Test Bank

Chapter 1 Overview of Electronic Commerce1-According to Peter Drucker, e-commerce is profoundly changing markets, industry structures, products and services, consumer segmentation, consumer values and consumer behavior; jobs, and labor markets. True False 2-By purchasing a textbook from Amazon.com and having the merchandise physically delivered, Amazon.com would be considered a click-and-mortar organization because pure EC did not occur. True False 3-In the field, a sales representative writes notes with a mobile handwriting-recognition computer immediately after a sales call. This can be viewed as an EC activity. True False 4-In addition to EC being conducted via the Internet, EC can be conducted over local area networks (LANs). True False 5-An example of business-to-consumer (B2C) is when Dell provides customer service online by collaborating electronically with its partners. True False 6-An internal corporate network that uses Internet tools, such as Web browsers, is known as an intranet. True False 7-An extranet is a network that uses the Internet to link together multiple intranets. True False 8-Purchasing a Dell computer online for use at home is an example of e-tailing. True False 9-Networked computing connects multiple computers and other electronic devices that are located in various locations by telecommunications networks, including wireless ones. True False 10-When Dell purchases Godiva chocolates as gifts for its employees and has Godiva mail them directly to the recipient Dell is engaged in B2B2C. True False 11-Peer-to-peer (P2P) technology can be used in C2C, B2B, and B2C. True False 12-The final participants in B2B transactions are consumers. True False 13-Doing your banking on an Internet-enabled cell phone is an example of m-commerce. True False 14-Despite the many e-tailing EC companies that have failed in the past, the dot-com failure rate has recently declined sharply. True False 15-Since 2001, no other company has had more of an impact on EC than MySpace. True False 16-Wikipedia.com, a Web site that allows people to work together online and share information, is an example of Web 2.0. True False 17-The digital economy refers to an economy based on digital communication networks, computers, software, and other related information technologies that provide a global platform over which people and organizations interact, communicate, collaborate, and search for information. True False 18-Economic, legal, societal, and technological factors have created a highly competitive business environment in which customers are becoming less powerful. True False 19-Strong competition and increased power of consumers are two of the major market pressures in today's business environment. True False 20-Business models are a subset of a business plan or business case and refer to methods of doing business by which a company can generate revenue. True False 21-A business model outlines how the organization or the EC project will generate revenue through sales, transaction fees, advertising fees, affiliate fees, or other revenue sources. True False 22-A value proposition refers to the tangible and intangible benefits that a company can derive from using EC making it an important part of the marketing plan. True False e-mail. and blogging. and the and the production collaboration method. True False 25-Many companies used a corporate portal. the business process. servicing of customers. the process. Partial EC E-business Pure EC E-commerce 28-EC can take several forms depending on the degree of digitization of the following three dimensions: the product or service sold. employees. and the transaction. True False 24-Social networks. and MySpace. competitors. the marketing channel. the collaboration. 27-________ refers to the buying and selling of goods and services. the delivery method. YouTube. the payment method.23-Affiliate marketing is an EC business model of word-of-mouth marketing in which customers promote a product or service to friends or other people. True False 26-Dell's cornerstone business model is based on the concept of: selling directly to small and medium sized businesses. . e-collaboration with a few select business partners. and the delivery method. and conducting electronic transactions within an organization. are Web sites that connect people with specific interests by providing free services such as photo sharing. such as Facebook. which is a gateway for customers. method. and partners to reach corporate information and communicate with the company. the agent. rapid business build-to-order which allows growth and customers to configure their threatening own customized systems. collaborating with business partners. on the Internet extranets. or on and extranets. a single computerized machine. 31-________ are systems where only routine transaction processing and information flow take place between two or more organizations using a standard protocol. whereas companies that are engaged only in EC are considered ________ companies. virtual 30-The ways in which EC is done include: the Internet. pure play click-and-mortar. the Internet. and for financial transactions is ________. such as electronic data interchange (EDI). value-added networks. private networks. the Internet and private networks. virtual. Exchange-to-exchange Electronic data interchange Electronic funds transfer Peer-to-peer . such as invoices and purchase orders. and local area networks using intranets. virtual pure play. Intrabusiness EC E-CRM Interorganizational information systems B2B 32-A business such as Apple Computers making online transactions with its trading partners is an example of: e-CRM EDI B2B B2C 33-EC applications are supported by infrastructure and by each of the following support areas EXCEPT: People Marketing and advertisement Mobile devices Public policy 34-Intrabusiness EC is usually performed over intranets and/or ________. P2P networks exchanges mobile networks corporate portals 35-A technology that is used to electronically transfer routine documents. click-and-brick brick-and-mortar.29-Purely physical companies are referred to as ________ companies. failed from 1999 to 2005 for each of the following reasons EXCEPT: The companies failed to ensure The companies The companies had they had sufficient inventory and lacked financial little marketing a distribution setup to meet skills. 41-According to the Business Environment Impact Model. via the Internet. Virtual Web Social Web Web 2. especially e-tailing and B2B ones.0 Media Web 39-Which of the following is not a characteristic of the Digital Revolution? A high rate of obsolescence. Many business processes are expedited by up to 50 percent. ________ provide support to organizations' activities and to actual performance. such as social networks and wikis. core competencies and critical response activities missions and strategies EC and IT markets and government . organizations are considering less information when making decisions. countering business pressures. 38-________ refers to the second-generation of Internet-based services that let people collaborate and share information online in new ways. operating under increasing pressures to produce more products.36-Challenges that Boeing faced with its global collaboration for the design and assembly process of its new Dreamliner passenger plane included each of the following EXCEPT: Information security Lag time Teams working across various time zones Data management 37-A large number of EC companies. such as Google. making fewer unable to react quickly decisions and/or enough to threats and decisions less opportunities. Intelligent search agents to Fraud and other help manage information cybercons carried out overload. The companies failed to register with search engines. frequently. initial demand. and with fewer resources. faster. experience. 40-Because the rate of change and the level of uncertainty are expected to accelerate. electronic tendering systems viral marketing name-your-own-price models online direct marketing 47-Online group purchasing organizations are known as: e-co-ops SMEs exchanges barters 48-Major barriers to EC include all of the following EXCEPT: implementation difficulties lack of technology lack of potential customers cost 49-Which of the following is a technological limitation of EC? .42-A ________ is a company's method of doing business to generate revenue to sustain itself. to receive some type of service. companies receive commissions for referring customers to others' EC Web sites. usually monthly. transaction fees affiliate fees subscription fees advertising fees 45-Large private organizational buyers and government agencies make large-volume or large-value purchases through ________. customers page a fixed amount. also known as reverse auctions. marketing strategy business model business plan value chain 43-According to the ________ revenue model. an organization can increase brand awareness or even generate sales by Web-based word-of-mouth marketing or promoting a product or service to other people. name-your-own-price models viral marketing online direct marketing electronic tendering systems 46-According to the ________ model. affiliate fees advertising fees subscription fees transaction fees 44-According to the ________ revenue model. scale B2C.Difficulty Security and privacy obtaining venture concerns that deter capital. Collaborative Commerce 52-A corporation uses the Internal Revenue Service's Web site to learn how to pay its estimated quarterly income taxes. and partners to reach corporate information and to communicate with the company. and legal requirements of largeissues. which is a gateway for customers. employees. applications. and data to ________ that define the business and ultimately deliver value to customers and end users. corporate portal intranet social network extranet Chapter 2 E-Marketplaces . An example of this is: mp3.com DoubleClick Evite blogging 54-The digital enterprise shifts the focus from managing individual information resources such as devices. 50-A job opening in the Sales Department posted on the company's Intranet by the Human Resources Department is an example of: B2E B2S E2C B2B 51-Boeing designing a product together with a business partner is this type of interaction: B2B2C Nonbusiness EC B2B. G2C G2B 53-The second-generation of Internet-based services that lets people collaborate and share information online is known as Web 2. customers from buying.0. transforming revenue models developing models organizing supply chains orchestrating the services and workflows 55-Many companies employ a(n) ________. This is an example of: G2G E2E. Order fulfillment public policy. Unresolved taxation. an intermediary is a third party that operates between sellers and buyers. True False 2-The emergence of electronic marketplaces has resulted in lower information search costs for buyers and lower transaction and distribution costs for sellers. True False 4-Front end refers to the activities that support online order fulfillment. packaging. and exchanges. the marketspace also can sell digital products.com consumer portal. True False . True False 6-WebMD. but its core business is being an e-intermediary. medical services company. inventory management. True False 3-Although both marketplaces and marketspaces can sell physical products. True False 7-The major B2B e-marketplaces are electronic storefronts. payment processing. is known mainly for its webmd. which are goods that can be transformed to digital format and delivered instantly over the Internet. and delivery.1-The functions and efficiency of an e-market are the same as that of a physical marketplace. Intermediaries of all kinds offer their services on the Web. which is the largest U. True False 5-In marketing. purchasing from suppliers.S. Internet malls. True False 11-Search engines not only "search and match. True False 10-Travelers using airline Web sites to book their flights directly without the use of travel agents is resulting in the reintermediation of travel agents. True False 12-An electronic shopping cart is an order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop. True False 13-Shopping carts for B2B are fairly simple. such as Google's desktop." but also have capabilities that can be used to perform routine tasks that require intelligence. but a shopping cart for B2C may be more complex. using advanced search and indexing techniques. True False 9-Intermediaries are human or electronic agents that play an important role in EC by providing value-added services such as making payment arrangements to buyers and sellers. True False .8-A portal is an information gateway that attempts to address information overload by enabling people to search and access relevant information from disparate IT systems and the Internet. True False 14-An auction is a competitive process and market mechanism that uses a competitive process by which a seller solicits consecutive bids from buyers or a buyer solicits bids from sellers. then potential suppliers bid on the job.15-Negotiation and bargaining are two types of auctions where prices are not fixed. True False 17-E-auctions are becoming less important selling and buying channels for companies and individuals. True False 19-A limitation of e-bartering for businesses is that excess capacity items such as office space. risk of fraud. True False 20-Online negotiation can be facilitated by computer technology for the negotiation process and software agents for searches and comparisons. but rather are allowed to fluctuate as market supply and demand change. True False . factory space. with the price reducing sequentially. True False 21-Due to the lack of hurdles. True False 16-Reverse auctions are bidding or tendering systems in which the buyer places an item for bid on a request for quote (RFQ) system. and labor cannot be bartered. the adoption and growth of m-commerce has been widespread. True False 18-The major limitations of e-auctions are insufficient security. and a limited pool of participants. and the lowest bid wins. idle facilities. storage. finished products. was a major contributor to the collapse of many dot-com companies. True False 24-Because the strength of each of Porter's five forces varies considerably from industry to industry. which suggests that a company needs to use innovative strategies to survive and prosper in the Internet economy. 