Ecommerce And Ebusiness Test Questions & Answers Ch14

ACCOUNTING INFORMATION SYSTEMS/3e

TURNER / WEICKGENANNT/COPELAND

Test Bank: CHAPTER 14: eCommerce and eBusiness

NOTE: All new or adjusted questions are in red. New questions are identified by the letter A as part of the question number; adjusted questions are identified by the letter X as part of the question number.

END OF CHAPTER QUESTIONS

1. Which of the following statements is ?
2. E-business is a subset of e-commerce.
3. E-commerce is a subset of e-business.
4. E-business and e-commerce are exactly the same thing.
5. E-business and e-commerce are not related.
6. An electronic hardware device that is located at the gateway between two or more networks is a(n):
7. Packet switch.
8. URL.
9. Router.
10. Protocol.
11. The type of organization that serves as the main trunk line of the Internet is called a
12. Local ISP.
13. Regional ISP.
14. Global ISP.
15. Backbone provider.
16. Which of the following is NOT a direct advantage for the consumer from e-commerce?
17. Access to a broader market
18. More shopping convenience
19. Reduced order-processing cost
20. Information sharing with the company
21. Each of the following represents a characteristic of B2B commerce EXCEPT:
22. Electronic data interchange.
23. Electronic retailing.
24. Data exchanges.
25. Preexisting business relationships.
26. Each of the following represents an application of B2C commerce EXCEPT:
27. Software sales.
28. Electronic retailing.
29. Data exchanges.
30. Stock trading.
31. Before forwarding customer data, an organization should receive explicit or implicit consent of the customer. This describes which of the AICPA Trust Services Principles online privacy practices?
32. Consent
33. Use and retention
34. Access
35. Onward transfer and disclosure
36. Which of the following process within a supply chain can benefit from IT enablement?
37. All process throughout the supply chain
38. Only internal process within the supply chain
39. Only external process within the supply chain
40. Exchange process between a company and its suppliers
41. When a company has an e-business transaction with a supplier, it could be using
42. The Internet.
43. An intranet.
44. An extranet.
45. Either the Internet or an extranet.
46. Intranets are used for each of the following EXCEPT
47. Communication and collaboration.
48. Business operations and managerial monitoring.
49. Web publishing.
50. Customer self-service.
51. When there is no necessity for a preexisting relationship between buyer and seller, that transaction is more likely to be classified as
52. B2B.
53. B2C.
54. B2E.
55. Either B2B or B2C.
56. Which of the following IT controls would NOT be important in an extranet?
57. Encryption
58. Password
59. Antivirus software
60. Penetration testing
61. All of the above are important IT controls.
62. A company’s computer network uses web servers, HTML, and XML to serve various user groups. Which type of network best serves each of the following users?

Employees Suppliers

1. Intranet Extranet
2. Intranet Internet
3. Internet Extranet
4. Internet Internet
5. An extensible markup language designed specifically for financial reporting is:
6. Internet DI
7. XML
8. XBRL
9. XFRL

TEST BANK – CHAPTER 14 – MULTIPLE CHOICE

1. E-commerce is:
2. Business-to-business electronic trading and process integration.
3. Electronically enabled transactions between a business and its vendors.
4. Electronic recording and control of internal processes.
5. Electronically enabled transactions between a business and its customers.
6. E-business:

1. Is a narrower concept than e-commerce.

2. Services the customers and the vendors.

3. Is electronic recording and control of internal processes.

4. Uses electronic means to enhance business processes.

1. 1 only.
2. 2 and 3 only.
3. 2, 3, and 4 only.
4. 1, 2, 3, and 4.
5. The internal processes of e-business do NOT include:
6. Access to personnel records.
7. Access to fringe benefit information.
8. On-line sales to customers.
9. Travel and expense reporting.
10. E-commerce:
11. Sales will usually be large dollar amounts with only a few items are sold.
12. Is the sale of goods or services from a business to retailers.
13. Is the sale of goods or services to an end-user consumer.
14. Both A and B are correct answers.
15. E-business

