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business
introduction e-business management

Questions and Answers of Introduction E-Business Management

Teamwork Assume you are the credit manager of a major retail store.A customer of several years, who has an excellent credit background, now has a $4,600 unpaid balance. The customer has made no
If you owned a restaurant in your community how would you try to identify noninsurable risks that might have a negative effect on the business? Identify several things that are more likely to have a
Although the use of credit usually leads to increased sales for retailers, when could credit sales actually lead to decreased profits? What can business owners and managers do to reduce that
Identify several possible future uses for smart cards: (a) for financial transactions, (b) for other personal uses, (c) for other business uses.What problems do you anticipate might result for the
Based on the Reality Check scenario at the beginning of the chapter, what types of business insurance would you recommend for Sandra?Divide your recommendations into three categories: (a) must
Which of the following is not a fact on which the concept of insurance is based?a. It is difficult for a business to predict whether it will have specific losses or the amount of those losses.b. Many
Businesses use aging of accounts toa. study the effectiveness of accounts receivable collectionb. determine which accounts payable to pay firstc. decide when equipment needs to be replacedd. send
Which of the following is an objective managers try to meet when establishing credit procedures?a. Give customers extra time to pay if they request it.b. Immediately drop customers who cannot meet
To determine the creditworthiness of people or organizations, businesses apply thea. four Cs of creditb. 80/20 rulec. “keep it simple” policyd. minimum approval rate standard
_____ cards are used by businesses for computer security, in cable and satellite television receivers, and in cell phones.a. Creditb. Debitc. Affinityd. Smart
A person using revolving credit is approved toa. make charges at any timeb. charge less than the approved amountc. pay off the full amount by the end of the billing period without a finance charged.
Which of the following would not be an efficient way for a business to accept all major credit cards?a. Work with each major company to establish a credit account.b. Seek a merchant account
Credit cards associated with specific organizations and offered to people affiliated with those organizations
Clearinghouse for information on the creditworthiness of individuals or businesses
Insurance plan in which each insurance company must pay the losses of its insured when an accident occurs, regardless of who was responsible for the accident
Risk management tool that limits financial loss from uncontrollable events in exchange for regular payments
Private company that acts as an intermediary between a business and credit card companies to establish and maintain credit services
Insurance that protects against losses from injury to people or their property that result from a business’s products, services, or operations
Possible financial loss that a policyholder will suffer if the property is damaged or destroyed
Persons who represent the insurance company and sell insurance to individuals and businesses
Credit plan in which customer agrees to make a stated number of payments over a fixed period of time at a specified interest rate
Measure of a credit applicant’s current financial worth or ability to pay based on assets
Writing Join other students to write a report about any trouble group members have had with losing data and files from school or home computers on or off the Internet. Present the report to your
Technology Trina Jones is considering purchasing cellular phone PDAs for her employees. She wants to determine the yearly cost for each type of PDA. PDA 1 costs $300 and has a monthly charge of $65.
Research Using a library or the Internet, find information about a specific ergonomic problem related to working with electronic equipment, such as one related to radiation from computer equipment,
Math Deborah and Kenneth Parks obtained prices from the following companies for a desktop computer system with a modem for their new business.Computer House E-Z Electronics Computer $1,200 $1,000
Describe the techniques that are being tried to make sure that the wrong people do not gain access to information on a firm’s computer system.
Describe the characteristics that a chief information officer must possess in order to be successful.
Explain how management information systems use data to help businesses operate.
Describe how businesses have benefited from the efficiencies that have resulted from the use of electronic technology.
Describe how the basic parts of a computer work together to process information.
An information system that combines and summarizes ongoing transactions within the company to provide top-level executives with information needed to make decisions affecting the present and future
A Web page address embedded in a word, phrase, or graphic that, when clicked, transports users to that address is aa. hyperlinkb. Web linkc. jumplinkd. Web site
To share certain information with selected people outside a company, such as suppliers and major customers, the company would use a(n)a. intranetb. extranetc. Internetd. wide area network
A worldwide network of linked computers that allows users to transfer data and information from one computer to another anywhere in the world isa. a wide area networkb. the Internetc. a local area
Programs that perform specific tasks are known asa. application softwareb. operating system softwarec. network softwared. program software
The parts of a computer and anything attached to it are calleda. hardwareb. softwarec. computer wared. network equipment
Knowledge workers area. people who work with informationb. computer programmers onlyc. college professors onlyd. CIOs only
Science of adapting equipment to the work and health needs of people Write the letter of the term that matches each definition. Some terms will not be used.a. chief information officer (CIO)b.
