TIF_9780273761389_15

Exam Name___________________________________ 1. Unlike the brick-and-mortar marketplace, the failure rate for online companies is low. Answer: True

False

Diff: 1

Type: TF Page Ref: 49-38 Objective:

2. Online businesses may be pure play companies or click-and-mortar companies that add online projects, such as eprocurement or selling online, as additional marketing channels. Answer:

True False

Diff: 1


3. 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:

True

False

Diff: 2


4. 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:

True False

Diff: 2


5. Medium and large businesses, or those seeking external funding, must have an informal business plan. Answer: True

False

Diff: 1


6. Planning an online business is similar to planning for any startup venture in that it centers on a business plan. Answer:

True False

Diff: 1


7. 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:

True False

Diff: 2


8. 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: True

False

Diff: 2


9. When the entrepreneur's personal funds are insufficient, the entrepreneur will go to friends, family members, or to financial institutions. Answer: True

False

Diff: 2


10. An important source of financial support or direct funding for pre-VC (venture capital) firms is an incubator. Answer:

True False

Diff: 2


11. 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:

True False

Diff: 2 Type: TF Page Ref: 49-43 Objective:

12. There is a serious downside for start-up businesses that acquire venture capital because they lose control over the business. Answer: True

False

Diff: 2


13. 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:

True False

Diff: 2


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

True

False

Diff: 1


15. Organizational transformation is a comprehensive concept that implies not only a major change, but also a sharp break from the past. Answer:

True False

Diff: 2


16. 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:

True False

Diff: 2


17. Transforming an existing business to an e-business means a manager must change business processes, but not the way people work or communicate. Answer: True

False

Diff: 2


18. An informational Web site provides opportunities for the customers and the business to communicate and share information. Answer: True

False

Diff: 2


19. Selecting a domain name is an important marketing and branding consideration for a business because it will be the business's online address and create an identity for the business. Answer:

True False

Diff: 2 Type: TF Page Ref: 49-53 Objective:

20. 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:

True False

Diff: 2


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

True False

Diff: 2


22. Directed content is Web content that is prepared to match the needs and expectations of the individual visitor. Answer:

True

False

Diff: 2


23. 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 newsletter's topic. Answer:

True False

Diff: 2


24. Not receiving a clear mandate for the top to proceed is a common management pitfall. Answer:

True False

Diff: 2


25. The goal of any website is to deliver quality content to its intended audience and to do so with an elegant design. Answer:

True False

Diff: 1


26. Circular is the most common site structure. Answer: True

False

Diff: 2


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

True False

Diff: 1

Type: TF Page Ref: 49-65

Objective:

28. 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:

True False

Diff: 1


29. The key to effective use of color and graphics is to design the site to match the expectations of the target audience. Answer:

True False

Diff: 1


30. Card-not-present (CNP) transactions increase the risk and uncertainty of online transactions, which increases transaction fees to offset the increased risks. Answer:

True

False

Diff: 1


31. Web analytics is the measurement, collection, analysis, and reporting of Internet data for the purposes of understanding and optimizing Web usage. Answer:

True False

Diff: 1


32. 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: True

False

Diff: 2


33.

A tracking file is a simple text message an e-mail program automatically adds to outgoing messages. Answer: True

False

Diff: 2


34. 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: True

False

Diff: 2


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

False

Diff: 2


36. When creating a new business, the first step is to A)

investigate all existing opportunities. B) identify a consumer or business need that is not presently being met. C)

acquire financing needed to make the business successful. D)

write a business case or plan. Answer: B

Diff: 1

Type: MC Page Ref: 49-38 Objective:

37. The principle reason for writing a business plan is to A)

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

provide strategic direction to employees. D)

acquire external funding. Answer:

D

Diff: 1


38. A written document that identifies a company's goals and outlines how the company intends to achieve the goals and at what cost best defines A)

business plan. B) business objectives. C)

project plan.

D)

business mission. Answer: A

Diff: 1


39. A document that justifies the investment of internal, organizational resources in a specific application or project best defines A)

business plan. B) initial feasibility study.

