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Brian Ghilliotti

Electronic Commerce

Norwalk Community College

Chapter 12

Pages 528-529

4/30/2019

Review Questions

1. The two most important variables behind the implementation of an information technology
project are planning and execution.

8. An angel investor are those who initially fund start ups of an on-line business. In return for
their initial investment, they become stock holders in the business and may end up owning
more of the firm than the founder.

10. Initial public offerings are the initial sales of a company’s stock to the public.

15. Project management consists of formal techniques for planning and controlling actions
taken to achieve business objectives.

Exercises

5. - Identify and analyze the proposed business ideas building up online business setup.

- Analyze potential customer demand of the selected idea and identify the target
customer.

- Choose a business model to deliver your goods and services and/or networking with
suppliers and vendors.

-Select technology and security systems to establish online portals that for
access by customer for purchases.

9. Due to the rapid development of new software and hardware technologies, as well as the
development of new technologies that require newer and more specialized internet commerce
tools, business managers will find that their initial costs for starting an on-line business will
increase as the internet commerce environment grows more complex.

10. ROI is a quantitative process used to determine if the benefits of a particular investment
exceed their initial costs. It also factors in the costs associated with the reduced value of the
considered investment and its impact on continued future returns. Some investments, however,
such as employee training, cannot be so easily processed through a cost vs benefits matrix.
Value of employee training relies on multiple variables, such as quality of the training or the
quality of the employee receiving the training. These are much more subjective estimates.

12. An incubator is a company that offers start ups a physical location with offices,
accounting, legal services, computers, and internet at very low costs. When a company grows
to a certain point that it can obtain capital funding from stock offerings, the incubator sells all
or part of its interest and reinvests the money in another incubator client. Accelerators are
similar to incubators, but they are more oriented to work with entrepreneurs who have already
developed their idea into a business and focus on helping these people reach the final stages
of their business plans.

Incubator: http://bxl.nyc

Accelerator:

Capital: MassChallenge is a non-equity accelerator and provides opportunities for program


companies to win $1.75+ million in cash awards and $10+million in in-kind support.

https://bostonstartupsguide.com/guide/every-boston-startup-accelerator-incubator/#boston-
accelerators

13. Commercial project management software give managers a suite of tools for managing
resources and schedules. These software systems can generate charts, tables, and graphs
that show which parts of their project is the most critical for their operations or is being the
most productive. Project management software also helps work teams collaborate on work
projects.

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