Information system that helps managers consider alternatives in making specific decisions Write the letter of the term that matches each definition. Some terms will not be used.a. chief information
Information system that integrates data from various departments to help managers with day-to-day business operations Write the letter of the term that matches each definition. Some terms will not be
Collection of data organized in a way that makes the data easy to find, update, and manage Write the letter of the term that matches each definition. Some terms will not be used.a. chief information
Program that assists in locating information on the Net Write the letter of the term that matches each definition. Some terms will not be used.a. chief information officer (CIO)b. computerc.
Top computer executive Write the letter of the term that matches each definition. Some terms will not be used.a. chief information officer (CIO)b. computerc. databased. decision support system
Instructions that tell the computer what to do Write the letter of the term that matches each definition. Some terms will not be used.a. chief information officer (CIO)b. computerc. databased.
Data that have been processed in some meaningful way that is useful to decision makers Write the letter of the term that matches each definition. Some terms will not be used.a. chief information
Network of linked computers that serves users in a single building or building complex Write the letter of the term that matches each definition. Some terms will not be used.a. chief information
Service that provides access to the Internet through its large computers Write the letter of the term that matches each definition. Some terms will not be used.a. chief information officer (CIO)b.
Prediction that the amount of data that could be processed by a computer chip would double about every 18 months Write the letter of the term that matches each definition. Some terms will not be
Machine that processes and stores data according to instructions stored in it Write the letter of the term that matches each definition. Some terms will not be used.a. chief information officer
Explain why the five basic rights of stockholders are necessary in corporate forms of organizations.
Speaking Assume you are in a partnership. Prepare a speech that you will give to your partners to justify changing to a corporate form of ownership. Choose a specific corporate form and link it to
Technology George Fernandez purchased stock in the Elite Manufacturing Co., Inc., for $76 a share. Last year he received quarterly dividends of $1, $1, $1, and $0.80 on each share. Use spreadsheet
Research Alone or in teams (as specified by your instructor), search the library or the Web to gather information about the basic features of a cooperative. Then report to your class on how
Discuss whether the Girl Scouts organization meets the qualifications for operating as a nonprofit corporation in light of the fact that it sells a large volume of cookies each year..25. Math The
Explain how a joint venture could be valuable in a situation in which Corporation A has expertise in one area and Corporation B has expertise in another.
Compare the financial responsibility of owners of a corporation with that of owners of a partnership.
Explain why a corporation can be viewed as an artificial person.
If a corporation wants to enter into a different business, ita. must close and re-formb. can do this at any timec. must change its charter or file a new oned. must change its name.
A network of companies that form alliances among themselves as needed to take advantage of fast-changing market conditions is aa. corporationb. joint venturec. virtual companyd. subcorporation
A corporation must include in its namea. the purpose of the businessb. the major owners’ namesc. the state in which the company was foundedd. an indication that the company is a corporation
A business that is important to society but lacks the profit potential to attract private investors and is often operated by local, state, or federal government is called aa. not-for-profit
A business owned by a group of people and authorized by the state in which it is located to act as though it were a single person, separate from its owners, is called aa. corporationb. joint
Stockholders’ basic rights include the right toa. transfer ownershipb. vote for members of the boardc. receive dividendsd. all of the above
Ownership of a corporation is divided into parts calleda. sharesb. corporation partsc. membershipsd. partnerships
Special type of corporation that is taxed as if it were a sole proprietorship or partnership Write the letter of the term that matches each definition. Some terms will not be used.a. board of
Top executives who are hired to manage the business Write the letter of the term that matches each definition. Some terms will not be used.a. board of directorsb. charterc. close corporationd.
