Question 1

Purchasing products and services online often cuts out the middleman, who has traditionally sold the product and/or service. This process is called _____.

Accepted Answer

A)  straight-to-consumer services 
B)  replacement of brick-and-mortar stores 
C)  disintermediation 
D)  dysfunctionalization C

Question 2

The primary characteristic of auctions is that prices are determined dynamically by competitive bidding.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following items has the highest degree of digitization?

Accepted Answer

A)  A book that is out of stock in a store and is being shipped to your home 
B)  A book that is advertised on the Internet but that you buy in a store 
C)  A book that you order online to be shipped to your home 
D)  An e-book that you order online for a reader such as a Kindle or Nook D

Question 4

Business-to-business electronic commerce involves electronic relationships with _____.

Accepted Answer

A)  customers 
B)  suppliers 
C)  resellers 
D)  all of these options

Question 5

A _____ is automatically launched by some trigger and appears in front of the active window.

Accepted Answer

A)  keyword banner 
B)  random banner 
C)  pop-up ad 
D)  pop-under ad

Question 6

Taobao's rapid growth was the consequence of offering free registration and commission-free transactions using a free third-party payment platform.

Accepted Answer

A) True 
 B)False

Question 7

What area of e-commerce is especially conducive to fraud?

Accepted Answer

A)  Auctions 
B)  Online storefronts 
C)  E-mail 
D)  Advertisements

Question 8

Which of the following statements about Thumbtack is NOT true?

Accepted Answer

A)  Thumbtack did not cold call any suppliers or customers to build their database. 
B)  Thumbtack bought targeted Web ads on Google, Facebook, and Bing to attract professionals to sign up. 
C)  Its initiative to use a pay-per-lead business model was unsuccessful. 
D)  Its use of the subscription model led to customers being spammed.

Question 9

Pure-play organizations:

Accepted Answer

A)  only sell their products in traditional brick-and-mortar stores. 
B)  sell their products both online and in traditional brick-and-mortar stores. 
C)  only sell their products online. 
D)  only sell their products to other businesses.

Question 10

_____ connect buyers and sellers in a given industry.

Accepted Answer

A)  Vertical exchanges 
B)  Horizontal exchanges 
C)  Functional exchanges 
D)  All of these options

Question 11

A domain name is considered to be legal when the person or business who owns the name has operated a legitimate business under that name for some period of time.

Accepted Answer

A) True 
 B)False

Question 12

In the _____ marketplace model, the reverse auction is typically used.

Accepted Answer

A)  buy-side 
B)  sell-side 
C)  group purchasing 
D)  electronic exchange

Question 13

Banner advertising:

Accepted Answer

A)  is sent directly to potential customers via e-mail. 
B)  forces customers to click on an ad to get more information. 
C)  holds limited value because it cannot be customized to the target audience. 
D)  is another name for pop-up advertising.

Question 14

Electronic business includes which of the following?

Accepted Answer

A)  Buying and selling 
B)  Servicing customers 
C)  Collaborating with business partners 
D)  All of these options

Question 15

The key mechanisms in the sell-side marketplace are customized electronic catalogs and forward auctions.

Accepted Answer

A) True 
 B)False

Question 16

The use of electronic commerce requires companies to hire additional employees.

Accepted Answer

A) True 
 B)False

Question 17

Electronic commerce removes many of the barriers that previously impeded entrepreneurs seeking to start their own businesses.

Accepted Answer

A) True 
 B)False

Question 18

Unlike credit cards, payments made with purchasing cards are settled within a week.

Accepted Answer

A) True 
 B)False

Question 19

In _____, needed services such as temporary help or extra space are traded on an as-needed basis.

Accepted Answer

A)  horizontal exchanges 
B)  sell-side marketplaces 
C)  buy-side marketplaces 
D)  functional exchanges

Question 20

The optimal outcome of personalized pricing for the merchant is minimizing the price that each customer will pay.

Accepted Answer

A) True 
 B)False

Exam 9: E-Business and E-Commerce

Purchasing products and services online often cuts out the middleman, who has traditionally sold the product and/or service. This process is called _____.

The primary characteristic of auctions is that prices are determined dynamically by competitive bidding.

Which of the following items has the highest degree of digitization?

Business-to-business electronic commerce involves electronic relationships with _____.

A _____ is automatically launched by some trigger and appears in front of the active window.

Taobao's rapid growth was the consequence of offering free registration and commission-free transactions using a free third-party payment platform.

What area of e-commerce is especially conducive to fraud?

Which of the following statements about Thumbtack is NOT true?

Pure-play organizations:

_____ connect buyers and sellers in a given industry.

A domain name is considered to be legal when the person or business who owns the name has operated a legitimate business under that name for some period of time.

In the _____ marketplace model, the reverse auction is typically used.

Banner advertising:

Electronic business includes which of the following?

The key mechanisms in the sell-side marketplace are customized electronic catalogs and forward auctions.

The use of electronic commerce requires companies to hire additional employees.

Electronic commerce removes many of the barriers that previously impeded entrepreneurs seeking to start their own businesses.

Unlike credit cards, payments made with purchasing cards are settled within a week.

In _____, needed services such as temporary help or extra space are traded on an as-needed basis.

The optimal outcome of personalized pricing for the merchant is minimizing the price that each customer will pay.