1. Includes the sale of raw materials between companies.

2. Includes using the Internet as an electronic network.

3. Sales will usually be smaller dollar amounts with many sales.

4. Is a broader concept than e-commerce.

1. 1, 2, 3, and 4.
2. 2, 3, and 4 only.
3. 1, 3, 4 only.
4. 1, 2, and 4 only.
5. Which of the following is not an example of a software system that supports e-business and e-commerce?
6. ERP
7. CRM
8. SCM
9. AFB
10. The original purpose of ARPANET was to share military research data among four universities. Which of the following was not one of the four universities?
11. MIT
12. UCLA
13. UC Santa Barbara
14. University of Utah
15. Packet switching is a method of:
16. Turning routers off and on to send messages between computers.
17. Dividing large messages into bundles for transmission over a network.
18. Isolating computers connected to the network by disconnecting them.
19. Keeping all associated bundles of the message on one network path.
20. The transmission of packets:
21. Must be determined by the sender manually.
22. Must be accomplished via the same network path.
23. Allows great versatility in the transmission of data.
24. Has diminished because of advances in connectivity.
25. The transmission of packets:
26. Are usually sent in sequential order.
27. Must be received in sequential order.
28. Must follow the same network path.
29. Will bundle small messages into larger bundles for transmission.
30. A router:
31. Is a software application that creates path instructions for packets.
32. Is hardware that connects two or more networks.
33. Must receive its instructions from the user manually.
34. Both B and C are correct.
35. The proper actions and capabilities is:
36. Packet switching bundles small messages into large messages for transmission while routers determine the best path through the network.
37. Packet switching replaces the need for routers to determine the best path for the message through the network.
38. Packet switching and routers both bundle small messages into large messages for transmission.
39. Packet switching divides large messages into small bundles for transmission while routers determine the best path through the network.
40. A protocol is required so that:
41. Computers from the same manufacturer can communication with each other.
42. Computers from different manufacturers can communicate with each other.
43. So that communications within the network can be routed properly.
44. Answers A, B, and C are all correct.
45. Protocols can be considered:
46. A proprietary language to a specific computer manufacturer.
47. A language native to the network so all computers can translate it.
48. Unnecessary if the computer is communicating on a LAN.
49. Unnecessary if the computer is using packet switching and routers.
50. TCP/IP is:
51. Trunk controlling protocol/intranet protocol.
52. Transmission control protocol/intranet protocol.
53. Trunk controlling protocol/Internet protocol.
54. Transmission control protocol/Internet protocol.
55. During the 1970s and 1980s, the ARPANET was:
56. Restricted to universities, libraries, research organizations, and commercial carrier access.
57. Was designed in the 1990s to augment the growing Internet and intranet systems.
58. Does not require the use of protocols such as TCP/IP because of the limited access.
59. Restricted to universities, libraries, and research organizations.
60. The Internet:
61. Is a series of LANs connected together to increase their local capability.
62. Is a series of networks connected to provide a global connectivity.
63. Is generally restricted to universities, libraries, and research organizations.
64. Comes from the concept of international networks.
65. The Internet:
66. Utilizes LANs as a backbone to increase connectivity.
67. Is a system of unconnected networks.
68. Utilizes the World Wide Web as a backbone.
69. Is not compatible with graphic user interface tools.
70. The proper sequence of Internet connectivity between users is:
71. Regional ISP to national backbone provider to regional ISP.
72. Local ISP to national backbone provider to network access point to national backbone provider to local ISP.
73. Regional ISP to national network access points to regional ISP.
74. Local ISP to regional ISP to national backbone provider to network access points to national backbone provider to regional ISP to local ISP.
75. A backbone provider is an organization that provides:
76. Direct Internet access to the end users.
77. Regional ISPs direct access to the Internet.
78. High-speed access to local ISP users.
79. High-speed access to regional ISP users.
80. The speed of the U.S. Internet backbone is _______ bytes per second.
81. 1 billion
82. 100 billion
83. 1 trillion
84. 100 trillion
85. The Internet backbone is the network between:
86. The local ISP and the regional ISP.
87. The regional ISP and the local ISP.
88. The local ISP and the national backbone provider.
89. National backbone providers.
90. Regional ISPs:
91. Connect directly to the Internet backbone through network access points.
92. Connect to the Internet backbone through local ISPs utilizing network access points.
93. Provide the connection between local ISPs and national backbone providers.
94. Provide end users direct connects to the Internet backbone through network access points.
95. The network lines that are used to connect regional ISPs to the backbone are usually:
96. T3 Lines
97. T1 Lines
98. LAN Lines
99. NAPs
100. Which of the following connects individual users to the Internet using dial-up modems, digital subscriber lines, or cable TV lines?
101. Regional ISPs
102. Local ISPs
103. Internet backbone
104. Internet browser
105. A web server is:
106. Always located at national backbone provider levels.
