Escolar Documentos
Profissional Documentos
Cultura Documentos
False
2-By purchasing a textbook from Amazon.com and having the merchandise physically
delivered, Amazon.com would be considered a click-and-mortar organization because pure
EC did not occur.
True
False
3-In the field, a sales representative writes notes with a mobile handwriting-recognition
computer immediately after a sales call. This can be viewed as an EC activity.
True
False
4-In addition to EC being conducted via the Internet, EC can be conducted over local area
networks (LANs).
True
False
5-An example of business-to-consumer (B2C) is when Dell provides customer service online
by collaborating electronically with its partners.
True
False
6-An internal corporate network that uses Internet tools, such as Web browsers, is known
as an intranet.
True
False
7-An extranet is a network that uses the Internet to link together multiple intranets.
True
False
False
9-Networked computing connects multiple computers and other electronic devices that are
located in various locations by telecommunications networks, including wireless ones.
True
False
10-When Dell purchases Godiva chocolates as gifts for its employees and has Godiva mail
them directly to the recipient Dell is engaged in B2B2C.
True
False
False
False
False
14-Despite the many e-tailing EC companies that have failed in the past, the dot-com
failure rate has recently declined sharply.
True
False
15-Since 2001, no other company has had more of an impact on EC than MySpace.
True
False
16-Wikipedia.com, a Web site that allows people to work together online and share
information, is an example of Web 2.0.
True
False
False
18-Economic, legal, societal, and technological factors have created a highly competitive
business environment in which customers are becoming less powerful.
True
False
19-Strong competition and increased power of consumers are two of the major market
pressures in today's business environment.
True
False
20-Business models are a subset of a business plan or business case and refer to methods of
doing business by which a company can generate revenue.
True
False
21-A business model outlines how the organization or the EC project will generate revenue
through sales, transaction fees, advertising fees, affiliate fees, or other revenue sources.
True
False
22-A value proposition refers to the tangible and intangible benefits that a company can
derive from using EC making it an important part of the marketing plan.
True
False
False
24-Social networks, such as Facebook, YouTube, and MySpace, are Web sites that connect
people with specific interests by providing free services such as photo sharing, e-mail, and
blogging.
False
True
25-Many companies used a corporate portal, which is a gateway for customers, employees,
and partners to reach corporate information and communicate with the company.
False
True
rapid business
build-to-order which allows
growth and
customers to configure their
threatening
own customized systems.
competitors.
e-collaboration with a
few select business
partners.
27-________ refers to the buying and selling of goods and services; servicing of customers;
collaborating with business partners; and conducting electronic transactions within an
organization.
Partial EC
E-business
Pure EC
E-commerce
28-EC can take several forms depending on the degree of digitization of the following three
dimensions:
the product or
service sold, the
process, and the
delivery method.
31-________ are systems where only routine transaction processing and information flow
take place between two or more organizations using a standard protocol, such as electronic
data interchange (EDI).
Intrabusiness EC
E-CRM
B2B
32-A business such as Apple Computers making online transactions with its trading
partners is an example of:
e-CRM
EDI
B2C
B2B
33-EC applications are supported by infrastructure and by each of the following support
areas EXCEPT:
People
Mobile devices
Public policy
exchanges
mobile networks
corporate portals
35-A technology that is used to electronically transfer routine documents, such as invoices
and purchase orders, and for financial transactions is ________.
Exchange-to-exchange Electronic data interchange
36-Challenges that Boeing faced with its global collaboration for the design and assembly
process of its new Dreamliner passenger plane included each of the following EXCEPT:
Information security Lag time Teams working across various time zones
Data management
37-A large number of EC companies, especially e-tailing and B2B ones, failed from 1999 to
2005 for each of the following reasons EXCEPT:
The companies failed to ensure
The companies The companies had
they had sufficient inventory and
lacked financial little marketing
a distribution setup to meet
skills.
experience.
initial demand.
Social Web
Media Web
Web 2.0
40-Because the rate of change and the level of uncertainty are expected to accelerate,
organizations are
considering less
information when
making decisions.
making fewer
unable to react quickly
decisions and/or
enough to threats and
decisions less
opportunities.
frequently.
missions and
strategies
EC and
IT
markets and
government
business model
business plan
value chain
43-According to the ________ revenue model, companies receive commissions for referring
customers to others' EC Web sites.
affiliate fees
advertising fees
subscription fees
transaction fees
44-According to the ________ revenue model, customers page a fixed amount, usually
monthly, to receive some type of service.
transaction fees
affiliate fees
subscription fees
advertising fees
viral
marketing
online direct
marketing
electronic tendering
systems
viral
marketing
name-your-own-price
models
online direct
marketing
SMEs
exchanges
barters
lack of technology
cost
Difficulty
Security and privacy
obtaining venture concerns that deter
capital.
customers from buying.
Unresolved taxation,
Order fulfillment
public policy, and legal requirements of largeissues.
scale B2C.
50-A job opening in the Sales Department posted on the company's Intranet by the Human
Resources Department is an example of:
B2S
B2E
E2C
B2B
51-Boeing designing a product together with a business partner is this type of interaction:
B2B2C
Nonbusiness EC
B2B.
Collaborative Commerce
52-A corporation uses the Internal Revenue Service's Web site to learn how to pay its
estimated quarterly income taxes. This is an example of:
G2G
E2E.
G2C
G2B
53-The second-generation of Internet-based services that lets people collaborate and share
information online is known as Web 2.0. An example of this is:
mp3.com
DoubleClick
Evite
blogging
54-The digital enterprise shifts the focus from managing individual information resources
such as devices, applications, and data to ________ that define the business and ultimately
deliver value to customers and end users.
transforming revenue
models
developing
models
organizing supply
chains
55-Many companies employ a(n) ________, which is a gateway for customers, employees,
and partners to reach corporate information and to communicate with the company.
corporate portal
intranet
social network
Chapter 2 E-Marketplaces
extranet
1-The functions and efficiency of an e-market are the same as that of a physical
marketplace.
True
False
2-The emergence of electronic marketplaces has resulted in lower information search costs
for buyers and lower transaction and distribution costs for sellers.
True
False
3-Although both marketplaces and marketspaces can sell physical products, the
marketspace also can sell digital products, which are goods that can be transformed to
digital format and delivered instantly over the Internet.
True
False
4-Front end refers to the activities that support online order fulfillment, inventory
management, purchasing from suppliers, payment processing, packaging, and delivery.
True
False
5-In marketing, an intermediary is a third party that operates between sellers and buyers.
Intermediaries of all kinds offer their services on the Web.
True
False
6-WebMD, which is the largest U.S. medical services company, is known mainly for its
webmd.com consumer portal, but its core business is being an e-intermediary.
True
False
7-The major B2B e-marketplaces are electronic storefronts, Internet malls, and exchanges.
True
False
False
False
10-Travelers using airline Web sites to book their flights directly without the use of travel
agents is resulting in the reintermediation of travel agents.
True
False
11-Search engines not only "search and match," but also have capabilities that can be used
to perform routine tasks that require intelligence.
True
False
False
13-Shopping carts for B2B are fairly simple, but a shopping cart for B2C may be more
complex.
True
False
14-An auction is a competitive process and market mechanism that uses a competitive
process by which a seller solicits consecutive bids from buyers or a buyer solicits bids from
sellers.
True
False
15-Negotiation and bargaining are two types of auctions where prices are not fixed, but
rather are allowed to fluctuate as market supply and demand change.
True
False
16-Reverse auctions are bidding or tendering systems in which the buyer places an item for
bid on a request for quote (RFQ) system; then potential suppliers bid on the job, with the
price reducing sequentially, and the lowest bid wins.
True
False
17-E-auctions are becoming less important selling and buying channels for companies and
individuals.
True
False
18-The major limitations of e-auctions are insufficient security, risk of fraud, and a limited
pool of participants.
True
False
19-A limitation of e-bartering for businesses is that excess capacity items such as office
space, storage, factory space; idle facilities; and labor cannot be bartered.
True
False
20-Online negotiation can be facilitated by computer technology for the negotiation process
and software agents for searches and comparisons.
True
False
21-Due to the lack of hurdles, the adoption and growth of m-commerce has been
widespread.
True
False
22-The Internet economy's low barriers to entry are both an opportunity and a threat to
businesses.
True
False
23-Strong competition for commodity-type products, such as toys and CDs, was a major
contributor to the collapse of many dot-com companies, which suggests that a company
needs to use innovative strategies to survive and prosper in the Internet economy.
True
False
24-Because the strength of each of Porter's five forces varies considerably from industry to
industry, it would be a mistake to draw general conclusions about the impact of the
Internet on long-term industry profitability.
True
False
25-Because of intense competition on the Web, new companies cannot establish good
corporate images quickly as Amazon.com had done when it had few online competitors.
True
False
26-Fundamentally, the success of the pure-play jewelry e-tailer Blue Nile was due to the
company's use of Internet technologies to:
offer lower prices than competitors eliminate intermediaries go public provide quality ratings
27-Traditional and electronic markets have three main functions, which include each of the
following EXCEPT:
providing an institutional
matching
transforming raw infrastructure, such as a legal and
buyers and materials into
regulatory framework that
sellers.
finished products. enables the efficient functioning
of the market.
28-Digital products have different cost curves than those of regular products because:
in digitization, most of
in digitization, all in digitization, most of in digitization, most of
the costs are fixed, and
of the costs are
the costs are variable
the costs are fixed, but
variable costs are very
variable.
and fixed costs are low. variable costs are high.
low.
infrastructure
intermediary
back end
30-All the activities that are related to order aggregation and fulfillment, inventory
management, purchasing from suppliers, accounting and finance, insurance, payment
processing, packaging, and delivery are done in what is termed the ________ of the
business.
front end
back end
intermediary
infrastructure
B2B2C
B2B
C2B
32-An electronic storefront includes several mechanisms that are necessary for conducting
the sale. The most common mechanisms include each of the following EXCEPT:
a search engine
an electronic catalog;
a supply chain
a payment gateway
33-________ are online markets owned and operated by a single company and may be
either sell-side or buy-side.
Commercial portals
Private e-marketplaces
B2B marketplaces
E-malls
34-A(n) ________ is a single point of access through a Web browser to help users find
relevant and accurate business information and reduce information overload.
intermediary
browser
search engine
information portal
35-Finding relevant and accurate information is often time-consuming and requires access
to multiple systems causing organizations to lose a lot of productive employee time. One
solution to this problem is the use of:
intermediaries.
browsers.
portals.
intranets.
metamediary.
search agent.
virtual mall.
contract
risk.
search
costs.
product
distribution.
38-The elimination of various types of agents that mediate between buyers and sellers, such
as travel and insurance agents, is referred to as:
remediation
automation
e-distribution
disintermediation
39-A mode is purchasing where prices are negotiated or discounted is ________, which
refers to nonfixed prices, such as those in auctions or stock markets.
pre-shopping
dynamic pricing
commodity pricing
negotiation
40-Although used occasionally in B2C commerce, customized catalogs are especially useful
in B2B e-commerce for each of the following reasons EXCEPT:
e-catalogs can show
e-catalogs can show
the buyer's ID
only the items that the number for the item,
employees in a specific model, or SKU
organization are
number rather than
allowed to purchase. the seller's ID
numbers.
E-catalogs can be
customized to show the
Intranets, in
same item to different
particular, can
deliver customized customers at different
catalogs to different prices, reflecting discounts
business customers. or purchase-contract
agreements.
search engine
directory
42-A ________ has capabilities that can be used to perform routine tasks that require
intelligence such as providing customers with assistance based on their movements on a
Web site.
intelligent engine
search engine
software engine
software agent
Lycos
AltaVista
MSN
e-fulfillment agent
intelligent agent
45-The most common and traditional form of auctions in which one seller entertains bids
from many buyers is referred to as:
e-auctions.
forward auctions
double auction.
reverse auctions.
46-An auction in which there is one buyer and many potential sellers; or in which a buyer
places an item for bid on an RFQ system and the lowest bid wins is referred to as all of the
following EXCEPT:
tendering system.
forward auctions.
bidding system.
reverse auctions.
It improves the
Wireless telecom
support for
mobility is
growing quickly.
49-EC competition is very intense because online transactions enable each of the following
EXCEPT:
Higher prices
because of a
greater number
of potential
buyers.
Products must be
differentiated for
perfect
competition.
Price cutting in
differentiated markets
does not impact
market share very
much:
Differentiation reduces
the substitutability
between products,
benefiting sellers who use
this strategy.
51-It can be said that competition between companies is being replaced by competition
between ________.
digital products and services
52-The Internet has influenced industry structures in each of the following ways EXCEPT:
Increases differences
Industries are
among competitors whose
more efficient
offerings are kept
overall.
proprietary.
EC enables
Brand images
marketplaces has
increased the
promotion of products
and services through
direct marketing.
customization of
products and services,
which is changing
marketing and sales
activities both in B2C
and in B2B.
for new
companies have
become more
difficult to
establish.
54-One of the major benefits of e-markets is the improvement in supply chains with the
creation of a(n) ________.
logistics chain
customized chain
hub-based chain
support chain
55-________ provides customers with exactly what they want, when and where they want it.
Effective communication between the supply chain and the factory floor is needed to make
it happen
Build-to-order
manufacturing
Real-time
manufacturing
Demand-driven
manufacturing
Virtual
manufacturing
False
2-A retailer is a sales intermediary, a seller that operates between manufacturers and
customers.
True
False
3-Consumer electronics, including cell phone sales, are the largest category of online retail.
