BIS 375 Final Exam Answers BIS375 Supply Chain Information Management in Online Environments Final Exam 1. Explain the concept of Returns to Scale as it applies to electronic commerce and physical businesses. (5 points) Returns to scale, is the quantitative change in output of a firm or industry resulting from a proportionate increase in all inputs levels whether it be an electronic commerce or a physical business. Both electronic commerce’s and physical businesses can use returns to scale as a measure of efficiency for expanding and decreasing production. 2. What is a Service Level Agreement and how can it be used in e- Business? (5 points) A service-level agreement is a part of a service contract where the level of service is formally defined. E-Businesses can use service level agreements within the terms of their contracts with customers to define the levels of service being sold in plain language terms. 3. A traditional business environm