Deck 9: E-Business and E-Commerce

Question 1

Internet advertising is impersonal, one-way mass communication.

Answer 1

False

Question 2

You decide to start a landscaping business called Trim Grass. Your customers can pay you through PayPal.

Answer 2

True

Question 3

Banners are the most common form of advertisement on the Internet.

Answer 3

True

Question 4

You can make a purchase in a referral mall.

Question 5

An electronic storefront is a Web site on the Internet that represents a single store.

Question 6

Forward auctions are auctions that sellers use as a channel to many potential buyers.

Question 7

You decide to start a landscaping business called Trim Grass. You have no need for e-business.

Question 8

E-commerce has removed many of the barriers that previously impeded entrepreneurs seeking to start their own businesses.

Question 9

Cyberbanking are those banks that are dedicated only to Internet transactions.

Question 10

Business-to-consumer applications comprise the majority of electronic commerce volume.

Question 11

Channel conflict occurs when click-and-mortar companies have problems with their regular distributors when they sell directly to customers online.

Question 12

Smart cards can be used as credit cards, debit cards, and/or loyalty cards.

Question 13

In most cases, traditional payment systems are not effective for electronic commerce.

Question 14

eBay is a good example of business-to-consumer electronic commerce.

Question 15

Selling products such as books and computers on the Internet may reduce vendors' selling costs by 20 to 40 percent, with further reductions being difficult because the products must be delivered physically.

Question 16

Each buyer needs only one e-wallet for all merchants.

Question 17

Even though B2C EC is much larger by volume, B2B is more complex.

Question 18

In traditional commerce, one or more of the following can be digital: the product or service, the process, and the delivery agent.

Question 19

Hacking is the indiscriminate distribution of electronic ads without permission of the receiver.

Question 20

Visiting the Web site of a car manufacturer (e.g., HYPERLINK "http://www.gm.com" www.gm.com), entering the specifications for the car you want, and then picking up your car at your local dealership is an example of partial electronic commerce.

Question 21

In _______ e-commerce, the sellers and buyers are organizations.

A)government-to-citizen
B)consumer-to-consumer
C)business-to-business
D)business-to-consumer
E)consumer-to-business

Question 22

Internet fraud has not grown as fast as the Internet itself.

Question 23

You decide to start a landscaping business called Trim Grass. You type HYPERLINK "http://www.TrimGrass.com" www.TrimGrass.com in a Web browser, and no page with that name appears. The domain name is therefore available.

Question 24

Which of the following is not an effect that E-commerce has had on organizations?

A)E-commerce enables smaller businesses to operate in areas dominated by larger companies.
B)E-commerce increases the number of potential customers to whom the company can market its products.
C)E-commerce is a costly medium for increasing market share.
D)E-commerce removes many barriers for start-up businesses.
E)E-commerce makes it easy to reach customers around the world.

Question 25

Which of the following statements regarding the relationship between electronic commerce and search is not correct?

A)Purchases often follow successful online searches.
B)Shopping carts are often abandoned after unsuccessful online searches.
C)Retailers will provide fewer product details to avoid information overload for customers.
D)Customers will be able to find the closest store offering the product that they want.
E)Customers will have more relevant product information in the near future.

Question 26

In _____ auctions, there is one buyer who wants to buy a product. Suppliers submit bids, and the lowest bid wins.

A)forward
B)static
C)reverse
D)physical
E)simple

Question 27

Domain names are assigned by central nonprofit organizations that check for conflicts and possible trademark infringement.

Question 28

Horizontal exchanges connect buyers and sellers across many industries.

Question 29

_____, which is a broader concept than _____, is the buying and selling of goods and services, as well as servicing customers, collaborating with business partners, and performing transactions within an organization.

A)Business-to-business electronic commerce, business-to-customer electronic commerce
B)Electronic commerce, electronic business
C)Business-to-customer electronic commerce, business-to-business electronic commerce
D)Business-to-business electronic commerce, intrabusiness electronic commerce
E)Electronic business, electronic commerce

Question 30

Companies use Web sites for commerce for all of the following reasons except:

A)To reduce operational and transaction costs.
B)To enhance their reputation.
C)To sell goods and services.
D)To reduce the amount of actual cash they need to deal with.
E)To induce people to visit a physical location.