True
False
4-Jewelry sales over the Internet is just beginning, but could be one of the top sellers on the
Internet in the near future.
True
False
False
6-Evidence indicates that the basic principles that apply to retail success do not apply to etail success.
True
False
7-Offering quality merchandise at good prices, coupled with excellent service, and crosschannel coordination and integration in which customers can almost seamlessly operate
between the online and physical environments of a business are also important elements in
successful e-tailing.
True
False
8-Goods with the following characteristic guarantee provided by highly reliable or wellknown vendors are expected to facilitate higher sales volumes.
True
False
9-A business model is an analysis of the organization's customers and, from that, a
discussion of how that organization will achieve profitability and sustainability by
delivering goods and services to those customers.
True
False
10-Direct marketing describes marketing that takes place offline between manufacturers
and retailers.
True
False
11-Virtual or pure-play e-tailers are firms that sell directly to consumers over the Internet
without maintaining a physical sales channel.
True
False
12-Specialized businesses operate in a very narrow market and would find it difficult to
survive in the physical world because they would not have enough customers or could not
hold the variety of stock.
True
False
False
14-In today's digital economy, click-and-mortar retailers sell via stores, through voice
phone calls to human operators, over the Internet through interactive Web sites, and by
mobile devices.
True
False
15-Although there are practical advantages to being an e-tailer, such as lower overhead
costs, it has many drawbacks and barriers so the winners in many market segments will be
companies that use the click-and-mortar approach.
True
False
16-Online travel services have high margins because of their multiple revenue models
including commissions, revenue from advertising, lead-generation payments, consultancy
fees, subscription or membership fees, and revenue-sharing fees.
True
False
17-The job market is characterized by high volatility and unbalanced supply and demand.
True
False
18-In general, online real estate is replacing existing real estate agents in most markets.
True
False
19-Many insurers are using a dual distribution strategy, by adding online distribution of
standard products to their traditional agency distribution system.
True
False
20-From a bank's perspective, online banking offers a cheap alternative to branch banking
as well as a chance to enlist customers in remote areas.
True
False
False
False
23-Investors in e-tailers which report small losses on each unit sold should not be
concerned because the huge volume of business available online should more than offset
these small marginal losses.
True
False
False
25-Channel conflict occurs when adding an online distribution channel causes problems
with existing distribution channels.
False
True
Amazon.com have
trended upward, driven
largely by product
diversification and its
international presence.
Amazon.com
maintained its
position as the
number one etailer in 2006.
The
company's
financial
success has
been assured.
28-All of the following categories have already been selling well online EXCEPT:
pet supplies
travel
new cars
30-With all else being equal in the online environment, goods with any of the following
product characteristics are expected to facilitate greater online sales EXCEPT:
Relatively expensive
items.
Frequently purchased
items.
Digitized
format.
High brand
recognition.
direct marketing.
e-malls.
disintermediation
a brick-and-mortar
strategy.
a brick-and-mortar
strategy.
a click-and-mortar
strategy.
electronic
distributors must
be used.
35-An online seller of travel services that generates revenue by charging fees for its services
is an example of a(n):
market maker.
transaction broker.
viral marketer.
content disseminator.
transaction broker.
content disseminator.
market maker.
content disseminator.
market maker.
viral marketer.
content disseminator.
service provider.
intermediary.
39-All of the following are potential sources of revenue for online independent travel agents
EXCEPT:
direct marketing revenues.
advertising fees.
transaction fees.
subscription fees.
Virtual banks
have no physical
location.
41-________ are customers who are willing to shop online because they dislike going to
grocery stores.
Time-starved customers
New technologists
Leading edgers
Shopping avoiders
42-________ are extremely busy customers willing to shop online in order to free up time.
Time-starved customers
Leading edgers
New technologists
Shopping avoiders
43-________ are those who are young and comfortable with technology.
Shopping avoiders
Leading edgers
New technologists
Time-starved customers
Internet gaming.
Shopping browsers
Shopbots
46-Software tools that scout the Web for stores that sell similar items at low prices are
called:
Shopbots.
Shopping portals.
Shopping browsers.
47-________ are sites that evaluate and verify the trustworthiness of e-tailers
Shopping portals
Shopbot sites
a B2B exchange.
an intermediary.
a trustmark.
49-Charles wants to buy a John Lennon lithograph over the Internet, but he is unwilling to
pay for it until he inspects it to ascertain authenticity. The auction site through which he
purchases the painting agrees to hold his money until he tells them to release it to the seller.
This is an example of:
an escrow service.
a warranty.
a trustmark.
a verification.
50-A software agent that surveys user's reading interests, then uses machine learning to
find new Web pages and news articles using neural-network-based collaborative filtering
technology is called:
an aggregator portal.
a real-time agent.
a learning agent.
51-A traditional brick-and-mortar store with a mature Web site uses a click-and-mortar
strategy to do all of the following EXCEPT:
speak with one leverage each channel's advantages
voice.
for all customers.
empower
customers.
52-The original click-and-mortar strategy used by Toys R Us failed, as did the original toy
venture of Amazon.com. Afterwards, Toys R Us sold toys online through Amazon.com.
This is an example of:
disintermediation.
reintermediation.
channel
conflict.
53-DeFreshFish has been in business for ten years selling custom fishing lures to local
fishermen through its store in a shopping mall. The company's owners are considering
opening a Web site and selling their products internationally. One new risk they will face in
going from a brick-and-mortar strategy to a click-and-mortar strategy is:
54-The single factor that will determine which intermediaries continue to exist and which
are replaced is:
the length of the
relationship between the
intermediary and its
customers
the profitability
of the
intermediary
55-An e-tailer uses cookies to identify returning customers and to provide suggested
products for purchase based on prior shopping behavior. This is an example of:
advertising supported model.
channel cooperation.
False
2-Finding and retaining customers is a major critical success factor for most offline and
online businesses.
True
False
False
4-The purpose of a consumer behavior model is to help firms understand how a consumer
makes a purchasing decision to be able to influence that decision through advertising,
special promotions, or other marketing method.
True
False
5-Individual buyers do most of the actual shopping in cyberspace in terms of dollar volume
of sales.
True
False
False
7-Personal characteristics of customers, such as age and income, are independent variables,
which are uncontrollable variables for EC companies.
True
False
False
False
10-The two most cited reasons for abandoning a shopping cart and not making the
purchase are shipping charges and security concerns.
True
False
True
False
12-Prices, advertising, promotions, and logistics are intervening variables that can be
controlled by vendors.
True
False
13-Buying decisions are the dependent variables because these decisions depend on the
independent and intervening variables.
True
False
False
15-In the consumer decision-making process, the buyer is the person who ultimately makes
the buying decision.
True
False
16-When Chaplin's auto lease is about to expire, he decides it is time to buy a new car. This
imbalance between a desired state and an actual state is called need identification.
True
False
17-In the decision-making process, virtual catalogs and links to external sources support
the evaluation and selection phase of that process.
True
False
18-Mass marketing is an approach to marketing that treats each customer in a unique way
such as fitting advertising to the customer's profile and needs.
True
False
19-Selling as many products as possible to one customer over a long period of time and
across different product lines to maximize customer value is known as relationship
marketing.
True
False
False
21-A user profile defines customer preferences, behaviors, and demographic traits of a
particular customer.
True
False
22-A cookie is a data file that is placed on a user's hard drive by a remote Web server only
when the user's gives full consent to collect information about the user's activities at a site.
True
False
23-Attracting and retaining loyal customers is the most important issue for e-tailers
because customer loyalty can lower marketing and advertising costs, transaction costs,
customer turnover expenses, and failure costs such as warranty claims.
True
False
False
25-Clickstream data provide a trail of a user's activities in a Web site including a record of
the user's browsing patterns of every page of every Web site the user visits, how long the
user remained on a page, and even the e-mail addresses of mail that the user sends and
receives.
False
True
dependent variables
decision variables
independent variables
social, cultural,
community, regulatory,
political, and legal.
28-Pricing, technical support, and logistics support are several of the ________ that can be
controlled by EC vendors and sellers
independent variables
decision variables
dependent variables
intervening variables
independent variables
dependent variables
decision variables
30-Banner advertising on Web sites helps trigger a realization that there is a gap between
reality and a desired state, which occurs in the ________ stage of the EC purchase decisionmaking process.
information
search
need
identification
31-Marketing and advertising approaches has evolved from mass marketing to market
segmentation to one-to-one marketing. This evolution occurred because:
the marketing
concerns about
focus shifted from privacy had
companies sought to
decrease the number
customers to
products.
diminished.
of marketing
campaigns.
online marketing
channels.
33-Personalization and user profiling strategies include each of the following EXCEPT:
Segmenting the
market based on
demographics.
Building from
Using questionnaires to
previous
collect information
purchases or
directly from the user.
purchase patterns.
34-The two key factors limiting the use of personalization to more precisely target
marketing efforts to individual customers are:
lack of customer loyalty
and service customization
costs.
communication costs
and filtering costs.
35-By increasing customer loyalty, EC companies can achieve each of the following benefits
EXCEPT:
lower warranty
claims costs.
lower resistance to
competitors.
36-What has been the impact of the introduction of EC on customer loyalty in general?
There has been little
Loyalty has decreased
change in loyalty
because of customers'
because the impacts
ability to shop, compare,
have cancelled each
and shift vendors.
other out.
It is not known
whether loyalty has
increased or
decreased.
cannot be
predicted.
39-Procter & Gamble (P&G) used the Internet in the new product development of
Whitestrips, a teeth-brightening product. Based on this experience, P&G:
could not
determine the
target market
segments for the
Whitestrips.
decided to add
Internet research
to its traditional
marketing test
model.
40-All of the following are correct about market research methods EXCEPT:
It is important first to
understand how
groups of consumers
are classified or
segmented.
Market segmentation is
done with the aid of
tools such as data
modeling and data
warehousing.
Direct mail
marketing
methods are
usually costeffective.
41-Social class, lifestyle, personality, and activities are descriptors used in ________ market
segmentation.
geographic
demographic
psychographic
42-To avoid getting false information from participants of online surveys, marketers learn
about customers by observing their behavior using each of the following EXCEPT:
Spyware that gathers user
Transaction logs that
Data mining to
information through an Internet
record user activities at
analyze
connection without the user's
a company's Web site.
clickstream data.
knowledge.
43-According to Inmon, B2C clickstream data can reveal information each of the following
EXCEPT:
Which ads and
promotions were
effective and which
were not.
provide most
companies with
knowledge about how
to use clickstream data
effectively.
are used to
redesign Web
sites quickly
and on the fly.
45-Once a company knows a consumer's preferences, the company can predict, without
asking the consumer directly, what other products or services that consumer might enjoy
through ________.
active web bugs
collaborative filtering
spyware
personalization
Loss of respondents
because of equipment
problems.
47-Online methods of bringing new customers to a B2B site when a B2B vendor wants to
grow by adding new customers or products include all of the following EXCEPT:
by contacting all of its targeted
customers individually to attract
them to an electronic exchange.
through an
affiliation
service.
48-The Internet introduced the concept of ________, which has enabled marketers and
advertisers to interact or communicate directly with customers and consumers can interact
with marketers/advertisers.
one-to-one marketing
direct marketing
advertising channel
interactive marketing
49-The term ________ refers to the number of times users call up a page that has a banner
on it during a specific period.
click through
unique visit
ad view
conversion rate
51-A(n) ________ is a type of pop-up ad that appears after a user clicks a link and remains
while content is loading to capture the user's attention for a short time, either as a
promotion or a lead-in to the site's homepage or to advertise a product or a service.
keyword banner
interstitial
banner exchange
CPM
52-The risks of e-mail advertising management include all of the following EXCEPT:
spam
fraud
e-mail hoaxes
53-A(n) ________ is an HTML coding statement that describes the content of a Web page
and is used by search engines to index the site's content so that it can be found.
meta-tag
domainer
advertorial
associated ad display
54-Advertising in chat rooms, blogs, or social networks can achieve each of the following
EXCEPT:
They improve a
company's search
engine ranking.
Advertising can
Advertising can be
become more thematic
easily targeted to
than on static Web
customer interests.
sites.
Viral marketing
Ad customizing
Ads as a commodity
False
False
False
4-Supply chain improvements and collaborative commerce are a basic type of B2B which has
a hub manager for supply chain improvements, communicating, collaborating, and
information sharing.
True
False
5-B2B EC transactions that involve one seller selling to many buyers is called an exchange.
True
False
6-Since business-to-consumer (B2C) transactions are segments in the supply chain, they
should be examined in light of other supply chain activities such as manufacturing,
procurement, shipments, and logistics.
True
False
False
8-With B2B2C, a business sells to a business, but also delivers small quantities to customers
of the buying business.
True
False
False
10-The purchase of goods and services as they are needed, usually the purchase of
commodities at prevailing market prices, is referred to as demand buying.
True
False
11-Examples of direct materials for a food processing company are computers and
communication devices.
True
False
12-MRO stands for "maintenance, repair, and operation" which refer to indirect or
nonproduction materials that support the production process.
True
False
13-Markets that focus on providing materials or products that are used in various types of
industries are known as horizontal marketplaces.
True
False
14-Purchases of goods or services that are based on short-term contracts and frequently
purchased in large quantities are known as strategic sourcing.
True
False
15-Joining a public e-marketplace provides a business with greater buying and selling
capabilities, but the tradeoff is lower supply chain power.
True
False
16-B2B can increase the efficiency and effectiveness of supply chains or dramatically
change the supply chain by eliminating one or more intermediaries.
