E-commerce and Online Business Fundamentals

Question 1
Which of the following best describes an e-commerce platform?

(A) A software application that facilitates online buying and selling of goods and services

(B) A physical store location where products are sold

(C) A basic informational website without transactional capabilities

(D) A social media profile used exclusively for business promotion

Question 2
What is a primary advantage of digital sales compared to traditional brick-and-mortar sales?

(A) Physical interaction with every customer before a sale

(B) Limited product variety due to online restrictions

(C) A global reach that allows businesses to connect with customers worldwide

(D) The inability to track customer behavior effectively

Question 3
Which strategy is most effective for customer acquisition in an online business?

(A) Relying solely on outdated offline advertising methods

(B) Investing heavily in ads without any market research or audience targeting

(C) Spamming mass emails without segmenting the audience

(D) Developing a strong online presence through targeted digital marketing and SEO

Question 4
What is an essential element to include when establishing an online business website?

(A) Hidden pricing details that are revealed at checkout

(B) An overload of pop-up ads to grab attention

(C) Clear product information along with secure payment options

(D) A focus solely on vibrant colors and animated graphics without proper content

Question 5
How can an online business best improve customer trust and credibility?

(A) Using a generic website template without personalized content or branding

(B) Ignoring customer feedback and reviews to maintain a static image

(C) Offering secure transactions, reliable customer service, and clear business policies

(D) Displaying excessive promotional pop-ups with trust badges that disrupt user experience

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