Question 31

Cybersquatting is the practice of registering or using a domain name for the purpose of profiting from the goodwill that belongs to someone else.

Question 32

In ________ e-commerce, an organization provides information and services to its workers.

A)business-to-employee
B)consumer-to-consumer
C)consumer-to-business
D)business-to-consumer
E)government-to-business

Question 33

The degree of digitization relates to all of the following except:

A)the product or service sold
B)the process by which the product is produced
C)the delivery agent or intermediary
D)the size of e-commerce transactions
E)none of the above

Question 34

eBay uses a _____ auction.

A)forward
B)static
C)reverse
D)physical
E)simple

Question 35

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

Question 36

If you are a worker managing your fringe benefits over your company's intranet, you are engaging in _________ e-commerce.

A)business-to-business
B)business-to-consumer
C)consumer-to-consumer
D)business-to-employee
E)government-to-citizen

Question 37

Direct payment of Social Security benefits is an example of ______ e-commerce.

A)government-to-citizen
B)consumer-to-consumer
C)consumer-to-business
D)business-to-consumer
E)business-to-business

Question 38

Someone not associated with WalMart can legally use WalMart.com for their own website.

Question 39

If you purchased a piece of software for your own use, it is legal for you to make copies of it for your friends.

Question 40

The buy-side marketplace is similar to the business-to-consumer model.

Question 41

A vendor asks its business partners to place logos or banners on their Web sites. If customers click on a logo, visit the vendor's site, and make a purchase, then the vendor pays a commission to the partner. This scenario illustrates which business model?

A)find-the-best-price
B)electronic tendering system
C)name-your-own-price
D)online direct marketing
E)affiliate marketing

Question 42

The advantages of electronic commerce for consumers include all of the following except _____________.

A)You can buy from home 24 hours per day, 7 days per week.
B)You have a wider variety of products to choose from.
C)You typically cannot access additional information, so you do not have information overload.
D)You can easily compare prices and features.
E)You can find unique items.

Question 43

You decide to start a landscaping business called Trim Grass. One of your services will be to perform fertilizer treatments. You will need to buy a great deal of fertilizer for your many clients. You can use all of the following methods to purchase the fertilizer except ____________.

A)Forward auction
B)Reverse auction
C)Name your Own Price
D)Electronic Marketplace
E)Multichanneling

Question 44

_______ e-commerce is also known as e-tailing.

A)Business-to-business
B)Collaborative commerce
C)Intrabusiness
D)Business-to-consumer
E)Consumer-to-business

Question 45

In which of the following business models do businesses request quotes from suppliers and use B2B with a reverse auction mechanism?

A)find-the-best-price
B)electronic tendering system
C)name-your-own-price
D)online direct marketing
E)affiliate marketing

Question 46

_____ auctions are the most common auction model for large purchases.

A)Forward
B)Static
C)Reverse
D)Physical
E)Simple

Question 47

Which type of electronic commerce does Amazon practice?

A)business-to-employee
B)consumer-to-consumer
C)consumer- to-business
D)business-to-consumer
E)employee-to-business

Question 48

Ashleigh makes small wrist bag which holds a cell phone, a credit card (or two)and a key. She has been doing well when she has set up at craft fairs but she wants to begin selling online to her target market. She decided to name her business SmallClutch. Which of the following is false?

A)She needs to get a domain name to have a unique Web site.
B)Her Web site will have to accept credit cards.
C)She will need to handle fulfilling sales.
D)She could consider joining an electronic mall.
E)She would be participating in C2C commerce.

Question 49

_____ use credit card numbers, transmitted electronically over the Internet, to pay for goods and services. They are either unencrypted or encrypted, with coded data readable by an intermediary between the buyer's and seller's banks.