True
False
17-Companies that choose an intermediary to do their buying and selling will have high
supply chain power and buying/selling capabilities.
True
False
18-Transaction fees for B2B financial services are higher than for most other methods.
True
False
19-Companies will often separate B2C orders from B2B orders because those types of
orders have different order-fulfillment processes and different pricing models.
True
False
20-By using the Internet and automatic-response software agents for customer service,
companies have been able to reduce their customer service costs by up to fifty percent.
True
False
21-Forward auctions expand online sales and offer businesses a new venue for quickly and
easily disposing of excess, obsolete, and returned products.
True
False
22-Strategic sourcing requires a holistic process that automates the entire sourcing process,
including order planning, RFQ creation, bid evaluation, negotiation, settlement, and order
execution.
True
False
False
24-With a bartering exchange, a company submits its surplus to the exchange and receives
points of credit, which the company can then use to buy items that it needs.
True
False
25-In the real world, negotiations are done primarily electronically and with negotiation
support tools.
True
False
26-Key business drivers for B2B are all of the following EXCEPT:
the availability of a numerous private and the need for
the willingness of
secure broadband
Internet platform.
trading communities
exchanges
collaborative commerce
28-With ________, a business sells to a business but delivers small quantities to customers
of the buying business.
B2B2C
B2B
B2C
B2C2B
29-A(n) ________ is an online third party that brokers B2B transactions between a buyer
and seller.
vertical marketplace
horizontal marketplace
intermediary
strategic source
30-The purchase of goods and services as they are needed, usually at prevailing market
prices is referred to as:
direct materials
spot buying
consolidation
strategic sourcing
spot buying
consolidation
strategic sourcing
32-________ can be supported more effectively and efficiently through direct buyerseller
offline or online negotiations, which can be done in private exchanges or private trading
rooms in public exchanges.
Strategic purchases
B2C commerce
MRO
Spot buying
33-What are the two types of materials and supplies that are traded in B2B?
Direct and
indirect.
Horizontal and
vertical.
Digital and
physical.
Commodities and
nonproduction.
34-Nonproduction materials such as equipment and tools that support production are
called:
operational materials
direct materials
virtual materials
indirect materials
36-The ________ consists of a number of interrelated subprocesses that extend from the
acquisition of materials from suppliers to packaging it and moving it to distributors and
retailers.
vertical market
horizontal market
production chain
supply chain
37-Companies that use an intermediary to do their buying and selling tend to be:
low on supply chain
power and low on
buying/selling
capabilities
Stock trading
Retail
Increases
opportunities for
collaboration.
Collaboration
Disintermediation
Just-in-time delivery
Purging
41-In a sell-side e-marketplace, a business sells products and services to business customers,
frequently over ________.
an exchange
an intranet
a web service
an extranet.
42-Companies will usually separate B2C orders from B2B orders because B2C and B2B
orders have different ________.
marketing
processes
accounting
processes
43-By using the Internet and automatic-response software agents, GE reduced the cost of
customer service calls from $5.00 per call when done by phone to ________ per
electronically answered call.
$1.00
$0.50
$2.50
$0.20
44-Some of the benefits of a(n) ________ are that distributors can check inventory, make
transactions, and look up the status of their orders significantly reducing the number of
phone calls, e-mails, and incorrect product shipments.
electronic data
interchange
custom
catalog
45-In selling directly, manufacturers may encounter a similar problem to that of B2C,
namely ________ with the regular distributors, including corporate dealers.
multichannel distribution
channel conflict
indirect competition
how to find
suppliers
47-The Cisco Connection Online (CCO) Web site receives over 2 million hits per month for
technical assistance, ordering, order checking, or software downloads. This online service
had been so well received that nearly ________ percent of all customer service inquiries
and ________ percent of software updates are delivered online.
15 / 25
45 / 55
25 / 35
85 / 95
48-Companies use ________ to sell their unneeded assets for quick disposal or to easily
dispose of excess, obsolete, and returned products.
private auctions
reverse auctions
forward auctions
liquidation
49-Benefits of using a third-party hosting company for conducting B2B auctions instead of
developing an auction site in-house include all of the following EXCEPT:
No redeployment of
corporate resources.
Time-to-market
of several
weeks.
50-A company-based acquisition site that uses e-procurement methods such as reverse
auctions, negotiations, or group purchasing, to overcome the manual searching of e-stores
and e-malls is referred to as a(n):
aggregated catalog
buy-side e-marketplace
Increasing the
productivity of
purchasing
agents.
52-Major implementation challenges that companies must consider when planning eprocurement initiatives include all of the following EXCEPT:
Increasing the number of Providing interfaces between Reviewing and
e-procurement and integrated changing the
regular suppliers and
Coordinating the
buyer's information
enterprisewide information
systems, such as ERP or
supply chain management.
procurement
process itself.
53-Because conducting reverse auctions in B2B can be a fairly complex process, a(n)
________ may be essential.
open RFQ
online directory
software agent
third-party intermediary
sell-side emarketplace
buy-side emarketplace
internal procurement
marketplace
55-In general, the benefits of contract-management software include all of the following
EXCEPT:
Reduces contract
Reduces
contract-related negotiation time and
efforts.
risks.
Provides more
efficient approval
processes.
Enables standardization of
contracts throughout the
enterprise.
False
2-One major characteristic of all exchanges is that they are electronic trading-community
meeting places for a single seller and many buyers, and possibly for other business partners.
True
False
3-In electronic exchanges and traditional open-air marketplace, buyers and sellers can
interact and negotiate prices and quantities.
True
False
4-Dynamic pricing refers to the rapid movement of prices over time and possibly across
customers as a result of supply and demand matching, as in auctions.
True
False
5-MSN or Yahoo! are types of exchanges that generate revenue through membership fees.
True
False
6-Thomas Register is basically a directory for buyers using search engines because it does
not offer any opportunity for trade or transactions on its site.
True
False
7-Alibaba China is China's largest online marketplace for both domestic and international
trade among businesspeople and a trusted community of members who regularly meet,
chat, search for products, and do business online.
True
False
8-To increase their financial viability, third-party exchanges try to partner with large
sellers or buyers, financial institutions that provide payment schemes, or logistics
companies to cut costs or increase market liquidity.
True
False
9-Market liquidity refers to the degree to which a product or service can be bought or sold
in a marketplace without significantly affecting its price.
True
False
10-Agentrics is the world's largest B2C exchange for retailers, such as Sears and Best Buy,
whose objective is to simplify and automate supply chain processes.
True
False
11-Two major models of third-party exchanges are supplier aggregation and buyer
aggregation.
True
False
12-For all types of e-marketplaces, the most important key to the success of any third-party
exchange is the critical mass of buyers and sellers.
True
False
13-A consortium trading exchange (CTE) or consortia is most appropriate for fragmented
markets with large numbers of both buyers and sellers.
True
False
False
False
16-Because of their large number of buyers and sellers, B2B exchanges and other emarketplaces do not face anti-trust or other competition laws.
True
False
17-A B2B consortium has the potential to reduce prices of individual products, thus
enabling and encouraging consortium members to buy more.
True
False
18-Dynamic trading is trading that occurs in situations in which prices are determined by
supply and demand, therefore changing continuously.
True
False
False
False
21-Company-centered networks may be a waste of money because they are used by only
one buyer (buyer's industrial network) or by only one seller (seller's industrial network),
and they may not be open to all.
True
False
22-Most exchanges have the same log-on procedures, same sets of rules for fulfilling
orders,and similar business models for charging for their services.
True
False
23-Public exchanges have difficulty attracting buyers and sellers because of the transaction
fees, reluctance to share information, and the availability of too many exchanges.
True
False
24-In B2B exchanges, software agents can facilitate management of multiple trading
partners and their transactions across multiple virtual industry exchanges.
True
False
25-Good management and effective operations and rules are critical to the success of B2B
exchanges because good governance provides the rules for the exchange, minimizes
conflicts, supports decision making, and tries to induce the necessary liquidity.
False
True
26-Before the Internet, the trading process for raw and partially processed chemicals,
plastics, and fuel oil was each of the following EXCEPT:
fragmented
disintermediated
slow
expensive
28-A third party that operates an exchange and in many cases, also owns the exchange is
known as a(n):
intermediary
negotiator
agent
market maker
29-In the context of EC, ________ are electronic trading-community meeting places for
many sellers and many buyers, and possibly for other business partners.
B2C
portals
social networks
exchanges
31-An exchange whose members are in one industry or industry segment and that trades
only in materials/services unique for that industry is referred to as a(n):
lateral exchange
horizontal exchange
vertical exchange
commodity exchange
vertical exchange
horizontal exchange
commodity exchange
33-Light bulbs and office supplies might be purchased in a(n) ________ by both an
automaker and a steelmaker.
commodity exchange
vertical exchange
lateral exchange
horizontal exchange
34-In ________, the prices are usually dynamic and are based on changes in supply and
demand.
vertical sourcing
spot sourcing
horizontal sourcing
strategic sourcing
horizontal sourcing
strategic sourcing
vertical sourcing
in horizontal
exchanges.
only in virtual
exchanges.
38-In an exchange where plastic components are bought and sold, the market maker
collects money from the buyer, and releases it to the seller once successful delivery is
completed. This is an example of:
maintaining exchange
policies.
maintaining exchange
infrastructure.
39-In an exchange where plastic components are bought and sold, the market maker
purchases a new server that will be used to conduct auctions. This is an example of:
transaction
facilitation.
maintaining exchange
policies.
40-A market maker evaluates an exchange between a buyer in the United States and a
seller in Spain to ensure that import laws for the U.S. are followed. This is an example of
the market maker:
matching buyers
and sellers.
transaction
facilitation.
interfering with
exchange policies.
42-The exchange model in which a third party sets up the exchange and promises to run it
efficiently and without bias is called the:
industry giant model.
co-op model.
consortia model.
43-An exchange charges an annual fee of $25,000 for all parties who want to trade in the
exchange. The revenue model in use by this exchange is the:
transaction fee model. membership fee model. advertising fee model. fee for service model.
44-A market maker charges a percentage on every buy and sell made in the exchange. The
revenue model in place in this exchange is the:
advertising fee model. fee for service model. transaction fee model. membership fee model.
45-A market maker bills a buyer for reviewing several seller contracts and making a
recommendation on what to buy and from whom. The revenue model being used in this
example is the:
membership fee model. advertising fee model. fee for service model. transaction fee model.
46-All of the following are potential sources of revenue for an exchange EXCEPT:
advertising fees. membership fees. fees for services rendered. shipping and handling fees.
47-When membership fees are the basis for revenue generation in an e-exchange, it has
been shown that:
low membership fees often
result in losses to the
exchange,; however, high
fees discourage
participation.
49-The exchange model in which RFQs are aggregated then linked to a pool of suppliers
who are notified automatically of the RFQ is the ________ model.
reverse auction
buyer aggregation
supplier aggregation
seller aggregation
50-Markets in which several large sellers sell to a large number of buyers are called:
differentiated
markets.
seller-concentrated
markets.
fragmented
markets.
buyer-concentrated
markets.
51-Attracting large business sellers to public exchanges is often difficult for all of the
following reasons EXCEPT:
competitors who are also
advertising costs in it is sometimes
exchange member may
public exchanges difficult to recruit
gain access to confidential
are very expensive. large suppliers.
information.
52-In dealing with exchange members, the management of the exchange should:
leave the management of
day-to-day operations of
the exchange to the
members.
strive to maximize
exchange revenues
through charging the
highest possible fees.
53-The most attractive industries for a vertical exchange are characterized by:
a few very large
stagnant
players that totally
technology.
dominate the industry.
it is easy for
exchange members
to change to another
exchange.
exchange members
typically buy only
the best brands of
product.
exchange members
typically buy products
at the lowest cost
unless branded.
False
2-It has been well known for generations that the success of many private, public, and
military organizations depends on their ability to manage the flows of materials,
information, and money, which is referred to as the product life cycle.
True
False
3-Supply chain problems can cause delays, products not being where they are required at
the right time, customer dissatisfaction, lost sales, and high expenses that result from fixing
the problems once they occur.
True
False
4-The term supply chain comes from the concept of how systems and processes within an
organization are linked together.
True
False
5-A supply chain involves activities that take place during the entire product life cycle,
"from dirt to dust."
True
False
6-A supply chain can be broken into three major parts: upstream, internal, and
downstream.
True
False
7-The downstream part of the supply chain includes the activities of a company with its
suppliers, which can be manufacturers, assemblers, or both, or service providers, and their
connections with their suppliers.
True
False
8-In the internal part of the supply chain, the major concerns are production management,
manufacturing, and inventory control.
True
False
False
10-SCM aims to minimize inventory levels, optimize production and increase throughput,
decrease manufacturing time, optimize logistics and distribution, streamline order
fulfillment, and overall reduce the costs associated with these activities.
True
False
11-A major requirement for any medium- to large-scale company that is moving to EC
implies an integration between all the activities conducted on the Web and the
ERP/MRP/SCM solutionsin other words, creating an e-supply chain and managing it.
True
False
False
13-The success of an e-supply chain depends on managing information with strict policies,
discipline, and daily monitoring.
True
False
14-The success of an e-supply chain depends on an e-supply chain that is loosely integrated
both within a company and across an extended enterprise made up of suppliers, trading
partners, logistics providers, and the distribution channel.
True
False
False
16-By combining bar coding and wireless technologies, automobile dealers are able to scan
in goods as they arrive electronically and place them in inventory up to 10 percent faster
than previously.
