Deck 14: Ecommerce and Small Business

Question 1

Information available on the internet can be used for all the following except:

A) evaluate the competition.
B) better understand the industry.
C) research tax and other issues.
D) monitor governmental programs and services.
E) offering human contact

Answer 1

offering human contact

Question 2

Which of the following is a challenge to ecommerce for small businesses?

A) organizational
B) financial
C) operational
D) technological
E) all of the above

Answer 2

all of the above

Question 3

Businesses must consider which of the following when implementing a website?

A) outsourcing
B) website hosting
C) transaction processing
D) security
E) all of the above

Answer 3

all of the above

Question 4

Which of the following is a benefit of developing a small-business estrategy?

A) less need for "traditional" marketing
B) improved accounting practices
C) increased competition
D) improved customer responsiveness
E) lowered staff expenses

Question 5

Small businesses can connect to the internet through ________.

A) ADSL
B) cable
C) dial-up
D) satellite
E) all of the above

Question 6

Small businesses usually require a _____ account to be able to accept credit card payments online:

A) discount
B) holdback
C) merchant
D) bank
E) chequing

Question 7

Building an ecommerce presence includes all of the following except:

A) getting hosted
B) trading exchanges or marketplaces
C) payment processing
D) marketing/training
E) hiring staff

Question 8

The difficulty often experienced by small business in going into ecommerce is primarily:

A) the result of not having enough money.
B) the result of not having a programmer.
C) the lack of computing power in the firm.
D) the lack of a proper strategy.
E) none of the above

Question 9

All of the following are opportunities for small businesses in the online world except:

A) gathering valuable market intelligence
B) reaching customers outside their geographic region
C) efficiently trading with other businesses
D) providing customer support easily and efficiently
E) improved currency exchange rates from banks

Question 10

Which of the following factors is a challenge that contributes to the slow development of ecommerce in the small business sector?

A) financial
B) strategic
C) environmental
D) ethical
E) personal

Question 11

A small business that has limited technological experience internally should consider the following:

A) avoiding ecommerce at all costs
B) hiring an expert programmer
C) developing an estrategy and selectively outsourcing
D) ensuring that all systems are electronic before proceeding
E) developing a brochure website

Question 12

_____ is the amount that credit card companies keep in escrow to reduce the risk of bad debts and fraudulent credit card use:

A) float
B) holdback
C) discount rate
D) collateral
E) interest

Question 13

In developing an online selling strategy small ebusinesses must build an online presence. This should be done as follows:

A) hire a consultant, register a few websites, list contact information
B) decide on a strategy, build/outsource a site, market and evaluate
C) copy an existing site of a competitor and make modifications
D) build a website, get a 1-800 number and close the bricks store
E) none of the above

Question 14

Soon after the ecommerce era started, larger organizations and many high-growth firms have shifted their focus from the _____ market to the _____ market.

A) B2B, B2C
B) B2C, B2B
C) B2B, B2E
D) B2B, B2G
E) B2E, B2G

Question 15

One factor that makes the internet so valuable to small businesses is:

A) it provides a free channel for marketing products.
B) every online business makes great profits.
C) it can enable 24/7 customer support.
D) the public feels security of on line credit transactions.
E) increased human contact.

Question 16

Which of the following would be considered an opportunity for ecommerce in small businesses?

A) access to new markets
B) bricks and mortar operations are no longer required
C) more valuable data is generated
D) a 1-800 number is no longer necessary
E) all of the above

Question 17

Which of the following is feasible for the ebusiness operations of a small business?

A) sales transactions
B) market intelligence
C) public relations
D) customer support
E) all of the above

Question 18

The concept of outsourcing in the small business environment is ________.

A) favourable
B) unfavourable
C) very safe
D) cheap
E) high risk

Question 19

All of the following barriers have contributed to ecommerce in Canada developing slower than other countries such as the U.S. except:

A) technology
B) financial
C) organizational
D) operation
E) economic

Question 20

Which of following is a marketing aspect of the internet?

A) access to new markets
B) less need for customer service
C) internet marketing makes "traditional" marketing obsolete
D) increased marketing costs
E) all of the above

Question 21

One of the key reasons that the internet is valuable to small businesses for customer support is the availability of the frequently asked questions page on many business websites.

Question 22

Small businesses use the internet to reduce marketing costs.

Question 23

The first step in becoming involved in ecommerce for small businesses that are not connected to internet is to establish an internet connection. If already connected the first step will be selecting and registering a domain name.

Question 24

Companies with no history in catalogue sales will have an easier transition to online sales than companies with experience in the area.

Question 25

The first step for any small business that wishes to become involved in ecommerce is to establish an internet connection.

Question 26

The banks' response to the pressure from small businesses and other lobby groups has since led to major improvements in merchant accounts which allow internet transactions with little or no required holding amounts.

Question 27

The small business sector in Canada has been quick to adopt ecommerce and the use of the internet with the growth of online commerce.

Question 28

The growth of the B2C market in Canada had been ________ than anticipated.

A) better
B) more efficient
C) more profitable
D) faster
E) slower

Question 29

Emailing press releases to the media, getting their message out on social networking sites, and including testimonials from well-known community members on a company website are all examples of using the internet for improving ________.

A) public relations
B) customer relationship management
C) market intelligence
D) employee retention and morale
E) media campaigns

Question 30

The introduction of a B2C ecommerce website by a manufacturing company requires a complete change in the fulfillment and shipping area of the firm. These changes may lead to employee dissatisfaction and result in poor performance in the traditional and new market or both. These changes would be categorized as:

A) organizational challenges
B) financial challenges
C) operational challenges
D) technological challenges
E) personnel challenges

Question 31

_____ is the amount that the merchant account provider takes as a percentage of sales conducted through credit cards.

A) holdback
B) discount rate
C) credit card premium
D) security rate
E) credit line of defense

Question 32

The introduction of change into a small organization is much more likely to be accepted if the ________ is the leader of the change.

A) information technology officer
B) manager
C) owner
D) CEO
E) employee

Question 33

As with the use of any external sources, it is important that online information be evaluated in terms of:

A) price to purchase, timing, and testimonials
B) validity of the source, timeliness, and accuracy
C) length, organization of content, and timelines
D) security of the site, privacy policy, and benefits
E) reach across markets, scope, and endorsements

Question 34

Trading exchanges are an important medium that small businesses can use to have their products listed along with those of small and large competitors.

Question 35

The important features for small businesses to consider in selecting a payment-processing system are ease of integration, currency, and ________.

A) holdback
B) discount rate
C) training
D) security
E) privacy

Question 36

According to the textbook, marketing and training are part of the _____ stage in the staged approach of building an ecommerce presence.

A) first
B) second
C) third
D) fourth
E) fifth

Question 37

The potential for online sales does not depend on the industry in which the business operates.

Question 38

What does ADSL (a form of internet connection) stand for?

A) American Digital System Line
B) Available Digital Super Line
C) Asymmetrical Digital Subscriber Line
D) Assimilation Digital System Language
E) none of the above

Question 39

The shift of larger firms from B2C to B2B as a result of the dot-com bubble may provide an opportunity for small Canadian businesses to retail their goods on the internet.

Question 40

One of the easiest cost savings to small businesses due to email and VoIP-based services such as Skype is:

A) reduced long-distance telephone charges.
B) reduced headcount and employee payroll.
C) less expensive credit card processing.
D) better inventory management.
E) aggregated purchasing to achieve volume discounts.

Question 41

List the four major challenges to ecommerce for small businesses as discussed in this chapter and give at least one example for each.

Question 42

Describe the two basic ways in which small businesses can use to go into ebusiness.

Question 43

A switch in web hosting is as easy as switching the ISP that provides access to the internet.

Question 44

Explain why companies that have operated previously in catalogue-sales operations have an easier transition to online sales than those who have no history in the area.

Question 45

While initially B2C was held up by the limited availability of the internet to many people, as well as security concerns, these issues have largely been overcome.

Question 46

List three benefits of utilizing application service providers (ASPs).

Question 47

Name five opportunities for ecommerce use in small businesses.

Question 48

What is name of a website page that is used as a popular tool to reduce phone queries for routine questions?

Question 49

The selection of a domain name is extremely important. Explain.

Question 50

List five uses of the internet for small business marketing efforts.