A)Electronic checks
B)Electronic credit cards
C)Electronic cash transactions
D)Electronic wallets
E)Electronic debit cards

Question 50

_____ are a payment mechanism that are similar to regular bank checks but are transmitted electronically, with a signature in digital form.

A)Electronic checks
B)Electronic credit cards
C)Electronic cash transactions
D)Electronic wallets
E)Electronic debit cards

Question 51

You decide to start a landscaping business called Trim Grass. You expect to use the Web to help clients find you and communicate with you. You will mow lands, clean flower beds, and pick up leaves in the fall. You will send your clients monthly bills. Which of the following is true?

A)Trim Grass is using an e-commerce model.
B)Trim Grass is using an e-business model.
C)Trim Grass is using a forward auction.
D)Trim Grass is an electronic marketplace.
E)Trim Grass needs to worry about channel conflict.

Question 52

______ are a form of e-cash that enable you to store a fixed amount of prepaid money and then spend it as necessary.

A)Electronic checks
B)Stored-value money cards
C)Purchasing cards
D)Smart cards
E)Person-to-person payments

Question 53

_____ auctions employ a request for quotation.

A)Forward
B)Static
C)Reverse
D)Physical
E)Simple

Question 54

Ashleigh makes small wrist bag which holds a cell phone, a credit card (or two)and a key. She named her business SmallClutch. She has been doing well when she has set up at craft fairs and has just begun selling online to her target market. Which of the following is true?

A)SmallClutch is a B2B business.
B)SmallClutch is a brick-and-click business.
C)SmallClutch is a C2C business.
D)SmallClutch is a brick-and-mortar business.

Question 55

_____ contain a chip that can store information and be used for several purposes.

A)Electronic checks
B)Stored-value money cards
C)Purchasing cards
D)Smart cards
E)Person-to-person payments

Question 56

All of the following are limitations of traditional payment methods in electronic commerce except __________________.

A)Cash cannot be used because there is no face-to-face contact.
B)Paying for goods and services via the mail takes more time.
C)Not all organizations accept credit cards.
D)It is more secure for the buyer to use the telephone than to complete a secure transaction on a computer.
E)None of the choices are correct.

Question 57

_____ enable two individuals to transfer funds without using a credit card.

A)Electronic checks
B)Stored-value money cards
C)Purchasing cards
D)Smart cards
E)Person-to-person payments

Question 58

_____ are typically used for unplanned B2B purchases for amounts under $2000.

A)Electronic checks
B)Stored-value money cards
C)Purchasing cards
D)Smart cards
E)Person-to-person payments

Question 59

_____ are software mechanisms that provide security measures and convenience for electronic commerce purchasing.

A)Electronic checks
B)Digital wallets
C)Purchasing cards
D)Smart cards
E)Person-to-person payments

Question 60

You decide to start a landscaping business called Trim Grass. Some of your residential clients would like to pay their bills online. Which of the following methods will not be appropriate for this type of payment?

A)Electronic checks
B)Electronic credit cards
C)Purchasing cards
D)Person-to-person payments
E)Stored-value money cards

Question 61

Internet advertising improves on traditional advertising in all of the following ways except:

A)Internet ads can be updated at any time at minimal cost.
B)Internet ads can reach large numbers of potential buyers all over the world.
C)Internet ads are always more effective than other types of advertising.
D)Internet ads can make effective use of multimedia.
E)Internet ads are current.

Question 62

You decide to start a landscaping business called Trim Grass. You created a Web site, but it doesn't seem to be attracting any clients. So, you decide to explore advertising on the Web. Which of the following advertising methods probably would not be beneficial?

A)Banner ads
B)Pop-up or pop-under ads
C)Spamming
D)Permission marketing
E)Viral marketing

Question 63

_____ refers to online word-of-mouth marketing.

A)Permission marketing
B)One-to-one marketing
C)Personalized marketing
D)Viral marketing
E)Direct mail

Question 64

Which of the following is not an electronic commerce application?