True
False
17-At hospitals and supermarkets, inventory reorder points have been automated so that
when inventory gets down to a certain point the system will automatically notify a human
of the exact amount to reorder.
True
False
18-Functional products are staple products, such as groceries or gasoline, that have stable
and predictable demand. For these products, an effective supply chain emphasizes speed,
responsiveness, and flexibility rather than low costs.
True
False
19-Pure EC companies may be likely to have more supply chain problems because they
may not have a logistics infrastructure and may be forced to use external logistics services.
True
False
20-A major limitation of RFID currently is the restriction of the environments in which
RFID tags are easily read.
True
False
False
False
True
False
False
25-As with any IT project, management needs to be able to justify the development and use
of a corporate portal by comparing its cost with its benefits. The challenge is that despite
the tangible benefits from investment in portal technology, such as include increased
revenues and customer loyalty, most of the benefits of portals are intangible.
False
True
26-A company's internal operations and its relationships with suppliers and other business
partners are frequently:
replaced by
customer-facing
applications.
as complex as
customer-facing
applications such as
taking an order online.
e-replenishment.
downstream processing
e-logistics
29-The e-SCM process that includes integrated production and distribution processes is:
collaborative planning
e-logistics
e-procurement
30-The last fifteen orders from a manufacturer to its suppliers range from $100,000 to
$8,740,000. This is an example of:
supply inadequacy.
demand manipulation.
order instability.
31-B2B systems which are used for communication, design, planning, information sharing,
and information discovery are called:
electronic data
systems.
collaborative
commerce.
information aggregation
systems.
electronic bartering
systems.
communication and
collaboration with
suppliers.
the technology
needed isn't
available.
the lack of
universally
accepted
standards.
collaborative
commerce is
extremely expensive.
35-Wal-Mart and Levi Strauss collaborate on demand forecasting in order to optimize the
flow of materials along the supply chain. This is an example of:
reducing design cycle time.
CPFR.
minimize
quality
problems in
supplies.
eliminate
intermediaries.
Product lifecycle
management
Internal
commerce
Collaborative
planning
38-All of the following are true about product lifecycle management (PLM) EXCEPT:
The demand for PLM in
limited because it does
not apply to products
that have short life cycles
or are complex.
39-Today, many business experts agree with each of the following EXCEPT:
The supply chain needs
to be operationally
integrated so that
inventory activities link
seamlessly to
manufacturing
activities.
Supply chain
integration has
reduced the
intensity of
competition in
most industries.
middleware.
collaborative software.
extranet technology.
43-Software applications that address project management concerns are examples of:
administrative workflow
applications.
portal
applications.
collaborations workflow
applications.
production workflow
applications.
production workflow
applications.
administrative workflow
applications.
portal
applications.
production workflow
applications
collaborative workflow
applications.
portal
applications.
CPFR
Web conferencing
Data conferencing
47-The primary benefits of workflow management systems include all of the following
EXCEPT:
fewer chances for delay or
misplaced work.
less management
intervention.
increased data
security.
cycle time
reduction.
is needed for
collaborative
efforts only.
For networked
environments.
50-________ means that the communication and collaboration are done in real time.
Bi-synchronous
Asynchronous
Synchronous
Multi-Synchronous
51-All of the following are types of communication and collaboration done in real time
EXCEPT:
instant messaging
blogging
webinars
VoIP
52-The growth in electronic meeting systems has been driven by all of the following
EXCEPT:
Acceptance of virtual meetings as
Improvements in
Reductions in the price
Shorter
a respected way of doing
cycle times. supporting technology. of the technology.
business.
in conducting
virtual meetings.
in easier
decision
making.
54-Corporations are moving their phone systems to ________ to cut costs and boost
efficiency.
VoIP
RTC
video kiosks
GDSS
It is the natural
result of wanting
to link people via
both voice and
audio.
False
2-E-government applies only to the interaction of the government with its business
suppliers.
True
False
False
4-Two major areas of G2C activities are "tourism and recreation" and "research and
education."
True
False
5-Current voting technologies are being implemented in various countries because of the
security provided by these technologies.
True
False
False
7-The smart card system is part of a nationwide electronic benefits transfer system in the
U.S. for Social Security and welfare payments and other benefit payments.
True
False
8-Social networks, such as MySpace, Facebook, and YouTube, are rarely used by political
candidates to reach voters because there are too few users of those networks who actually
vote.
True
False
9-Forward auctions are buy-side auction systems used by the government to buy large
amounts of MROs and other materials directly from suppliers.
True
False
10-Electronic filing of business taxes is available in over 100 countries, from Thailand to
Finland to the United States.
True
False
False
False
False
14-One of the most important issues in implementing e-government is its adoption and
usage by citizens.
True
False
False
16-At Cisco, e-learning helped reduce employee training time and costs by almost 25
percent.
True
False
False
18-An important advantage of e-learning is that it can provide a fear-free and privacyprotected environment in which students can put forth any idea without fear of looking
stupid.
True
False
19-A drawback of e-learning is that no online course can deliver real-time information and
knowledge in the way a "live" instructor can.
True
False
20-Unlike educational institutions, only a small number of business organizations are using
e-learning on a large scale.
True
False
21-The dynamic approach to publications personalizes content in real time and transmits it
on the fly in the format best suited to the user's location, tastes, and preferences. This
approach also is called just-in-time (JIT).
True
False
22-One of the seven principles for building effective blogs is to think of a blog as a database
instead of a newspaper-like collection of posts.
True
False
23-Senior executives and companies are using the blogosphere to build trust-based
relationships, polish corporate reputations, promote social causes, and accomplish other
professional goals.
True
False
False
False
26-________ are a popular online publishing technology for creating a Web page that can
be edited by anyone with a standard Web browser.
P2P
Point-casts
Wikis
Blogs
a company sells
army and navy
surplus supplies
at auction over
the Internet.
an unemployed worker
consults a Web site
operated by the state
employment department to
learn about job openings in
his city.
a contractor submits
an application for a
building permit
using a city hall
Web site.
a regional hospital
conducts an online
reverse auction for
cleaning supplies.
29-Chaplin reports quarterly sales revenue from his business to city hall over the Internet.
He pays his local business tax with a credit card. This is an example of:
e-government
G2C e-commerce
e-Procurement
G2B e-commerce
30-A government agency uses an online reverse auction to satisfy the tendering system
requirements specified by law. This is an example of:
e-Procurement
G2B e-commerce
G2C e-commerce
e-government
trained.
devices.
geographic locations.
designing feature-rich
Web sites.
knowledge
retention is
higher.
learning time
is reduced.
knowledge retention is
lower than in traditional
classrooms.
as a total
replacement for
traditional
classrooms.
37-The business forces that are driving the transition from traditional education to online
learning are all of the following EXCEPT:
limited supply of faculty with
network
technological
pressures.
specialized expertise.
connectivity.
change.
A community college
providing an online
college course on
digital media.
Blackboard
WebCT
Web 2.0
40-________ is the electronic delivery of newspapers, magazines, books, videos, music, and
other digitizable information over the Internet.
Blogging
Social networking
Online publishing
Webinar
41-More and more people are willing to pay for digital music, as shown by the success of
________.
Napster
Apple's iTunes
Kazaa
P2P
42-________ is commonly used to broadcast public lectures and e-seminars, promote the
work of new or unknown musicians, and broadcast international entertainment activities.
Podcasting
Webcasting
Dynamic publishing
File sharing
the iPod
its lack of
hardware
proprietary
required to hear
content.
it.
44-The exclusively online publication of Stephen King's e-book Riding the Bullet in March
2000:
as disrupted by hackers
who breached security,
then distributed free copies
of the book.
produced
very few
sales.
was a failure
because the cost
of the book was
too high.
45-A type of e-book referred to as the ________ is a truly multimedia, online-only book that
has hyperlinks, three-dimensional text and display, graphics, audio, and video. It supports
nonlinear exploration of topics.
download
interactive, build-your-own
decision book
lower production,
marketing, and delivery
costs.
The most
common types of Blogs are limited to
blogs are
one-way
professional
communication.
blogs,
A blog is a personal
Web site, open to the
public, in which the
owner expresses his
or her feelings or
opinions.
the risk of
revealing trade
secrets.
the risk of
lawsuits
49-A major purpose of an organizational knowledge base is to support and allow ________.
organizational capital
responsible blogging
knowledge sharing
e-learning
managing knowledge
as an asset so as to
increase the effective
use of knowledge
assets over time.
creating knowledge
restricting
repositories where
knowledge access to
knowledge can be
prevent its transfer
stored and retrieved
between individuals.
easily.
companies protect it to
maintain competitive
advantage.
supply chain
management
product development
management
project
management
C2C auctions
Personal services
Classified ads
The users'
computers can
act as both
clients and
multichannel
on one computer to
collaboration applications. execute a program on a
server computer.
servers.
for adding
functionalities.
False
2-Mobile computing refers to a computing paradigm designed for workers who travel
outside the boundaries of their organizations or for anyone on the move.
True
False
3-The two solutions that were necessary for mobile wireless computing to be feasible were
computers that were small enough to be carried easily and long-life batteries.
True
False
4-A laptop or notebook computer can become wireless with the addition of a cellular chip.
True
False
5-Overall, PDA sales dropped in the mid-2000 because PDAs lacked features beyond
personal information management.
True
False
False
7-Hardware and software designers need to consider the special requirements of mobile
devices such as small screens, reduced memory, limited bandwidth, and restricted input
capabilities.
True
False
8-A Web server may need two versions of the same Web pagea normal page with full
graphics for desktop computers and a mobile page for PDAs and smartphonesand a way
to distinguish between devices requesting the Web page.
True
False
False
10-Common standards for various mobile devices simplify the development of software
applications for wireless devices.
True
False
False
False
13-The WAP gateway is a server that is responsible for translating information requests
from the device into an HTTP request that the Web server can understand.
True
False
14-Micropayments for small-purchase amounts of less than $10 have become widespread in
EC, in part because of the widespread use of all types of mobile devices.
True
False
15-Increased use of voice-support services exploits the built-in audio capabilities of many
mobile devices and reduces their dependence on unsatisfactory input solutions, such as
handwriting recognition, keypads, or virtual touch-screen keyboards.
True
False
16-The highest level of voice support services is a voice portal, which is a Web site with an
audio interface that can be accessed through a telephone call.
True
False
False
18-The most popular Wi-Fi standard is 802.11b, which is inexpensive and offers sufficient
speed for most devices, but has interference problems.
True
False
19-A common type of personal area network (PAN) is Bluetooth-enabled headsets that
people use with their cell phones.
True
False
False
21-WiMax is an IEEE 802.16 wireless standard for making broadband network access
widely available for data and voice over a medium-sized area, and whose impact on ecommerce is still unclear.
True
False
False
23-The two greatest opportunities in B2B mobile commerce are to use wireless
communication to share information along the supply chain and to make electronic
payments.
True
False
24-In Las Vegas, the Luxor pre-registers guests when their airplane lands and they turn on
their cell phones. Also, the hotel can determine when guests leave the hotel, luring them
back to gamble with mobile incentives and pitches. This is an example of Global
Positioning Systems (GPS).
True
False
25-Several key ethical issues in m-commerce include isolation, loss of privacy, and potential
health damage from cellular radio frequency emissions.
True
False
cell phones;
smartphones;
portable computers switches
wired networks;
access points
PDAs,
smartphones, and
portable
computers.
WAP gateways,
GPS locators,
and GPS
satellites.
29-Characteristics of mobile devices that create special requirements that hardware and
software designers need to anticipate when designing mobile computing systems include all
of the following EXCEPT:
restricted input capabilities
small screens
reduced memory
broad bandwidth
marking
synchronization.
docking
31-A suite of network protocols designed to enable different kinds of wireless devices is
called:
a mobile application user
interface.
Wireless Application
Protocol.
wireless
middleware.
a mobile operating
system.
32-The application logic in a handheld PDA, smart phone, Palm or Wintel notebook is
called:
a mobile application user
interface.
wireless
middleware.
a mobile operating
system.
Wireless Application
Protocol.
GPS
SMS
PDA
34-Rick sends a message from a delayed flight to his friend on her cell phone that he will be
arriving late. The service that allows the sending and receiving of such short text messages
on mobile phones is called:
LOL
SMS
TMG
MSG
from a mobile
device.
36-A ________ is suitable for mobile users who need to make very short-range device-todevice wireless connections within a small space, such as a single room, and most
commonly with Bluetooth.
wireless area network
WLAN; hotspot
38-The IEEE standard ________ offers bandwidth transfer rates of 200 to 540 Mbps,
which makes it impractical because it exceeds the limits of most broadband connections
used by homes and small businesses.
802.11b
802.11n
802.11g
802.16
39-All of the following about wireless wide area networks (WWAN) are true EXCEPT:
Most
WWANs are
cellular phone
networks.
When a device is
turned on, a SIM
card inside the
device identifies
itself to the
WWAN.
40-The major attributes that enable development of new applications that are possible only
in a mobile environment include all of the following EXCEPT:
Ubiquity
Security
Personalization
Localization
The widespread
availability of more
powerful wireless
devices.
The growth of a
handset culture and
mobile workforce.
The transition to a
manufacturing
economy.
telecommunications
targeted
advertising
43-The major enterprise mobile applications are all of the following EXCEPT:
logistics and
supply chain
44-By enabling sales force employees to record orders in real time, the organization
benefits through each of the following EXCEPT:
lower clerical and
administrative
overhead.
