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Certified Business Manager (CBM) Questions 76–80 (page: 17)

Updated On: 10-Feb-2026

The expenses incurred when a customer stops buying a product or service from one business and starts buying it from another are called:

  1. Transferring costs
  2. Switching costs
  3. Change costs
  4. Replacement costs

Answer(s): B



Information system (IS) planning includes which of the following sep that is part of any successful planning process?

  1. Creating a corporate and IS mission statement
  2. Articulating the vision for IT within the organization
  3. Creating IS strategic and tactical plans
  4. All of the above

Answer(s): D



For IS planning to be successful, top management must:

  1. Recognize IT as an indispensable resource
  2. Understand that IT is a complex resource
  3. Regard ISs as a source for gaining strategic goals
  4. All of the above

Answer(s): D



What refers to how easy it is to augment hardware and software and their use as the business grows?

  1. Compatibility
  2. Connectivity
  3. Scalability
  4. Functionality

Answer(s): C



A high-ranking officer, who commands sufficient political clout to promote the idea that a new system is needed and when the go-ahead is granted to remove obstacles as the project progresses, is known as:

  1. Champion
  2. Professional
  3. Certified
  4. Advocate

Answer(s): A



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