107. Always located at regional ISP provider levels.
108. A computer and hard drive space that stores web pages and data.
109. Always the access between the national backbone provider and the backbone.
110. HTML is:
111. A language which allows computers to connect to the Internet and WWW.
112. A protocol language allowing user level computers to connect to local ISPs.
113. A language utilized to present website words, data, and pictures.
114. Used for information sharing between the Internet and WWW.
115. HTML allows:
116. User level computers to connect to the Internet through an ISP.
117. User level computers a way to display information the way it was intended to be displayed.
118. Local and regional ISPs to interact with national backbone providers.
119. National backbone providers to exchange information about trunk traffic.
120. An example of a URL is:
121. cjb@jhs-email.com.
122. http://www.cjb.org.
123. jhs-email.com.
124. All of the above, A, B, and C, are examples of URLs.
125. Select the statement from the following.
126. URL stands for uniform real-time locator while http stands for hypertext transmission protocol.
127. URL stands for uniform resource location while http stands for hypertext translation protocol.
128. URL stands for uniform resource locator while http stands for hypertext transmission protocol.
129. URL stands for uniform real-time location while http stands for hypertext transmission protocol.
130. When a valid URL is entered into your web browser:
131. Your computer will send a network access protocol (NAP) command to your network server.
132. Your computer will send an http command to a web server, directing the server to find and transmit the web page requested.
133. Your command will be translated into TCP/IP and sent directly to a national backbone provider.
134. Your computer will directly access the Internet and WWW in its search for the information.
135. The current standard HTML 5 has the following benefits over previous versions:
136. Allows a much richer use of video and audio
137. Improved connectivity
138. Better security
139. Both A and C
140. HTTP stands for:
141. Hypertext transmission protocol.
142. Hypertransmission terminal protocol.
143. Hypertext terminal protocol.
144. Hypertext translation protocol.
145. An example of a domain name is:
146. jhs-email.com.
147. cjb@jhs-email.com.
148. http://www.cjb.org.
149. All of the above, A, B, and C, are examples of domain names.
150. The unique name that identifies the internet site is referred to as:
151. URL
152. HTTP
153. Domain name
154. HTML
155. The suffix of the domain name will identify the type of organization that owns the rights to that domain. Which of the following is a correct example of the suffix and related organization type?
156. .gov = governmental organization or unit
157. .net = television network
158. .com = community
159. .org = organization
160. What does IP stand for?
161. Internet process
162. Internal protocol
163. Internet protocol
164. Internal process
165. A URL is converted to an IP by:
166. TCP/IP capabilities of the user level computer.
167. A DNS accessed when the browser sends the command.
168. The local ISP provider.
169. The national backbone provider.
170. This type of address is the unique information that allows a specific website or server to be located.
171. URL
172. DNS
173. IP
174. HTML
175. Which of the following function to store, index, and provide the IP address for each domain name?
176. Domain name servers
177. IP protocols
178. Domain protocols
179. Domain name databases
180. SSL – secure sockets layering:
181. Reduces the frequency of Internet connection disconnects.
182. Ensures that TCP/IP is correctly configured for Internet browsing.
183. Is an encryption system in which the web server and the user’s browser exchange data in encrypted form.
184. Is an encryption system which eliminates the probably of improper use of transmitted data.
185. The ways to determine a secure sockets layering connection is:
186. The “s” at the end of “www”.
187. The “s” at the end of “http.”
188. The padlock on the lower bar of most web browsers.
189. Both answers, B and C, are correct.
190. Select the correct statement from the following.
191. B2C and B2B are both considered e-commerce.
192. B2C is considered e-commerce while B2B is considered e-business.
193. B2B is considered e-commerce while B2C is considered e-business.
194. B2C and B2B are both considered e-business.
195. The common element in B2B and B2C is:
196. Both require a physical selling point.
197. A downloadable product.
198. Both require access to the business’s website.
199. Both require SSL (secure sockets layering) to complete the transaction.
200. Which of the following is an example of a B2B transaction?
201. A student buying a book on Amazon.com
202. A person downloading a song purchased from the Apple Store
203. McDonalds placing an order for more hamburger rolls through their company computer
204. Buying a laptop at Dell.com and picking it up at the local retail store
205. Advantages of e-commerce include all EXCEPT:
206. A narrower market for goods and services.
207. Increased access to information.
208. The lack of geographic constraints.
209. All of the answers, A, B, and C, are advantages of e-commerce.
210. All of the following are statements about e-commerce EXCEPT:
211. E-commerce sites normally conduct sales 24 hours a day, 7 days a week, 12 months a year.
212. E-commerce sales reduce the opportunity for fraud, theft of assets, and theft of data.
213. E-commerce consumers can search for better prices and more information easily.
214. E-commerce consumers may incur shipping and handling charges not incurred by retail customers.
215. E-commerce sites may:

1. Provide access to manufacturer information on the product.

2. May provide tax free sales of retail goods.

3. Require shipping and handling fees to be paid.

4. Provide links to live or video presentations of product information.

5. Not provide as quick order processing as the company’s retail locations.

1. 1, 2, 3, 4, and 5 are correct.
2. 1, 3, 4, and 5 are correct.
3. 1, 2, 4, and 5 are correct.
4. 1, 2, 3, and 4 are correct.
5. Select the statements from the following.

1. Fraud, theft, or theft of data on the Internet and WWW are reduced by its regulated and controlled state.

2. A customer may feel isolated from the product because of the inability to touch or handle the product.

3. E-commerce customers may be targeted for solicitations based on their purchasing history.

4. E-commerce customers will often incur a shipping and handling charge with purchases.

5. E-commerce customers will always find the best product at the best price.

1. 1, 2, 3, 4, and 5 are all statements.
2. 2, 3, and 4 are all statements.
3. 1, 3, 4, and 5 are all statements.
4. 1, 4, and 5 are all statements.
5. E-commerce business benefits include all EXCEPT:
6. A lower cost of advertising per customer reached.
7. More interaction with video and audio product comparisons.
8. More rigid advertising and product presentation requirements.
9. All of the above, A, B, and C, are benefits of e-commerce.
10. E-commerce businesses:
11. Are normally confined to more restrictive marketing due to the larger market.
12. Experience dramatically reduced marketing costs as the result of the expanded market.
13. Requires longer period for delivery of a product due to the processing time of e-commerce.
14. Less flexible in pricing structures due to WWW and Internet distribution of information.
15. All of the following are disadvantages of e-commerce EXCEPT:
16. Faster order processing prevents good assurance of order correctness.
17. Greater probability of fraud or compromised customer privacy.
18. The inability to handle or try out the product.
19. All of the above, A, B, and C, are disadvantages of e-commerce.
20. With the advent of technology, the Internet, and the WWW:
21. Commerce is moving only from physical to electronic positioning.
22. Commerce has maintained its stance of physical and electronic.
23. Commerce is moving both from electronic to physical and from physical to electronic.
24. No notable trends have been identified.
25. Select the correct statement from those below.
26. Bricks and mortar refer to traditional stores while e-tailers are both brick and mortar and e-commerce businesses.
27. Bricks and mortar refer to stores with both physical and electronic presences while e-tailers are e-commerce businesses only.
28. Bricks and mortar refer to traditional stores while brick and click businesses are both brick and mortar and e-commerce businesses.
29. Bricks and mortar refer to traditional stores while brick and click refers to e-commerce businesses.
30. Businesses that are purely web-based are called:
31. Clicks and mortar
32. E-tailers
33. E-commerce stores
34. Bricks and mortars
35. The AICPA’s Trust Services Principles state that online privacy focuses on:

1. Name

2. Address

3. Social Security number

4. Government ID numbers

5. Employment history

6. Personal health conditions

7. Personal financial information

8. History of purchases

9. Credit records

1. 1, 2, 3, 4, 5, 6, 7, 8, and 9.
2. 1, 2, 3, 4, 6, 7, 8, and 9 only.
3. 1, 2, 3, 4, 5, 6, 7, and 9 only.
4. 1, 2, 3, 4, 5, 6, 7, and 8 only.
5. The AICPA’s Trust Services Principles practice that states a specific person or persons should be assigned the responsibility to insure that privacy practices are followed by employees is under the title of:
6. Monitoring and enforcement.
7. Security for privacy.
8. Management.
9. Choice and consent.
10. The AICPA’s Trust Services Principles practice that states a company should have policies and practices to maintain the privacy of customer data is under the title of:
11. Choice and consent.
12. Collection.
13. Use and retention.
14. Notice.
15. The AICPA’s Trust Services Principles practice that states the organization should provide the choice to its customers regarding the collection of data is under the title of:
16. Choice and consent.
17. Collection.
18. Use and retention.
19. Notice.
20. The AICPA’s Trust Services Principles practice that states the organization should ask about the collection, retention, and of the use is under the title of:
21. Use and retention.
22. Access.
23. Choice and consent.
24. Disclosure to third parties.
25. The AICPA’s Trust Services Principles practice that states that only the data that is necessary for the purpose of conducting the transaction should be collected is under the title of:
26. Use and retention.
27. Collection.
28. Choice and consent.
29. Security for privacy.
30. The AICPA’s Trust Services Principles practice that states the organization should use customers’ personal data only in the manner described in “notice” is under the title of:
31. Security for privacy.
32. Monitoring and enforcement.
33. Use and retention.
34. Choice and consent.
35. The AICPA’s Trust Services Principles practice that states that customers should have access to the data provided so that the customer can view, change, delete, or block further use of the data provided is under the title of:
36. Access.
37. Choice and consent.
38. Security for privacy.
39. Use and retention.
40. The AICPA’s Trust Services Principles practice that states that organizations should receive explicit or implicit consent of the customer before providing information to third parties is under the title of:
41. Choice and consent.
42. Security for privacy.
43. Monitoring and enforcement.
44. Disclosure to third parties.
45. The AICPA’s Trust Services Principles practice that states that the organization has the necessary protections to try to insure that customer data is not lost, destroyed, altered, or subject to unauthorized access is under the title of:
46. Choice and consent.
47. Security for privacy.
48. Monitoring and enforcement.
49. Disclosure to third parties.
50. The AICPA’s Trust Services Principles practice that states that all customer data collected remains “accurate, complete, current, relevant, and reliable” is under the title of:
51. Choice and consent.
52. Quality.
53. Monitoring and enforcement.
54. Use and retention.
55. The AICPA’s Trust Services Principles practice that states that the organization should have procedures to address privacy related inquiries or disputes is under the title of:
56. Choice and consent.
57. Quality.
58. Monitoring and enforcement.
59. Use and retention.
60. Internal processes of the organization include all of the following EXCEPT:
61. Transactions involving suppliers.
62. Movement of raw materials.
63. Timekeeping and labor management.
64. Sharing of data files among workers.
65. The supply chain:
66. Is usually smaller at the customer end.
67. Is usually more complex for service firms.
68. Includes manufacturing facilities.
69. Does not include any internal resources.
70. The supply chain:
71. Ends once the raw materials arrive at the manufacturing facility.
72. Is an external process only.
73. Is both an internal and external process.
74. Ends once the product is manufactured and ready for sale.
75. The correct sequence of the supply chain is:
76. Secondary suppliers, suppliers, manufacturer, warehouses, distributors, retailers, and customers.
77. Suppliers, secondary suppliers, manufacturer, warehouses, distributors, retailers, and customers.
78. Suppliers, secondary suppliers, manufacturer, distributors, warehouses, customers, and retailers.
79. Suppliers, secondary suppliers, manufacturer, distributors, warehouses, retailers, and customers.
80. The correct statement regarding the supply chain and B2C is the supply chain extends from the secondary supplier and ends with the:
81. Retailer while B2C is from the manufacturer to the final consumer.
82. Retailer while B2C is from the customer to the manufacturer.
83. Manufacturer while B2C is from the retailer to the final consumer.
84. Final customer while B2C is from the retailer to the final consumer.
85. Vertical integration of the supply chain occurs when:
86. One organization owns all of the companies capable of accomplishing a specific task.