45-Mobile access supports the two functions of sales force mobilization and field service,
which extends the reach of ________ to both employees and business partners on a 24/7
basis to any place where recipients are located.
customer relationship
management
vendor
management
supply chain
management
inventory
management
46-One way to share information with supply chain partners is wireless ________, which is
the science of measuring physical phenomena such as temperature, volume, or an on/off
condition at a remote point and transmitting the value to a distant recorder or observer.
RFID
telemetry
mobilization
osmosis
Prescriptions can be
transferred
electronically to the
appropriate pharmacy
for a no-wait pick-up
by the patient.
Reduced threat of
malpractice suits
because there is no
hands-on interaction
between the remote
physician and the
patient.
49-The services provided through location-based m-commerce focus on key factors which
include all of the following EXCEPT:
Tracking, or
Timing, or determining
Navigation, or plotting
Geocaching, or
monitoring the
the precise time at a
a route from one
determining the
movement of a person
location to another.
topography of an area. specific location
or thing.
51-You are walking near a coffee shop and suddenly your cell phone beeps with a message:
"Come inside and get a free biscotti with any purchase." This is an example of:
location-based
advertising
mcommerce
customer relationship
management
permission
marketing
E-911
Telematics
Mobility
53-Many experts believe that the next major step in the evolution of computing will be
________ in which almost every object will have processing power and a wired or wireless
connection to a network.
universal computing
mobile computing
persistent computing
pervasive computing
An RFID tag
includes an
antenna and a chip
with information
about the item.
An RFID
reader contains
a radio
transmitter and
receiver.
55-One initiative underway that could lead to widespread support for the introduction of
RFID is the ________, which identifies the manufacturer, producer, version, and serial
number of each item and does not require line-of-sight contact to be read.
Smart Product Network Electronic Product Code Universal Product Code Sensor Network
False
2-In some types of auctions, sellers offer product; and in other types of auctions, buyers
post their product needs.
True
False
3-Dynamic pricing refers to a transaction in which the price is not fixed, but fluctuates
based on current supply-and-demand relationships.
True
False
4-Reverse auctions have two major purposes: liquidation and market efficiency.
True
False
5-B2B reverse auctions are gaining popularity as an online mechanism for buying goods
and services.
True
False
6-A popular type of auction model where there is one buyer and many potential sellers is
the "name-your price" model that was pioneered by eBay.com.
True
False
7-An auction that takes place between sellers and buyers in one industry or for one
commodity is called a vertical auction because activity goes up and down the supply chain
in a single industry, rather than horizontally between members of supply chains in
different industries.
True
False
False
9-Through e-auctions, sellers can gain more customer dollars by offering items directly
rather than through an expensive intermediary or by using an expensive physical auction.
True
False
10-A major benefit of e-auctions is the reduced rate of fraud because of the openness of the
transaction.
True
False
False
12-Entering a high bid without ever planning to pay for the auction item is called sniping.
True
False
13-In addition to auctions, dynamic prices can be determined by online negotiation, which
is the back-and-forth process of bargaining until a buyer and seller reach a mutually
agreeable price.
True
False
14-Barter agents are software that can support the back-and-forth process of online
negotiation.
True
False
False
16-Prices paid in online auctions are lower when auctions are an alternative selling channel
rather than an exclusive selling arrangement.
True
False
17-Negotiating prices transfers the burden of determining prices to the market itself so the
resulting negotiated prices will always be fair and effective.
True
False
18-Bid shielding is a type of e-auction fraud where sellers place phantom bidders to bid up
the price of items they are selling and hide (shield) low bids by actual potential buyers.
True
False
19-Specialized authentication services are very effective and widely used to determine
whether an item is genuine and described correctly as a way to protect against counterfeit
products.
True
False
20-Third-party escrow services are used for products valued at more than $200 to protect
both the buyer and seller when either the buyer or seller feels the need for additional
security.
True
False
21-When a company decides to use auctions as a sales channel, one of the strategic issues in
B2B is the potential conflict with existing distributors and distribution channels. Therefore,
some companies use auctions only to liquidate obsolete, used, refurbished, or damaged
products.
True
False
22-The process of building auction applications is easy because of intelligent agents and
other building tools.
True
False
False
24-Privacy is one of the benefits of mobile auctions because the Internet cell phone is more
private than a PC.
False
True
25-Auctions may be used as a strategic tool by both online and offline companies.This type
of strategic alliance will be very popular due to its win win possibilities.
False
True
They are an established method They are suitable for They are a market
of commerce for generations. most consumer goods. mechanism.
prices that
prices that are
maximize revenue. negotiated.
Reverse auctions
Dynamic exchanges
Bartering
30-Two purposes of a type of ________ auctions are liquidation and market efficiency.
one buyer, many potential many buyers, many
sellers
sellers
one buyer, many potential one seller, many potential one-buyer, onebuyers
seller
sellers
one-buyer, one- one seller, many potential one buyer, many potential
seller
buyers
sellers
34-A(n) ________ takes place between sellers and buyers in one industry or for one
commodity, such as flowers, cars, or cattle.
vertical auction
exchange
open auction
negotiation vortal
35-All of the following are potential benefits from auctions to sellers EXCEPT:
sellers can liquidate large sellers receive valuable auctions can broaden the
sellers are always
quantities of obsolete
price sensitivity
customer base and
anonymous.
items very quickly.
information.
reduce cycle time.
buyers
Removal of expensive
intermediaries
38-________ refers to the tendency of customers to stay at Web sites longer and come back
more often.
Loyalty
Frequent purchase
High repeat
Stickiness
Dynamic pricing
40-Research has shown that e-commerce sites that use an auction model tend to:
reach critical mass more quickly become
liquid.
than catalog-order-based.
arranging
financing.
searching and
comparing.
42-Jackie uses a software system to place bids automatically on her behalf until her
predetermined maximum price is reached. The software bids in such a way as to minimize
the final bid. This is referred to as:
sniping.
bidding agents.
proxy bidding.
pricing agents.
43-Compared to competitive markets, auction prices are often ________ when there are
multiple bidders.
the same
lower
higher
dynamic
44-Compared to competitive markets, auction prices are often ________ when there are
very few bidders.
lower
higher
dynamic
the same
payment delays.
46-The practice by sellers of having associates place fake bids in an auction as a way to
drive up the selling price is called:
bid shielding.
bid fixing.
shilling.
sniping.
47-Bidders sometimes use phantom bidders to drive bid prices up rapidly at the beginning
of an auction, thus discouraging bidding from legitimate bidders. At the last minute, the
phantom bidders pull out, which awards the item to a very low bidding customer. This
practice is called:
shilling.
sniping.
bid fixing.
bid shielding.
48-John wants to know if the first edition novel he just purchased through an e-auction is
actually a first edition. The auction host helps him locate an expert that will tell him
whether the novel is a genuine first edition or a fake. This is an example of:
certification.
authentication.
verification.
integrity.
dishonest
authenticators are the
primary sources of
fraud on the Internet.
50-Many companies use intermediaries or trading assistants instead of implementing eauctions themselves for each of the following reasons EXCEPT:
To bring many
Costs of auction intermediaries or
To avoid tax
The company name is
more
buyers
to
the
assistants are less than the costs of
and legal
not widely recognized.
auction.
physical auctions.
fees.
51-Each of the following is one of the three major categories of auction rules EXCEPT:
timing rules
clearing rules
bidding rules
information-revelation rules.
The success of
auctions depends on
complying with
auction rules.
53-The process of building auction applications is complex for all of the following reasons
EXCEPT:
auctions must be
integrated with the
back-end offices.
the number of
auctions must be integrated with auctions must
needed features can the legacy systems of
provide payment
be very large.
participating companies.
systems.
54-Many auction sites are implementing ________ because of the significant increase in the
number of users who browse the Internet wirelessly.
m-commerce applications
authentication
vortals
Wireless systems
are not as safe as
wireline ones.
False
2-The trend in online crimes shows that most new scammers and other con artists are not
computer geniuses.
True
False
False
4-Defending against online cons and compensating for the damages caused by identity
thieves have significantly increased the costs of EC.
True
False
5-To minimize the risk of fraud from phishing and crimeware, EC retailers need to
authenticate the buyer.
True
False
6-An EC security strategy consists of firewalls and other types of technology to prevent and
detect unauthorized use of the organization's brand, identity, Web site, e-mail, information,
or other asset.
True
False
False
8-The EC industry ranks security over convenience. So the EC industry strives to enforce
safeguards, such as passwords for credit card transactions, that make online shopping
safer even if those safeguards make it more inconvenient for customers.
True
False
9-Credit card issuers want to cooperate and share leads on criminal activity with each
other and law enforcement even though prosecution with an uncertain outcome.
True
False
10-Most U.S. Web hosting providers log all activity so, in most cases, they can identify the
source IP address and source ISP with timestamps and other identifying information.
True
False
11-Requiring stronger EC standards and information sharing by the credit card companies
would not fix the security problems facing online retailers and shoppers.
True
False
12-Spammers use zombie computers to distribute spam because it is both cheaper and less
risky.
True
False
13-According to the Mitre Corporation's list of Common Vulnerabilities and Exposures, two
of the top five reported vulnerabilities were within Web applications.
True
False
14-The legal standard of due care requires that a company take reasonable care to defend
against risks affecting its EC business and online transactions.
True
False
15-Because of the lack of source authentication and data integrity checking in DNS
operations, Internet services are vulnerable to attacks.
True
False
16-Experts believe that a strict e-business risk management program that was rigorously
managed could not have prevented many of the data breaches.
True
False
17-EC security programs have a life cycle during which their EC security requirements
must be evaluated and adjusted annually.
True
False
18-According to the CIA security triad, the success and security of EC depends on the
confidentiality, integrity, and accessibility of information and the business Web site.
True
False
False
20-The FTC, SEC and other government agencies cannot impose harsh penalties on
companies whose confidential data has been breached unless a company employee caused
the breach.
True
False
21-Phishing attacks rely on social engineering, which is a nontechnical attack that uses
something to trick users into revealing information or performing an action that
compromises a computer or network.
True
False
False
23-Unlike denial of service (DOS) attacks, botnet attacks are less dangerous because they
cannot disrupt a web site or EC application.
True
False
True
25-Virtual private networks (VPNs) are a special category of software that can monitor
activity across a network or on a host computer, watch for suspicious activity, and take
automated action based on what it sees.
True
False
26-The incidence of online fraud and identify theft has increased for each of the following
reasons except:
New effective phishing
Information is today's
scams and schemes
most valuable form of
being carried out by
international currency.
computer experts.
Scammers outsourcing
work to programmers to
seize control of computers
or wireless networks.
Growth in EC sales
and the number of
shoppers with
higher incomes.
a majority of potential
customers do not shop
online because they are too
afraid of fraud to trust
online merchants.
28-The U.S. agencies dedicated to eliminating fraud resulting from phishing and crimeware
are:
The High-Tech Crime
The Group of
Network, AntiEight, VeriSign,
Phishing Working
and NameProtect. Group, and Internet
Research Lab.
29-________ is a crimeware technique used to steal the identity of target companies to get
the identities of their customers.
Social engineering.
Phishing.
Pretexting.
Spamming.
In the G8
countries.
In South
America.
31-The key reasons why EC criminals cannot be stopped include each of the following
except:
Lack of cooperation
from credit card
issuers and foreign
ISPs.
32-It is currently known that if a front-end application such as a Web site is effectively
secured, then
the data itself
is secured by
firewalls.
33-A vulnerability
is the estimated cost, loss,
is a
or damage that can result if
software
a threat exploits a
bug.
vulnerability.
is a weakness in software or
is the probability
other mechanisms that a hacker
that a weakness will
can use directly to gain access to
be known and used.
a system or network.
34-The underlying reasons why a comprehensive EC security strategy is needed include all
of the following except:
Managers
treating EC
security as a
process.
36-The success and security of EC depends on the ________ of information and the
business Web site.
authentication,
authorization, and
nonrepudiation
encryption,
functionality, and
privacy
quality,
confidentiality, integrity,
reliability, and
and availability
speed
37-The basic security concepts relating to customers and other users are:
authorization,
nonrepudiation, and
information assurance.
confidentiality,
integrity, and
availability.
have been
compromised by
phishers and
spammers.
provide complete
a
confidence that the
and
transactions are secure. b
depends on the
trust and
confidence of
customers.
proactively meets
regulatory, financial,
marketing and
operational requirements.
protects against
unauthorized transactions
and overrides of
accounting controls.
to be written by to be incorporated
41-In 2005, human error was responsible for almost ________ percent information security
breaches in organizations.
40
10
20
60
42-Which of the following statements about hardware and software security defenses is
false?
After the EC security
program and policies are
defined and risk assessment
completed, then the software
and hardware needed to
support and enforce them can
be put in place.
If firewalls and
There is no
antivirus software are
single hardware
not upgraded and
or software
monitored
solution for all
constantly, they will
companies.
not remain useful.
an example of
technical attacks
requiring software or
systems knowledge.
causes a high
enables online
volume of
gambling that are
search engine
actually fronts for
traffic similar to
international money
a denial of
laundering operations.
service attack.
a piece of software
code that inserts
itself into a host or
operating system to
launch DOS
attacks.
a collection of a few
hundred hijacked Internet
computers that have been
set up to forward traffic,
including spam and viruses,
to other computers on the
Internet.
a piece of code in a
worm that spreads
rapidly and exploits
some known
vulnerability.
a coordinated network
of computers that can
scan for and
compromise other
computers and launch
DOS attacks.
