Electronic Commerce 2012 7E Test Bank Chapter 15

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Electronic Commerce 2012, 7e (Turban) Chapter 15 Launching A Successful Online

Business and EC Projects 15.1 True/False Question: Unlike the brick-and-mortar

marketplace, the failure rate for online companies is low. Answer:

Question: Online businesses may be pure play companies or click-and-mortar companies

that add online projects, such as e-procurement or selling online, as additional marketing

channels. Answer:

Question: Many good ideas and realistic initiatives have failed because of poor execution

due to the lack of sufficient business skills by the owners or principals of the business.

Answer:

Question: As a general guideline, although virtually anything is available for sale on the

Internet, the degree of sales success is somewhat dependent on the type of item or service

being offered for sale and how it can be delivered. Answer:

Question: Medium and large businesses, or those seeking external funding, must have an

informal business plan. Answer:

Question: Planning an online business is similar to planning for any startup venture in that

it centers on a business plan. Answer:

Question: The primary reason an entrepreneur writes a business plan is to acquire funding

from a bank, an angel investor, a venture capitalist, or the financial markets. Answer:

Question: Some entrepreneurs may simply invest personal funds from savings, personal

lines of credit, or a house mortgage since these sources of “bootstrap funding” are typically

enough. Answer:

Question: When the entrepreneurs personal funds are insufficient, the entrepreneur will go

to friends, family members, or to financial institutions. Answer:

Question: An important source of financial support or direct funding for pre-VC (venture

capital) firms is an incubator. Answer:

Question: Venture capitalists tend to invest in companies that have identified what seems

to be an outstanding business opportunity, have taken some action to make the opportunity

happen, such as written a new software application or secured a patent, and need an

infusion of funds and management expertise to expand and launch the business. Answer:

Question: There is a serious downside for start-up businesses that acquire venture capital

because they lose control over the business. Answer:

Question: Once the company is well known and successful, it can go to a stock exchange

to raise money via an initial public offer (IPO). Answer:

Question: An e-business transformation is solely about technology. Answer:

Question: Organizational transformation is a comprehensive concept that implies not only

a major change, but also a sharp break from the past. Answer:

Question: Business process management (BPM) systems monitor the execution of the

business processes so that managers can analyze and change processes in response to data,

rather than on just a hunch. Answer:

Question: Transforming an existing business to an e-business means a manager must

change business processes, but not the way people work or communicate. Answer:

Question: An informational Web site provides opportunities for the customers and the

business to communicate and share information. Answer:

Question: Selecting a domain name is an important marketing and branding consideration

for a business because it will be the businesss online address and create an identity for the

business. Answer:

Question: Up-to-the-minute dynamic content is what attracts new and returning customers

(“eyeballs”) and makes them stay longer (stickiness”), which builds customer loyalty.

Answer:

Question: Timeliness, efficiency, and coverage are three key benefits of RSS. Answer:

Question: Directed content is Web content that is prepared to match the needs and

expectations of the individual visitor. Answer:

Question: An e-newsletter is a collection of short, informative articles sent at regular

intervals by e-mail to individuals who have an interest in the newsletters topic. Answer:

Question: Not receiving a clear mandate for the top to proceed is a common management

pitfall. Answer:

Question: The goal of any website is to deliver quality content to its intended audience and

to do so with an elegant design. Answer:

Question: Circular is the most common site structure. Answer:

Question: The simplest navigation aid is the navigation bar. Answer:

Question: Web site usability means that people who use the Web site can do so quickly and

easily to accomplish their tasks and may also consider such factors as cost-effectiveness

and usefulness. Answer:

Question: The key to effective use of color and graphics is to design the site to match the

expectations of the target audience. Answer:

Question: Card-not-present (CNP) transactions increase the risk and uncertainty of online

transactions, which increases transaction fees to offset the increased risks. Answer:

Question: Web analytics is the measurement, collection, analysis, and reporting of Internet

data for the purposes of understanding and optimizing Web usage. Answer:

Question: Search engine marketing is the use of strategies intended to position a Web site

at the top of Web search engines results, such as Google. Answer:

Question: A tracking file is a simple text message an e-mail program automatically adds to

outgoing messages. Answer:

Question: A corporate collaboration system is a customer service approach that focuses on

building long-term and sustainable customer relationships that add value for the customer

and the company. Answer:

Question: The most common EC project on the Internet is the information portal. Answer:

Question: When creating a new business, the first step is to A) write a business case or

plan. B) acquire financing needed to make the business successful. C) investigate all

existing opportunities. D) identify a consumer or business need that is not presently being

met. Answer:

Question: The principle reason for writing a business plan is to A) help the founders

remember what they are trying to accomplish. B) provide an operational framework for the

business. C) acquire external funding. D) provide strategic direction to employees.

