Question 1

Reliable Construction created a website to post photos of some of their completed projects and display their address and phone number, along with a list of the types of projects they can complete. Reliable has used the _____ model.

Accepted Answer

The information-based model is used to provide information about a company, such as contact details and services offered, without facilitating transactions or focusing on content or customer relationships.

Question 2

John created Acme Online to allow paper suppliers to compete for manufacturers' orders over the Internet in live auctions. This model would best be described as

Accepted Answer

The model described is Business-to-Business (B2B), as it involves suppliers competing for orders from manufacturers.

Question 3

Amazon and Best Buy are examples of _____ firms.

Accepted Answer

Both Amazon and Best Buy are primarily business-to-consumer (B2C) firms, as they sell products directly to individual customers.

Question 4

Hermione decided to create a website to complement her bricks-and-mortar store. Which of the following would most likely be her primary motive for doing so?

Accepted Answer

Creating a website would most likely be motivated by the desire to reach new customers outside of Hermione's local area.

Question 5

Jason has neither a website nor a storefront. Instead, he lists his products for sale on a site that provides customers with the ability to list products for potential builders. Jason is using a _____ site.

Accepted Answer

Jason is selling his products on a site that allows customers to list products, which means that he is selling to customers (C) rather than to other businesses (B). Since he is not a business himself, he cannot be using a B2B site. Additionally, since he is not buying products from customers, he cannot be using a C2B site. Therefore, the best choice is A) C2C, which stands for "customer to customer" and is used when customers buy and sell products to each other.

Question 6

ShoeBiz produces shoes that until recently have been available only at the most exclusive stores. ShoeBiz decided to create its own website and sell directly to the consumer. This strategy is known as

Accepted Answer

Disintermediation refers to the elimination of intermediaries or middlemen in the distribution channel. In this case, ShoeBiz has eliminated the retailer and is selling directly to the consumer through its own website.

Question 7

Annie is starting a photography business and locating it in her family home. Which of the following aspects is critical in the balance between her business and her family?

Accepted Answer

All of these aspects are critical in maintaining a balance between Annie's photography business and her family. It is important to ensure that family members understand the importance of presenting a professional image to clients, and to have a designated studio area that is separate from the family living space. Additionally, Annie should take steps to make sure that her business does not take over the home and that her family's privacy and comfort are respected.

Question 8

In the B2B model, the customers are

Accepted Answer

B2B stands for business-to-business, which means that the customers in this model are other businesses rather than individual consumers (B), franchisees (C), or auction participants (D).

Question 9

Garland uses the family room of his home for his business. The children share his computer for their homework and games. The family room also contains the TV and homework space for the children. The IRS is likely to disallow his deduction for this space because

Accepted Answer

To be eligible for a home office deduction, the space used for the business must be exclusively and regularly used for that purpose. Using a shared space such as a family room does not meet this requirement, as the room is not clearly devoted to the activities of the business.

Question 10

Rachel is starting a daycare at her home in a suburban area. Which of the following professionals should she contact first before starting?

Accepted Answer

Before starting any business, it's important to make sure that it's legally allowed and permitted by the city's regulations. Rachel should check with the city's planning and zoning board to see if she can run a daycare business in her home.

Question 11

An e-commerce operation can help a startup with early cash flow problems by

Accepted Answer

E-commerce can compress the sales cycle by allowing customers to purchase products online, which can help a startup with early cash flow problems by reducing the time it takes to receive payment for goods sold.

Question 12

Sites such as eBay and uBid.com derive most of their revenues from

Accepted Answer

eBay and uBid.com primarily make money through listing fees and commissions charged to sellers on their platforms. Banner ads may generate additional revenue, but are not their primary source of income. Corporate sponsors or investors may provide additional funding, but again, are not the primary revenue source.

Question 13

Juanita is considering locating her consulting business in her home. Which of the following might be her greatest challenge?

Accepted Answer

Maintaining a professional image may be Juanita's greatest challenge if she decides to locate her consulting business in her home. It can be difficult to separate personal life from business, and clients may have a harder time taking her seriously if her home office does not present a professional appearance.

Question 14

For small businesses, the Internet tends to blur ____ boundaries.

Accepted Answer

The Internet allows small businesses to expand their reach beyond their physical location, which blurs geographic boundaries. They can now sell products and services to customers across the world, which was previously a significant challenge without a physical presence in different locations. The other options do not accurately describe how the Internet affects small businesses.

Question 15

Which of the following is a challenge for a B2C e-commerce business?

Accepted Answer

Customers who refuse to purchase a product without first seeing it can be a challenge for a B2C e-commerce business as they cannot physically touch or see the product before buying it, which can lead to a lack of trust and potential decrease in sales.

Question 16

Jeff's Website Design and Data Storage deals directly with corporate customers online and builds websites and data storage to specifications after an order is placed. By reducing the firm's storage and carrying costs, this example illustrates that B2B firms can create

Accepted Answer

By dealing directly with corporate customers online and building to specifications after an order is placed, Jeff's Website Design and Data Storage reduces storage and carrying costs, illustrating greater efficiency in their buying and selling activities.

Question 17

A variation of the information-based model is sometimes called the _____ model.

Accepted Answer

The information-based model is sometimes referred to as the content-based model.

Question 18

How does e-commerce benefit small firms?

Accepted Answer

E-commerce enables small firms to reach a broader audience beyond their immediate geographical location, allowing them to compete in markets previously inaccessible due to physical and logistical constraints.

Question 19

E-commerce refers to

Accepted Answer

E-commerce specifically refers to the buying and selling of products or services over the Internet. While some e-commerce businesses may also have brick-and-mortar facilities, this is not a requirement. The facilitation of business by electronic means is a broad description that could apply to many different types of business transactions beyond just e-commerce. And while online trades and auctions can be a part of e-commerce, they do not encompass the full extent of the definition.

Question 20

The major difference between the information-based model and the content-based model is the

Accepted Answer

The answer of The major difference between the information-based model...

Quiz 9: The Location Plan