A)home banking
B)buying stocks
C)evaluating an employee
D)conducting an auction
E)buying real estate

Question 65

Ashleigh makes small wrist bag which holds a cell phone, a credit card (or two)and a key. She named her business SmallClutch. She has been doing well when she has set up at craft fairs and has just begun selling online to her target market. Which of the following is true?

A)SmallClutch has an electronic storefront.
B)SmallClutch is an electronic mall.
C)SmallClutch is a referral mall.
D)SmallClutch is physical store.

Question 66

Which of the following is a problem that e-commerce can cause for the airline industry?

A)Too many fares
B)Mistakes in fares
C)Too few fares
D)No fares offered on certain routes
E)Too many fares offered on certain routes

Question 67

In the _____ B2B application, the orders of many buyers are aggregated so that they comprise a large volume, in order to merit more seller attention.

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

Question 68

You have been running a landscaping business called Trim Grass for about two years. You have developed a special blend of grass seed for your area that you use when you reseed your clients' lawns. You are receiving e-mails via your Web site from people who would like to purchase some. You decide to start selling seed online, and you hire someone to rebuild your Web site. Which of the following statements is false?

A)Trim Grass is now multichanneling.
B)Trim Grass needs to think about how to ship the seed.
C)Trim Grass will have to collect sales tax from all sales.
D)Trim Grass will have more expenses.
E)Trim Grass will need to consider different advertising methods.

Question 69

_____ offer(s)consumers incentives to accept advertising and e-mail voluntarily.

A)Viral marketing
B)Personalized marketing
C)Permission marketing
D)Paper catalogs
E)Direct mail

Question 70

Refer to IT's About Business 9.3 - Penske Used Trucks: Which of the following was not one of the challenges faced by Penske when they were creating their new site.

A)the site had to incorporate the correct terminology to attract shoppers and search engines.
B)a way to bring all truck to central sales lots.
C)reengineering their fleet management system to provide information for new truck listings.
D)an online vehicle comparison tool that could handle up to five vehicles.

Question 71

In the _____ marketplace model, organizations attempt to sell their products or services to other organizations electronically.

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

Question 72

Refer to IT's About Business 9.4 - Can Simple Disrupt Traditional Banking?: Simple was founded on the idea that __________________.

A)traditional banks need to also have on online presence.
B)traditional banks do not have to have to be accessible online to provide good customer service.
C)traditional banks do not provide adequate online and mobile tools.
D)traditional banks do not work in the Internet age.

Question 73

In the _____ marketplace model, EC technology is used to streamline the purchasing process in order to reduce the cost of items purchased, the administrative cost of procurement, and the purchasing cycle time.

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

Question 74

Difficulties in order fulfillment are most closely associated with which type of electronic commerce?

A)business-to-business
B)business-to-consumer
C)government-to-citizen
D)business-to-employee
E)mobile commerce

Question 75

The key mechanisms of the _____ marketplace model are forward auctions and electronic catalogs that can be customized for each large buyer.

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

Question 76

Ashleigh makes small wrist bag which holds a cell phone, a credit card (or two)and a key. She named her business SmallClutch. She has been doing well when she has set up at craft fairs and has just begun selling online to her target market. She decided to send an Email announcing the availability of her site to her friends and ask them to forward it to their friends. This is an example of ___________.

A)multichanneling.
B)spamming.
C)permission marketing.
D)viral marketing.

Question 77

Which of the following is not an advantage of e-tailing?

A)You can buy from home, 24 hours per day.
B)You have only a few products to choose from.
C)You can obtain detailed information on products.
D)You can compare competitors' products and prices.
E)All of the choices are correct.

Question 78

Cyberbanking offers all of the following advantages except:

A)It is convenient for customers.?b)It saves time for customers.
C)It includes inexpensive transactions for the bank.
D)It can help recruit remote customers.
E)It is more expensive for the customer.

Question 79

A _____ is automatically launched by some trigger and appears behind the active window.

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

Question 80

________ is the process whereby a fully automated electronic commerce transaction eliminates middlemen.

A)Disintegration
B)Supply chain integration
C)Direct sales
D)Disintermediation
E)Value-added services