2007 DECA Ontario Provincials EMDM
Test 905 E-COMMERCE 8
1. An e-tailer collects sales tax on merchandise when the customer
A. lives in the state where the company has a physical presence.
B. purchases products totaling $500 or more.
C. provides the company with a tax exemption certificate.
D. has an annual income that exceeds $50,000.
2. Jason would like to start a small online business which he could operate from his home. His online business would not cost a great deal to start, and he has experience and interest in that type of business. What form of ownership should he consider?
A. Sole proprietorship C. Monopoly
B. Partnership D. Corporation
3. What type of information does a well-written proposal include?
A. Vague goals C. Previous trends
B. Specific benefits D. Contingency data
4. Communication from employees to an employer, or a manager, is referred to as ______communication.
A. horizontal B. downward C. vertical D. upward
5. What type of issues should a manager schedule to discuss early in a staff meeting?
A. Routine B. Procedural C. Standard D. Controversial
6. Computer manufacturers sell their products through retailers, such as Best Buy. This is an example of the ______function of marketing.
A. promotion C. financing
B. distribution D. marketing-information management
7. Since most large mainframe computers used by industry require installation, the channel of distribution most commonly used by their producers is
A. producer to industrial user. C. producer to agent to industrial user.
B. producer to agent to retailer. D. producer to industrial distributor to user.
8. Which step of the Electronic Customer Relationship Management (E-CRM) process involves identifying the high-value customers for an online business?
A. Contacting customers C. Differentiating customers
B. Customizing the marketing mix D. Integrating supply management
9. Which of the following types of merchandise would not require priority processing when received by an online store:
A. Products to support a sale C. Special order for a customer
B. Expensive or fragile products D. Monthly shipment of staple items
10. The functions of warehousing include all of the following except
A. assembling orders for reshipping. C. storing products.
B. dividing or bulk-breaking shipments. D. transporting products.
11. The owner of a small e-business records all the sales information in order to know how much inventory to order. What type of inventory control is the owner using?
A. Periodic B. Bimonthly C. Annual D. Perpetual
12. In order for a just-in-time inventory system to work well for an e-business, it is important for the
e-business to
A. find a reliable supplier. C. hire more stock clerks.
B. change its billing procedures. D. increase its investment in inventory.
13. Calculate inventory shrinkage given the following information:
Merchandise on order / 15Periodic (current) stock count / 145
Previous stock count / 650
Purchases / 175
Sales / 670
Merchandise on layaway / 10
A. 20 B. 15 C. 10 D. 25
14. Which of the following is an activity involved in maintaining a unit inventory control system:
A. Preparing documents C. Analyzing information
B. Receiving shipments D. Transporting stock
15. What type of channel conflict often occurs between computer manufacturers and their authorized dealers?
A. Vertical B. Horizontal C. Indirect D. Corporate
16. What is an e-commerce consideration that may prevent international trade from growing as fast as it could otherwise?
A. People in some countries do not want to participate in a system that is U.S.-dominated.
B. No one outside the U.S. is willing to pay high rates for Internet service.
C. People in many countries want to see and touch what they buy.
D. Many countries face challenges in their infrastructure and with government censorship.
17. In order for consumption to occur, goods and services must be
A. improved. B. specialized. C. produced. D. exchanged.
18. Monies received by Internet businesses from the sale of goods and services are called
A. profits. B. dividends. C. interest. D. income.
19. All the resources used in producing goods and services are known as
A. inputs. B. productivity. C. outputs. D. mass production.
20. Which of the following examples best exhibits a job task with high depth and low scope:
A. A manager signs employees' time cards.
B. A manager evaluates employee performance according to the owner's standards.
C. A manager makes out the weekly work schedules, hires employees, and supervises an online department.
D. A manager selects the products to be sold for an online business and selects the employees who will work in each business activity.