AUPs, ACLs,
and network
login IDs.
that uses
encryption keys
ranging from 64
bits to 128 bits.
48-Secure Socket Layer (SSL), which is also known as Transport Layer Security (TLS):
is designed to
handle all steps in
the validation of
credit card
numbers.
has been
replaced by
certificate
authorities.
the policy of
role-specific security the policy of need-toacceptable use
protocols where
know where access
where access is
access is limited by a by all non-employees
restricted by the
user's level of trust. is blocked.
firewall.
50-Which of the following does not correctly describe what firewalls protect against?
Some programs have
bugs or special
features that create
application
backdoors, which
allowing for remote
access.
51-Firewalls that filter requests from the Internet to a private network based on the IP
address of the computer sending or receiving those requests are called:
packet-filtering routers.
application-level proxies.
bastion gateways.
IP blockers.
52-All of the following are important security functions of proxy servers except:
They improve
network
performance.
53-The advantages of virtual private networks (VPN) for data communications include all
of the following except:
They can reduce
communication costs
dramatically because
VPN equipment is
cheaper than other
remote solutions.
Uses rules to
analyze suspicious
activity at the
perimeter of a
network or at key
locations in the
network
use.
55-In the United States, which the federal laws place legal limits on monitoring activity?
The Wiretap
Act and
CFAA
The USA
PATRIOT Act
and CFAA
False
False
3-To succeed, special e-payment methods, such as e-cash, have to maintain anonymity.
True
False
4-E-payment methods that can address the lower or higher end of the price continuum is
unlikely to be widely accepted because of cost and security issues.
True
False
5-Credit cards and charge cards are e payment instruments that allow the holder to make
purchases up to a fixed limit and charges interest each month on unpaid balances.
True
False
6-In the settlement process, the systems must determine whether a buyer's card is active
and whether the cardholder has sufficient funds available for the purchase.
True
False
7-With a debit card, the money for a purchased item comes directly out of the holder's
checking account with the actual transfer of funds from the holder's account to the
merchant's taking place within one to two days.
True
False
8-The processing of card payments has two major phases: identification and settlement.
True
False
9-In the authorization process, the systems determines whether a buyer's card is active and
the customer has sufficient available credit line or funds.
True
False
10-For a given type of payment card and processing system, the processes and participants
are essentially the same for off-line (card present) and online (card not present) purchases.
True
False
11-CyberSource and VeriSign are payment processing services that provide connectivity
among merchants, customers, and financial networks that enable authorization and
payments.
True
False
12-In the online world, merchants are not held liable for fraudulent transactions.
True
False
False
14-Because of their visibility and large sales volumes, larger firms were more susceptible to
fraud than smaller firms were.
True
False
15-One problem with the Address Verification System (AVS) for fraud prevention is the
number of false positives, meaning that the merchant rejects a valid order. One reason for
these rejects is simply that cardholders make mistakes in inputting their addresses or zip
codes.
True
False
16-One impact of anti-fraud tools is that merchants are rejecting a significant number of
both valid and invalid orders due to suspicion of fraud.
True
False
17-With virtual credit cards, the issuer must create a new credit card number for every
purchase.
True
False
18-In most cases, smart cards are more secure than credit cards and can be extended with
other payment services. In the retail arena, many of these services are aimed at those
establishments where payments are usually made in cash and speed and convenience are
important.
True
False
19-Stored-value cards are being marketed heavily to the those who do not have credit cards
or do not have bank accounts, specifically people with low incomes, young adults, seniors,
immigrants, minorities, and others.
True
False
20-Regardless of the vendor's point of view, there is substantial evidence, at least in the
offline world, that consumers are not willing to use their credit or debit cards for
micropayments under $5 to minimize security risks.
True
False
21-E-checks rely on current business and banking practices and can be used by any sized
business that has a checking account, credit card, and debit card.
True
False
22-From the perspective of the billing firm, two advantages of e-billing are the reduction in
expenses related to billing and processing payments and the ability for advertising
customized to each individual customer.
True
False
23-EIPP is the process by which companies present invoices and make payments to one
another.
True
False
24-With letters of credit, credit risk is reduced because payment is accessed via the
creditworthiness of the issuing bank.
True
False
25-Research shows that state and local governments are losing more than $100 billion per
year in sales tax revenue on items purchased over the Internet.
True
False
26-Factors that come into play in determining whether a particular method of e-payment
achieves critical mass include all of the following EXCEPT:
the degree of
security of the
transfer.
27-A card that draws the payment amount directly from the user's checking account is
called a(n):
e-payment card.
charge card
credit card.
debit card
28-A payment card that provides the holder with credit to make purchases up to a limit
fixed by the card company and charges relatively high interest rates on unpaid balances is
the:
e-payment card.
charge card.
debit card.
credit card.
29-The process of determining whether a card is active and whether the customer has
sufficient funds for the purchase is called:
settlement.
approval.
authorization.
procurement.
30-The transfer of money from the buyer's to the seller's account is called:
authorization.
approval.
procurement.
settlement.
31-________ offer Internet Merchant Accounts, which are special accounts for credit card
authorization and payment processing.
Payment processing services
Issuing banks
Acquiring banks
32-________ are financial institutions that provides a customer with a payment card.
Acquiring banks
Issuing banks
Acquiring banks
Issuing banks
E-smart payments
E-minipayments
E-micropayments
E-cash
36-The nationwide batch-oriented electronic funds transfer system that provides for
interbank clearing of electronic payments for participating financial institutions is called
the:
Automated
Clearinghouse
Network.
Receiving Depository
Financial Institution
Federal
Reserve
System.
37-Each of the following are ways to pay bills over the Internet EXCEPT:
biller direct.
bill consolidator.
online banking.
38-From the perspective of the billing firm, all of the following are advantages of e-billing
EXCEPT:
reduced processing
expense.
universal
availability.
improved customer
service.
39-From the perspective of the customer, all of the following are advantages of e-billing
EXCEPT:
greater security than other
types of payments.
makes record
keeping easier.
lower
costs.
41-B2B payments are part of a much larger financial supply chain that includes all of the
following EXCEPT:
payment authorization.
contract administration.
procurement.
financial reporting.
42-In financial supply chain management, the goal is to optimize all of the following
EXCEPT:
accounts receivable
accounts payable
financial risks
43-Unlike the physical supply chain, ________ characterize the financial supply chains of
most companies.
greater accuracy
efficiencies
transparency
inefficiencies
45-Barriers inhibiting B2B electronic payment include all of the following EXCEPT:
strict standard
formats for
remittance
information.
46-The process by which companies present invoices and make payments to one another
through the Internet is known as:
enterprise invoice presentment online accounts
payable.
and payment.
electronic data
interchange.
online accounts
receivable.
47-For many firms, presentment and payment processes are all of the following EXCEPT:
costly.
time consuming.
error-prone.
secure.
elimination of
billing disputes
Seller direct
Buyer direct
Consolidator
50-Among the forms of online B2B payments, ________ is second only to ACH in terms of
frequency of use.
letters of credit
purchasing cards
CTX
improved
control.
52-In global trade, a ________ is a written agreement by a bank to pay the seller, on
account of the buyer, a sum of money upon presentation of certain documents.
micropayment
letter of credit
bank check
54-The current Internet sales tax moratorium in the United States applies to:
all retail sales
all B2B
sales
only.
pharmaceuticals only.
55-Many B2C and B2B businesses rely on specialized third-party software and services to
calculate the taxes associated with a sale because:
of the
complexities.
of government
regulations.
False
2-Amazon.com initially operated as a totally virtual company, but had to add physical
warehouses with thousands of employees in order to expedite deliveries and reduce order
fulfillment costs.
True
False
3-Both EC and traditional retailing are based on the concept of "pull" operations that
begin with an order from a customer.
True
False
4-Order fulfillment involves activities such as providing customers with what they have
ordered, delivering orders on time, and providing all related customer services.
True
False
5-Front-office operations are the activities that support fulfillment of orders, such as
packing, delivery, accounting, and logistics.
True
False
6-Back-office operations are the operations involved in the efficient and effective flow and
storage of goods, services, and related information from point of origin to point of
consumption.
True
False
7-The EC order fulfillment process begins when an order is received and verified as being a
real order.
True
False
8-In B2C, customers usually validate that they will pay by prepaying using a credit card.
True
False
9-When a customer returns items that have been ordered, the series of activities involved in
that return are called return logistics.
True
False
10-The order fulfillment processes for B2B and B2C activities are similar.
True
False
11-The major difference between e-logistics and traditional logistics is that traditional
logistics deal with the movement of large amounts of materials to a few destinations. Elogistics shipments typically are small parcels sent to many customers' homes.
True
False
12-The inability to deliver products on time is a typical problem in both off-line and online
commerce.
True
False
13-The chance of supply chain problems, such as shipping the wrong items, is lower for EC
than for off-line commerce because of more advanced logistics support.
True
False
False
15-Many problems along the EC supply chain stem from two sources: uncertainties in
forecasting demand and the need to coordinate several activities, internal units, and
business partners.
True
False
16-Uncertainties in delivery time are a major cause of order fulfillment problems. RFID
can help by locating shipments in real time to minimize delays and enhance customer
service.
True
False
17-The B2C order-taking process can be improved when it is done via EDI, EDI/Internet,
the Internet, or an extranet.
True
False
18-B2C fulfillment may be more complex than that of B2B because it has at least six
dimensions of complexity rather than only two.
True
False
19-High delivery costs are justified only if there is a high concentration of orders from
customers located in close proximity or if the value of the order is large enough.
True
False
True
False
False
22-The integration of ERP and CRM must include low-level data synchronization as well
as business process integration so that the integrity of business roles can be maintained
across systems and workflow tasks can pass between the systems.
True
False
23-Benefits of CRM analytics lead to better customer relations in terms of sales and service,
better marketing strategies, lower inventory, and faster delivery. To derive these benefits, it
is necessary to properly collect and analyze relevant customer data.
True
False
24-The primary customer-facing applications that support eCRM are self-tracking, FAQs,
and self-configuration.
True
False
25-Data mining is an important analytic activity that involves sifting through an immense
amount of data to discover previously unknown patterns that can guide improvements in
order-fulfillment and CRM efforts.
True
False
26-The implementation of most EC applications requires the use of all of the following
support services EXCEPT:
infrastructure and technology security manufacturing order fulfillment, delivery, and payment
27-Most EC applications are based on ________ that begin with an order, frequently a
________ order.
pull operations;
standard
push operations;
customized
push operations;
standard
pull operations;
customized
28-All services related to making sure a customer gets what he/she ordered within an
acceptable amount of time is called:
logistics.
front-office operations.
order fulfillment.
back-office operations.
back-office operations.
front-office operations.
order fulfillment.
order fulfillment
logistics
front-office operations
back-office operations
order fulfillment
logistics
32-A typical EC fulfillment process involves all of the following activities EXCEPT:
Checking for in-stock
availability.
Just-in-time inventory
management.
Replenishment and
returns.
33-The administrative activities of order taking and fulfillment involve all of the following
activities EXCEPT:
sales quote.
shipment release.
order acknowledgment.
accounts payable.
traditional logistics
e-logistics
movement of large
with movement of large
amounts of materials to a amounts of materials to a
few destinations.
few destinations.
applies only to
manufacturers.
outsources all
logistics
functions.
Demand
forecasts
Inventory delivery
schedules
Foreign currency
exchange rates
37-________ helps locate shipments in real time to minimize delays and enhance customer
service.
3PL
RFID
ERP
CRM
39-Improvements in EC order-taking:
may come from within the
are accomplished
are accomplished
organization, from
solely through
solely through
improved links with
implementing linkages improvements within logistics, and through
with payment systems. the organization.
linkages with payment
systems.
are accomplished
solely through
improved links with
logistics.
40-________ are useful in reducing inventory and decreasing the incidence of out-of-stocks.
Such systems also are useful in maintaining an inventory of repair items so repairs can be
expedited.
ERP
systems
Warehouse management
systems
Replenishment
systems
Stockkeeping unit
systems
to accommodate much
larger inventory levels
than traditional
warehouses.
to help transition
B2C companies
into B2B
companies.
42-________ are intermediaries that prepare goods for shipping on air carriers, trucks, or
other transport means.
Outsourcers
Forwarders
Expediters
Shippers
Order fulfillment
problems tend to be
even larger in longer
supply chains that
cross country borders.
44-The second most often cited reason for customers not buying on the Web is:
not being able to see or try
the lack of a good
on a product before buying
return mechanism.
it.
Merge-in-transit
Order postponement
Rolling warehouse
46-A decision support tool that helps determine whether it is economical to deliver goods to
a neighborhood area in one trip is:
CRM model.
ERP model.
SCM analysis.
delivery-value density.
47-________ recognizes that ________ are the core of a business and that a company's
success depends on effectively managing its relationships with them
Supplier relationship
Customer relationship Vendor relationship Partner relationship
management; customers management; vendor management; partners management; suppliers
49-Metrics in customer service and CRM include all of the following EXCEPT:
site availability.
product quality.
response time.
50-Data analytics are a valuable tool because it can provide all of the following EXCEPT:
what-if scenarios. financial reporting customer segmentation groupings. profitability analysis.
51-Medium and large corporations organize and store data in a central repository called
a(n) ________ so that it will be easy to analyze later on, when needed.
knowledge system
data base
expert system
data warehouse
52-Automating inquiry routing and answering queries requires ________ which can be
generated from historical data and from human expertise and stored for use whenever
needed.
knowledge
forecasts
analytics
information
53-To overcome the problem of finding buyers or sellers online, a company may use
________ such as B2Business.net or Yahoo! Small Business.
intelligent agents
search engines
directory services
industry-focused newsletters
54-TRUSTe, BBBOnline, and Ernst & Young's trust service are used both in B2C and B2B
for all of the following reasons EXCEPT:
One cannot touch the
seller's products.