Answer:

Question: A written document that identifies a companys goals and outlines how the

company intends to achieve the goals and at what cost best defines A) project plan. B)

business objectives. C) business mission. D) business plan. Answer:

Question: A document that justifies the investment of internal, organizational resources in

a specific application or project best defines A) business case. B) initial feasibility study.

C) business plan. D) project plan. Answer:

Question: A(n) ________ is a wealthy individual who contributes personal funds and

possibly expertise at the earliest stage of business development. A) angel investor B)

entrepreneur C) incubator D) venture capitalist Answer:

Question: A(n) ________ is a company, university, or nonprofit organization that supports

promising businesses in their initial stages of development. A) angel B) entrepreneur C)

incubator D) venture capitalist Answer:

Question: ________ is money invested in a business by an individual or a group of

individuals in exchange for equity in the business. A) Venture capital B) Operating capital

C) Start-up funding D) Advancement Answer:

Question: The greatest difficulty in dealing with venture capital is A) the loss of control a

venture capitalist demands. B) finding a willing venture capitalist. C) finding the money a

venture capitalist will require. D) relocating the business to an incubator. Answer:

Question: The relationship between stock price and when an investor invests is that A) IPO

investors will pay the highest price per share. B) the venture capitalist will pay the highest

price per share. C) the entrepreneur will pay the highest price per share. D) the angel

investor will pay the highest price per share. Answer:

Question: Chaplins Pet Store has been in business for many years. Chaplin, the present

owner, decides to open an online sales channel where he can advertise and sell the same

gourmet pet food. This is an example of adding A) a webstore. B) a reverse auction. C)

e-procurement. D) a portal. Answer:

Question: Reprise Electronics, a conglomerate that manufactures and sells all kinds of

electronic goods under several brand names, currently has separate Web sites for each of

its brands. The company decides to bring all of the Web sites together through a single site

that, in addition to providing links to the brand pages, will also provide general

information about how to select electronic merchandise and informational pages about the

Reprise company and its management team. This is an example of adding A) a storefront.

B) a reverse auction. C) e-procurement. D) a portal. Answer:

Question: In an organizational transformation A) there are incremental changes to the way

things have always been done. B) the change may affect only one or a few of the

functional areas of the business. C) there is always a sharp break with the past and every

aspect of the business will probably change. D) there is a change in outlook, but rarely a

change in procedures or investment in infrastructure. Answer:

Question: A method for business restructuring that combines workflow systems and

redesign methods; it covers people-to-people, systems-to-systems, and systems-to-people

interactions. This description best describes A) information architecture management. B)

content management. C) business process reengineering. D) business process management.

Answer:

Question: A(n) ________ Web site does little more than provide information about the

business and its products. A) informational B) interactive C) transactional D) dynamic

Answer:

Question: A website that provides opportunities for the customers and the business to

communicate and share information best defines A) informational website. B) interactive

website. C) hosting website. D) social-oriented website. Answer:

Question: Website features that attract and interact with visitors in the target stakeholder

group best defines A) swag. B) e-trinkets. C) attractors. D) e-goodies. Answer:

Question: A website that sells products and services best describes A) commercial website.

B) collaborative website. C) social-oriented website. D) transactional website. Answer:

Question: A site that allows business partners to collaborate best defines A) collaborative

website. B) transactional website. C) attractive website. D) social website. Answer:

Question: A site that provides users online tools for communication and sharing

information on common interests best defines A) collaborative website. B) social-oriented

website. C) transactional website. D) incorporated website. Answer:

Question: A hosting service that provides disk space and services to help small and

microbusinesses build a website quickly and cheaply best defines A) commercial service.

B) enhanced service. C) storebuilder service. D) collaborative service. Answer:

Question: A(n) ________ site is an exact duplicate of the original Web site physically

located on a Web server on another continent or in another city. A) backup B) mirror C)

download D) hot Answer:

Question: A dedicated website hosting company that offers a wide range of hosting

services and functionality to businesses of all sizes best defines A) collaboration service.