21. What is an e-business calculating when it determines how much it earns from the sale of one additional item?
A. Disposable income C. Net worth
B. Gross profit D. Marginal revenue
22. Internet businesses that are concerned about a slowdown in the economy may decide to
A. reduce inventory. B. increased spending. C. reduce savings. D. increase production,
23. Why should you restate customer problems?
A. To apologize for any inconvenience C. To decide how the problem can be resolved
B. To thank customers for their business D. To show that you fully understand the problem
24. To persuade e-business employees to perform in a certain way, managers should appeal to the employees'
A. wants. C. goals.
B. needs. D. desires.
25. Employees who are unable to respond to questions about the online company's goods or services can affect the customer's
A. purchasing ability. C. sourcing strategy.
B. image of the business. D. price fixing.
26. If a software store salesperson is positive that the customer tendered a ten-dollar bill, then the customer's statement "I gave you a twenty-dollar bill" indicates a ______customer.
A. dishonest C. slow/methodical
B. disagreeable D. domineering/superior
27. The XYZ Computer Company has a financial organization within the business that offers small loans, installment credit, and low interest rates to its members. This is an example of a
A. commercial bank. C. credit union.
B. sales-finance company. D. savings and loan.
28. An online business prepares an invoice for a customer who has purchased the following: three items at $28.50 each and two items at $41.75 each. If shipping costs are $17.60, what is the total amount of the invoice?
A. $191.00 B. $179.40 C. $168.25 D. $186.60
29. An e-business's cash flow statement for one month indicates cash sales of $4,275, credit sales of $2,960, shipping costs of $525, and fixed expenses of $2,380. Calculate the total cash receipts.
A. $4,275 B. $2,960 C. $6,655 D. $7,235
30. An Internet business calculates its debt ratio by dividing the company's total liabilities by the
A. net income. B. current liabilities. C. total assets. D. quick assets.
31. A large software business has gross revenue of $13,875,000. Its expenses include rent, $485,625; interest, $138,750; salaries, $2,289,375; utilities, $360,750; and cost of goods sold, $2,983,125. What percentage of gross revenue are the business's operating expenses?
A. 16.5% B. 21.5% C. 23.6% D. 45.1%
32. An Internet business owner is considering an expensive equipment purchase to enhance company productivity. What factor might the owner consider when determining the return on investment?
A. Payback period B. Credit rating C. Stock yields D. Customer feedback
33. A disadvantage of the piece-rate compensation plan is that employees who make computer components
A. are encouraged to improve their skills. C. may sacrifice quality for quantity.
B. understand the plan easily. D. are paid in proportion to their effort.
34. What agencies could an employer contact to keep up-to-date with state and federal regulations affecting hiring?
A. State Attorney General and Equal Employment Opportunity Commission
B. Federal Trade Commission and Environmental Protection Agency
C. OSHA and Natural Resources Department
D. Equal Employment Opportunity Commission and the state's Department of Human Services
35. When should new-employee orientation take place?
A. At the end of the employee's first month of work C. During the employee's first performance review
B. At the end of the employee's first work week D. As soon as the employee begins work
36. Why is it likely that there would be fewer equity problems for an online business whose employees work independently of each other?
A. The business can explain the laws to each worker.
B. Interaction among employees is kept to a minimum.
C. Independent workers are usually fair to others.
D. Supervision of independent workers is less complicated.
37. What is usually the first question an Internet business considers when it begins to assess its marketing information needs?
A. What channels of distribution are available?
B. How many people live in the community?
C. How can I promote my good or service?
D. What need does my good or service satisfy?
38. Facts that are already collected for some other purpose are known as ______data.
A. primary B. internal C. external D. secondary
39. An e-business might benefit from using a marketing decision support system to manage certain types of marketing information because the system is designed to
