever is most relevant when a platform has many new users but rising scams?
• In machine learning, what is the difference between regression and classification?
• What is a key ethics risk when using cost as a label for predicting health need?
• Which of the following is a description of strategic continuity in Porter’s tests?
• Which are the nine building blocks of the Business Model Canvas?
• Which term describes a subset of machine learning that uses deep neural networks?
• What is class probability estimation?
• Which 5Vs dimension measures how standardized the workflow is?
• If a rare task happens 5 times per month but prevents a major safety incident, which 5V is low and which is high?
• Which of the following is NOT a type of machine learning?
• In chip design markets, how does the fabless model affect barriers to entry?
• What is proxy label bias?
• UVP stands for which term in strategic planning?
• Which statement describes strategic positioning?
• Which of the following describes the meanings of assist, augment, automate, and redesign in AI-enabled workflows?
• Which power is most directly associated with reducing customer inertia by high switching costs?
• Predicting churn probability using labeled past outcomes aligns with which AI approach?