87. All of the organizations that can accomplish a specific task are located in one geographic region.
88. Several organizations agree to produce a single product under a common label.
89. One organization owns the supply chain from raw materials through distribution and sales.
90. Select the correct statement from the following:
91. B2C is typically many line items per order while B2B is typically few line items per order.
92. B2C is typically few line items per order while B2B is typically many line items per order.
93. B2C uses purchase order forms while B2B utilizes credit card purchasing.
94. B2C buyers usually have a relationship with the seller while B2B do not have a prior relationship.
95. An intranet is a:
96. Private network accessible only to the employees of a company.
97. Public network accessible by the customers and vendors of a company.
98. Public network accessible by the entire supply chain of a company.
99. Private network accessible by the entire supply chain of a company.
100. B2C e-commerce requires:
101. Access to the intranet.
102. Access to the extranet.
103. Access to the Internet.
104. All of the above, A, B, and C.
105. An extranet is a:
106. Private network accessible only to the employees of a company.
107. Public network accessible by the customers and vendors of a company.
108. Public network accessible by the entire supply chain of a company.
109. Private network accessible by select members of the supply chain.
110. Which of the following correctly orders the networks from the network that allows access to the least amount of people to the greatest amount of people?
111. Intranet, Internet, Extranet
112. Internet, Intranet, Extranet
113. Extranet, Intranet, Internet
114. Intranet, Extranet, Internet
115. Select the correct statement from those provided below.
116. Intranet access is generally open to select members of the supply chain.
117. Internet access is generally open to select members of the supply chain.
118. Extranet access is generally restricted to company employees.
119. Extranet access is generally open to select members of the supply chain.
120. When a company uses the:
121. Intranet for exchanges such as B2C transactions, it must give access to potential customers.
122. Internet for exchanges such as B2C transactions, it must give access to potential customers.
123. Internet for exchanges such as B2C transactions, it must preclude potential customers default access.
124. Extranet for exchanges such as B2C transactions, it must preclude potential customers default access.
125. Firewalls:
126. Prevent internal users from accessing unacceptable web sites through the intranet.
127. Permit internal users direct access to the Internet to accomplish B2B transactions.
128. Prevent vendors from viewing inventory levels via the intranet.
129. Prevent external users from accessing the extranet or intranet.
130. Select the correct statement from the following.
131. XML is extensible markup language while XBRL is extensible business reporting language.
132. XML is extensive markup language while XBRL is extensive business reporting language.
133. XML is example markup language while XBRL is example business reporting language.
134. XML is extensible manipulation language while XBRL is extensible business reporting language.
135. XML:
136. Allows dynamic financial statements to be published on websites.
137. Provides standards for the automatic exchange of financial data.
138. Facilitates the exchange of data between organizations via web pages.
139. Is based on XBRL language for the construction of business web pages.
140. EDI via ANSI X.12 implementation is hampered by:
141. High costs.
142. Usable only on small projects.
143. Limited transfer of files and data formats.
144. Both A and C above are correct answers.
145. Internet EDI, or EDIINT, features all of the following EXCEPT:
146. Low cost.
147. Heavy infrastructure.
148. Industry standard.
149. Entire supply chain integration.
150. Value added networks or VANs, features all of the following EXCEPT:
151. Transaction fees.
152. Complicated.
153. Industry standard.
154. Limited access.
155. As a metalanguage, XML:
156. Places a data tag that the beginning and end of each page identifying the contained data.
157. Places a data tag that the beginning and end of each data item identifying the contained data.
158. Places a data tag only at the beginning of the data identifying the following data item.
159. Is usable on both EDI and EDIINT networks.
160. XBRL:
161. Is a language that allows data extraction from financial statements.
162. Is the base or core language for XML, also a metalanguage.
163. Requires that financial statements be submitted in printed format.
164. Both answers B and C are correct.
165. Companies that engage in e-commerce, B2C sales with consumers:
166. Have the legal obligation of complying with the AICPA Trust Services Principles.
167. Have the same kind of obligations to conduct their business ethically as companies transacting business any other way.
168. Have legal obligations that suggest that customers should be so informed regarding customer privacy.
169. Are required by law to have a local presence for the resolution of customer complaints.