28-Digital products have different cost curves than those of regular products because: .com had done when it had few online competitors. new companies cannot establish good corporate images quickly as Amazon. goods. such as a legal and buyers and materials into regulatory framework that sellers. which include each of the following EXCEPT: providing an institutional matching transforming raw infrastructure. True False 23-Strong competition for commodity-type products. the success of the pure-play jewelry e-tailer Blue Nile was due to the company's use of Internet technologies to: offer lower prices than competitors eliminate intermediaries go public provide quality ratings 27-Traditional and electronic markets have three main functions. it would be a mistake to draw general conclusions about the impact of the Internet on long-term industry profitability.22-The Internet economy's low barriers to entry are both an opportunity and a threat to businesses. facilitating the exchange of information. and payments associated with market transactions. such as toys and CDs. True False 25-Because of intense competition on the Web. enables the efficient functioning of the market. True False 26-Fundamentally. services. front end back end intermediary infrastructure 31-The major ________ e-marketplaces are storefronts and Internet malls. inventory management. most of in digitization. Commercial portals Private e-marketplaces B2B marketplaces E-malls 34-A(n) ________ is a single point of access through a Web browser to help users find relevant and accurate business information and reduce information overload. a shopping cart. low. most of the costs are fixed. including the seller's portal. and delivery are done in what is termed the ________ of the business. a supply chain a payment gateway 33-________ are online markets owned and operated by a single company and may be either sell-side or buy-side. variable costs are high. front end infrastructure intermediary back end 30-All the activities that are related to order aggregation and fulfillment. intermediary browser search engine information portal . The most common mechanisms include each of the following EXCEPT: a search engine an electronic catalog. B2C B2B2C B2B C2B 32-An electronic storefront includes several mechanisms that are necessary for conducting the sale. payment processing. but variable costs are very variable. and a payment gateway is referred to as the ________ of the business. electronic catalogs. most of in digitization. 29-The portion of an e-seller's business processes through which customers interact. and of the costs are the costs are variable the costs are fixed. and fixed costs are low. accounting and finance. all in digitization. insurance.in digitization. packaging. purchasing from suppliers. a search engine. 36-A type of broker that helps consumers compare different stores is a: shopping facilitator. virtual mall. pre-shopping dynamic pricing commodity pricing negotiation 40-Although used occasionally in B2C commerce. such as travel and insurance agents. search costs. 37-Human or electronic intermediaries attempt to address each of the following limitations of direct interaction EXCEPT: lack of privacy for those wanting to remain anonymous. product distribution. which refers to nonfixed prices. the seller's ID numbers. can deliver customized customers at different catalogs to different prices. customized catalogs are especially useful in B2B e-commerce for each of the following reasons EXCEPT: e-catalogs can show e-catalogs can show the buyer's ID only the items that the number for the item. employees in a specific model. intranets. . contract risk. reflecting discounts business customers.35-Finding relevant and accurate information is often time-consuming and requires access to multiple systems causing organizations to lose a lot of productive employee time. in same item to different particular. portals. or purchase-contract agreements. One solution to this problem is the use of: intermediaries. E-catalogs can be customized to show the Intranets. such as those in auctions or stock markets. or SKU organization are number rather than allowed to purchase. 41-To be successful and useful. search agent. 38-The elimination of various types of agents that mediate between buyers and sellers. metamediary. large e-catalogs need a(n) ________. is referred to as: remediation automation e-distribution disintermediation 39-A mode is purchasing where prices are negotiated or discounted is ________. browsers. search engine data mining technology enhanced viewing capability directory 42-A ________ has capabilities that can be used to perform routine tasks that require intelligence such as providing customers with assistance based on their movements on a Web site. or in which a buyer places an item for bid on an RFQ system and the lowest bid wins is referred to as all of the following EXCEPT: tendering system. 47-What is a benefit of e-auctions to sellers? Anonymity. determined by the market. reverse auctions. merchant server e-fulfillment agent electronic shopping cart intelligent agent 45-The most common and traditional form of auctions in which one seller entertains bids from many buyers is referred to as: e-auctions. Convenience since the bidding can High stickiness to The optimal price is the Web site. 46-An auction in which there is one buyer and many potential sellers. Wireless security It improves the Wireless telecom . occur anywhere and any time. intelligent engine search engine software engine software agent 43-Popular search engines include all of the following EXCEPT: Google Lycos AltaVista MSN 44-A(n) ________ is an order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop. bidding system. reverse auctions. forward auctions. forward auctions double auction. 48-Organizations are embracing mobilized computing technologies for several reasons EXCEPT: The prices of notebook computers. wireless handhelds. For buyer. digital products and services networks industries differentiated products and services 52-The Internet has influenced industry structures in each of the following ways EXCEPT: Increases differences Industries are among competitors whose more efficient offerings are kept overall. A flood of new entrants has come into many industries because of reduced barriers to entry. e. 49-EC competition is very intense because online transactions enable each of the following EXCEPT: Higher prices because of a greater number of potential buyers. proprietary. 51-It can be said that competition between companies is being replaced by competition between ________. and smart phones continue to fall and their capabilities continue to increase. personalization. support for mobility is growing quickly. 53-Impacts of e-marketplaces on B2C direct marketing include all of the following EXCEPT: The existence of eEC enables Brand images The administrative work . e-markets reduce the cost of Product or service searching for product differentiation and information. 50-Which of the following statements about differentiation and personalization is not correct? Consumers like differentiation and personalization and are frequently willing to pay more for them.. benefiting sellers who use this strategy. and doing so reduces the need for a sales force and brick-and-mortar stores. Price cutting in differentiated markets does not impact market share very much: Differentiation reduces the substitutability between products. Products must be differentiated for perfect competition. models. frequently to zero. sellers. prices. encryption. problems have been productivity of workers in the solved with field. There has been a shift in bargaining and buyer power to end users. Setting up a Web site is relatively easy and inexpensive.g. Effective communication between the supply chain and the factory floor is needed to make it happen Build-to-order manufacturing Demand-driven manufacturing Real-time manufacturing Virtual manufacturing Chapter 3 Retailing in Electronic Commerce 1-The amount and percentage of goods and services sold on the Internet is increasing rapidly. despite the failure of many dot-com companies. are the largest category of online retail. True False 4-Jewelry sales over the Internet is just beginning. when and where they want it. logistics chain customized chain hub-based chain support chain 55-________ provides customers with exactly what they want. cutting the cycle time by more than 90 percent. but could be one of the top sellers on the Internet in the near future. True False 3-Consumer electronics. customization of products and services. which is changing marketing and sales activities both in B2C and in B2B. a seller that operates between manufacturers and customers. True False 2-A retailer is a sales intermediary. for new companies have become more difficult to establish. especially across international borders. including cell phone sales. can be reduced significantly.marketplaces has increased the promotion of products and services through direct marketing. 54-One of the major benefits of e-markets is the improvement in supply chains with the creation of a(n) ________. . related to physical delivery. True False . with approximately one-third of online shoppers reporting that they used the Internet to research and influence their offline shopping choices. from that. coupled with excellent service. and crosschannel coordination and integration in which customers can almost seamlessly operate between the online and physical environments of a business are also important elements in successful e-tailing. True False 10-Direct marketing describes marketing that takes place offline between manufacturers and retailers.True False 5-Offline transactions are somewhat influenced by research conducted online. True False 6-Evidence indicates that the basic principles that apply to retail success do not apply to etail success. a discussion of how that organization will achieve profitability and sustainability by delivering goods and services to those customers. True False 9-A business model is an analysis of the organization's customers and. True False 8-Goods with the following characteristic guarantee provided by highly reliable or wellknown vendors are expected to facilitate higher sales volumes. True False 7-Offering quality merchandise at good prices. 