C)

project plan.

D)

business case. Answer: D

Diff: 1


40. A(n) ________ is a wealthy individual who contributes personal funds and possibly expertise at the earliest stage of business development. A)

angel investor B) venture capitalist C)

incubator

D)

entrepreneur Answer: A

Diff: 1


41.

A(n) ________ is a company, university, or nonprofit organization that supports promising businesses in their initial stages of development. A)

angel

B)

entrepreneur C)

venture capitalist D)

incubator

D

Answer:

Diff: 2


42. ________ is money invested in a business by an individual or a group of individuals in exchange for equity in the business. A)

Advancement B) Venture capital C)

Start-up funding D)

Operating capital Answer: B

Diff: 1


43. 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)

relocating the business to an incubator. D)

finding the money a venture capitalist will require. Answer: B

Diff: 1


44. The relationship between stock price and when an investor invests is that A)

the entrepreneur will pay the highest price per share. B) IPO investors will pay the highest price per share. C)

the venture capitalist will pay the highest price per share. D)

the angel investor will pay the highest price per share. Answer: B

Diff: 2


45. Chaplin's 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)

e-procurement. C)

a reverse auction. D)

a portal.

A

Answer:

Diff: 2


46. 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)

e-procurement. B) a storefront.

a portal.

C)

D)

a reverse auction. Answer: C

Diff: 2


47. In an organizational transformation A)

there is a change in outlook, but rarely a change in procedures or investment in infrastructure. B) there is always a sharp break with the past and every aspect of the business will probably change. C)

there are incremental changes to the way things have always been done. D)

the change may affect only one or a few of the functional areas of the business. Answer: B Type: MC

Diff: 2

Page Ref: 49-46 Objective:

48. 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)

content management. B) business process management. C)

business process reengineering. D)

information architecture management. Answer: B

Diff: 2


49. A(n) ________ Web site does little more than provide information about the business and its products. A)

dynamic

interactive

B)

C)

transactional D)

informational Answer: D

Diff: 2


50. A website that provides opportunities for the customers and the business to communicate and share information best defines A)

social-oriented website. B) informational website. C)

hosting website. D)

interactive website. Answer: D

Diff: 2


51. Website features that attract and interact with visitors in the target stakeholder group best defines A)

swag.

B)

e-trinkets.

e-goodies.

attractors.

D

C)

D)

Answer:

Diff: 2


52. A website that sells products and services best describes A)

commercial website. B) transactional website. C)

collaborative website. D)

social-oriented website. Answer: B

Diff: 2


53.

A site that allows business partners to collaborate best defines A)

social website. B) transactional website. C)

attractive website. D)

collaborative website. Answer: D

Diff: 2


54. A site that provides users online tools for communication and sharing information on common interests best defines A)

transactional website. B) incorporated website. C)

collaborative website. D)

social-oriented website. Answer: D Type: MC

Diff: 2


55. A hosting service that provides disk space and services to help small and microbusinesses build a website quickly and cheaply best defines A)

collaborative service. B) storebuilder service. C)

enhanced service. D)

commercial service. Answer: B

Diff: 2


56. 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)

hot

mirror

download

B)

C)

D)

backup

B

Answer:

Diff: 2


57. 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) enhanced service. C)

application service provider. D)

web hosting service. Answer: D

Diff: 2


58. 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)

using a storebuilder. B) ISP hosting.

self-hosting.

C)

D)

mirror hosting. Answer: C

Diff: 2


59. A hosting service that provides an independent, stand-alone website for small and medium-sized businesses best defines A)

ISP hosting service. B) voucher service. C)

collaborative service. D)

localized service. Answer: A

Diff: 2


60. The ________ is the name-based address that identifies an Internet-connected server. A)

IP address

B)

domain name C)

URL name

host name

B

D)

Answer:

Diff: 2


61. A hierarchical naming system for computers, services, or any resource participating in the Internet best defines A)

hierarchical structure. B) IP address.

