To Avoid Unpleasant Surprises in Launching an E-Commerce Effort an Entrepreneur

question 89

Multiple Choice

To avoid unpleasant surprises in launching an e-commerce effort an entrepreneur should ________.

• A)test the Web site with real customers to make sure it is easy to navigate
• B)avoid being talked into establishing a privacy policy
• C)cancel all current advertisements in other media
• D)not try to out-guess customers, and handle order fulfillment as orders come in

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Definitions:

Interest Expense

The cost incurred by a company for borrowed funds, including loans, bonds, and lines of credit.

Times Interest Earned Ratio

A metric to assess a company's ability to meet its debt obligations, calculated as earnings before interest and taxes divided by interest expense.

Times Interest Earned

A financial ratio measuring a company's ability to meet its interest obligations from operating earnings, calculated as income before interest and taxes divided by interest expense.

Interest Expense

The financial outlay associated with an entity's use of borrowed resources over time.