Question 1

Creating a competitive advantage,providing a benefit to society,and improving the company's image are examples of tangible benefits that might be realized from an EC project.

Accepted Answer

A) True 
 B)False

Question 2

Determining whether a website meets the original business objectives and vision best defines

Accepted Answer

A)  acceptance testing. 
B)  feasibility testing. 
C)  usability testing. 
D)  unit testing.

Question 3

In preparing the business case for EC investment,managers should examine the potential additional revenues,such as increased revenues via products or services from a larger global market because of more effective product marketing on the Web.

Accepted Answer

A) True 
 B)False

Question 4

Business process reengineering is the analysis and design of workflows and processes within an organization.

Accepted Answer

A) True 
 B)False

Question 5

Cannibalization occurs when a new EC initiative produces substantial online sales,but traditional sales fall such that no increase in total revenue occurs.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following advanced methods for EC justification and evaluation uses the idea of critical success factors and focuses on key organizational objectives and the potential impacts of the proposed EC project on each of them?

Accepted Answer

A)  benchmarks 
B)  management by maxim 
C)  performance dashboard 
D)  information economics

Question 7

In an NPV analysis,analysts convert future values of benefits to their present-value equivalents by discounting future cash flows at the risk-free rate set by the Federal Reserve Bank.

Accepted Answer

A) True 
 B)False

Question 8

Basic reasons companies invest in IT and EC include each of the following except

Accepted Answer

A)  improve business processes. 
B)  increase customer satisfaction and retention. 
C)  reduce time-to-market. 
D)  justify new marketing campaigns.

Question 9

Benefits of ownership that include both tangible and intangible costs best defines

Accepted Answer

A)  economic value of ownership. 
B)  NPV analysis. 
C)  benefit-to-cost analysis. 
D)  total benefits of ownership.

Question 10

The average-cost curves (AVC)of physical products and digital products

Accepted Answer

A)  are different because the AVC of digital products declines as quantity increases forming an L-shape, while the AVC of physical products is U-shaped. 
B)  are both U-shaped. 
C)  are both L-shaped. 
D)  are different because the AVC of physical products declines as quantity increases forming an L-shape, while the AVC of digital products is U-shaped.

Question 11

Cost-benefit analysis is frequently assessed by return on investment (ROI),which is also the name of a specific method for evaluating investments.

Accepted Answer

A) True 
 B)False

Question 12

Developing economies often face power blackouts,unreliable telecommunications infrastructure,undependable delivery mechanisms,and a relatively few customers who own computers and credit cards.These limitations can be overcome when predicting EC investment payoffs by using a combination of break-even analysis and NPV.

Accepted Answer

A) True 
 B)False

Question 13

McAfee allows users of its VirusScan virus-detection software to automatically update the latest security patches online.This is an example of ________ to attract customers who value this automatic update.

Accepted Answer

A)  competitive advantage 
B)  core competency 
C)  product or service differentiation 
D)  agility

Question 14

According to Gartner's hype cycle,which of the following stages is the point at which the technology becomes unfashionable and the media abandons the topic,because the topic did not live up to its inflated expectations?

Accepted Answer

A)  trough of disillusionment 
B)  slope of enlightenment 
C)  plateau of productivity 
D)  peak of inflated expectations

Question 15

Which of the following advanced methods for EC justification and evaluation uses a combination of brainstorming and consensus-reaching methodologies to determine how much a company should invest in large EC infrastructures?

Accepted Answer

A)  management by maxim 
B)  balanced scorecard 
C)  benchmarks 
D)  scoring methodologies

Question 16

A comparison of the costs of a project against the benefits best defines

Accepted Answer

A)  IRR. 
B)  benefits metric. 
C)  cost-benefit analysis. 
D)  feasibility justification.

Question 17

Each of the following is a critical success factor (CSF)of the Old Economy except

Accepted Answer

A)  deliver high-value products. 
B)  compete to sell product. 
C)  build market share to get economies of scale. 
D)  create new partnerships, stay with core competency.

Question 18

The major steps in the process of justifying large-scale EC and IT projects include each of the following except

Accepted Answer

A)  lay an appropriate foundation for analysis with your vendor, and then conduct your ROI. 
B)  document and verify all figures used in the calculation. Clarify all assumptions. 
C)  do not leave out strategic benefits, including long-term ones. 
D)  be careful not to overestimate cost and underestimate benefits (a tendency of many managers).

Question 19

Each of the following apply to EC in developing economies except

Accepted Answer

A)  developing economies often face power blackouts and unreliable infrastructure and delivery mechanisms creating limitations that make it difficult for firms to predict whether EC investments will pay off, and when. 
B)  developing economies, such as China and India, represent a significant opportunity for EC to connect businesses to customers, as well as other businesses. 
C)  developing economies struggle with various issues that create too many business and technology risks to justify investment in those economies at this time. 
D)  the potential volume of transactions in developed countries can make EC investments more attractive for established firms than new firms because established firms have already recovered the costs of their IT infrastructures.

Question 20

In B2C,an example of a tangible EC metric from the buyer's perspective is

Accepted Answer

A)  ease of use of EC. 
B)  convenience in purchasing. 
C)  profit per customer. 
D)  cost/price of the product.

Exam 13: Implementing EC Systems: From Justification to Successful Performance

Creating a competitive advantage,providing a benefit to society,and improving the company's image are examples of tangible benefits that might be realized from an EC project.

Determining whether a website meets the original business objectives and vision best defines

In preparing the business case for EC investment,managers should examine the potential additional revenues,such as increased revenues via products or services from a larger global market because of more effective product marketing on the Web.

Business process reengineering is the analysis and design of workflows and processes within an organization.

Cannibalization occurs when a new EC initiative produces substantial online sales,but traditional sales fall such that no increase in total revenue occurs.

Which of the following advanced methods for EC justification and evaluation uses the idea of critical success factors and focuses on key organizational objectives and the potential impacts of the proposed EC project on each of them?

In an NPV analysis,analysts convert future values of benefits to their present-value equivalents by discounting future cash flows at the risk-free rate set by the Federal Reserve Bank.

Basic reasons companies invest in IT and EC include each of the following except

Benefits of ownership that include both tangible and intangible costs best defines

The average-cost curves (AVC) of physical products and digital products

Cost-benefit analysis is frequently assessed by return on investment (ROI),which is also the name of a specific method for evaluating investments.

McAfee allows users of its VirusScan virus-detection software to automatically update the latest security patches online.This is an example of ________ to attract customers who value this automatic update.

According to Gartner's hype cycle,which of the following stages is the point at which the technology becomes unfashionable and the media abandons the topic,because the topic did not live up to its inflated expectations?

Which of the following advanced methods for EC justification and evaluation uses a combination of brainstorming and consensus-reaching methodologies to determine how much a company should invest in large EC infrastructures?

A comparison of the costs of a project against the benefits best defines

Each of the following is a critical success factor (CSF) of the Old Economy except

The major steps in the process of justifying large-scale EC and IT projects include each of the following except

Each of the following apply to EC in developing economies except

In B2C,an example of a tangible EC metric from the buyer's perspective is