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business
introduction e-business management

Questions and Answers of Introduction E-Business Management

How does the use of technology reduce the costs of providing financial services?
If you owned stock in Citigroup, a large U.S. bank, and it signed an agreement with a foreign cell phone company to compete with European banks, would you sell your stock, take a wait-and-see
What might go wrong with these joint international banking and telephone deals, especially if telephone companies know little about the banking business and banks don’t know the telephone business?
Describe several low-risk and high-risk investment choices.
Identify three important goals that can guide investment decisions.
Treasury instruments are considered low-risk investments because theya. are issued in very small denominationsb. cannot be tradedc. are backed by the U.S. governmentd. none of the above
When money is spread among many types of investments, the investor hasa. increased the riskb. emphasized growthc. reduced the initial costd. diversified the investments
If you had $10,000 to invest, what would you consider the most important factors in choosing among the various investment instruments?
Why should investors watch the performance of stock indexes over an extended period of time rather than reacting to daily increases or decreases?
Why would a business want to establish its own private credit card system?
How are debit cards and smart cards different from credit cards?
Which of the following is not one of the ways a business can begin accepting major credit cards?a. Seek authorization directly from the credit card company.b. Work with a merchant account provider to
A credit card associated with a specific organization and offered to people affiliated with that organizations is a(n) ______ card.a. co-brandedb. affinityc. privated. smart
Why would a major retailer want to offer its own private credit card, with the expense of a credit department, and also accept major credit cards?
List the three primary business organizations that engage in marketing.
List the eight most common marketing activities.
Marketing department employees do which of the following?a. market researchb. product designc. product salesd. all of the above
A business that focuses on widespread distribution and promotion isa. production orientedb. sales orientedc. customer orientedd. market oriented
Explain why marketing is an important activity in an economy.
Explain why the costs of marketing a product are justified.
List six customer profile characteristics that can be used to identify markets.
List the elements of a marketing mix.
Groups of customers with very similar needs to whom the company plans to sell its product are called thea. target customersb. target consumersc. target marketd. target groups
The four elements of the marketing mix include all of the following excepta. productb. pricec. customerd. promotion
Explain how companies identify their markets.
Describe what a customer receives in exchange for a purchase price.
Identify the stages of a product life cycle.
List the four different categories of consumer goods.
The product life cycle stage in which there is only one brand of a product available for consumers to purchase is thea. introduction stageb. growth stagec. maturity staged. decline stage
Products that customers insist on having and are willing to search for until they find them are calleda. convenience goodsb. shopping goodsc. specialty goodsd. unsought goods
Explain why a product’s life cycle stage influences marketing strategy.
Describe the factors that influence consumer goods classification.
Why were major retailers using catalogs and mail order in the late 1800s and early 1900s to sell products to their customers?What changes were occurring in the United States that provided the
Review the eight marketing activities described in the chapter and suggest which of the activities were most important to the success of Wal-Mart. Why were many of Wal-Mart’s competitors not able
Do you believe that an e-retailer like Amazon.com will ever replace Wal-Mart as the world’s largest retailer? Why or why not?
List and define the three levels of product design.
Name four purposes of packaging.
A(n) ________ product offers different features and options for the consumer.a. augmentedb. basicc. enhancedd. extended
A group of similar products with obvious variations in design and quality to meet the needs of distinct customer groups is called aa. product assortmentb. product mixc. product lined. product design
Describe the different perceptions of a product that are usually held by businesspeople and consumers.
Explain how a business can expand its product line.
Describe the four types of economic discrepancies.
The routes products follow while moving from producer to consumer, including all related activities and participating organizations, are calleda. routes of distributionb. methods of distributionc.
When producers sell directly to the ultimate consumer they are using:a. direct distributionb. indirect distributionc. indirect marketingd. Internet marketing
Explain how economic discrepancies are related to economic utility.
Describe the differences between direct and indirect channels.
Why do you believe telemarketing is such a successful direct marketing tool yet continues to receive a large number of consumer complaints?
Based on your experience with telemarketing, do telemarketers generally follow the ethics statements listed above? Which are most often followed and which are not?
What responsibilities do you believe consumers have in dealing with ethical problems they encounter with telemarketing?Should they do anything when they encounter ethical treatment from businesses?
Prepare several statements of ethical practices that should apply to Internet marketing.
The transportation method in which truck trailers are placed on railroad cars is calleda. railbackb. piggybackc. truck to raild. trainback
Buildings used to store large quantities of products until they can be sold are calleda. distribution centersb. storage housesc. warehousesd. wholesalers
Describe some of the common problems related to transportation.
Why is product handling an important part of the distribution process?
Businesses use which of the following sources of assistance in determining what to purchase?a. company recordsb. salespeoplec. trade associationsd. all of the above