Profits that are distributed to stockholders on a per-share basis Write the letter of the term that matches each definition. Some terms will not be used.a. board of directorsb. charterc. close
Corporation that does not offer stock for public sale Write the letter of the term that matches each definition. Some terms will not be used.a. board of directorsb. charterc. close corporationd.
Corporation that offers its shares of stock for public sale Write the letter of the term that matches each definition. Some terms will not be used.a. board of directorsb. charterc. close
Organization that does not pay taxes and does not exist to make a profit Write the letter of the term that matches each definition. Some terms will not be used.a. board of directorsb. charterc. close
Agreement among two or more businesses to work together to provide a good or service Write the letter of the term that matches each definition. Some terms will not be used.a. board of directorsb.
Formal summary of the chief features of the business and its stock offering Write the letter of the term that matches each definition. Some terms will not be used.a. board of directorsb. charterc.
Written authorization to vote on behalf of a person Write the letter of the term that matches each definition. Some terms will not be used.a. board of directorsb. charterc. close corporationd.
Owners of a corporation Write the letter of the term that matches each definition. Some terms will not be used.a. board of directorsb. charterc. close corporationd. cooperativee. dividendsf. joint
Ruling body of a corporation Write the letter of the term that matches each definition. Some terms will not be used.a. board of directorsb. charterc. close corporationd. cooperativee. dividendsf.
State document granting corporate status Write the letter of the term that matches each definition. Some terms will not be used.a. board of directorsb. charterc. close corporationd. cooperativee.
Oral Communications Assume you are an investment adviser. One of your clients is a 35-year-old single female employed by a fastgrowing firm and making $60,000 a year. She wants her current savings of
Visual Communications Track the value of the Dow Jones Industrial Average, NASDAQ Market Index, and Standard & Poor’s 500 Index for one week. Prepare graphs that illustrate and compare the
Law and Politics You are an intern for Melinda Jones, a local bank vice president who is concerned about the changing competition the bank is facing. She asks you to use the Internet to investigate
Research Use the Internet to check the current interest rates offered by (a) a local bank, (b) a credit union, (c) an Internet bank, and(d) a large financial services organization. Determine the
If you had to pick one financial goal today to guide your financial planning, what would it be? Why? How do you think your goals may need to change in 15 years? What will be your top goal at that
Why would individuals and businesses want to purchase Treasury securities for terms as long as 20 or 30 years? What risks, if any, are they taking when purchasing those very long-term investments?
What are the advantages and disadvantages of certificates of deposit over savings accounts?
How has the Internet improved banking services? What problems have resulted from its increased use?
What effect does the prime rate have on those who apply for bank loans?
What effects have changes in laws and increases in competition among financial institutions had on consumers?
Why would a business choose to use a bank rather than a nonbank as its primary financial institution? Why might it choose a nonbank?
Based on the Reality Check scenario at the beginning of the chapter, what should be the investment goals of Kilgore Kitchens? What are three investments you would recommend to Andrew and Julie?
“Don’t put all your eggs in one basket” is investment advice related most directly toa. liquidityb. safetyc. growth versus a stable incomed. diversity
Of the savings instruments listed, the one with the highest risk is thea. savings accountb. money market fundc. mutual fundd. Treasury bill
The savings instrument issued by the federal government that can be purchased in the smallest denominations is thea. savings bondb. Treasury billc. Treasury noted. Treasury bond
Which type of investment instrument would usually pay the lowest interest rate?a. checking accountb. CDc. money market accountd. Treasury bill
Which of the following cannot be accomplished through direct deposit?a. receiving a Social Security paymentb. accepting a tax refund from the IRSc. providing wage and salary payments to all employees
Before making a loan, banks require that the prospective borrowera. make a substantial deposit in the bankb. provide collateral even if the loan is very small with low riskc. provide financial
Which of the following is classified as a bank rather than a nonbank?a. securities and investment firmsb. savings and loan organizationc. financial services companyd. none of the above
In order to be considered a bank, a financial institution must do all of the following excepta. accept depositsb. make loansc. buy and sell currency and government securitiesd. Banks must do all of
Central bank of the United States
Institution whose primary purpose is to offer financial products and services other than deposits and loans
Interest rate that can increase or decline based on the factors used to adjust the rates

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