This preview has intentionally blurred parts. Sign up to view the full document

View Full Document

Unformatted Document Excerpt

Chapter 12: Planning for Electronic Commerce TRUE/FALSE 1. The keys to successful implementation of any information technology project are planning and execu- tion. ANS: T PTS: 1 REF: 532 2. A successful business plan for an electronic commerce initiative should include activities that identify the initiatives specific objectives and link those objectives to business strategies. ANS: T PTS: 1 REF: 532 3. Many companies create Web sites to build brands or enhance their existing marketing programs. ANS: T PTS: 1 REF: 534 4. Most changes in the cost of hardware are upward. ANS: F PTS: 1 REF: 535 5. For many companies, one of the largest and most significant costs associated with electronic com- merce initiatives is the cost of not undertaking such an initiative. ANS: T PTS: 1 REF: 536 6. Startup firms increasingly find that launching their operations requires greater dollar amounts than are estimated for business Web sites. ANS: F PTS: 1 REF: 537 7. A key part of creating a business plan for electronic commerce initiatives is the process of identifying potential benefits. ANS: T PTS: 1 REF: 539 8. TCO techniques measure the amount of income that will be provided by a specific current expenditure. ANS: F PTS: 1 REF: 539 9. ROI measurements can be biased in a way that gives undue weight to costs. ANS: T PTS: 1 REF: 540 10. ROI focuses on benefits that cannot be predicted. ANS: F PTS: 1 REF: 540 11. Many electronic commerce initiatives have returned benefits that were not foreseen by their planners. ANS: T PTS: 1 REF: 540 12. When companies began establishing their presence on the Web, the typical Web site was a static bro- chure that was updated frequently with new information. ANS: F PTS: 1 REF: 541 13. Many consultants advise companies to set between 1 and 4 percent of a projects budget for quantify- ing the projects value and measuring the achievement of that value. ANS: F PTS: 1 REF: 542 14. Operating an electronic commerce site can become a source of competitive advantage for a company. ANS: T PTS: 1 REF: 543 15. One of the first Internet incubators was Idealab. ANS: T PTS: 1 REF: 545 16. Sometimes a content manager offers seed money, management advice, and marketing assistance. ANS: F PTS: 1 REF: 545 17. Operational partners are responsible for staffing the internal team. ANS: F PTS: 1 REF: 546 18. Venture sponsors are responsible for developing ideas. ANS: T PTS: 1 REF: 546 19. The best way to manage any complex electronic commerce implementation is to use formal manage- ment techniques. ANS: T PTS: 1 REF: 547 20. Project management was developed by IBM. ANS: F PTS: 1 REF: 547 21. Information systems development projects are more likely to succeed than other types of projects, such as building construction.... View Full Document

End of Preview

Sign up now to access the rest of the document