11-Virtual or pure-play e-tailers are firms that sell directly to consumers over the Internet without maintaining a physical sales channel. True False . subscription or membership fees. it has many drawbacks and barriers so the winners in many market segments will be companies that use the click-and-mortar approach. such as lower overhead costs. over the Internet through interactive Web sites. True False 15-Although there are practical advantages to being an e-tailer. and revenue-sharing fees. True False 13-All click-and-mortar retailers started life as a traditional storefront with a physical retail presence only and over time adopted an online transactional capability as well (brick only to brick-and-click). consultancy fees. True False 17-The job market is characterized by high volatility and unbalanced supply and demand. True False 16-Online travel services have high margins because of their multiple revenue models including commissions. revenue from advertising. through voice phone calls to human operators. click-and-mortar retailers sell via stores. True False 12-Specialized businesses operate in a very narrow market and would find it difficult to survive in the physical world because they would not have enough customers or could not hold the variety of stock. lead-generation payments. and by mobile devices. True False 14-In today's digital economy. com realized a substantial reduction in operating costs and inventory costs by eliminating its brick-and-mortar stores and becoming a pure-play in e-commerce. True False 22-In implementing a successful click-and-mortar strategy. the information and service received is consistent. True False 21-Egghead. True False . True False 19-Many insurers are using a dual distribution strategy. by adding online distribution of standard products to their traditional agency distribution system. True False 23-Investors in e-tailers which report small losses on each unit sold should not be concerned because the huge volume of business available online should more than offset these small marginal losses.18-In general. online banking offers a cheap alternative to branch banking as well as a chance to enlist customers in remote areas. online real estate is replacing existing real estate agents in most markets. a company must make sure that whether a customer establishes contact through face-to-face encounters with store personnel or through the Web page. True False 24-Cybermediation occurs at Web sites that use intelligent agents to facilitate intermediation. True False 20-From a bank's perspective. three in four Internet users age 25 and over two in five Internet three in four Internet users age 18 and over.com have trended upward. approximately ________ shop online and/or research offline-sales online.25-Channel conflict occurs when adding an online distribution channel causes problems with existing distribution channels. users age 14 and over two in five Internet users age 30 and over 28-All of the following categories have already been selling well online EXCEPT: pet supplies computer hardware and software travel new cars 29-Important trends in B2C EC include all of the following EXCEPT: many offline transactions online advertising are now heavily will increasingly influenced by research use rich media. rapidly. Digitized format. attributed to huge spending on further developing its technology infrastructure and its investment in the Amazon Prime discount shipping program. the use of cell the Internet will influence phones to shop approximately 25 percent online is increasing of all retail sales by 2010. conducted online.com maintained its position as the number one etailer in 2006. goods with any of the following product characteristics are expected to facilitate greater online sales EXCEPT: Relatively expensive items. High brand recognition. in percentage terms. True False 26-Amazon. Amazon. Frequently purchased items. . 27-According to data from eMarketer.com experienced all of the following EXCEPT: Despite increasing a sales and net profits. Amazon. The company's financial success has been assured. driven largely by product diversification and its international presence. Amazon has seen a drop in profitability in 2006. 30-With all else being equal in the online environment. intermediary. a shared service mall strategy. malls only. a click-and-mortar strategy. viral marketer. viral marketer. disintermediation 32-Dell's strategy is best described as: a click-and-mortar strategy. 35-An online seller of travel services that generates revenue by charging fees for its services is an example of a(n): market maker. transaction broker. manufacturer. market maker.31-Marketing that takes place without the help of intermediaries is called: direct marketing. a brick-and-mortar strategy. 37-A company that creates and manages many-to-many markets is called a: transaction broker. content disseminator. intermediaries. Federal Express is an example of a(n): viral marketer. service provider. content disseminator. . 34-In direct marketing: sales are customers are contacted directly shipments are made directly from the seller to made in without the help of the customer. a brick-and-mortar strategy. pure-play e-tailing e-malls. direct marketing from a manufacturer. 33-Sears marketing strategy would best be described as: a shared service mall direct marketing from a strategy. 38-In an e-market. content disseminator. transaction broker. 36-A marketer that uses e-mail to advertise to potential customers is called a: viral marketer. content disseminator. market maker. electronic distributors must be used. fantasy sports games. Shopping portals. 41-________ are customers who are willing to shop online because they dislike going to grocery stores. transaction fees. Time-starved customers New technologists Shopping avoiders Leading edgers 42-________ are extremely busy customers willing to shop online in order to free up time. Time-starved customers Leading edgers New technologists Shopping avoiders 43-________ are those who are young and comfortable with technology. Virtual banks have no physical location. advertising fees. Shopping browsers. Internet gaming. Intelligent search engines. subscription fees. Virtual banks have Virtual banks combine proven very successful online and traditional and profitable. . Shopping avoiders Leading edgers New technologists Time-starved customers 44-All of the following are examples of interactive entertainment EXCEPT: adult sites purchasing theatre tickets online. branch banking services. Shopping portals Shopping browsers Intelligent search engines Shopbots 46-Software tools that scout the Web for stores that sell similar items at low prices are called: Shopbots. 40-Which of the following is true of virtual banks? Stringent regulations have eliminated fraud risk in virtual banks.39-All of the following are potential sources of revenue for online independent travel agents EXCEPT: direct marketing revenues. 45-________ are gateways to storefronts and e-malls. 52-The original click-and-mortar strategy used by Toys R Us failed. then uses machine learning to find new Web pages and news articles using neural-network-based collaborative filtering technology is called: an aggregator portal. a trustmark. a trustmark. This is an example of: disintermediation.com. The auction site through which he purchases the painting agrees to hold his money until he tells them to release it to the seller. a verification. 50-A software agent that surveys user's reading interests. a warranty. a real-time agent. One new risk they will face in going from a brick-and-mortar strategy to a click-and-mortar strategy is: . a B2B exchange. 49-Charles wants to buy a John Lennon lithograph over the Internet. Afterwards. reduce refunds and exchanges. reintermediation. 53-DeFreshFish has been in business for ten years selling custom fishing lures to local fishermen through its store in a shopping mall.47-________ are sites that evaluate and verify the trustworthiness of e-tailers Shopping portals Trust verification sites Business rating sites. but he is unwilling to pay for it until he inspects it to ascertain authenticity.com. for all customers. empower customers. Toys R Us sold toys online through Amazon. an intermediary. The company's owners are considering opening a Web site and selling their products internationally. Shopbot sites 48-The TRUSTe seal is an example of: a business rating. 51-A traditional brick-and-mortar store with a mature Web site uses a click-and-mortar strategy to do all of the following EXCEPT: speak with one leverage each channel's advantages voice. a learning agent. This is an example of: an escrow service. channel conflict. as did the original toy venture of Amazon. the sponsorship model. an alliance of a pure-player with a traditional retailer. True False 3-One of the keys to building effective customer relationships is an understanding of intelligent agents. channel cooperation. locales.the risk associated with the risk that trying to comply with costs will conflicting rules and erode their regulations in many different profit margin. Chapter 4 Consumer Behavior 1-Netflix implemented intelligent agents in its movie recommendation service called Cinematch to help customers select movies they would like to watch and to better manage its inventory. 54-The single factor that will determine which intermediaries continue to exist and which are replaced is: the length of the relationship between the intermediary and its customers the ability of the intermediary to match up buyers and sellers the profitability of the intermediary the addition of valueadded services by the intermediary 55-An e-tailer uses cookies to identify returning customers and to provide suggested products for purchase based on prior shopping behavior. the risks associated with shifting their cost structure from mostly fixed costs to mostly variable costs. This is an example of: advertising supported model. the risk that their products will not meet the needs of their target market. on-demand delivery. True False . personalization. True False 2-Finding and retaining customers is a major critical success factor for most offline and online businesses. 67 percent of consumers abandoned their shopping carts because of the lack of satisfactory product information. True False 10-The two most cited reasons for abandoning a shopping cart and not making the purchase are shipping charges and security concerns.4-The purpose of a consumer behavior model is to help firms understand how a consumer makes a purchasing decision to be able to influence that decision through advertising. . or other marketing method. True False 11-Social factors such as customer endorsement strategies and word-of-mouth are independent variables that play an important role in EC shopping and purchases. which are uncontrollable variables for EC companies. True False 6-Purchases by governments. True False 5-Individual buyers do most of the actual shopping in cyberspace in terms of dollar volume of sales. private corporations. are independent variables. special promotions. resellers. True False 8-Customers rarely browse online stores if they do not intend to buy. True False 7-Personal characteristics of customers. and other organizational buyers often are used to create other products or services by adding value to them. such as age and income. True False 9-According to Internet statistics. True False . True False 14-An objective of conducting market research is to understand the relationships between dependent and intervening variables so that vendors can make informed decisions on the intervening variables. True False 18-Mass marketing is an approach to marketing that treats each customer in a unique way such as fitting advertising to the customer's profile and needs. virtual catalogs and links to external sources support the evaluation and selection phase of that process. he decides it is time to buy a new car. True False 17-In the decision-making process. promotions. the buyer is the person who ultimately makes the buying decision. This imbalance between a desired state and an actual state is called need identification. advertising. True False 13-Buying decisions are the dependent variables because these decisions depend on the independent and intervening variables. True False 15-In the consumer decision-making process. True False 16-When Chaplin's auto lease is about to expire. and logistics are intervening variables that can be controlled by vendors.True False 12-Prices. how long the . customer turnover expenses. True False 24-Building consumer trust in EC can be achieved through integrity. True False 20-Segmentation refers to the matching of services. transaction costs. True False 23-Attracting and retaining loyal customers is the most important issue for e-tailers because customer loyalty can lower marketing and advertising costs. True False 21-A user profile defines customer preferences. True False 25-Clickstream data provide a trail of a user's activities in a Web site including a record of the user's browsing patterns of every page of every Web site the user visits. and demographic traits of a particular customer. and failure costs such as warranty claims. and advertising content to individuals and their preferences. True False 22-A cookie is a data file that is placed on a user's hard drive by a remote Web server only when the user's gives full consent to collect information about the user's activities at a site.19-Selling as many products as possible to one customer over a long period of time and across different product lines to maximize customer value is known as relationship marketing. products. which is a user's confidence in the ability of the online store to fulfill its promises such as a money-back guarantee. behaviors. and selection need identification purchase. which occurs in the ________ stage of the EC purchase decisionmaking process. and even the e-mail addresses of mail that the user sends and receives. and deli 31-Marketing and advertising approaches has evolved from mass marketing to market segmentation to one-to-one marketing. and tangibility. payment. technical support. and lifestyle. ethnicity. and legal. social. cultural. ethnicity. regulatory. and lifestyle. This evolution occurred because: the marketing concerns about focus shifted from privacy had companies sought to decrease the number the Internet enabled companies to better communicate with . cultural. education. 