MIS 412--Chapter 9

Gross margin is defined as gross profit:

divided by net sales revenues

What is another name for pro forma earnings?

earnings before income taxes, depreciation, and amortization (EBITDA)

Operating margin is defined as:

operating income or loss divided by net sales revenues

In 2012, approximately what percentage of Internet users over the age of 14 made a purchase at an online retail store?

70 percent

Which of the following best explains why the service sector is a natural avenue for e-commerce?

Much of the value in services is based on the collection, storage, and exchange of information

Which of the following statements is not true?

Online travel services is one of the few sectors in which extensive disintermediation has occurred.

All of the following statements about the online real estate services market are true except:

The Internet and e-commerce have created significant disintermediation in the real estate marketplace

All of the following statements about the online insurance industry are true except:

The Internet has dramatically changed the insurance industry's value chain

All of the following statements are true except:

The MOTO sector is also called the general merchandise sector

In ________, all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized Web site.

account aggregation

What is the largest sector of the online travel services market in terms of revenue?

airline reservations

Which of the following is not an example of a transaction broker?

an accountant

Virtual merchants face potentially large costs for all of the following except:

building and maintaining physical stores

All of the following are challenges for catalog merchants except:

building sophisticated order entry and fulfillment systems.

Which of the following sectors of the United States retail industry is the largest?

consumer durables

Which of the following is not a major trend in the online recruitment services industry?

disintermediation

Which of the following is not one of the seven major segments of the retail industry?

electronics and computers

All of the following are advantages of online retail except:

faster delivery of goods

All of the following services require extensive personalization except:

financial services

All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except

high cost structures

Which of the following is not one of the central challenges facing the online retail industry?

lack of physical store presence

Which of the following would not be considered a current asset?

long-term investments

All of the following were parts of the vision during the early days of e-commerce except the belief that:

new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business

Which of the following has experienced the most significant online growth?

offline general merchandisers

The MOTO sector of the retail industry is most similar to the ________ sector.

online retail sales

Which of the following is not one of the methods used by traditional retailers to develop multi-channel integration?

online supply-push

All of the following are strategic factors that pertain specifically to a firm and its related businesses except:

power of customers

All of the following are trends in the financial service industry except:

pure online banks are displacing established multi-channel firms

Craigslist is a player in which of the following online services market?

real estate services and career services

The lower the cost of sales compared to ________, the higher the gross profit.

revenue

Within the United States retail goods and services market, personal consumption of ________ accounts for the largest share.

services

The Internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line?

term life insurance

Which of the following is not categorized as an operating expense?

the cost of products being sold

All of the following were factors that precipitated the growth of MOTO except:

the growth of the cellular phone industry

For a quick check of a firm's short-term financial health, examine its:

working capital

Which of the following is not a major trend in online retail for 2012-2013?

Lunchtime purchases are the fastest growing time segment for online retail purchases

Which of the job recruitment sites is a job site aggregator?

SimplyHired

Which of the following statements about financial portals is not true?

Their strategy is similar to that of large banking institutions.

All of the following are challenges faced by bricks-and-clicks firms except:

building a brand name

All of the following products are considered durable goods except:

clothing

Current liabilities are debts of the firm that will be due within:

one year

Which of the following is not a key industry strategic factor?

synergies

The term demand-pull refers to:

waiting for orders to be received before building a product

In 2012, online retail sales revenues were approximately:

$224 billion

The top 25 retailers account for about ________ percent of all online retail.

60

Approximately ________ percent of the United States labor force is involved in providing services.

80

All of the following statements about Amazon.com are true except:

Amazon has achieved success by focusing on its primary mission- selling books at highly competitive prices.

Personal consumption of retail goods and services accounts for approximately ________ of the United States GDP.

$11 trillion