Ch7 E-Business and E-Commerce Practice Test Bank + Answers

Package Title: Practice Questions

Course Title: Rainer, Introduction to Information Systems, Fifth Canadian Edition

Chapter Number: 07

Shuffle: No

Question type: True/False

1) To be considered an e-commerce website, the site must sell some tangible good.

Difficulty: Medium

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

2) In general, the e-commerce websites of click-and-mortar companies operate only during the business hours of their brick-and-mortar stores.

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

3) In general, e-commerce websites of click-and-mortar companies carry the same variety of merchandise as their brick-and-mortar stores.

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

4) Information is the major component of the e-commerce offerings of service industries.

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

5) Internet marketing typically is one way and impersonal.

Difficulty: Easy

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Section Reference 1: Business-to-Consumer (B2C) Electronic Commerce

AACSB: Technology

Bloomcode: Knowledge

6) Vertical exchanges are typically used only to buy and sell materials required for an organization’s support activities.

Difficulty: Medium

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Section Reference 1: Business-to-Business (B2B) Electronic Commerce

AACSB: Technology

Bloomcode: Knowledge

7) Virtual credit cards create new credit card accounts that are valid only for a pre-defined number of transactions.

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

8) Electronic commerce makes national and international markets less accessible.

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

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

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

10) The popular auction site eBay.com is a forward auction site.

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

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

Difficulty: Easy

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Section Reference 1: Business-to-Consumer (B2C) Electronic Commerce

AACSB: Technology

Bloomcode: Knowledge

12) The sales tax laws that apply to brick-and-mortar stores also apply to all e-commerce stores.

Difficulty: Easy

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce and provide examples.

Section Reference 1: Ethical and Legal Issues in E-Business

AACSB: Technology

Bloomcode: Knowledge

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

Difficulty: Easy

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Section Reference 1: Business-to-Business (B2B) Electronic Commerce

AACSB: Technology

Bloomcode: Knowledge

14) Stored-value money cards are not actually a form of e-cash.

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

15) Due to privacy issues, it is illegal for e-commerce websites to use cookies to record their customer’s past behaviours and discover their identity.

Difficulty: Easy

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce and provide examples.

Section Reference 1: Ethical and Legal Issues in E-Business

AACSB: Technology

Bloomcode: Knowledge

16) Cybersquatting refers to the tampering of existing websites and selling unrelated products.

Difficulty: Easy

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce and provide examples.

Section Reference 1: Ethical and Legal Issues in E-Business

AACSB: Technology

Bloomcode: Knowledge

17) When two companies fight over a domain name, the company that has been in business the longest is automatically considered the owner of the domain.

Difficulty: Easy

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce and provide examples.

Section Reference 1: Ethical and Legal Issues in E-Business

AACSB: Technology

Bloomcode: Knowledge

18) The stock market is the only area of business that has experienced fraud on the Internet.

Difficulty: Easy

Learning Objective 1: Discuss the ethical and legal issues related to electronic commerce and provide examples.

Section Reference 1: Ethical and Legal Issues in E-Business

AACSB: Technology

Bloomcode: Knowledge

Question type: Multiple Choice

19) Businesses and organizations set up websites to

a) sell goods and services.

b) induce people to visit a physical location.

c) reduce operational and transaction costs.

d) enhance their reputation.

e) all of these

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

20) Downloading a book on an Amazon Kindle is an example of

a) pure e-commerce.

b) partial e-commerce.

c) Both of these are correct.

d) Neither of these is correct.

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

21) ___ and ___ are the two major challenges for the sellers in e-commerce.

a) Order fulfillment, large orders

b) Channel conflict, advertising

c) Advertising, large orders

d) Channel conflict, order fulfillment

Difficulty: Easy

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Section Reference 1: Business-to-Consumer (B2C) Electronic Commerce

AACSB: Technology

Bloomcode: Knowledge

22) When organizations come to a company’s website for procurement, such business is classified as a(n)

a) buy-side marketplace.

b) sell-side marketplace.

c) electronic exchange.

d) none of these

Difficulty: Easy

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Section Reference 1: Business-to-Business (B2B) Electronic Commerce

AACSB: Technology

Bloomcode: Knowledge

23) When organizations request bids for contracts on their own website for procurement, such business is classified as a(n)

a) buy-side marketplace.

b) sell-side marketplace.

c) electronic exchange.

d) none of these

Difficulty: Easy

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Section Reference 1: Business-to-Business (B2B) Electronic Commerce

AACSB: Technology

Bloomcode: Knowledge

24) In an e-credit card transaction, the clearinghouse plays the following role:

a) initiates the transfer of money.

b) validates and verifies the seller’s payment information.

c) transfers funds between the seller’s bank and the buyer’s bank.

d) all of these

Difficulty: Hard

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

25) Electronic business includes which of the following?

a) buying and selling

b) servicing customers

c) collaborating with business partners

d) conducting electronic transactions within an organization

e) all of the above

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

26) When e-commerce is done in a wireless environment, this is called

a) pervasive computing.

b) wireless commerce.

c) location commerce.

d) consumer commerce.

e) mobile commerce.

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

27) eBay is an example of which type of e-commerce?

a) government-to-citizen

b) consumer-to-consumer

c) consumer-to-business

d) business-to-consumer

e) business-to-business

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

28) Manufacturers or retailers sell directly to customers in which of the following business models?

a) find-the-best-price

b) electronic tendering system

c) name-your-own-price

d) online direct marketing

e) affiliate marketing

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

29) In this type of e-commerce, buyers and sellers are individuals.

a) government-to-citizen

b) consumer-to-consumer

c) consumer-to-business

d) business-to-consumer

e) business-to-business

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

30) A(n) ___ is automatically launched by some trigger and appears in front of the active window.

a) keyword banner

b) random banner

c) pop-up ad

d) pop-under ad

e) text box

Difficulty: Easy

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Section Reference 1: Business-to-Consumer (B2C) Electronic Commerce

AACSB: Technology

Bloomcode: Knowledge

31) eBay employs the ___ auction mechanism.

a) forward

b) reverse

c) Dutch

d) proprietary eBay

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

32) The fee for a monetary transaction between a buyer and a seller using PayPal is paid for by

a) the buyer.

b) the seller.

c) both the buyer and the seller.

d) neither party; PayPal is a free service.

Difficulty: Easy

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Section Reference 1: Business-to-Consumer (B2C) Electronic Commerce

AACSB: Technology

Bloomcode: Knowledge

33) Which of the following electronic payments is ideal for micropayments?

a) electronic checks

b) smart cards

c) purchasing cards

d) None of the methods listed is suited to micropayments.

Difficulty: Easy

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Section Reference 1: Business-to-Consumer (B2C) Electronic Commerce

AACSB: Technology

Bloomcode: Knowledge

34) ___ accounts for the majority of e-commerce transactions.

a) B2C

b) B2B

c) C2C

d) B2E

e) G2C

Difficulty: Easy

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Section Reference 1: Business-to-Business (B2B) Electronic Commerce

AACSB: Technology

Bloomcode: Knowledge

35) In the ___ marketplace model, the reverse auction is typically used.

a) buy-side

b) sell-side

c) group purchasing

d) desktop purchasing

e) electronic exchange

Difficulty: Medium

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Section Reference 1: Business-to-Business (B2B) Electronic Commerce

AACSB: Technology

Bloomcode: Knowledge

36) Organizations typically face issues related to e-tailing, including

a) channel conflict.

b) order fulfillment.

c) Companies face issues in both channel conflict and order fulfillment.

d) Companies do not face issues in either channel conflict and order fulfillment.

Difficulty: Easy

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Section Reference 1: Business-to-Consumer (B2C) Electronic Commerce

AACSB: Technology

Bloomcode: Knowledge

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

a) horizontal exchanges

b) vertical exchanges

c) buy-side marketplaces

d) functional exchanges

e) sell-side marketplaces

Difficulty: Medium

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Section Reference 1: Business-to-Business (B2B) Electronic Commerce

AACSB: Technology

Bloomcode: Knowledge

38) Which type of electronic exchange connect buyers with sellers within a specific industry?

a) public exchanges

b) vertical exchanges

c) horizontal exchanges

d) functional exchanges

Difficulty: Easy

Learning Objective 1: Describe the three business models for business-to-business (B2B) electronic commerce.

Section Reference 1: Business-to-Business (B2B) Electronic Commerce

AACSB: Technology

Bloomcode: Knowledge

39) Which type of electronic payment is typically favoured in B2B?

a) electronic cheques

b) electronic credit cards

c) electronic cash

d) smart cards

Difficulty: Medium

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

40) Which of the following is not a form of electronic cash?

a) smart cards

b) purchasing cards

c) stored-value money cards

d) person-to-person payments

Difficulty: Easy

Learning Objective 1: Describe the eight common types of electronic commerce.

Section Reference 1: Overview of E-Business and E-Commerce

AACSB: Technology

Bloomcode: Knowledge

Question type: Multiple-Selection

41) For a small-to-medium enterprise, the benefits of setting up an e-commerce storefront include (choose all that apply):

a) the ability to offer a larger selection of products.

b) the ability to eliminate advertising.

c) the ability to offer lower prices to customers.

d) the ability to reach a wider customer base.

Answer 1: a

Answer 2: c

Answer 3: d

Difficulty: Medium

Learning Objective 1: Describe the various online services of business-to-consumer (B2C) commerce, along with specific examples of each.

Section Reference 1: Business-to-Consumer (B2C) Electronic Commerce

AACSB: Technology

Bloomcode: Knowledge