55-The major reasons why many companies prefer to outsource some of the support
services include all of the following EXCEPT:
Lack of experience or
The desire to
resources needed for many of concentrate on the
the support services.
core business.
For a sustainable
competitive
advantage.
False
2-An organizational strategy is a detailed plan for how a business is going to accomplish its
mission, what its goals should be, and what plans and policies it will need to accomplish
these goals.
True
False
False
4-In Porter's view, the majority of the Internet's impacts on the five competitive forces
have been positive.
True
False
5-Researchers have suggested that more extensive strategic information systems planning
in an uncertain environment produces greater planning success.
True
False
6-No matter how large or how small the organization, the strategic planning process forces
corporate executives, a company's general manager, or a small business owner to assess the
current position of the firm, where it should be, and how to get from here to there.
True
False
7-In the strategy initiation phase, the organization examines itself, its environment, and the
potential contribution that the Internet and other emerging technologies can make to the
business.
True
False
8-A value proposition is actually a financial statement that summarizes the annual revenue
and profit targets.
True
False
9-The two major and successful Internet-based businesses Google and eBay have similar
core competencies.
True
False
10-SWOT analysis is one method for scanning the business environment to collect and
interpret relevant information about direct competitors, indirect competitors, and potential
competitors.
True
False
11-In the strategy implementation phase, general long-term plans are developed for
carrying out the projects that had been agreed on in the strategy formulation phase.
True
False
12-Resource allocation refers to the processes of making the selected applications and
projects a reality, such as hiring staff; purchasing equipment; licensing, purchasing, or
writing software; and contracting vendors.
True
False
False
14-The basic method in scenario planning is that a group of analysts generates simulation
games for policy makers. The games combine projected factors about the future, such as
demographics, geography, and industrial information with plausible alternative social,
technical, economic, and political trends.
True
False
15-A business plan is a tool that is an alternative to narrowly focused financial assessments
by measuring organizational performance in four areas: finance, customers' assessments,
internal business processes, and learning and growth.
True
False
16-The primary reasons for writing a business plan are to acquire funding and
nonfinancial resources, to recruit senior management, and to force the business owner to
think ahead, set achievable goals, seek out and analyze competitors.
True
False
17-Entrepreneurs in start-up companies use business plans to get funding from investors,
such as a venture capitalist or a bank.
True
False
18-The information systems strategy is set primarily by determining what information and
associated information systems are required to carry out the business strategy.
True
False
19-In e-commerce, evidence shows that there is always a real advantage to being the first
mover in an industry or market segment.
True
False
False
False
22-In a click-and-mortar business, the allocation of resources between off-line and online
activities can create difficulties, especially in sell-side projects because the two activities
could be competitors.
True
False
False
24-The purpose of GlobalNetXchange, which was founded by major retailers such as Sears,
was to reduce procurement costs and product prices for its members while making the
purchase process more efficient.
False
True
25-At the implementation stage, firms may need to dramatically change business processes
to accommodate the changes an EC strategy brings. In those instances, business process
reengineering (BPR) is usually necessary.
False
True
26-For ________ companies, it may be even more important to change strategies quickly.
service
retail
traditional
pure play
27-Capabilities of the Internet that have made it more difficult for companies to capture
profits include all of the following EXCEPT:
The Internet reduces the
The Internet makes The Internet makes
difficulty of purchasing,
information widely it easier to make
marketing, and
available.
secure payments.
distribution.
value propositions
SWOT analysis
forecasts.
competitive advantage.
functional strategy.
core competencies.
day-to-day operations.
competitor analysis.
company analysis.
31-All of the following about the strategic planning process are true EXCEPT:
The process of
The strategic
The strategic
developing a
strategy maybe
even more
important than the
strategy.
planning process
begins with
strategy
formulation.
32-A specific outcome of the strategy initiation phase is the ________, which includes the
vision, mission, value proposition, goals, capabilities, constraints, strengths, and
weaknesses of the company
functional strategy
core competency
company analysis
value proposition
33-A specific outcome of the strategy initiation phase is a clear statement of the company's
________, which summarizes the customer segment, competitor target, and the core
differentiation of one's product from the offerings of competitors.
functional strategy
core competency
value proposition
company analysis
core competency
functional strategy
value proposition
35-Many of the outcomes from the first two phases of the strategic planning process, such
as a determination of goals, competitor analysis, strategic opportunities, and risk analysis
come together in a ________.
SWOT plan
technology audit
value proposition
business plan
36-________ is the process of making the selected applications and projects a reality by
hiring staff; purchasing equipment; licensing, purchasing, or writing software; and
contracting vendors.
Strategy assessment
Project management
Resource allocation
Project planning
37-An analytical tool in which a company looks for points of differentiation between
competitors and itself is called:
strategy assessment
scenario planning
SWOT analysis
Scenario planning
SWOT analysis
39-A management tool that assesses organizational progress toward strategic goals by
measuring performance in a number of different area is:
SWOT analysis.
balanced scorecard.
Web analytics.
40-After four years in business, a magazine publisher decides to add the online distribution
of its magazine to its existing traditional publishing business. The company would need to
develop a:
business case.
business strategy.
business plan.
business metric.
41-All of the following are situations when a business plan should be done EXCEPT:
When an existing
company is planning
to create a separate
division.
When an existing
business is
deploying a CRM
system.
When an existing
company is planning to
launch the company in a
new direction.
42-Which of the following about business plans and business cases is NOT correct?
One difference is that the business
plan concentrates on the viability of a
company, whereas a business case
assesses both viability of the project
and the fit of the initiative with the
firm's mission and goals.
The content of
a business case
is similar to
that of a
business plan.
43-The risks of being a first mover include all of the following EXCEPT:
the risk that the high cost of
pioneering EC
the move
will be too
late.
initiatives.
44-Factors that determine whether a first mover succeeds or fails in the EC marketplace
include all of the following EXCEPT:
the nature of the
product.
the speed of
market entry.
46-Separating a company's online operations into a new company makes sense in each of
the following situations EXCEPT:
when the subsidiary can
be created without
dependence on current
operations and legacy
systems.
50-All of the following determine the degree of collaboration between off-line and online
activities in a business EXCEPT:
the pricing
strategy.
51-The ________ pricing strategy means adding up all the costs involved, such as material,
labor, rent, overhead, and so forth, and adding a percentage mark-up as profit.
cost-plus
revenue markup
price percentage
competitor model
52-Internet technologies can provide consumers with easier access to pricing information,
which increases their bargaining power. To remain competitive and profitable, sellers need
smarter pricing strategies, which include all of the following strategies EXCEPT:
greater precision in more adaptability in
setting prices.
changing prices.
reducing
prices.
a single division EC
project
54-A ________ is a form of business alliance composed of several business partners that
share the costs and resources for the development or production of a product or service.
supply chain
temporary corporation
co-opetition
virtual corporation
55-The most important objectives of strategic assessment are all of the following EXCEPT:
Determine if the EC
strategy and projects are
still viable in the current
environment.
Identify what
competitors are
doing to avoid headon competition.
supposed to deliver.
planning
Chapter 15
1-From 1995 through 2000, many EC projects and start-up companies were funded with
little analysis of their business viability or finances.
True
False
2-The result of the rush to invest in EC projects and start-up companies was the 2001
2003 "dot-com bust," when hundreds of EC startups went out of business and the stock
market crashed.
True
False
3-After the dot-com bust, most IT executives acquired the knowledge and tools to do ROI
calculations on proposed EC investments.
True
False
4-One reason why EC justification is needed is that companies now realize that EC is not
necessarily the solution to all problems.
True
False
False
False
7-Infrastructure investments are made for the short-term because of frequent technological
changes.
True
False
False
9-All EC investments need to be formally justified to insure that they align with the
company's competitive strategy.
True
False
10-Metrics are used to describe costs, benefits, or the ratio between them and need to be
defined properly with a clear way to measure them.
True
False
11-Key performance indicators (KPI) are used to qualitatively track critical metrics or
success factors.
True
False
12-A major difficulty in justifying EC projects is that many costs and benefits are
intangible and therefore very difficult to measure.
True
False
False
14-Cannibalization occurs when a new EC initiative produces substantial online sales, but
traditional sales fall such that no increase in total revenue occurs.
True
False
15-The results of any investment justification in eCRM depend on the time frame used to
measure changes in productivity.
True
False
16-Because many EC investments in eCRM take five to six years to show significant
positive results, real productivity gains often do not get measured correctly.
True
False
17-In preparing the business case for EC investment, managers should examine the
potential additional revenues that are expressed in the revenue models, such as increased
revenues via products or services from a larger global market because of more effective
product marketing on the Web.
True
False
18-The ROI method uses a formula that divides net revenues by the initial cost. The result
is a ratio that measures the ROI for each year or for an entire period.
True
False
19-In an NPV analysis, analysts convert future values of benefits to their present-value
equivalents by discounting future cash flows at the risk-free rate set by the Federal Reserve
Bank.
True
False
20-Given the diversity of activities involved in e-procurement, the metrics used to measure
the value of e-procurement must reflect how well each process is accomplished; and take
into consideration whether the company is a buyer or seller.
True
False
21-According to recent surveys of eCRM applications, there are been mixed payoffs, but a
majority of companies have demonstrated a significantly positive ROI for their eCRM
investments.
True
False
22-Large companies often have several integrated intranet and other information systems
that determine the success of a Web portal. Thus, the justification for a Web portal must
focus on both business ROI and technology ROI.
False
True
23-To comply with the Sarbanes-Oxley Act, public companies must document every
internal process and external effect that will have an impact on their financial health,
which provide a robust foundation from which to develop a budget.
True
False
24-Critical elements that can affect the value of EC across cultures are perceived trust,
consumer loyalty, regulation, political influences, and even the content of online ads.
False
True
False
Companies now
realize that EC is
not necessarily the
solution to all
The success of EC
projects may be
assessed in order to
pay bonuses to those
problems.
depend on the EC
applications.
are very
complex.
28-The basic reasons that companies invest in IT and EC are all of the following EXCEPT:
to increase customer
satisfaction and retention.
29-Not all EC investments need to be formally justified. All of the following are cases where
formal evaluation may not be needed EXCEPT:
When the value of the
investment is relatively
small for the
organization.
costs.
benefits.
direct.
not measurable.
indirect.
33-EC costs and benefits can be classified into two broad categories:
short-term and capital. tangible and intangible. direct and routine. operational and strategic.
34-The New York Metropolitan Transit Authority (MTA) did not need to open another
airport for almost two decades, even though air traffic had tripled because of productivity
gains derived from improved IT systems. IT systems added by the MTA played critical
roles in ticket reservations, passenger and luggage check-in, crew assignment and
scheduling, runway maintenance and management, and gate assignments. This case
illustrates that:
Tangible benefits can Tangible costs can be Intangible benefits
be complex, yet
high, yet payoffs can be can be complex, yet
substantial.
achieved quickly.
substantial.
35-An important category of intangible benefits is ________ factors that include comfort to
employees, impact on the physical environment, changes to the power distribution in an
organization, and preventing invasion of the privacy of employees and customers.
ecosystem
transactional
social subsystem
net-enhanced
36-In B2C, an example of a tangible EC metric from the buyer's perspective is:
ease of use of EC. profit per customer. cost/price of the product. convenience in purchasing
risk
reduction.
reelection of
candidates.
38-The major steps in the process of justifying large-scale EC and IT projects include all of
the following EXCEPT:
Lay an appropriate
foundation for analysis
with your vendor, and
then conduct your ROI.
39-Types of costs and cost issues that need to be considered in justifying EC investments
include all of the following EXCEPT:
initial upfront costs. the allocation of indirect costs. opportunity costs. system operating costs.
ROI
NPV
41-Dan Welch, who owns three World Cup Coffee shops in Portland, Oregon, estimates
that his free Wi-Fi network has added 10 percent to his overall revenue. Welch credits WiFi consumers with spending three times as much on food compared with the average
consumer. This is an example of:
technology ROI.
business ROI.
technology IRR.
business NPV.
42-Pouilly's Poodle Shop wants to produce monthly cash flows from its Internet DoggieCam investment. The most appropriate method for assessing this investment is:
Break-even analysis.
Payoff.
43-By calculating the difference between TCO and TBO, one can compute the ________ of
an IT investment.
Internal rate of return (IRR)
increased on-time
deliveries.
reduced
inventory costs.
is not done
should be done
because ROI
because employee
calculators are not security training is
available.
usually poorly done.
only transaction costs both productionand ignore production- related costs and
related costs.
transaction costs.
core competency.
competitive advantage.
agility.
51-A Web-based seller of CDs carefully monitors the prices charged by its competitors for
identical products. This company has the ability to change a given price within three
minutes in response to changes by competitors. This is an example of EC:
competitive advantage.
52-All of the following are critical success factors (CSFs) of the Old Economy EXCEPT:
Create new partnerships, stay
with core competency.
53-As a company moves to incorporate an online presence with its traditional brick-andmortar operation, it adds the costs related to training for all personnel in the capabilities of
the EC system and a new advertising campaign to announce its new site to the costs directly
associated with building the new Web presence. In this case, training and advertising are
examples of:
direct costs.
transaction costs.
indirect costs.
complementary investments.
