MGMT 3850 CHAPTER 9
HOMEWORK QUESTION AND
ANSWERS
Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough)
Chapter 9 E-Commerce and the Entrepreneur
1) One of the most valuable attributes of the Web is the ability to:
A) provide companies with instantaneous customer feedback.
B) enable the site to create an appearance that the organization is able to meet customer needs
that, in fact, are not possible based on its actual resources.
C) eliminate advertising expenses and the amount of printed materials needed to facilitate
promotional efforts.
D) encourage the use of credit cards as a means of paying for the online transaction.
Answer: A
Diff: 2 Page Ref: 316
AACSB: Use of IT
Learning Obj.: 1
2) Experts estimate that nearly ________ of the world's online population has used the Internet to
make a purchase.
A) 46 percent
B) 66 percent
C) 84 percent
D) 96 percent
Answer: C
Diff: 2 Page Ref: 317
AACSB: Use of IT
Learning Obj.: 1
3) A study by the Pew Internet and American Life Project reports that ________ percent of
Americans research products and services online before buying them, an increase of ________
percent in the year 2000.
A) 40; 15
B) 40; 35
C) 60 ;15
D) 60; 35
Answer: D
Diff: 3 Page Ref: 316
AACSB: Analytic Skills
Learning Obj.: 1
4) An estimated ________ percent of small business owners in the U.S. have Web sites.
A) 25 percent
1
,B) 64 percent
C) 75 percent
D) 85 percent
Answer: B
Diff: 3 Page Ref: 317
AACSB: Use of IT
Learning Obj.: 1
5) The Internet penetration rate is greatest in North America with 78.3% and the second region
of the world in penetration is:
A) Oceania/Australia.
B) Europe.
C) Latin America/Caribbean.
D) Middle East.
Answer: A
Diff: 3 Page Ref: 318, Table 9.2
AACSB: Analytic Skills
Learning Obj.: 1
6) Which of the following is an important issue that business owners should consider before
launching an e-commerce effort?
A) How to develop long-term relationships with customers
B) How to exploit the interconnectivity and the opportunities it creates to transform relationships
with its suppliers, customers, and external stakeholders
C) How to measure the success of its Web-based sales effort
D) All of the above
Answer: D
Diff: 1 Page Ref: 317-319
AACSB: Analytic Skills
Learning Obj.: 1
7) All of the following represent benefits of selling on the Web except:
A) opportunity to increase revenues.
B) power to educate and inform.
C) ability to remain open 24 hours a day.
D) ability to advertise in a cheaper media form.
Answer: D
Diff: 2 Page Ref: 318
AACSB: Reflective Thinking
Learning Obj.: 1
8) To avoid unpleasant surprises in launching an e-commerce effort an entrepreneur should:
A) test the Web site with real customers to make sure it is easy to navigate.
B) avoid being talked into establishing a privacy policy.
C) cancel all current advertisements in other media.
D) not try to out-guess customers, and handle order fulfillment as orders come in.
Answer: A
2
,Diff: 2 Page Ref: 346
AACSB: Use of IT
Learning Obj.: 4
3
, 9) The Web is one of the most efficient ways of reaching both new and existing customers and
when properly promoted, a Web site can:
A) reduce a company's cost of generating sales leads.
B) be an affordable way to reach customers beyond your geographic area.
C) provide an efficient method to provide information about a company and their products.
D) All of the above
Answer: D
Diff: 1 Page Ref: 333, Table 9.1
AACSB: Reflective Thinking
Learning Obj.: 3
10) Entrepreneurs should make sure they do not fall victim to any of the e-commerce myths.
Which of the following is not an e-commerce myth?
A) Setting up a business on the Web is easy and inexpensive.
B) If I launch a site, customers will flock to it.
C) Making money on the Web is easy.
D) Privacy and site security is an important issue on the Web.
Answer: D
Diff: 1 Page Ref: 318-328
AACSB: Analytic Skills
Learning Obj.: 2
11) To be successful online, small companies must create Web sites with features that appeal to
experienced Web shoppers, such as:
A) simple navigation and customer reviews.
B) solid security and quick access to product information.
C) videos and blogs.
D) The successful Web site will include all the above.
Answer: D
Diff: 2 Page Ref: 319, Myth 1
AACSB: Use of IT
Learning Obj.: 2
12) The intentional and targeted promotion of a Web site is:
A) critical to online success.
B) optional because once you are on the Web, you will get traffic and sales.
C) a luxury that most small businesses can not afford.
D) contrary to current Web trends.