C)

domain name system. D)

specific name system. Answer:

C

Diff: 2


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

content.

profile.

design.

metadata.

A

B)

C)

D)

Answer:

Diff: 1


63. 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)

organizational B) dynamic

C)

static

D)

functional

C

Answer:

Diff: 1


64. Offering similar or complementary products and services to increase sales best defines A)

up-selling.

B)

supplemental selling. C)

down-selling. D)

cross-selling. Answer: D

Diff: 1


65.

Creating content that offers upgraded or more expensive versions of the product is called A)

comment.

B)

cross-selling. C)

up-selling.

D)

promotion. Answer: C

Diff: 2


66. Reviews, testimonials, expert advice, or further explanation about the product are called A)

up-selling.

promotion.

B)

C)

cross-selling. D)

comment.

D Type: MC

Answer:

Diff: 2


67. 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)

syndication.

up-selling.

B)

C)

collaborative selling. D)

really simple syndication. Answer: A

Diff: 2


68. A form of syndication in which a section of a website is available for other sites to use best defines A)

third-party syndication. B) complex syndication. C)

Web syndication. D)

collaborative syndication. Answer: C

Diff: 2


69. A family of Web-feed formats used to publish frequently updated digital content best defines A)

Java.

B)

XML.

C)

RSS.

D)

HTML.

C

Answer:

Diff: 2


70. Secondary content that offers a coupon, rebate, or special service is called A)

cross-selling. B)

promotion.

up-selling.

comment.

B

C)

D)

Answer:

Diff: 1


71. 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)

e-delivery.

RSS.

C)

D)

customized view. Answer: A

Diff: 2


72. 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) scripting.

C)

content management. D)

e-editing.

C

Answer:

Diff: 1


73. 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) the messages sent to customers who contact the company are consistent. C)

customers are treated consistently when they contact customer service. D)

all visitors consistently find what they are looking for. Answer: A

Diff: 2 Type: MC Page Ref: 49-62 Objective:

74. The ________ is how Web pages are organized, labeled, and navigated to support browsing and searching. A)

Web layout

B)

information architecture C)

Web design

D)

Web site map Answer: B

Diff: 2


75. Aids that help visitors find the information they need quickly and easily best defines A)

site navigation. B) cookies.

C)

crumbs.

D)

keystroke logging. Answer: A

Diff: 2


76. The quality and usefulness of the user's experience when interacting with the website best defines A)

efficiency.

B)

credibility.

usability.

feasibility.

C

C)

D)

Answer:

Diff: 2


77. 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) fees are higher for online processing. C)

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

CNP transactions are less secure and riskier. Answer: D

Diff: 2


78. 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)

search engine optimization. D)

internal Web site promotion. Answer: D

Diff: 2

Type: MC Page Ref: 49-68

Objective:

79. Options for acquiring storefronts include each of the following except A)

build them from templates or storebuilders. B) build them from components. C)

build them from scratch. D)

join a mall. Answer: D

Diff: 1

Type: MC Page Ref: 49-69, 49-72 Objective:

80. ________ offers one of the most popular storefront packages with three levels of merchant solutions: starter, standard, and professional. A)

Amazon.com B) Google

eBay

C)

D)

Yahoo!

D

Answer:

Diff: 2


81. List and briefly describe the three steps that most new businesses go through. Answer: The steps are identify a consumer or business need in the marketplace, investigate the opportunity, and determine the business owner's ability to meet the need. Many businesses simply begin with a good idea about an innovative way to meet a need, even needs that are not yet recognized by customers. It is important to develop a business plan to determine the feasibility and viability of a business opportunity in the marketplace. Assuming that a realistic business opportunity exists, does the prospective business owner have the ability to convert the opportunity into success? Diff: 3

Type: ES Page Ref: 49-38 Objective:

