Which term describes companies that operate predominantly online?

Prepare for the IB Business and Management SL Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Get ready for success!

Multiple Choice

Which term describes companies that operate predominantly online?

Explanation:
The main idea here is online retailing—the idea that a business primarily sells its goods or services over the internet. Companies that do this are known as e-tailers, electronic retailers, because their storefronts and transactions happen online rather than in a physical store. They rely on websites or apps to reach customers and complete sales. Spam isn’t a business model; it’s unsolicited email that's not about selling as a primary activity. Global marketing is a broad strategy about promoting products across many markets, not a description of how a company primarily operates. B2B refers to selling to other businesses, which could be online or offline, but it doesn’t specify the nature of the business’s sales channel. So the term that best describes firms operating predominantly online is e-tailers.

The main idea here is online retailing—the idea that a business primarily sells its goods or services over the internet. Companies that do this are known as e-tailers, electronic retailers, because their storefronts and transactions happen online rather than in a physical store. They rely on websites or apps to reach customers and complete sales.

Spam isn’t a business model; it’s unsolicited email that's not about selling as a primary activity. Global marketing is a broad strategy about promoting products across many markets, not a description of how a company primarily operates. B2B refers to selling to other businesses, which could be online or offline, but it doesn’t specify the nature of the business’s sales channel. So the term that best describes firms operating predominantly online is e-tailers.

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