28-Pricing. information search evaluation. frequency of purchase. True False 26-According to the EC consumer behavior model. social. decisions made by customers are classified as: intervening variables independent variables dependent variables decision variables 30-Banner advertising on Web sites helps trigger a realization that there is a gap between reality and a desired state. brand. negotiation.user remained on a page. political. community. and logistics support are several of the ________ that can be controlled by EC vendors and sellers independent variables decision variables intervening variables dependent variables 29-Because online buyer's decisions depend on numerous independent and intervening variables. personal characteristics and environmental characteristics are classified as: intervening variables dependent variables decision variables independent variables 27-The major environmental variables influencing EC purchasing are: age. price. gender. price. price. compare. customer satisfaction with an Internet store: . delivering those offerings. Loyalty has increased because of targeted relationship marketing. EC companies can achieve each of the following benefits EXCEPT: lower warranty claims costs. 36-What has been the impact of the introduction of EC on customer loyalty in general? There has been little Loyalty has decreased change in loyalty because of customers' because the impacts ability to shop. place. four P's–product. communication costs and filtering costs. 33-Personalization and user profiling strategies include each of the following EXCEPT: Segmenting the market based on demographics. purchase patterns. It is not known whether loyalty has increased or decreased. lower transaction lower marketing and costs. online marketing channels. 34-The two key factors limiting the use of personalization to more precisely target marketing efforts to individual customers are: lack of customer loyalty and service customization costs. 37-According to research. other out. Building from Using questionnaires to previous collect information purchases or directly from the user. lower resistance to competitors. advertising costs. of marketing campaigns. matching profiles with privacy and product offerings and trust issues. diminished. have cancelled each and shift vendors. profiles. 35-By increasing customer loyalty. and customer promotion. 32-The core of the "new marketing model" consists of: customer relationships. customers and understand their needs and buying habits.customers to products. Placing cookies on a user's hard drive to collect information with or without the user's knowledge. 41-Social class. 39-Procter & Gamble (P&G) used the Internet in the new product development of Whitestrips. Based on this experience. lifestyle. confidence that EC transactions due infrastructure. or usefulness. However. drops dramatically when certain Web site features fail to perform properly. Market segmentation is done with the aid of tools such as data modeling and data warehousing. and customer promises. and activities are descriptors used in ________ market segmentation. geographic demographic cognitive. cannot be predicted.depend on two types of is higher for new factors: information customers than quality and customer former customers. service quality. but online surveys expedited research considerably. learned that the cost of online surveys were about the same as similarly sized telephone surveys. Markets can be segmented to increase the percentage of responses and to formulate effective marketing strategies that appeal to specific consumer groups. loading speed. 38-Issues related to trust in EC include all of the following EXCEPT: When parties trust As a result of trustTrust is particularly If people do not trust transference programs each other. they seal of approval programs. they have important in global the security of the EC through portal affiliation. 40-All of the following are correct about market research methods EXCEPT: It is important first to understand how groups of consumers are classified or segmented. reduced the time-tomarket from concept to market launch by approximately two years. in cases of a dispute using credit cards to endorsements. such as the content's reliability. fully confident in online transaction assume some risk. personality. transaction partners to the difficulty of will not feel will keep their online shopping taking legal action comfortable about communities. purchasing transactions. behavioral psychographic . decided to add Internet research to its traditional marketing test model. a teeth-brightening product. Direct mail marketing methods are usually costeffective. make EC purchases. affective. P&G: could not determine the target market segments for the Whitestrips. customers are both parties in the or fraud. clickstream data. Whether there are too What goods the many products for the customer wanted to customer to wade but could not find. B2C clickstream data can reveal information each of the following EXCEPT: Which ads and promotions were effective and which were not. rate. 44-Web analytics and mining tools and services: simply report which pages were clicked and how long a visitor stayed there. and merchandisers achieve a better understanding of the nature of demand. . through. provide most companies with knowledge about how to use clickstream data effectively. Cookies that allow a Web site to store data on the user's PC. Loss of respondents because of equipment problems. are used to redesign Web sites quickly and on the fly. what other products or services that consumer might enjoy through ________. offer advanced functions that help marketers decide which products to promote. knowledge. Focus group responses lose eye contact and body language.42-To avoid getting false information from participants of online surveys. 43-According to Inmon. without asking the consumer directly. the company can predict. 45-Once a company knows a consumer's preferences. marketers learn about customers by observing their behavior using each of the following EXCEPT: Spyware that gathers user Transaction logs that Data mining to information through an Internet record user activities at analyze connection without the user's a company's Web site. active web bugs collaborative filtering spyware personalization 46-Limitations of online research methods are all of the following EXCEPT: E-mail surveys have The ethics and the lowest response legality of Web tracking. What goods the customer examined but did not purchase. click through ad view unique visit conversion rate 50-The major disadvantage of banners is ________. the limited amount of time the limited amount of viewers have become their the banner is present to the information can be placed on immune to banners and cost visitor the banner seldom notice them 51-A(n) ________ is a type of pop-up ad that appears after a user clicks a link and remains while content is loading to capture the user's attention for a short time. through an affiliation service. which has enabled marketers and advertisers to interact or communicate directly with customers and consumers can interact with marketers/advertisers.47-Online methods of bringing new customers to a B2B site when a B2B vendor wants to grow by adding new customers or products include all of the following EXCEPT: by contacting all of its targeted customers individually to attract them to an electronic exchange. one-to-one marketing direct marketing advertising channel interactive marketing 49-The term ________ refers to the number of times users call up a page that has a banner on it during a specific period. 48-The Internet introduced the concept of ________. meta-tag domainer advertorial associated ad display . through Web advertising through direct such as using an ad server mail campaigns network provider. keyword banner interstitial banner exchange CPM 52-The risks of e-mail advertising management include all of the following EXCEPT: spam fraud e-mail hoaxes measuring e-mail advertising effectiveness 53-A(n) ________ is an HTML coding statement that describes the content of a Web page and is used by search engines to index the site's content so that it can be found. either as a promotion or a lead-in to the site's homepage or to advertise a product or a service. They can be used as one-toone connections between a company and its customers. True False 2-Business-to-business e-commerce is also known B2B and refers to transactions between businesses conducted electronically over the Internet.54-Advertising in chat rooms. sites. intranets. blogs. True False 4-Supply chain improvements and collaborative commerce are a basic type of B2B which has a hub manager for supply chain improvements. and collaboration processes in order to improve them. which cannot be done without the Internet. and information sharing. collaborating. and shorten procurement processes. communicating. True False 3-The major characteristic of B2B commerce is that companies attempt to electronically automate trading. Advertising can Advertising can be become more thematic easily targeted to than on static Web customer interests. minimize operational problems. Affiliate marketing Viral marketing Ad customizing Ads as a commodity Chapter 5 B2B E-Commerce 1-General Motors' B2B initiatives successfully enable the auto giant to reduce inventory cost. communication. 