A. assign valuation codes to written external data.
B. analyze a variety of factors for problem resolution.
C. select reliable raw data from Internet sources.
D. administer surveys to people who meet appropriate qualifications.
40. Which of the following is an example of an unethical method of collecting marketing information:
A. Interviewing randomly selected participants
B. Contacting customers in a single geographic area
C. Calling a wide variety of consumers at home with survey questions
D. Surveying a limited group of similar respondents to represent a broader universe
41. Online businesses often maintain current demographic information to make decisions about the most effective strategy to use to
A. purchase new equipment. C. negotiate with suppliers.
B. analyze the economy. D. reach the target market.
42. What type of marketing information can businesses obtain by searching online databases?
A. Firsthand facts B. Secondary data C. Projected research D. Primary information
43. Which of the following is one way that online businesses use data mining:
A. To analyze buying behavior C. To manage relationships
B. To store information D. To identify focus groups
44. The combination of product, promotion, price, and distribution is known as the
A. marketing concept. C. promotional mix.
B. promotional package. D. marketing mix.
45. When marketers group consumers on the basis of the regions, states, cities, and rural areas in which they live, the marketers are using ______segmentation.
A. demographic B. geographic C. behavioral D. psychographic
46. What does an e-business try to identify as a result of conducting a situational analysis?
A. Revenues and expenses C. Goods and services
B. Threats and opportunities D. Profits and losses
47. What are the three major sections of a well-organized business plan?
A. Business situation analysis, SWOT analysis, and trading area analysis
B. Financial plan, manufacturing plan, and market segment analysis
C. Projected income report, marketing plan, and SWOT analysis
D. Marketing plan, financial plan, and business situation analysis
48. A computer manufacturer comparing and evaluating the actual sales in one territory with the goals for that territory is an example of a(n)
A. performance goal. C. expense review.
B. territory quota. D. sales analysis.
49. An important part of the merchandising process for a brick-and-click is deciding exactly
A. how often to advertise. C. what mix of goods to offer.
B. how to display items for sale. D. what time to open for business.
50. An e-mail that allows the reader to click on certain text and be transported to a specific web site is using
A. hyperlinks. C. gateways.
B. address books. D. mailing lists.
51. Registering an e-commerce web site involves getting the site listed
A. with governmental agencies. C. on industry home pages.
B. on all major search engines. D. with advertising professionals.
52. Jeff constructs a web site for his company using a web-based computer program that allows him to build his site online by using a step-by-step process. This web-based computer program is an example of a(n) ______tool.
A. unilateral C. authoring
B. design D. editing
53. Which of the following Windows shortcut keys make it possible for business employees to save documents:
A. Ctrl and C C. Ctrl and P
B. Ctrl and S D. Ctrl and V
54. From which of the following internal sources can online toy stores obtain information about customers' acceptance of new goods when deciding what to buy:
A. Comparison shoppers C. Trade publications
B. Resident buying offices D. Past sales records
55. Which of the following is a reason why developing a model stock plan is important to e-tailers:
A. To satisfy customers' needs C. To meet employees' goals
B. To plan merchandise displays D. To negotiate with suppliers
56. Jeff is a stock clerk for an online bookstore, and his friend Eric is a server in a restaurant. Which of the following statements is true about their safety at work:
A. They are exposed to the same safety hazards.
B. They are exposed to different safety hazards.
C. Jeff's job has more safety hazards than Eric's.
D. Jeff's job has fewer safety hazards than Eric's.
57. E-businesses must determine the quality and quantity of products they need and obtain them from a
A. supplier. C. buyer.
B. competitor. D. consumer.
58. Why is production important to an online business?
A. It provides the business with material resources.
B. It converts certain outputs into inputs.
C. It creates goods or services for the business to sell.
D. It manages the finances of the business.
59. A primary reason for an Internet business to analyze and update its procedures is to
A. decrease its inventory. C. increase its efficiency.
B. reduce its outputs. D. boost its spending levels.
60. A budget can be used by an e-business as a(n)
A. planning and controlling tool. C. record of actual expenses.
B. statement of net worth. D. analysis of income versus expenses.
61. Which of the following would not be part of the responsibilities of a brick-and-click's maintenance department:
A. Selling goods C. Changing a business's layout
B. Inspecting mechanical equipment D. Routine repairs
62. It is important to develop a personal plan of action for goals because