TEST BANK – CHAPTER 14 – TRUE /

1. E-business is the use of electronic means to enhance business processes.
2. E-commerce is electronically enabled transactions between a business and its customers.
3. E-commerce is the use of electronic means to enhance business processes.
4. E-commerce only involves transactions between the business and its customers.
5. Packet switching is the method used to send data over a computer network.
6. A router is an electronic hardware device that is connected to each computer to connect it to a network.
7. A protocol is a standard data communication format that allows computers to exchange data.
8. TCP/IP is an abbreviation for terminal communications protocol/Internet protocol.
9. The Internet (interconnected networks) serves as the backbone for the World Wide Web (WWW).
10. A backbone provider is an organization such as the National Science Foundation (NSF) which funded the Internet and/or the WWW.
11. Regional ISPs connect to the backbone through lines that have less speed and capacity than the backbone.
12. Local ISPs connect to the backbone through lines that have less speed and capacity than the backbone.
13. A web server is a computer and hard drive space that connects to the backbone through lines that have less speed and capacity than the backbone.
14. A web server is a computer and hard drive space that stores web pages and data.
15. HTML has evolved over the years to increase functionality and security.
16. The standard form of encryption embedded in e-commerce sites and in web browser software is “Safe Sending Language” (SSL).
17. Due to interstate trade events and taxation issues the U.S. Government has standardized the definition of e-commerce.
18. The common term for business-to-consumer e-commerce is B2C. The common term for business-to-business electronic sales is B2B.
19. E-commerce provides the potential for much richer marketing concepts that include video, audio, product comparisons, and product testimonials or product tests.
20. Because of computer interaction and the capability of almost instant verification business across the World Wide Web has a lower probably of fraud, hackers, and compromised customer privacy.
21. The AICPA Trust Services Principles do not protect the history of purchases since these are classified as “public knowledge events.”
22. The AICPA Trust Services Principles state that the customer should be given the choice regarding the collection and retention of data.
23. The AICPA Trust Services Principles state that the customer need not be contacted if a business is going to release non-sensitive information about the customer to a third party.
24. The supply chain is the linked processes from the raw material vendor through the manufacturer ending at the stage of finished goods.
25. The supply chain may be larger at either or both ends as more than one vendor may supply the same materials and more than one customer may purchase the finished products.
26. A strength of the supply chain concept is that inconsistencies or poor quality within the supply chain will be compensated by other strengths resulting in an overall satisfactory product.
27. An example of vertical integration is a manufacturer who mines the raw materials, produces the product, and then sells it in company owned stores.
28. The differentiating factor between B2C and B2B is where B2C might purchase two books; a B2B purchase might involve ten thousand books.
29. One advantage in the B2B e-business environment is that operations costs can be reduced through inventory reductions and efficiencies can be increased by location of nearby assets when needed.
30. An intranet is a private network accessible only to the employees of a company.
31. Because intranets do not transmit information through the Internet or WWW they do not use protocols such as TCP/IP.
32. An extranet is similar to an internet except that it offers access to a greater number of sites than a standard Internet or WWW connection.
33. One characteristic that the Internet, intranets, and extranets have in common is that they are all networks that are intended for the sharing of information and the conducting of transactions.
34. The general public has general access to the intranet and extranet networks.
35. XML is a rich language that facilitates the exchange of data between organizations via web pages.
36. In XBRL complex financial statements are presented only in a static mode.
37. Traditional EDI is a real-time processing system due to the 24 hour, 7 day a week operation of computers and servers.
38. Management has an ethical obligation to create and enforce policies and practices which ensure that private customer data are not misused.
39. Because of their sensitive nature, companies seldom sell or share customer lists or customer data.
40. While there is no requirement to disclose a privacy policy on a website, it is an ethical obligation to disclose and follow the policy.
41. SO1 E-Commerce

The text and readings in the course discuss the benefits of eCommerce . Outline five benefits of eCommerce for the customer.

1. SO1 E-Commerce

The text and readings in the course discuss the benefits of eCommerce . Outline five benefits of eCommerce for a business.

1. SO4 eBusiness B2B and B2C

Explain the term B2B and compare B2B to B2C commerce.