55-________ is an advertising strategy that uses word-of-mouth marketing in which customers promote a product or service by telling others about it. or private networks. or social networks can achieve each of the following EXCEPT: They improve a company's search engine ranking. extranets. . procurement. True False 6-Since business-to-consumer (B2C) transactions are segments in the supply chain. they should be examined in light of other supply chain activities such as manufacturing. True False 8-With B2B2C. a business sells to a business. True False 10-The purchase of goods and services as they are needed. True False 9-Intermediaries in B2B commerce. are third parties that broker transactions between buyers and sellers. True False 7-Supply chain activities usually involve communication and collaboration. and logistics. usually the purchase of commodities at prevailing market prices. shipments. which may be virtual or click-and-mortar intermediaries. is referred to as demand buying. True False 11-Examples of direct materials for a food processing company are computers and communication devices. True False . but also delivers small quantities to customers of the buying business.True False 5-B2B EC transactions that involve one seller selling to many buyers is called an exchange. True False 13-Markets that focus on providing materials or products that are used in various types of industries are known as horizontal marketplaces. but the tradeoff is lower supply chain power. . True False 14-Purchases of goods or services that are based on short-term contracts and frequently purchased in large quantities are known as strategic sourcing.12-MRO stands for "maintenance. and operation" which refer to indirect or nonproduction materials that support the production process. True False 17-Companies that choose an intermediary to do their buying and selling will have high supply chain power and buying/selling capabilities. True False 15-Joining a public e-marketplace provides a business with greater buying and selling capabilities. True False 16-B2B can increase the efficiency and effectiveness of supply chains or dramatically change the supply chain by eliminating one or more intermediaries. True False 18-Transaction fees for B2B financial services are higher than for most other methods. True False 19-Companies will often separate B2C orders from B2B orders because those types of orders have different order-fulfillment processes and different pricing models. repair. True False 20-By using the Internet and automatic-response software agents for customer service. True False 25-In the real world. negotiations are done primarily electronically and with negotiation support tools. and order execution. a company submits its surplus to the exchange and receives points of credit. True False 22-Strategic sourcing requires a holistic process that automates the entire sourcing process. obsolete. True False 26-Key business drivers for B2B are all of the following EXCEPT: the availability of a numerous private and the need for the willingness of . and returned products. True False 21-Forward auctions expand online sales and offer businesses a new venue for quickly and easily disposing of excess. RFQ creation. companies have been able to reduce their customer service costs by up to fifty percent. True False 23-A large organizations can develop an effective procurement system by creating an internal marketplace that combines the catalogs of all its approved suppliers into a single internal electronic catalog. including order planning. which is searched for product availability and delivery times. which the company can then use to buy items that it needs. True False 24-With a bartering exchange. negotiation. settlement. bid evaluation. B2B2C B2B B2C B2C2B 29-A(n) ________ is an online third party that brokers B2B transactions between a buyer and seller. which can be done in private exchanges or private trading rooms in public exchanges. public marketplaces trading communities exchanges collaborative commerce 28-With ________. and activites beyond financial transactions among business partners is referred to as ________. planning. information sharing. usually at prevailing market prices is referred to as: direct materials spot buying consolidation strategic sourcing 31-Purchases of goods and services based on long-term contracts is referred to as: direct materials spot buying consolidation strategic sourcing 32-________ can be supported more effectively and efficiently through direct buyer—seller offline or online negotiations. costs to improve collaboration. Strategic purchases B2C commerce MRO Spot buying 33-What are the two types of materials and supplies that are traded in B2B? . vertical marketplace horizontal marketplace intermediary strategic source 30-The purchase of goods and services as they are needed. design.secure broadband Internet platform. collaborations between companies to incur higher suppliers and buyers. 27-B2B transactions that involve communication. a business sells to a business but delivers small quantities to customers of the buying business. public B2B emarketplaces. 40-________ occurs when B2B eliminates a distributor or a retailer. Commodities and nonproduction. . just-in-time delivery. Digital and physical. permitting reduces cycle time. Horizontal and vertical. repair.Direct and indirect. intermediary maintenance. vertical market horizontal market production chain supply chain 37-Companies that use an intermediary to do their buying and selling tend to be: low on supply chain power and low on buying/selling capabilities high on supply chain power and high on buying/selling capabilities low on supply chain power and high on buying/selling capabilities high on supply chain power and low on buying/selling capabilities 38-The major B2B services include each of the following EXCEPT: Financial Travel and hospitality Stock trading Retail 39-Which of the following is not one of the major benefits of B2B? Expedites Increases production processing and flexibility. and operation (MRO) sales and marketing supply chain 36-The ________ consists of a number of interrelated subprocesses that extend from the acquisition of materials from suppliers to packaging it and moving it to distributors and retailers. Increases opportunities for collaboration. 34-Nonproduction materials such as equipment and tools that support production are called: operational materials direct materials virtual materials indirect materials 35-Indirect materials are typically used in ________ activities. Enables customized online catalogs with the same prices for different customers. 00 per call when done by phone to ________ per electronically answered call.00 $0.20 44-Some of the benefits of a(n) ________ are that distributors can check inventory.50 $2. namely ________ with the regular distributors. how to manage the supply how to find chain buyers how to find suppliers how to advertise in traditional channels . $1. e-mails. electronic data interchange custom catalog extranet-based order-entry intranet-based order-entry tool tool 45-In selling directly. a business sells products and services to business customers. frequently over ________.Disintermediation Collaboration Just-in-time delivery Purging 41-In a sell-side e-marketplace. multichannel distribution direct sales conflict channel conflict indirect competition 46-One of the major problems facing direct sellers is ________. 42-Companies will usually separate B2C orders from B2B orders because B2C and B2B orders have different ________. including corporate dealers. and incorrect product shipments. marketing processes accounting processes order-fulfillment processes and different pricing models buying and delivery processes 43-By using the Internet and automatic-response software agents. manufacturers may encounter a similar problem to that of B2C. an exchange an intranet a web service an extranet.50 $0. and look up the status of their orders significantly reducing the number of phone calls. make transactions. GE reduced the cost of customer service calls from $5. 47-The Cisco Connection Online (CCO) Web site receives over 2 million hits per month for technical assistance, ordering, order checking, or software downloads. This online service had been so well received that nearly ________ percent of all customer service inquiries and ________ percent of software updates are delivered online. 15 / 25 45 / 55 25 / 35 85 / 95 48-Companies use ________ to sell their unneeded assets for quick disposal or to easily dispose of excess, obsolete, and returned products. private auctions forward auctions reverse auctions liquidation 49-Benefits of using a third-party hosting company for conducting B2B auctions instead of developing an auction site in-house include all of the following EXCEPT: No redeployment of corporate resources. No additional resources are needed such as No hardware, bandwidth, engineering resources, hiring or IT personnel. costs. Time-to-market of several weeks. 50-A company-based acquisition site that uses e-procurement methods such as reverse auctions, negotiations, or group purchasing, to overcome the manual searching of e-stores and e-malls is referred to as a(n): aggregated catalog buy-side e-marketplace intermediary desktop procurement method 51-Benefits of e-procurement over traditional procurement methods include all of the following EXCEPT: Streamlining invoice reconciliation and dispute resolution. Lowering purchase prices through product standardization, reverse auctions, volume discounts, and consolidation of purchases. Increasing the productivity of purchasing agents. Increasing the skill requirements and training needs of purchasing agents. 52-Major implementation challenges that companies must consider when planning eprocurement initiatives include all of the following EXCEPT: Increasing the number of Providing interfaces between Reviewing and e-procurement and integrated changing the regular suppliers and Coordinating the buyer's information integrating with their information systems and possibly with their business processes. enterprisewide information systems, such as ERP or supply chain management. procurement process itself. system with that of the sellers. 53-Because conducting reverse auctions in B2B can be a fairly complex process, a(n) ________ may be essential. open RFQ online directory third-party intermediary software agent 54-The aggregation of suppliers' catalogs on the buyer's server to make it easier to centralize and control all procurement is called a(n): bartering exchange sell-side emarketplace buy-side emarketplace internal procurement marketplace 55-In general, the benefits of contract-management software include all of the following EXCEPT: Reduces contract Reduces contract-related negotiation time and efforts. risks. Provides more efficient approval processes. Enables standardization of contracts throughout the enterprise. Chapter 6 Public B2B Exchanges 1-Public exchanges are many-to-many marketplaces that are open to all interested sellers and buyers and usually run by third parties. True False 2-One major characteristic of all exchanges is that they are electronic trading-community meeting places for a single seller and many buyers, and possibly for other business partners. True False 3-In electronic exchanges and traditional open-air marketplace, buyers and sellers can interact and negotiate prices and quantities. True False 4-Dynamic pricing refers to the rapid movement of prices over time and possibly across customers as a result of supply and demand matching, as in auctions. True False 5-MSN or Yahoo! are types of exchanges that generate revenue through membership fees. True False 6-Thomas Register is basically a directory for buyers using search engines because it does not offer any opportunity for trade or transactions on its site. True False 7-Alibaba China is China's largest online marketplace for both domestic and international trade among businesspeople and a trusted community of members who regularly meet, chat, search for products, and do business online. True False 8-To increase their financial viability, third-party exchanges try to partner with large sellers or buyers, financial institutions that provide payment schemes, or logistics companies to cut costs or increase market liquidity. True False 9-Market liquidity refers to the degree to which a product or service can be bought or sold in a marketplace without significantly affecting its price. True False 10-Agentrics is the world's largest B2C exchange for retailers, such as Sears and Best Buy, whose objective is to simplify and automate supply chain processes. True False True False . True False 14-The Global Transportation Network (GTN) provides participating carriers and customers with significant cost savings because it frees individual carriers from the huge capital costs of advanced technologies. thus enabling and encouraging consortium members to buy more. True False 12-For all types of e-marketplaces. True False 13-A consortium trading exchange (CTE) or consortia is most appropriate for fragmented markets with large numbers of both buyers and sellers. B2B exchanges and other emarketplaces do not face anti-trust or other competition laws. True False 15-Purchasing-oriented (procurement) consortia have not yet been a successful or popular B2B consortium model. the most important key to the success of any third-party exchange is the critical mass of buyers and sellers.11-Two major models of third-party exchanges are supplier aggregation and buyer aggregation. True False 17-A B2B consortium has the potential to reduce prices of individual products. True False 16-Because of their large number of buyers and sellers. such as Ariba or IBM. quality e-service for business partners is called customer relationship management (CRM). reluctance to share information. True False 21-Company-centered networks may be a waste of money because they are used by only one buyer (buyer's industrial network) or by only one seller (seller's industrial network). and the availability of too many exchanges.18-Dynamic trading is trading that occurs in situations in which prices are determined by supply and demand. and they may not be open to all.and similar business models for charging for their services. same sets of rules for fulfilling orders. such as PricewaterhouseCoopers. True False 23-Public exchanges have difficulty attracting buyers and sellers because of the transaction fees. True False 19-The strategy of providing comprehensive. True False 22-Most exchanges have the same log-on procedures. True False . therefore changing continuously. usually participates. True False 24-In B2B exchanges. True False 20-Because of the complexity in building large e-marketplaces and exchanges. software agents can facilitate management of multiple trading partners and their transactions across multiple virtual industry exchanges. and a management consulting company. it is usually performed by a major B2B software company. 