Deck 12: Launching a Successful Online Business and EC Projects

Question 1

The first step in creating a new company or adding an online project is to identify a consumer or business need in the marketplace.

Answer 1

True

Question 2

An existing brick-and-mortar business looking to move online needs a business case.

Answer 2

True

Question 3

Losing control over the business is a serious downside for start-up businesses that acquire venture capital.

Answer 3

False

Question 4

Web hosting services are the prime choice of small and sometimes medium-size businesses.

Question 5

Lower cost and construction speed are two advantages of self-hosting a Web site.

Question 6

E-newsletters are not an effective strategy for delivering content of interest to potential customers.

Question 7

Content creation and management for a large EC site can be slow and expensive.

Question 8

A well-developed Web site not only adds to the value of products and services being offered, but it also enhances the worth of the company.

Question 9

Most EC applications are built with hardware, software, hosting services, and development expertise provided by outside vendors.

Question 10

Which of the following is true regarding a second round of financing?

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 11

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 today and its management team. This is an example of adding

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

Question 12

In 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 13

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 14

Factors determining usability include

A) ease of learning.
B) efficiency of use.
C) memorability.
D) all of the above.

Question 15

Each of the following dictates what functionality a Webstore should have and how a Web site should be developed except the

A) budget.
B) product line.
C) business type.
D) competition.

Question 16

Major steps needed to develop a typical e-commerce application include each of the following except

A) operation, maintenance, and updating.
B) vendor selection, contract negotiation, and monitoring.
C) testing, installation, and integration.
D) project identification, justification, and planning.

Question 17

A plan for organizing the underlying infrastructure and applications of a site best describes

A) EC architecture.
B) IT infrastructure.
C) business plan.
D) IT architecture.

Question 18

Insourcing

A) is a method of transferring the management and/or day-to-day execution of an entire business function to a third-party service provider.
B) is a class of systems that integrates large systems.
C) connects people, data, and diverse systems.
D) is the in-house development of applications.

Question 19

Basic options for developing an EC Web site include each of the following except

A) clone a competitor's Web site.
B) develop the site in-house.
C) buy a packaged application.
D) lease the application.

Question 20

Advantages for using the off-the-shelf approach as an EC development strategy include each of the following except:

A) It saves time and money.
B) Off-the-shelf applications integrate easily with existing systems.
C) The price is usually much lower than the in-house option.
D) The company knows what it is getting before it invests in the product.

Question 21

Disadvantages for using the off-the-shelf approach as an EC development strategy include:

A) Limited off-the-shelf software packages are available.
B) The company must hire programmers specifically dedicated to an EC project.
C) Software may not exactly meet the company's needs.
D) The vendor rarely updates the software.

Question 22

Outsourcing options for creating and operating EC applications include

A) software houses, such as IBM.
B) outsourcers, such as EDS.
C) telecommunications companies, such as MCI.
D) all of the above.

Question 23

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 24

The process of selecting a software vendor and EC package includes each of the following except

A) establish a service-level agreement.
B) determine the evaluation criteria.
C) evaluate vendors and packages.
D) close vendor contract.

Question 25

A service level agreement is a

A) formal agreement regarding the division of work between a company and a vendor.
B) written document that identifies a company's goals and outlines how the company intends to achieve the goals and at what costs.
C) document that justifies the investment of internal, organizational resources in a specific application or project.
D) plan for organizing the underlying infrastructure and applications of a Web site.

Question 26

A ________ Web site sells products and services.

Question 27

A ________ Web site allows business partners to collaborate.

Question 28

A ________ provides disk space and services to help small and microbusinesses build a Web site quickly and cheaply.

Question 29

________ refers to connecting people, data, and diverse systems; the term can be defined in a technical way or in a broad way, taking into account social, political, and organizational factors.

Question 30

A formal agreement regarding the division of work between a company and a vendor defines ________.

Question 31

Identify six ways an EC initiative is added to an existing business.

Question 32

Describe four Web site classifications.

Question 33

Define EC architecture. What does it specify?