54-One of the strengths of EC is the ease with which its adopters can reach a global
population of consumers. However, EC-driven businesses must consider the critical
elements affecting the value of EC across cultures. Those elements include all of the
following EXCEPT:
perceived trust.
delivery delays.
political influences.
consumer loyalty.
Developing
economies struggle
with various issues
that create too
many business and
technology risks to
justify investment
in those economies
at this time.
Developing economies
often face power
blackouts and unreliable
infrastructure and
delivery mechanisms
creating limitations that
make it difficult for firms
to predict whether EC
investments will pay off,
and when.
Developing
economies, such as
China and India,
represent a
significant
opportunity for EC
to connect
businesses to
customers, as well
as other businesses.
Chpater 16
1-Unlike the brick-and-mortar marketplace, the failure rate for online companies is low.
True
False
2-Online businesses may be pure play companies or click-and-mortar companies that add
online projects, such as e-procurement or selling online, as additional marketing channels.
True
False
3-To create successful entrepreneurial ventures in EC, Maier suggests that starting small
with many founders is the best option.
True
False
4-The first step is creating a new company is to identify a consumer or business need in the
marketplace and an innovation to address that need.
True
False
5-Many good ideas and realistic initiatives have failed because of poor execution due to the
lack of sufficient business skills by the owners or principals of the business.
True
False
6-As a general guideline, although virtually anything is available for sale on the Internet,
the degree of sales success is somewhat dependent on the type of item or service being
offered for sale and how it can be delivered.
True
False
7-Medium and large businesses, or those seeking external funding, must have an informal
business plan.
True
False
8-The primary reason an entrepreneur writes a business plan is to acquire funding from a
bank, an angel investor, a venture capitalist, or the financial markets.
True
False
9-Some entrepreneur may simply invest personal funds from savings, personal lines of
credit, or a house mortgage since these sources of "bootstrap funding" are typically enough.
True
False
10-When the entrepreneur's personal funds are insufficient, the entrepreneur will go to
friends, family members, or to financial institutions.
True
False
11-An important source of financial support or direct funding, for pre-VC firms is an
incubator.
True
False
12-Venture capitalists tend to invest in companies that have identified what seems to be an
outstanding business opportunity, have taken some action to make the opportunity happen,
such as written a new software application or secured a patent , and need an infusion of
funds and management expertise to expand and launch the business.
True
False
13-There is a serious downside for start-up businesses that acquire venture capital because
they lose control over the business.
True
False
14-Once the company is well known and successful, it can go to a stock exchange to raise
money via an initial public offer or IPO.
True
False
False
16-Business process management (BPM) systems monitor the execution of the business
processes so that managers can analyze and change processes in response to data, rather
than on just a hunch.
True
False
False
18-An informational Web site provides opportunities for the customers and the business to
communicate and share information.
True
False
False
False
21-Because podcasts are audio-based media files, it enables companies to deliver audiospecific content, including music, speeches, radio-style presentations, and more.
True
False
22-Amazon.com offers personalize content by tracking visitors' behavior via cookies, which
is used to generate dynamic Web pages that recommend products based on previous
purchases and recently viewed items. Amazon.com offers this personalized content because
it is very inexpensive and does not impact performance.
True
False
23-Web designers execute successful site navigation through consistency and through
navigation aids such as a navigation bar, a navigation column, a site map, and search tools.
False
True
24-Web site usability means that people who use the Web site can do so quickly and easily
to accomplish their tasks and may also consider such factors as cost-effectiveness and
usefulness.
False
True
True
investigate all
existing
opportunities.
identify a consumer or
business need that isn't
presently being met.
write a
business case
or plan.
acquire
external
funding.
provide an operational
framework for the
business.
28-The key difference between an e-business plan and a traditional business plan is that the
entrepreneur must:
develop a
ten-year
plan.
30-A(n) ________ is a wealthy individual who contributes personal funds and possibly
expertise at the earliest stage of business development.
incubator
venture capitalist
angel
entrepreneur
angel
entrepreneur
venture capitalist
operating capital
venture capital
advance funding
finding a willing
venture capitalist.
relocating the
business to an
incubator.
34-The relationship between stock price and when an investor invests is:
the entrepreneur will pay the venture capitalist
IPO investors will
will pay the highest
pay the highest price the highest price per
share
price per share.
per share.
35-Chaplin's Pet Store has been in business for many years. Chaplin, the present owner,
decides to open an online sales channel where he can advertise and sell the same gourmet
pet food. This is an example of adding:
a portal.
e-procurement.
a storefront.
a reverse auction
36-Reprise Electronics, a conglomerate that manufactures and sells all kinds of electronic
goods under several brand names, currently has separate Web sites for each of its brands.
The company decides to bring all of the Web sites together through a single site that, in
addition to providing links to the brand pages, will also provide general information about
how to select electronic merchandise and informational pages about the Reprise company
today and its management team. This is an example of adding:
a reverse auction.
e-procurement.
a portal.
a storefront.
38-A(n) ________ Web site does little more than provide information about the business
and its products.
dynamic
informational
transactional
interactive
39-A major entertaining company has four studios that have been in the same location for
more than ten years. The company includes a page on its Web site with addresses, phone
numbers, and general e-mail addresses for each of these studios. None of this information
has changed since the Web site was developed. This is an example of ________ content.
dynamic
organizational
functional
static
cross-selling.
up selling.
comment.
promotion.
41-Reviews, testimonials, expert advice, or further explanation about the product are
called:
comment.
promotion.
up selling.
cross-selling.
42-The ________ is how Web pages are organized, labeled, and navigated to support
browsing and searching.
Web design
information architecture
Web layout
43-Creating content that offers upgraded or more expensive versions of the product is
called:
comment.
promotion.
cross-selling.
up selling.
the domain
name
45-A(n) ________ is an exact duplicate of the original Web site physically located on a Web
server on another continent.
backup site
a download site
mirror site
a hot site
46-The Web hosting option under which the business acquires the hardware, software,
staff, and dedicated telecommunications services needed to host a Web site is called:
mirror hosting
self-hosting.
using a storebuilder.
ISP hosting.
host name
domain name
IP address
reserved content.
commodity content.
premium content.
50-All of the following are advantages of building Web sites internally EXCEPT:
it allows the
company to use inhouse expertise.
it provides the
fastest speed to
market.
51-Banks are more selective about who gets an account for accepting credit cards online
because
online transactions do
not produce much
revenue for banks
CNP transactions
are less secure and
riskier.
52-In addition to providing an easy mechanism for buying books, the Amazon.com Web
site is easily searchable by book title and author. It also has book reviews and suggests titles
based on previous purchase activity. These enhancements make the Amazon site a favorite
for readers. This is an example of:
internal Web site promotion
53-________ offers one of the most popular storefront packages at with three levels of
merchant solutions: starter, standard, and professional.
Google
eBay
Yahoo!
Amazon.com
CNP
Build from
scratch.
Join a
mall.
55-Before choosing the appropriate Web site development option, you need to consider all
of the following issues in order to generate a list of requirements and capabilities EXCEPT:
Can customers
What might be the
place orders
reaction of competitors?
online?
Chapter 17
1-For many e-businesses, a majority of their customer online traffic comes from search
engines.
True
False
2-All marketing methods used to increase the ranking of a company's Web site in the
search results are ethical.
True
False
3-Companies use search engine marketing (SEM) methods to increase their chance of
"getting found" among competing Web sites.
True
False
4-The volume of e-mail spam has decreased because of the widespread use and
effectiveness of antispam software and ISP spam filters.
True
False
5-Spam sent to blogs, cellular phones, or other types of messaging media to promote
products or services is called media spam.
True
False
6-Web pages that have been created to trick search engines into offering poor-quality
results are referred to as search engine spam.
True
False
False
8-Creations of the mind, such as inventions, literary and artistic works, and symbols,
names, images, and designs, used in commerce are known as private property.
True
False
9-Questions or disputes about the legality of spam can be resolved easily by referring to
relevant laws.
True
False
10-Legal precedents are decisions by judges that may be used as standards in similar legal
cases that follow.
True
False
11-Political spam, regardless of its content, is legal in the United States because it is a form
of speech protected by the Constitution.
True
False
12-Significant changes in the nature of business or crimes lead to new laws because laws
must remain responsive to new threats or abuses.
True
False
13-Due process is a legal claim that others not interfere with a protected interest, such as
privacy, intellectual property, or free speech.
True
False
14-Because of intellectual property law, the recording industry can file lawsuits for
copyright infringement against YouTube or MySpace if it profits from the recording
industry's property without authorization and compensation.
True
False
15-A company can be sued for libel if its EC site contains a defamatory or untrue statement
that causes damage to a person or another company.
True
False
16-A corporate code of ethics should specify whether the company allows employees to set
up their own Web pages on the company intranet and the rules for private e-mail usage
during working hours.
True
False
17-EC web site content needs to be reviewed by attorneys with cyber law expertise to
ensure that there nothing is unethical or illegal and that all required statements and
disclaimers are properly included.
True
False
18-Ethical principles that apply to the collection and use of personal information, such as
notifying customers of information practices before collecting it, do not apply to
information collected in e-commerce.
True
False
False
20-Blocking tools cannot stop adware or software that gets bundled with other popular
applications, such as Kazaa, from delivering pop-up ads because they originate from the
desktop, and not the browser.
False
True
21-Unlike hate sites that can cause problems for corporations or lead to lawsuits, fan sites
are beneficial and welcomed by the entertainment industry.
True
False
False
True
24-Several public organizations and private companies attempt to protect consumers and
build users' trust and confidence in the Internet through a seal of quality, such as
Trustmark and BBBOnline.
False
True
25-Online sellers can better protect themselves against fraud by requiring customers whose
billing address is different from the shipping address to call their bank and have the
alternate address added to their bank account.
False
True
26-Approximately what percent of Internet shoppers use search engines to find products
and services?
75%
50%
10%
25%
27-Sending spam that disguises a sales pitch to look like a personal e-mail so that it will
bypass e-mail spam filters violates the:
Controlling the Assault of
NonSolicited Pornography and
Marketing (CAN-SPAM) Act.
Computer Fraud
and Abuse Act
(CFAA)
Children's Internet
Protection Act
(CIPA)
First
Amendment
28-To defend against unethical and illegal business tactics that exploit EC operations,
Google, MSN Search, and Yahoo have turned to all of the following aggressive measures
except:
Banned
violators'
sites.
29-Having control over the collection, storage, and dissemination of personal information is
included in the category of:
duties
rights
property
privacy
30-A decision by a judge that may be used as a standard in similar cases that follow is
referred to as:
legal precedent
common law
intellectual property
tort
31-Critics of political spam are against its use because they believe that:
it increases candidates'
all spam is a nuisance, clogs mail
dependence on wealthy
servers, and creates security risks
fundraisers,
it is
illegal
it leads to political
favoritism
32-Due process is
a legal obligation not
to interfere with a
protected interest
a guarantee of basic
fairness and fair
procedures in legal
action.
33-A duty is
a guarantee of basic
a legal obligation not to a legal claim that others
fairness and fair
not interfere with a
interfere with a
procedures in legal
protected interest.
protected interest
action.
a set of enforceable
rules and
regulations.
35-A music company can file a ________ against YouTube and MySpace for any
interference with the ability to profit from its IP or for profiting from the recording
industry's property without authorization and compensation
lawsuit or civil charge
nuisance charge
negligence charge
criminal charge
36-________ enable an organization that has suffered a loss due to spammers to bring a
lawsuit against spammers responsible for the loss.
Civil laws
CFAA
Common laws
Criminal laws
37-Intellectual property law is the area of law that is associated with each of the following
EXCEPT:
visual and
performing arts.
electronic databases,
advertising, and video
games.
business
contracts
Copyright
protection on
artistic property
such as a movie or
writing or recording,
the author can apply
for a federal
copyright.
39-Each of the following statements about digital rights management (DRM) is true
EXCEPT:
DRM are
technologybased protection
measures.
The scope of
business ethics
has not changed
because laws
have not
changed.
requires
protects
monitoring of
privacy.
employees' e-mail.
Firewalls.
45-Which of the following statements about the rights to privacy and free speech is not
correct?
As with all rights,
the right of free
speech is not
unlimited.
46-All of the following are ways to use the Internet to find information about an individual
EXCEPT:
Using cookies,
Reading an individual's espyware or keystroke mail, IM, blogs, or text
loggers.
messages.
Stealing the
Wiretapping
individual's
communication lines.
computer.
47-Private online communities that are only open to those who belong to them are called:
splogs
darknets
RFIDs
blogs
tangible property
protected by law
49-The ________ give law enforcement agencies broader range in their efforts to protect
the public.
Electronic Freedom
Foundation (EFF)
U.S. Department of
Justice (DOJ)
USA PATRIOT
Act
50-________ work on the principle that once Web surfers arrive at their site, a few of them
will click on one of the linked advertisements and earn them a few cents for each click.
Spammers
Phishers
Trackbacks
Sploggers
51-The least effective method to protect against pop-up ads and their risk is:
Pop-up blocking
software on users'
computers.
Minimizing the
pop-up window.
Cyberbashing is the
registration of a
domain name that
criticizes an
organization or person.
The intent of
most hate
Web sites is
to commit
fraud.
53-A legally binding contract requires a few basic elements. Which of the following is not
one of those elements?
an offer
acceptance
consideration
agreement
a digitized image of a
a secret code or PIN
handwritten signature
to identify the sender
attached to an electronic
to the recipient
document
55-EC sellers need to protect against fraud and each of the following EXCEPT: