Chapter 5 E-Business And E-Commerce Test Bank Answers

Chapter 5

E-business and E-commerce

Question Type: True/False

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

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B and G2B.

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

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

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Medium

3) Visiting the Web site of a car manufacturer (e.g., 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.

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

4) It is possible to “watch” vending machines over the Internet.

Learning Objective: Provide a real-world application of e-business and e-commerce.

Section Reference: IT’s About Business: Vending Goes Online

Difficulty: Easy

5) E-commerce is a broader definition of e-business.

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

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

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

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

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

8) In a forward auction, the highest bid wins.

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

Question Type: Multiple Choice

9) 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

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

10) 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

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Medium

11) 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

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

12) 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.

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Medium

13) 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 not true?

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.

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Hard

Question Type: True/False

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

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

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

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

16) You can make a purchase in a referral mall.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

17) 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.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

18) A virtual bank involves conducting banking activities from home, a place of business, or on the road in addition to a physical bank location.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

19) It is more difficult but possible to sell luxury goods online.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

20) Virtual banks are those banks that are dedicated only to Internet transactions.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

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

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

22) Internet advertising is impersonal, one-way mass communication.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

23) Electronic malls are collections of individual shops under a single Internet address.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

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

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

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

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

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

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

27) Channel conflict occurs when manufacturers disintermediate their channel partners by selling their products directly to consumers.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

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

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce

Difficulty: Easy

29) Forward auctions are the major method used in buy-side marketplaces.

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce

Difficulty: Easy

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

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce

Difficulty: Easy

31) When multiple buyers combine their orders so that they constitute a large volume and therefore attract more seller attention, it is called group purchasing.

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce

Difficulty: Easy

32) Horizontal exchanges connect buyers and sellers across many industries.

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce

Difficulty: Easy

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

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Easy

34) Stored-value money cards allow you to store a fixed amount of prepaid money and then spend it as necessary.

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Easy

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

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Easy

36) Purchasing cards and electronic credit cards are equivalent.

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Medium

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

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Easy

38) Cybersquatting is illegal.

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Medium

39) Selling luxury items online is as easy as selling books and DVDs.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: IT’s About Business: 5.3 Luxury Goods Turn to E-Commerce

Difficulty: Easy

40) Domain tasting is a practice of registrants using the five-day “grace period” at the beginning of a domain registration to profit from pay-per-click advertising.

Learning Objective: Illustrate the ethical and legal issues relating to electronic commerce with two specific examples of each issue, and describe how you would respond or react to the four examples you have provided.

Section Reference: 5.5 Ethical and Legal Issues in E-Business

Difficulty: Medium

Question Type: Multiple Choice

41) Treat America used _____________ to report on their vending machines.

a) e-business

b) e-commerce

c) the police

d) their service team

Learning Objective: Provide a real-world application of e-business and e-commerce.

Section: IT’s About Business: Vending Goes Online

Difficulty: Easy

42) _____, 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

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Medium

43) ____________ organizations have a limited geographical reach.

a) Brick-and-mortar

b) Business-to-consumer

c) Click-and-mortar

d) Virtual

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

44) 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 these

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Medium

45) 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

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

46) 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

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

47) Which of the following is a disadvantage of click-and-mortar organizations?

a) Limited geographical reach

b) Added complexity combining two different environments

c) Customers uncomfortable with online transactions

d) No face-to-face interaction with customers

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

48) __________ represents the vast majority of e-commerce.

a) B2B

b) B2C

c) C2C

d) G2C

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Medium

49) In a reverse auction, the __________ bidder wins.

a) lowest

b) highest

c) neutral

d) nobody wins since this auction type doesn’t exist

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

50) ___________ marketing encourages receivers to send information about products/services to their friends.

a) Affiliate

b) Electronic

c) Group

d) Viral

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

51) Which of the following is a benefit of e-commerce to customers?

a) Makes national and international markets more accessible.

b) Lowering costs of processing, distributing, and retrieving information.

c) Access a vast number of products and services around the clock.

d) Ability to easily and conveniently deliver information, services, and products to people in cities, rural areas, and developing countries.

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Medium

52) 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

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

53) If you are an 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

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

54) 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.

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Medium

55) 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

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

56) eBay uses a _____ auction.

a) forward

b) static

c) reverse

d) physical

e) simple

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

57) _____ auctions employ a request for quotation.

a) Forward

b) Static

c) Reverse

d) Physical

e) Simple

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

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

a) Forward

b) Static

c) Reverse

d) Physical

e) Simple

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

59) 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

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Hard

60) 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

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Medium

61) Which type of electronic commerce is the largest by volume?

a) Business-to-employee

b) Consumer-to-consumer

c) Business-to-business

d) Business-to-consumer

e) None of these

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

62) ____________ advertising is when the company only pays for measurable results.

a) Brand

b) Click-through

c) Impression-based

d) Performance-based

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

63) Which of the following are luxury shoppers’ requirements that a Web site could not originally provide?

a) Hands-on customer service

b) Guidance on the latest fashions

c) Trying on/looking at the products

d) All of the above are things that couldn’t originally be provided

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Medium

64) 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

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

65) _______ 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

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

66) 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.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Medium

67) An electronic storefront represents ____________.

a) the Internet

b) a single store

c) multiple stores

d) a web page

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

68) ____________ is when steps are added to the value chain as new players find ways to add value to the business process.

a) Cybermediation

b) Disintermediation

c) Intermediation

d) Reintermediation

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

69) __________ are electronic billboards.

a) Advertisements

b) Banners

c) Pop-up ads

d) Pop-under ads

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

70) 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

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

71) 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 these

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Medium

72) ________ 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

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Medium

73) 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.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Medium

74) 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

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Medium

75) Treat America turned to E-business for all of the following reasons except:

a) The company needed to capture extensive data from each vending machine.

b) The company wanted a competitive advantage over competitors that simply raised prices.

c) The company’s vending machines are unmanned.

d) Gas prices are increasing.

e) The company’s vending machines are open beyond “normal” business hours.

Learning Objective: Provide a real-world application of e-business and e-commerce.

Section Reference: IT’s About Small Business: 5.2 Vending Goes Online

Difficulty: Easy

76) 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

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Medium

77) 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.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Medium

78) 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

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

79) _____ 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

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

80) _____ refers to online word-of-mouth marketing.

a) Permission marketing

b) One-to-one marketing

c) Personalized marketing

d) Viral marketing

e) Direct mail

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Easy

81) The _________ marketplace is similar to the B2C model in which the buyer comes to the seller’s site, views catalogs, and places and order.

a) buy-side

b) sell-side

c) reverse auction

d) e-procurement

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce

Difficulty: Easy

82) ____________ exchanges connect buyers and sellers in a given industry.

a) Functional

b) Horizontal

c) Mixed

d) Vertical

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce

Difficulty: Easy

83) ____________ exchanges are used mostly for MRO materials.

a) Functional

b) Horizontal

c) Mixed

d) Vertical

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce

Difficulty: Medium

84) 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

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce

Difficulty: Easy

85) 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

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce

Difficulty: Easy

86) 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

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce

Difficulty: Easy

87) 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

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce

Difficulty: Easy

88) In _____, direct and indirect materials in one industry are purchased on an as-needed basis.

a) horizontal exchanges

b) vertical exchanges

c) buy-side marketplaces

d) functional exchanges

e) sell-side marketplaces

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce

Difficulty: Easy

89) _____ connect buyers and sellers across many industries and are used mainly for indirect materials.

a) Horizontal exchanges

b) Vertical exchanges

c) Buy-side marketplaces

d) Functional exchanges

e) Sell-side marketplaces

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce

Difficulty: Easy

90) Purchasing cards are the ___________ equivalent of electronic credit cards.

a) B2B

b) B2C

c) C2C

d) G2C

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Easy

91) _________ is(are) used for unplanned B2B purchases.

a) E-checks

b) Electronic credit cards

c) Purchasing cards

d) Stored value money cards

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Easy

92) ____________ contain a chip called a microprocessor that can store a considerable amount of information.

a) E-checks

b) Person-to-person payments

c) Smart cards

d) Stored-value money cards

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Easy

93) Which of the following is NOT a form of electronic cash?

a) Person-to-person payments

b) Purchasing cards

c) Smart cards

d) Stored-value money cards

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Easy

94) 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 these

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Medium

95) _____ 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

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Easy

96) _____ 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

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Easy

97) _____ 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

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Easy

98) ______ 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

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Easy

99) _____ 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

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Easy

100) _____ 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

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Easy

101) _____ 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

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Easy

102) A _____________ is the right to use but not distribute software .

a) copyright

b) patent

c) intellectual property

d) open source

Section Reference: 5.5 Ethical and Legal Issues in E-Business

Difficulty: Easy

103) Domain tasting is _____________.

a) illegal

b) legal

c) the same as cybersquatting

d) both A and C

Section Reference: 5.5 Ethical and Legal Issues in E-Business

Difficulty: Medium

104) Selling bogus investments and setting up phantom business opportunities are examples of ____________.

a) cybersquatting

b) domain name abuse

c) fraud on the internet

d) internet taxation

Section Reference: 5.5 Ethical and Legal Issues in E-Business

Difficulty: Medium

105) The practice of using similar but not identical domain names is called _____.

a) domain spoofing

b) domain masquerading

c) domain tasting

d) cybersquatting

e) domain fraud

Section Reference: 5.5 Ethical and Legal Issues in E-Business

Difficulty: Easy

106) _____ refers to the practice of registering or using domain names for the purpose of profiting from the goodwill or trademark belonging to someone else.

a) Domain spoofing

b) Domain masquerading

c) Domain tasting

d) Cybersquatting

e) Domain fraud

Section Reference: 5.5 Ethical and Legal Issues in E-Business

Difficulty: Easy

107) The device that Treat America installed on top of each of their machines communicates the following pieces of data except:

a) The amount of money in the machine at any given minute.

b) The amount of product inventory remaining.

c) Whether the machine had been moved.

d) The number of customers.

e) Whether the door had been opened after business hours.

Learning Objective: Provide a real-world application of e-business and e-commerce.

Section Reference: IT’s About Small Business: 5.2 Vending Goes Online

Difficulty: Easy

108) Companies use Web sites 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.

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Easy

109) Which of the following is NOT a reason eBay was unsuccessful when it purchased EachNet?

a) eBay paid too much

b) eBay didn’t give enough power to local executives

c) eBay underestimated the competition from Taobao

d) all of the above are reasons eBay was unsuccessful

Learning Objective: Summarize the fundamental concepts related to e-business and e-commerce.

Section Reference: Case - e-Bay finds it’s a way into China

Difficulty: Medium

Question Type: Essay

110) Differentiate between pure and partial electronic commerce. Provide examples of companies in each category.

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Medium

111) Discuss the various types of electronic commerce.

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Medium

112) Differentiate between forward and reverse auctions.

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Medium

113) Differentiate among sell-side marketplaces, buy-side marketplaces, and electronic exchanges.

Learning Objective: Describe the three business models for business-to-business electronic commerce, and provide a specific example of each model.

Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce

Difficulty: Hard

114) Differentiate between electronic storefronts and electronic malls, and provide examples of each.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Medium

115) Discuss the reasons for E-commerce failures.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Medium

116) Discuss the benefits and limitations of electronic commerce.

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Hard

117) Discuss the various business-to-consumer applications (e.g., e-tailing, electronic storefronts, electronic malls).

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Hard

118) Discuss the various methods of online advertising.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a specific example of each service, and state how you have used or would use each service.

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Hard

119) Discuss the following electronic commerce business models and give examples of each type: online direct marketing, electronic tendering system, name-your-own-price, find-the-best-price, affiliate marketing, and viral marketing.

Section Reference: 5.1 Overview of E-Business and E-Commerce

Difficulty: Medium

120) Describe the various types of electronic payments.

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and explain whether you would use each type.

Section Reference: 5.4 Electronic Payments

Difficulty: Hard

121) What is domain tasting? Should it be made illegal?

Section Reference: 5.5 Ethical and Legal Issues in E-Business

Difficulty: Hard

Legal Notice

The data contained in these files are protected by copyright. This manual is furnished under licence and may be used only in accordance with the terms of such licence.

The material provided herein may not be downloaded, reproduced, stored in a retrieval system, modified, made available on a network, used to create derivative works, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise without the prior written permission of John Wiley & Sons Canada, Ltd.

Document Information

Document Type:

DOCX

Chapter Number:

Created Date:

Aug 21, 2025

Chapter Name:

Chapter 5 E-Business And E-Commerce

Author:

Rainer Cegielski

Connected Book

Introduction to Information Systems 3rd Canadian Edition | Test Bank with Answer Key by Rainer

By Rainer Cegielski

Test Bank General

View Product →

Explore recommendations drawn directly from what you're reading

Chapter 3 Data And Knowledge Management

DOCX Ch. 3

Chapter 4 Networks

DOCX Ch. 4

Chapter 5 E-Business And E-Commerce

DOCX Ch. 5 Current

Chapter 6 Wireless, Mobile Computing, And Mobile Commerce

DOCX Ch. 6

Chapter 7 Web 2.0 And Social Networks

DOCX Ch. 7

$24.99

100% satisfaction guarantee

Buy Full Test Bank

Quick Navigation

Preview Document Info Connected Book Recommendations

Benefits

Immediately available after payment

Answers are available after payment

ZIP file includes all related files

Files are in Word format (DOCX)

Check the description to see the contents of each ZIP file

We do not share your information with any third party

Chapter 5 E-Business And E-Commerce Test Bank Answers

Document Information

Connected Book

Introduction to Information Systems 3rd Canadian Edition | Test Bank with Answer Key by Rainer

Explore recommendations drawn directly from what you're reading

$24.99

Quick Navigation

Benefits

Report Unauthorized Use

Added to Cart