Deck 15: Launching a Successful Online Business and EC Projects

Question 1

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

Answer 1

False

Question 2

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 2

True

Question 3

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

Answer 3

True

Question 4

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 5

An e-business transformation is solely about technology.

Question 6

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

Question 7

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

Question 8

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 9

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 10

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

Question 11

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 12

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

Question 13

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

Question 14

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 15

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

Question 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.

Question 17

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 18

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

Question 19

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.

Question 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.

Question 21

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.

Question 22

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

Question 23

Circular is the most common site structure.

Question 24

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

Question 25

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

Question 26

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) project plan.
B) business objectives.
C) business mission.
D) business plan.

Question 27

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 28

The simplest navigation aid is the navigation bar.

Question 29

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

Question 30

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 31

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

Question 32

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

Question 33

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 34

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.

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 most common EC project on the Internet is the information portal.

Question 37

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.

Question 38

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

Question 39

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

Question 40

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.

Question 41

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 42

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.

Question 43

A site that allows business partners to collaborate best defines

A) collaborative website.
B) transactional website.
C) attractive website.
D) social website.

Question 44

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 45

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 46

________ 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 47

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.

Question 48

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 49

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.

Question 50

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.

Question 51

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

Question 52

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 53

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 54

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.

Question 55

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.

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

Question 57

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.

Question 58

A website that sells products and services best describes

A) commercial website.
B) collaborative website.
C) social-oriented website.
D) transactional website.

Question 59

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.

Question 60

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 61

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 62

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.

Question 63

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 64

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 65

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.

Question 66

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.

Question 67

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.

Question 68

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 69

________ 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!

Question 70

The text,images,sound,and video that make up a Web page best defines

A) metadata.
B) profile.
C) design.
D) content.

Question 71

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

A) credibility.
B) feasibility.
C) usability.
D) efficiency.

Question 72

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

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

Question 73

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.

Question 74

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 75

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

A) RSS.
B) HTML.
C) Java.
D) XML.

Question 76

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

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

Question 77

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 78

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.

Question 79

Offering similar or complementary products and services to increase sales best defines

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

Question 80

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

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