Answer: A
Diff: 2 Page Ref: 321, Myth 2
AACSB: Use of IT
Learning Obj.: 2
4
HOMEWORK QUESTION AND
ANSWERS
Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough)
Chapter 9 E-Commerce and the Entrepreneur
1) One of the most valuable attributes of the Web is the ability to:
A) provide companies with instantaneous customer feedback.
B) enable the site to create an appearance that the organization is able to meet customer needs
that, in fact, are not possible based on its actual resources.
C) eliminate advertising expenses and the amount of printed materials needed to facilitate
promotional efforts.
D) encourage the use of credit cards as a means of paying for the online transaction.
Answer: A
Diff: 2 Page Ref: 316
AACSB: Use of IT
Learning Obj.: 1
2) Experts estimate that nearly ________ of the world's online population has used the Internet to
make a purchase.
A) 46 percent
B) 66 percent
C) 84 percent
D) 96 percent
Answer: C
Diff: 2 Page Ref: 317
AACSB: Use of IT
Learning Obj.: 1
3) A study by the Pew Internet and American Life Project reports that ________ percent of
Americans research products and services online before buying them, an increase of ________
percent in the year 2000.
A) 40; 15
B) 40; 35
C) 60 ;15
D) 60; 35
Answer: D
Diff: 3 Page Ref: 316
AACSB: Analytic Skills
Learning Obj.: 1
4) An estimated ________ percent of small business owners in the U.S. have Web sites.
A) 25 percent
1
,B) 64 percent
C) 75 percent
D) 85 percent
Answer: B
Diff: 3 Page Ref: 317
AACSB: Use of IT
Learning Obj.: 1
5) The Internet penetration rate is greatest in North America with 78.3% and the second region
of the world in penetration is:
A) Oceania/Australia.
B) Europe.
C) Latin America/Caribbean.
D) Middle East.
Answer: A
Diff: 3 Page Ref: 318, Table 9.2
AACSB: Analytic Skills
Learning Obj.: 1
6) Which of the following is an important issue that business owners should consider before
launching an e-commerce effort?
A) How to develop long-term relationships with customers
B) How to exploit the interconnectivity and the opportunities it creates to transform relationships
with its suppliers, customers, and external stakeholders
C) How to measure the success of its Web-based sales effort
D) All of the above
Answer: D
Diff: 1 Page Ref: 317-319
AACSB: Analytic Skills
Learning Obj.: 1
7) All of the following represent benefits of selling on the Web except:
A) opportunity to increase revenues.
B) power to educate and inform.
C) ability to remain open 24 hours a day.
D) ability to advertise in a cheaper media form.
Answer: D
Diff: 2 Page Ref: 318
AACSB: Reflective Thinking
Learning Obj.: 1
8) To avoid unpleasant surprises in launching an e-commerce effort an entrepreneur should:
A) test the Web site with real customers to make sure it is easy to navigate.
B) avoid being talked into establishing a privacy policy.
C) cancel all current advertisements in other media.
D) not try to out-guess customers, and handle order fulfillment as orders come in.
Answer: A
2
,Diff: 2 Page Ref: 346
AACSB: Use of IT
Learning Obj.: 4
3
, 9) The Web is one of the most efficient ways of reaching both new and existing customers and
when properly promoted, a Web site can:
A) reduce a company's cost of generating sales leads.
B) be an affordable way to reach customers beyond your geographic area.
C) provide an efficient method to provide information about a company and their products.
D) All of the above
Answer: D
Diff: 1 Page Ref: 333, Table 9.1
AACSB: Reflective Thinking
Learning Obj.: 3
10) Entrepreneurs should make sure they do not fall victim to any of the e-commerce myths.
Which of the following is not an e-commerce myth?
A) Setting up a business on the Web is easy and inexpensive.
B) If I launch a site, customers will flock to it.
C) Making money on the Web is easy.
D) Privacy and site security is an important issue on the Web.
Answer: D
Diff: 1 Page Ref: 318-328
AACSB: Analytic Skills
Learning Obj.: 2
11) To be successful online, small companies must create Web sites with features that appeal to
experienced Web shoppers, such as:
A) simple navigation and customer reviews.
B) solid security and quick access to product information.
C) videos and blogs.
D) The successful Web site will include all the above.
Answer: D
Diff: 2 Page Ref: 319, Myth 1
AACSB: Use of IT
Learning Obj.: 2
12) The intentional and targeted promotion of a Web site is:
A) critical to online success.
B) optional because once you are on the Web, you will get traffic and sales.
C) a luxury that most small businesses can not afford.
D) contrary to current Web trends.
Answer: A
Diff: 2 Page Ref: 321, Myth 2
AACSB: Use of IT
Learning Obj.: 2
4