82. List and briefly discuss funding options for a start-up online business. Answer: When the entrepreneur's personal funds are insufficient, the entrepreneur will go to friends, family members, or to angel investors or incubators. Incubators usually provide support services, whereas angel investors and venture capitalists provide funds for a prospective online business. The business and business owners usually benefit greatly from these arrangements, but the funding sources are scarce and competition for funds is stiff. Diff: 2

Type: ES Page Ref: 49-43, 49-44 Objective:

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

Answer: Storefronts, portals, and e-procurement are common ways to add EC initiatives. Adding an online sales channel is common in both B2C and B2B. The required investment is fairly low because storefront hosting is available from many vendors. Adding one or several types of corporate portals for external and/or internal collaboration and communication. is also common. Adding e-procurement capabilities requires extensive integration (both internally and externally), so an EC architecture must be in place. Additional EC initiatives are listed on page 15-11. Diff: 2


84. List Web site hosting options for an online business and explain why domain names are important. Answer: Storebuilder services, ISPs, dedicated Web site hosting services, and self-hosting give online business owners a range of options in deciding how and where to host the Web site. A well-chosen domain name is an "address for success," a way of making the site easy to find and remember. The domain name is important to developing a brand identity. Diff: 2


85. List eleven website design criteria. Answer: Website design criteria include navigation, consistency, response time, appearance, quality assurance, availability, interactivity, content, usability, security, and scalability. Diff: 2

Type: ES Page Ref: 49-62 Objective:

1. FALSE

2. TRUE

3. TRUE

4. TRUE

5. FALSE

6. TRUE

7. TRUE

8. FALSE

9. FALSE

10. TRUE

11. TRUE

12. FALSE

13. TRUE

14. FALSE

15. TRUE

16. TRUE

17. FALSE

18. FALSE

19. TRUE

20. TRUE

21.

TRUE

22. FALSE

23. TRUE

24. TRUE

25. TRUE

26. FALSE

27. TRUE

28. TRUE

29. TRUE

30. TRUE

31. TRUE

32. FALSE

33. FALSE

34. FALSE

35. FALSE

36. B

37. D

38. A

39. D

40. A

41. D

42. B

43. B

44. B

45. A

46. C

47. B

48. B

49. D

50. D

51. D

52. B

53. D

54. D

55. B

56. B

57. D

58. C

59. A

60. B

61. C

62.

A

63. C

64. D

65. C

66. D

67. A

68. C

69. C

70. B

71. A

72. C

73. A

74. B

75. A

76. C

77. D

78. D

79. D

80. D

81. The steps are identify a consumer or business need in the marketplace, investigate the opportunity, and determine the business owner's ability to meet the need. Many businesses simply begin with a good idea about an innovative way to meet a need, even needs that are not yet recognized by customers. It is important to develop a business plan to determine the feasibility and viability of a business opportunity in the marketplace. Assuming that a realistic business opportunity exists, does the prospective business owner have the ability to convert the opportunity into success?

82. When the entrepreneur's personal funds are insufficient, the entrepreneur will go to friends, family members, or to angel investors or incubators. Incubators usually provide support services, whereas angel investors and venture capitalists provide funds for a prospective online business. The business and business owners usually benefit greatly from these arrangements, but the funding sources are scarce and competition for funds is stiff.

83. Storefronts, portals, and e-procurement are common ways to add EC initiatives. Adding an online sales channel is common in both B2C and B2B. The required investment is fairly low because storefront hosting is available from many vendors. Adding one or several types of corporate portals for external and/or internal collaboration and communication. is also common. Adding e-procurement capabilities requires extensive integration (both internally and externally), so an EC architecture must be in place. Additional EC initiatives are listed on page 15-11.

84. Storebuilder services, ISPs, dedicated Web site hosting services, and self-hosting give online business owners a range of options in deciding how and where to host the Web site. A well-chosen domain name is an "address for success," a way of making the site easy to find and remember. The domain name is important to developing a brand identity.

85. Website design criteria include navigation, consistency, response time, appearance, quality assurance, availability, interactivity, content, usability, security, and scalability.

TIF_9780273761389_15

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