B) application service provider. C) web hosting service. D) enhanced service. Answer:

Question: The Web hosting option under which the business acquires the hardware,

software, staff, and dedicated telecommunications services needed to host a Web site is

called A) self-hosting. B) mirror hosting. C) using a storebuilder. D) ISP hosting. Answer:

Question: A hosting service that provides an independent, stand-alone website for small

and medium-sized businesses best defines A) voucher service. B) ISP hosting service. C)

localized service. D) collaborative service. Answer:

Question: The ________ is the name-based address that identifies an Internet-connected

server. A) domain name B) IP address C) host name D) URL name Answer:

Question: A hierarchical naming system for computers, services, or any resource

participating in the Internet best defines A) IP address. B) specific name system. C)

domain name system. D) hierarchical structure. Answer:

Question: The text, images, sound, and video that make up a Web page best defines A)

metadata. B) profile. C) design. D) content. Answer:

Question: A major entertainment company has four studios that have been in the same

location for more than ten years. The company includes a page on its Web site with

addresses, phone numbers, and general e-mail addresses for each of these studios. None of

this information has changed since the Web site was developed. This is an example of

________ content. A) dynamic B) static C) organizational D) functional Answer:

Question: Offering similar or complementary products and services to increase sales best

defines A) up-selling. B) down-selling. C) cross-selling. D) supplemental selling. Answer:

Question: Creating content that offers upgraded or more expensive versions of the product

is called A) up-selling. B) comment. C) cross-selling. D) promotion. Answer:

Question: Reviews, testimonials, expert advice, or further explanation about the product

are called A) up-selling. B) comment. C) cross-selling. D) promotion. Answer:

Question: The sale of the same good to many customers, who then integrate it with other

offerings and resell it or give it away free best defines A) really simple syndication. B)

up-selling. C) syndication. D) collaborative selling. Answer:

Question: A form of syndication in which a section of a website is available for other sites

to use best defines A) complex syndication. B) third-party syndication. C) collaborative

syndication. D) Web syndication. Answer:

Question: A family of Web-feed formats used to publish frequently updated digital content

best defines A) RSS. B) HTML. C) Java. D) XML. Answer:

Question: Secondary content that offers a coupon, rebate, or special service is called A)

up-selling. B) comment. C) cross-selling. D) promotion. Answer:

Question: A media file that is distributed over the Internet using syndication feeds for

playback on mobile devices and personal computers best defines A) podcast. B) RSS. C)

e-delivery. D) customized view. Answer:

Question: The process of adding, revising, and removing content from a website to keep

content fresh, accurate, compelling, and credible best defines A) collaborative effort. B)

content management. C) e-editing. D) scripting. Answer:

Question: The concept of consistency in Web site design includes making sure that A) Web

pages look the same no matter which browser a customer is using. B) all visitors

consistently find what they are looking for. C) the messages sent to customers who contact

the company are consistent. D) customers are treated consistently when they contact

customer service. Answer:

Question: The ________ is how Web pages are organized, labeled, and navigated to

support browsing and searching. A) Web design B) Web site map C) information

architecture D) Web layout Answer:

Question: Aids that help visitors find the information they need quickly and easily best

defines A) cookies. B) site navigation. C) keystroke logging. D) crumbs. Answer:

Question: The quality and usefulness of the users experience when interacting with the

website best defines A) credibility. B) feasibility. C) usability. D) efficiency. Answer:

Question: Banks are more selective about who gets an account for accepting credit cards

online because A) dot com failures have made banks less willing to work with online

companies. B) CNP transactions are less secure and riskier. C) fees are higher for online

processing. D) online transactions do not produce much revenue for banks. Answer:

Question: In addition to providing an easy mechanism for buying books, the Amazon.com

Web site is easily searchable by book title and author. It also has book reviews and

suggests titles based on previous purchase activity. These enhancements make the Amazon

site a favorite for readers. This is an example of A) CNP. B) using a meta tag. C) internal

Web site promotion. D) search engine optimization. Answer:

Question: Options for acquiring storefronts include each of the following except A) build

them from scratch. B) join a mall. C) build them from components. D) build them from

templates or storebuilders. Answer:

Question: ________ offers one of the most popular storefront packages with three levels of

merchant solutions: starter, standard, and professional. A) Google B) Amazon.com C)

eBay D) Yahoo! Answer:

Question: List and briefly describe the three steps that most new businesses go through.

Answer:

Question: List and briefly discuss funding options for a start-up online business. Answer:

Question: Identify three common ways to add EC initiatives to the existing business.

Answer:

Question: List Web site hosting options for an online business and explain why domain

names are important. Answer:

Question: List eleven website design criteria. Answer: