Deck 15: Launching a Successful Online Business and Ec Projects

Question 1

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 1

True

Question 2

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

Answer 2

False

Question 3

Unlike the brick-and-mortar marketplace,the failure rate for online companies is low.

Answer 3

False

Question 4

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

Question 5

Once the company is well known and successful,it can go to a stock exchange to raise money via an initial public offer (IPO).

Question 6

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.

Question 7

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.

Question 8

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

Question 9

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.

Question 10

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.

Question 11

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

Question 12

Up-to-the-minute dynamic content is what attracts new and returning customers ("eyeballs")and makes them stay longer ("stickiness"),which builds customer loyalty.

Question 13

Amazon.com offers personalize content by tracking visitors' behavior via cookies,which is used to generate dynamic Web pages that recommend products based on previous purchases and recently viewed items.Amazon.com offers this personalized content because it is very inexpensive.

Question 14

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

Question 15

To create successful entrepreneurial ventures in EC,Maier suggests that starting small with many founders is the best option.

Question 16

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

Question 17

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.

Question 18

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.

Question 19

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.

Question 20

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

Question 21

In an organizational transformation:

A)there are incremental changes to the ways 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.

Question 22

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

A)informational
B)interactive
C)transactional
D)dynamic

Question 23

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 isn't presently being met.

Question 24

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

A)angel
B)entrepreneur
C)incubator
D)venture capitalist

Question 25

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.

Question 26

The key difference between an e-business plan and a traditional business plan is that the entrepreneur must:

A)understand all aspects of the technology required to implement the plan.
B)understand that the Internet is a unique sales channel.
C)understand that traditional rules do not apply when doing business on the Internet.
D)develop a ten-year plan.

Question 27

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

Question 28

A(n)________ site is an exact duplicate of the original Web site physically located on a Web server on another continent.

A)backup
B)mirror
C)download
D)hot

Question 29

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.

Question 30

________ 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

Question 31

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

Question 32

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.

Question 33

The difference between a business plan and a business case is that:

A)business cases are brief and general,while business plans are long and detailed.
B)a business case is a part of every business plan.
C)all businesses need a business case,but not a business plan.
D)all businesses should have a business plan,but only businesses planning a new major EC or IT initiative should develop a business case.

Question 34

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.

Question 35

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

Question 36

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.

Question 37

Web designers execute successful site navigation through consistency and through navigation aids such as a navigation bar,a navigation column,a site map,and search tools.

Question 38

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.

Question 39

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.

Question 40

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

Question 41

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.

Question 42

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

Question 43

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

Question 44

One of the first decisions to be made in building a Web site is:

A)the domain name.
B)whether to provide personalized content.
C)how to protect the Web site from hackers.
D)who will host it.

Question 45

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.

Question 46

A ________ is a written document that identifies a company's goals and outlines how the company intends to achieve those goals and at what cost.

Question 47

________ is money invested in a business by an individual,a group of individuals (venture capitalists),or a funding company in exchange for equity in the business.

Question 48

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

A)Google
B)Amazon.com
C)eBay
D)Yahoo!

Question 49

A ________ is a document that justifies the investment of internal,organizational resources in a specific application or project.

Question 50

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

A)domain name
B)IP address
C)host name
D)URL name

Question 51

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

A)up-selling.
B)comment.
C)cross-selling.
D)promotion.

Question 52

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

Question 53

Content not available anywhere else on the Web is called:

A)reserved content.
B)commodity content.
C)premium content.
D)restricted content.

Question 54

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

A)up-selling.
B)comment.
C)cross-selling.
D)promotion.

Question 55

All of the following are potential advantages of building Web sites internally except:

A)It allows the company to use in-house expertise.
B)It allows the company to protect proprietary technology.
C)It provides the fastest speed to market.
D)It allows the company to exert greater control on the process and the resulting site.

Question 56

Before choosing the appropriate Web site development option,you need to consider all of the following issues in order to generate a list of requirements and capabilities except:

A)Who are the target customers?
B)What kinds of products or services will the business sell online?
C)Can customers place orders online?
D)What might be the reaction of competitors?

Question 57

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

Question 58

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

A)up-selling.
B)comment.
C)cross-selling.
D)promotion.

Question 59

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

Question 60

Options for acquiring storefronts include all 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

Question 61

A(n)________ is an exact duplicate of an original Web site that is physically located on a Web server on another continent or in another country.

Question 62

Using content for ________ means offering similar or complementary products and services to increase sales.

Question 63

Creating content for ________ means offering an upgraded version of the product in order to boost sales and profit.

Question 64

Web site features that attract and interact with visitors in the target stakeholder group are celled ________.

Question 65

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

Question 66

A Web site that sells products and services and typically includes information and interactive features is a(n)________.

Question 67

A(n)________ is a dedicated Web site hosting company that offers a wide range of hosting services and functionality to businesses of all sizes.

Question 68

A(n)________ is a name-based address that identifies an Internet-connected server and usually refers to the portion of the address to the left of .com,.org,etc.

Question 69

A Web site's ________ determines how a site organizes,labels,and navigates its Web pages to support browsing and searching.

Question 70

Once the company is well known and successful,it will go to a stock exchange to raise money via a(n)________.

Question 71

________ provide an independent,stand-alone Web site for small and medium-sized businesses.

Question 72

________ is the application of strategies intended to position a Web site at the top of Web search engines such as Google.

Question 73

A(n)________ is a name-based address that identifies an Internet-connected server.

Question 74

A card-not-present transaction is a credit card transaction in which the merchant does not verify the ________.

Question 75

A(n)________ is a simple text message an e-mail program automatically adds to outgoing messages.

Question 76

When a business acquires the hardware,software,staff,and dedicated telecommunications services necessary to set up and manage its own Web site,it is called ________.

Question 77

A(n)________ provides Web hosting as well as storage space,templates for the structure,and other services to help small businesses build a Web site quickly and inexpensively.

Question 78

The term ________ refers to activities performed by businesses to improve their processes.

Question 79

A(n)________ is a Web site that provides opportunities for the customers and the business to communicate and share information.

Question 80

________ involves the sale of the same good to many customers,who then integrate it with other offerings and resell it or give it away for free.