When a business is purchasing a new or modified product from established suppliers, it is engaging ina. a new task purchaseb. a modified rebuyc. a straight rebuyd. an established purchase
Describe the factors that influence a business’s decision about when to purchase.
Explain the differences between the three purchase processes used by businesses.
A purchase that is net 60 days with a 3 percent discount for payment within 30 days would be indicated bya. 3/60, n/30b. 30/60, n/3c. 30/3, n/60d. 3/30, n/60
What is it called when a business sells a product at a price lower than planned?a. markupb. markup on pricec. markdownd. price discount
Explain how competition influences pricing strategy.
Explain why stolen merchandise can have a strong impact on a company’s profits.
Why do you believe Internet shopping grew so rapidly among Samsung employees in the first two years of the new cybermall business?
What causes Internet sales to increase when Samsung develops specialized cyber communities and includes chat rooms, information services, and home pages developed specifically for a particular group
Do you think U.S. culture would support the same approach to developing Internet shopping groups as was done in South Korea? Why or why not? Are there examples of successful shopping groups in the
Any form of paid promotion that delivers a message to many people at the same time is calleda. advertisingb. promotionc. salesd. sales promotion
Customer objections in a sales situation are typically the result ofa. real customer concernsb. avoiding decisionsc. neither a nor bd. both a and b
Explain why a good salesperson studies a customer’s buying motive.
Describe the major goals of sales promotion.
Another name for human resources management isa. operations managementb. supervisionc. personnel managementd. training
Providing confidential personal problem-solving, counseling, and support services for employees is calleda. performance managementb. employee assistancec. employee relationsd. performance improvement
Why are benefits considered to be as important as the amount of wages or salary to many employees?
What are some possible advantages and disadvantages of using a 360-degree system for performance evaluation?
The first step in the employment process isa. preparing a job description and job specificationsb. recruiting a pool of applicantsc. asking applicants to take a drug testd. reviewing applications
A ____ is a temporary or permanent reduction in the number of employees because of a change in business conditions.a. transferb. dischargec. layoffd. promotion
Why should the human resources department take most of the responsibility for the steps in the application process rather than allowing the employing department to complete them?
What are the advantages and disadvantages of having managers identify specific employees for promotions and transfers rather than opening up the process to all company employees?
Why do you believe it was necessary for the federal government to pass the ADA legislation?
If you were a businessperson, how would you respond to the ADA requirements?
Using your school as an example, in what ways have the facilities, equipment, and materials been modified to meet the needs of disabled students, faculty, and staff? Are there areas in the school
The federal law that prescribes standards for wages and overtime pay is thea. Fair Labor Standards Actb. Occupational Safety and Health Actc. Federal Old-Age and Survivors Insurance Trust Fundd.
Which of the following is not provided protection from employment discrimination by federal law?a. ageb. incomec. genderd. citizenship status
Why do you believe federal and state governments have taken a specific interest in wages, working conditions, and the health and safety of employees?
What are some ways a prospective employee can determine if an employer provides equal employment opportunity or continues practices that discriminate in hiring and promotions?
Which performance plan pays employees a percentage of the volume of sales for which they are responsible?a. wage planb. bonus planc. commission pland. piece-rate plan
Which of the following is not a factor that can be used to determine discrimination in equal compensation laws?a. skill levelb. quantity of workc. effort requiredd. responsibility
Why do you believe most jobs are paid on a time plan rather than a performance plan? Which type of compensation plan would you prefer and why?
Why would some states choose to have a higher minimum wage rate than the one established by the federal government? What effect might the higher rate have on businesses that operate in several states?
On average, companies spend an additional ____ percent of employee wages and salaries on benefits.a. 0 to 10b. 10 to 20c. 20 to 40d. 40 to 60
Which of the following is not one of the ways companies are attempting to control the rising costs of benefits?a. outsourcing HR services to other companiesb. using technology such as the Internetc.
How can cafeteria plans actually reduce the total cost of benefit plans for employers?
What types of problems might companies that outsource many of their HR activities encounter? As an employee, how would you feel about other companies having access to your personal information?
Even though the Enron executives acted unethically and illegally, do Enron employees share any responsibility for their losses? Why or why not?
Could a similar situation occur in another company today?What can employers and employees do to protect retirement funds? Should the government have any role in protecting these types of retirement
The process of assessing how well employees are doing their jobs isa. a career planb. a performance reviewc. a training pland. an employee evaluation
Which of the following is not a characteristic of formal training?a. based on a specific curriculumb. taught by an instructorc. plannedd. unstructured
Why are managers and employees often anxious before a performance review? What would you do as a manager to help reduce an employee’s anxiety?
Why do you believe companies deliver more informal training than formal training? Is one is more effective than the other? Why?
Which of the following is one of the major responsibilities of a human resources department in responding to organizational change?a. financial restructuringb. organizational developmentc. personnel
The goal of work process improvement includes all of the following except:a. eliminating errorsb. improving qualityc. reducing costsd. terminating employees

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