25-Good management and effective operations and rules are critical to the success of B2B exchanges because good governance provides the rules for the exchange. cash. devised new methods to folded due to a lack of expanded by increase revenues and customers. 31-An exchange whose members are in one industry or industry segment and that trades only in materials/services unique for that industry is referred to as a(n): lateral exchange horizontal exchange vertical exchange commodity exchange . supports decision making. ________ are electronic trading-community meeting places for many sellers and many buyers. or adding business profits. the trading process for raw and partially processed chemicals. plastics. 28-A third party that operates an exchange and in many cases. True False 26-Before the Internet. partners. many buyers and many sellers. B2C portals social networks exchanges 30-From 2001 to 2006. a majority of e-exchanges: increased in size due to mergers of small eexchanges. both. and tries to induce the necessary liquidity. and fuel oil was each of the following EXCEPT: disintermediated fragmented slow expensive 27-ChemConnect is an example of a successful e-exchange with: many buyers and one few buyers and few seller. and possibly for other business partners. many buyers and few sellers. sellers. minimizes conflicts. also owns the exchange is known as a(n): intermediary negotiator agent market maker 29-In the context of EC. fixed and set by set by the contract market maker 38-In an exchange where plastic components are bought and sold.32-An exchange that handles materials used by companies in different industries is referred to as a(n):. in horizontal exchanges. only in virtual exchanges. prices are: dynamic and set based on supply and demand. and releases it to the seller once successful delivery is completed. the market maker collects money from the buyer. . vertical sourcing spot sourcing horizontal sourcing strategic sourcing 35-In ________. 37-In spot-sourcing. the prices are usually negotiated or fixed. matching buyers and transaction sellers. maintaining exchange infrastructure. lateral exchange vertical exchange horizontal exchange commodity exchange 33-Light bulbs and office supplies might be purchased in a(n) ________ by both an automaker and a steelmaker. commodity exchange vertical exchange lateral exchange horizontal exchange 34-In ________. on exchanges which operate without a market maker. based solely on the cost structure of the seller. spot sourcing horizontal sourcing strategic sourcing vertical sourcing 36-Spot sourcing of direct materials takes place: in vertical exchanges. the prices are usually dynamic and are based on changes in supply and demand. facilitation. This is an example of: maintaining exchange policies. matching buyers and maintaining exchange sellers. several industry players come together to establish the exchange for the benefit of all. fee for service model. transaction fee model. consortia model. the market maker purchases a new server that will be used to conduct auctions. co-op model. infrastructure. 43-An exchange charges an annual fee of $25. transaction facilitation. maintaining exchange policies and infrastructure.S. 45-A market maker bills a buyer for reviewing several seller contracts and making a recommendation on what to buy and from whom.000 for all parties who want to trade in the exchange. 41-In the consortia model: a dominant player in the industry establishes the exchange and invites others to join. This is an example of the market maker: matching buyers and sellers. interfering with exchange policies. are followed. 44-A market maker charges a percentage on every buy and sell made in the exchange. the public is invited to join the exchange as a way to offset expenses 42-The exchange model in which a third party sets up the exchange and promises to run it efficiently and without bias is called the: industry giant model. neutral entrepreneur model. This is an example of: transaction facilitation. membership fee model. membership fee model. maintaining exchange policies. The revenue model being used in this example is the: . a neutral third party establishes and manages the exchange.39-In an exchange where plastic components are bought and sold. The revenue model in place in this exchange is the: advertising fee model. advertising fee model. 40-A market maker evaluates an exchange between a buyer in the United States and a seller in Spain to ensure that import laws for the U. fee for service model. The revenue model in use by this exchange is the: transaction fee model. fee for service model. seller-concentrated markets. it has been shown that: low membership fees often result in losses to the exchange. 51-Attracting large business sellers to public exchanges is often difficult for all of the following reasons EXCEPT: competitors who are also advertising costs in it is sometimes exchange member may public exchanges difficult to recruit gain access to confidential are very expensive. and shipped and sellers in a information flows between available cash using the exchange. buyer-concentrated markets. market. reverse auction buyer aggregation supplier aggregation seller aggregation 50-Markets in which several large sellers sell to a large number of buyers are called: differentiated markets. transaction fee model. the exchange sees greater utilization which leads to greater revenue and profit. fees for services rendered. processed. on hand. shipping and handling fees. however. there should the greater the be no free services for total profit. large suppliers. high fees discourage participation. 49-The exchange model in which RFQs are aggregated then linked to a pool of suppliers who are notified automatically of the RFQ is the ________ model.. information. . provided. 48-The concept of liquidity for a B2B exchange is the: ease with which orders can be number of buyers ease with which amount of placed. when fees are very low. fragmented markets. there should be a fee the higher the for every service fees charged.membership fee model. advertising fee model. members. exchange members. they are required to pay transaction fees even when they engage in transactions with existing customers. membership fees. 46-All of the following are potential sources of revenue for an exchange EXCEPT: advertising fees. 47-When membership fees are the basis for revenue generation in an e-exchange. (VPN). its success may be far more dependent on what is behind the Web page than on what is on the Web page. take special care of the companies that share ownership in the exchange. 55-Using tunneling technology to improve security of communication over the Internet is called: local area network (LAN) Internet protocol electronic data interchange virtual private network (IP) (EDI). the management of the exchange should: leave the management of day-to-day operations of the exchange to the members. a market in which a small number of many fragmented very large orders account for more buyers and sellers. True False . make certain that the exchange is neutral in its dealings with all members. making trust of suppliers very important. it is easy for exchange members to change to another exchange. Chapter 7 E-Supply Chains 1-Although a company's success is clearly dependent on finding and retaining customers. 53-The most attractive industries for a vertical exchange are characterized by: a few very large stagnant players that totally technology.52-In dealing with exchange members. exchange members typically buy only the best brands of product. strive to maximize exchange revenues through charging the highest possible fees. exchange members typically buy products at the lowest cost unless branded. 54-Brand building is important in B2B exchanges because: information flow is poor in most exchanges. dominate the industry. than half the total market volume per year. and their connections with their suppliers. "from dirt to dust. public. information.2-It has been well known for generations that the success of many private. internal. True False 3-Supply chain problems can cause delays. and inventory control. or service providers. the major concerns are production management. manufacturing. True False . and money. assemblers. or both. True False 7-The downstream part of the supply chain includes the activities of a company with its suppliers. and military organizations depends on their ability to manage the flows of materials. True False 5-A supply chain involves activities that take place during the entire product life cycle." True False 6-A supply chain can be broken into three major parts: upstream. and downstream. products not being where they are required at the right time. which can be manufacturers. which is referred to as the product life cycle. lost sales. True False 4-The term supply chain comes from the concept of how systems and processes within an organization are linked together. customer dissatisfaction. True False 8-In the internal part of the supply chain. and high expenses that result from fixing the problems once they occur. optimize production and increase throughput. True False . logistics providers. transportation. and overall reduce the costs associated with these activities. decrease manufacturing time.to large-scale company that is moving to EC implies an integration between all the activities conducted on the Web and the ERP/MRP/SCM solutions–in other words. True False 11-A major requirement for any medium. attention is directed at distribution. optimize logistics and distribution. True False 13-The success of an e-supply chain depends on managing information with strict policies. True False 14-The success of an e-supply chain depends on an e-supply chain that is loosely integrated both within a company and across an extended enterprise made up of suppliers. real-time control. True False 10-SCM aims to minimize inventory levels. creating an e-supply chain and managing it. and daily monitoring. and customer satisfaction. True False 15-Companies can use replenishment information to reduce inventories and eliminate stocking points.9-In the upstream supply chain. True False 12-E-supply chain management is the collaborative use of technology to enhance B2C processes and improve speed. trading partners. agility. streamline order fulfillment. discipline. warehousing. and after-sale service. and the distribution channel. that have stable and predictable demand. such as groceries or gasoline. It is becoming a replacement for RFID because RuBee overcomes many of RFID's limitations. True False 18-Functional products are staple products. True False 21-RuBee relies on low-frequency magnetic waves to track products and transfer information. responsiveness.16-By combining bar coding and wireless technologies. True False 17-At hospitals and supermarkets. an effective supply chain emphasizes speed. and a threshold below which orders are replenished. True False 22-With vendor-managed inventory. inventory levels. True False 19-Pure EC companies may be likely to have more supply chain problems because they may not have a logistics infrastructure and may be forced to use external logistics services. For these products. True False 20-A major limitation of RFID currently is the restriction of the environments in which RFID tags are easily read. inventory reorder points have been automated so that when inventory gets down to a certain point the system will automatically notify a human of the exact amount to reorder. and flexibility rather than low costs. automobile dealers are able to scan in goods as they arrive electronically and place them in inventory up to 10 percent faster than previously. . retailers make their suppliers responsible for determining when to order and how much to order. The retailer provides the supplier with real-time information such as point-of-sale data. and replenishment (CPFR) is to streamline product flow from manufacturing plants to retailers.True False 23-The goal of collaborative planning. as well as significantly reduce costs associated with product-change management. the supply chain ends: when the customer when the supplier delivers raw when the decides he/she is materials and component parts to customer buys satisfied with a product the manufacturer. when the product is used up and disposed of. the product. True False 24-Studies have shown that electronic-based collaboration and product lifecycle management (PLM) can reduce product costs and travel expenses by 50 percent. 27-For a manufacturer. much less complex than customer-facing applications such as taking an order online. most of the benefits of portals are intangible. downstream processing e-logistics . forecasting. 28-The use of Web technologies to manage warehousing and transportation processes is called: collaborative planning e-replenishment. The challenge is that despite the tangible benefits from investment in portal technology. True False 26-A company's internal operations and its relationships with suppliers and other business partners are frequently: replaced by customer-facing applications. management needs to be able to justify the development and use of a corporate portal by comparing its cost with its benefits. True False 25-As with any IT project. as complex as customer-facing applications such as taking an order online. much more complex than customer-facing applications such as taking an order online. such as include increased revenues and customer loyalty. simultaneously. communication and collaboration with suppliers. collaborative commerce is extremely expensive. electronic bartering systems. an RFID tag sends a report to the supplier every time one of its component parts is used in the manufacturing process. 32-All of the following would be considered c-commerce EXCEPT: connecting suppliers. order instability. This is an example of: supply inadequacy. 33-RFID can provide immediate. 30-The last fifteen orders from a manufacturer to its suppliers range from $100.29-The e-SCM process that includes integrated production and distribution processes is: collaborative planning e-logistics e-procurement supply chain replenishment. short-term. the technology needed isn't available. 34-A major block in the widespread implementation of collaborative commerce is: the theory of collaborative commerce hasn't been proven effective in real-world applications.740. An example of immediate value from RFID is when: an RFID tag tells customer service which factory made the faulty product returned by a customer. planning. and long-term value to organizations. design. the lack of universally accepted standards. information sharing. and information discovery are called: collaborative commerce. an RFID tag tells inventory control every time a roll of wire moves out of the warehouse and onto the factory floor.000. electronic data systems. . an RFID tag reveals the supplier of a faulty component without the need for quality control to research component order records. sharing on-demand training aggregating catalogs courses across many locations on a central server. 31-B2B systems which are used for communication. information aggregation systems. the bullwhip effect.000 to $8. demand manipulation. and engineering. . PLM can have significant beneficial impacts in cycle time. Product lifecycle management Advanced planning and scheduling Internal commerce Collaborative planning 38-All of the following are true about product lifecycle management (PLM) EXCEPT: The demand for PLM in limited because it does not apply to products that have short life cycles or are complex. 39-Today.35-Wal-Mart and Levi Strauss collaborate on demand forecasting in order to optimize the flow of materials along the supply chain. minimize quality problems in supplies. APS. Supply chain integration has reduced the intensity of competition in most industries. CPFR. design reuse. many business experts agree with each of the following EXCEPT: The supply chain needs to be operationally integrated so that inventory activities link seamlessly to manufacturing activities. PLM is a big step for an organization because it requires integrating different processes and systems. EDS. The insightful way to view contemporary business is that competition exists between or among supply chains rather then individual companies. reducing product development time. 37-________ is a business strategy that enables manufacturers to control and share product-related data as part of product design and development efforts. Supply chains from the suppliers' suppliers to the customers' customers should be jointly planned and designed for overall optimality by all of the supply chain partners. ensure that members of the supply chain will have the right amount of raw materials and finished goods when they need them. and IBM. 36-The purpose of CPFR is to: optimize the flow of materials along the supply chain. This is an example of: reducing design cycle time. PLM tools are offered by SAP. eliminate intermediaries. Matrix One. are business process automation tools that place system controls in the hands of users. portal applications. structure. high-volume transaction processes is the goal of: collaborative workflow applications. IT and business and people. including performance measurement. high volume processes. production workflow applications. and incentives. address projectoriented and collaborative processes. management requires a holistic focus that takes account all of the following primary factors EXCEPT: location and revenues. middleware. strategy. 41-Software that helps integrate different types of information systems among collaborating companies is called: browser technology. transactionoriented. processes. but can be redefined quickly when needed. portal applications. 43-Software applications that address project management concerns are examples of: administrative workflow applications. designing and implementing integrated supply chain operations. portal applications. 44-Addressing mission-critical. 46-________ is the transfer of documents and computer files while videoconferencing.40-When planning. administrative workflow applications. extranet technology. collaborations workflow applications. 42-Collaborative workflow applications: have predefined workflows. Interactive whiteboarding CPFR Web conferencing Data conferencing . collaborative software. address missioncritical. production workflow applications. production workflow applications collaborative workflow applications. monitoring. culture. 45-The steps required to approve an expense report is an example of: administrative workflow applications. 48-When large suppliers or buyers are involved. supporting technology. increased data security. 50-________ means that the communication and collaboration are done in real time. For people in the same room. less management intervention. For people working on different tasks or projects. 49-Groupware is appropriate in all of the following situations EXCEPT: For groups to share ideas and opinions. business. is needed for both the collaborative efforts and for supply chain and production improvements. a workflow system: will fail because of system incompatibilities. cycle time reduction.47-The primary benefits of workflow management systems include all of the following EXCEPT: fewer chances for delay or misplaced work. Bi-synchronous Asynchronous Synchronous Multi-Synchronous 51-All of the following are types of communication and collaboration done in real time EXCEPT: instant messaging blogging webinars VoIP 52-The growth in electronic meeting systems has been driven by all of the following EXCEPT: Acceptance of virtual meetings as Improvements in Reductions in the price Shorter a respected way of doing cycle times. For networked environments. 53-The major benefit of group decision support systems is: . is needed for collaborative efforts only. may be helpful for supply chain improvements. of the technology. in easier decision making. True False 2-E-government applies only to the interaction of the government with its business suppliers. Chapter 8 Innovative EC Systems 1-Wikis are used for informal organizational training because it reduces the cost and time of training. It evolved from the spread of instant messaging and Internet telephony. in passive listening while information is distributed." . 54-Corporations are moving their phone systems to ________ to cut costs and boost efficiency. VoIP RTC video kiosks GDSS 55-All of the following apply to instant video EXCEPT: The idea is for a kind of video chat room that allows users to chat in real time and see the person(s) they are communicating with. in faster decision making with greater agreement. True False 3-The government-to-citizens (G2C) category includes all of the interactions between a government and its citizens that can take place electronically. The highest quality approach is to add video cameras to the participants' computers. It is the natural result of wanting to link people via both voice and audio.in conducting virtual meetings. True False 4-Two major areas of G2C activities are "tourism and recreation" and "research and education. from Thailand to Finland to the United States.S. and YouTube. such as MySpace. True False 10-Electronic filing of business taxes is available in over 100 countries. True False 6-The Government Paperwork Elimination Act and the Memorandum on E-Government ordered the top 500 forms used by citizens to be online by December 2000. are rarely used by political candidates to reach voters because there are too few users of those networks who actually vote. True False . Navy's Lifelines system is an example of G2E EC.S. True False 8-Social networks. True False 9-Forward auctions are buy-side auction systems used by the government to buy large amounts of MROs and other materials directly from suppliers. True False 7-The smart card system is part of a nationwide electronic benefits transfer system in the U. for Social Security and welfare payments and other benefit payments. Facebook. True False 11-The U.True False 5-Current voting technologies are being implemented in various countries because of the security provided by these technologies. True False 16-At Cisco. True False . True False 13-G2B is easier to implement than G2C. True False 17-One disadvantage of e-learning is the lower content retention rate compared to traditional in-person training. True False 15-The topic of e-learning is gaining much attention. True False 18-An important advantage of e-learning is that it can provide a fear-free and privacyprotected environment in which students can put forth any idea without fear of looking stupid. e-learning helped reduce employee training time and costs by almost 25 percent. especially because world-class universities such as MIT. and Stanford in the United States and Oxford in the United Kingdom are implementing it. True False 14-One of the most important issues in implementing e-government is its adoption and usage by citizens. Harvard.12-The e-government transformation process from traditional delivery to full implementation is a quick process. True False 25-P2P signifies a shift in peer-networking emphasis from hardware to applications because easier configuration and control over applications enable even non—technical people to join the user community. True False 21-The dynamic approach to publications personalizes content in real time and transmits it on the fly in the format best suited to the user's location. This approach also is called just-in-time (JIT). True False 23-Senior executives and companies are using the blogosphere to build trust-based relationships. True False 22-One of the seven principles for building effective blogs is to think of a blog as a database instead of a newspaper-like collection of posts. promote social causes.19-A drawback of e-learning is that no online course can deliver real-time information and knowledge in the way a "live" instructor can. and accomplish other professional goals. and preferences. polish corporate reputations. only a small number of business organizations are using e-learning on a large scale. True False 24-Knowledge portals are single-point-of-access software systems intended to external use only provide easy and timely access to knowledge and to support communities of knowledge workers who share common goals. True False 20-Unlike educational institutions. tastes. True False . a company sells army and navy surplus supplies at auction over the Internet. Census site. a regional hospital conducts an online reverse auction for cleaning supplies. This is an example of: e-government G2C e-commerce e-Procurement G2B e-commerce 30-A government agency uses an online reverse auction to satisfy the tendering system requirements specified by law. an employee at the Chamber of Commerce gets local demographic data from a U. a contractor submits an application for a building permit using a city hall Web site.S. P2P Wikis Point-casts Blogs 27-All of the following are examples of e-government EXCEPT: a state purchasing officer places an online order for office supplies from an ecatalog sent to her by a national office supply store. 29-Chaplin reports quarterly sales revenue from his business to city hall over the Internet. an unemployed worker consults a Web site operated by the state employment department to learn about job openings in his city. a driver applies for and pays for the renewal of his auto tag online.26-________ are a popular online publishing technology for creating a Web page that can be edited by anyone with a standard Web browser. 28-An example of G2C is: a road contractor uses the Internet to submit a closed bid on a paving contract. This is an example of: e-Procurement G2B e-commerce G2C e-commerce e-government 31-Government-to-employee applications can lead to significant efficiency improvements for all of the reasons EXCEPT: Many military Most government employees are stationed employees use in remote locations that handheld digital Governments employ Employees of federal and large numbers of people state governments often that need to be paid and work in a variety of . He pays his local business tax with a credit card. as a total replacement for traditional classrooms. the technology needed to implement stage 6 of the Deloitte transformation process does not exist yet. the use of encryption and digital signatures. 34-All of the following are advantages of e-learning EXCEPT: it costs less to deliver education college professors are online than in a traditional anxious to develop new classroom. usage by citizens. businesses have been transformation is more receptive to typically very G2B than slow individuals to G2C. online courses. designing feature-rich Web sites. learning time is reduced. devices. geographic locations. protecting the intellectual instructors must property of content be retrained. only when forced by administrators to use it as a way to recruit distant students or reduce costs. 36-Most universities use e-learning: exclusively in as a supplementary reaching students who channel to traditional couldn't otherwise classrooms. 33-One of the most important issues in implementing e-government is: providing for secure its adoption and payments. trained. developers. 32-All of the following are problems in implementing e-Government EXCEPT: it is difficult to protect personal data collected through an eGovernment site. 35-All of the following are potential drawbacks of e-learning EXCEPT: assessment issues remain to be resolved. attend classes.are best served via the Internet. knowledge retention is higher. knowledge retention is lower than in traditional classrooms. 37-The business forces that are driving the transition from traditional education to online learning are all of the following EXCEPT: limited supply of faculty with competition and cost network technological . A community college providing an online college course on digital media. Macromedia Blackboard WebCT Web 2. pressures.org. music. using software capable of reading feed formats such as RSS.specialized expertise. videos.0 40-________ is the electronic delivery of newspapers. 39-One of the facilitators of e-learning is ________ technology such as wikipedia. An online game that uses colorful characters to teach young children about numbers. and broadcast international entertainment activities. promote the work of new or unknown musicians. Podcasting Webcasting Dynamic publishing File sharing 43-A podcast is distinguished from other digital audio formats by: the iPod its lack of hardware proprietary required to hear content. and other digitizable information over the Internet. it. connectivity. magazines. change. 38-Which of the following is an example of edutainment? Two or more students sharing music over the Internet. books. its ability to be downloaded automatically. Blogging Online publishing Social networking Webinar 41-More and more people are willing to pay for digital music. its use of unpaid subscriptions. as shown by the success of ________. An online science fiction game whose object is to blast as many aliens as possible in a 60 second round. Apple's iTunes Napster Kazaa P2P 42-________ is commonly used to broadcast public lectures and e-seminars. . was a failure because the cost of the book was too high. audio. graphics. 48-Risks in corporate blogging include all of the following EXCEPT: the risk of disciplinary action against abusive bloggers. and delivery costs. 49-A major purpose of an organizational knowledge base is to support and allow ________. build-your-own decision book 46-The primary advantage that e-books offer publishers is: the ability to the ease of updating reach many books in real-time. marketing. lower production. open to the public. 45-A type of e-book referred to as the ________ is a truly multimedia. blogs. readers. was an unqualified success and established electronic publishing as a legitimate competitor for traditional publishers. online-only book that has hyperlinks.44-The exclusively online publication of Stephen King's e-book Riding the Bullet in March 2000: as disrupted by hackers who breached security. the risk of lawsuits the risk making statements that are or could be construed as libel or defamation. book interactive. download Rubics-cube hyperlink online reference book model. the risk of revealing trade secrets. three-dimensional text and display. and video. . 47-Which of the following statements about blogs is not true? Blogs became very popular after the September 11. then distributed free copies of the book. The most common types of Blogs are limited to blogs are one-way professional communication. in which the owner expresses his or her feelings or opinions. It supports nonlinear exploration of topics. 2001 terrorist attacks when people were looking for as many sources of information as possible and for personal connections to the tragedy. the ease of customizing textbooks and trade books. A blog is a personal Web site. produced very few sales. companies protect it to maintain competitive advantage. shared. as instant messaging and which enables a program The users' computers can act as both clients and The overall system is well integrated. easily. users contribute their it is not own specialized content. which include all of the following EXCEPT: customer relationship management supply chain management product development management project management 54-Customer-to-customer (C2C) e-commerce is conducted in various ways on the Internet. 52-________ involves using various computer-based tools and techniques to analyze transaction data and generate new ideas.organizational capital knowledge sharing responsible blogging e-learning 50-The tasks of KM include each of the following EXCEPT: enhancing a knowledge environment in order to conduct more effective knowledge creation. 51-Knowledge is of limited value if: company databases are not accessible to decision makers. transfer. and use. Knowledge management Knowledge capture Knowledge classification Knowledge creation 53-Knowledge generated in e-business contributes to the enhancement of three core operating processes. creating knowledge restricting repositories where knowledge access to knowledge can be prevent its transfer stored and retrieved between individuals. but lacks tools for easy creation of content or . but the best-known C2C activities are: C2C exchanges C2C auctions Personal services Classified ads 55-P2P systems have all of the following key characteristics EXCEPT: They provide for real-time They support crossaccess to other users networking protocols such through techniques such as SOAP or XML-RPC. managing knowledge as an asset so as to increase the effective use of knowledge assets over time. multichannel on one computer to collaboration applications. servers. True False 2-Mobile computing refers to a computing paradigm designed for workers who travel outside the boundaries of their organizations or for anyone on the move. True False . True False 3-The two solutions that were necessary for mobile wireless computing to be feasible were computers that were small enough to be carried easily and long-life batteries. for adding functionalities. True False 5-Overall. PDA sales dropped in the mid-2000 because PDAs lacked features beyond personal information management. execute a program on a server computer. Chapter 9 Mobile Computing and Commerce 1-Using wireless technologies. True False 6-The primary application of Blackberry is instant messaging. one can create EC applications that are not available with wireline systems. True False 4-A laptop or notebook computer can become wireless with the addition of a cellular chip. True False 9-The infrastructure to support mobile commerce is inexpensive and relatively simple to put in place. is a suite of network protocols designed to enable different kinds of wireless devices to access WAP-readable files on an Internetconnected Web server. limited bandwidth. True False 8-A Web server may need two versions of the same Web page–a normal page with full graphics for desktop computers and a mobile page for PDAs and smartphones–and a way to distinguish between devices requesting the Web page. True False 13-The WAP gateway is a server that is responsible for translating information requests from the device into an HTTP request that the Web server can understand. mini-joystick. True False 12-The Wireless Application Protocol. and restricted input capabilities. reduced memory.7-Hardware and software designers need to consider the special requirements of mobile devices such as small screens. or WAP. and thumb wheel. True False 11-Small handheld computing devices use a variety of interface approaches including a touch screen. True False . True False 10-Common standards for various mobile devices simplify the development of software applications for wireless devices. jog dial. such as handwriting recognition. or virtual touch-screen keyboards. True False 15-Increased use of voice-support services exploits the built-in audio capabilities of many mobile devices and reduces their dependence on unsatisfactory input solutions. keypads. but which suffers from interference and security problems.11b is being used in commercial environments where cost is not a major issue and where laptop computers can take advantage of the 54 Mbps transfer rate. True False . 802. True False 16-The highest level of voice support services is a voice portal.14-Micropayments for small-purchase amounts of less than $10 have become widespread in EC. True False 20-Increasingly. in part because of the widespread use of all types of mobile devices. which is a Web site with an audio interface that can be accessed through a telephone call. which is inexpensive and offers sufficient speed for most devices. True False 17-WiFi is a set of telecommunications standards that enables wireless devices to communicate with each other over short distances.11b. True False 19-A common type of personal area network (PAN) is Bluetooth-enabled headsets that people use with their cell phones. but has interference problems. True False 18-The most popular Wi-Fi standard is 802. 21-WiMax is an IEEE 802. access points 27-Infrastructures that support the wireless connection are: . and potential health damage from cellular radio frequency emissions. infrastructure support cell phones. loss of privacy. portable computers switches wired networks. such as making payments to parking garages and public transportation. smartphones. True False 25-Several key ethical issues in m-commerce include isolation. True False 23-The two greatest opportunities in B2B mobile commerce are to use wireless communication to share information along the supply chain and to make electronic payments. the Luxor pre-registers guests when their airplane lands and they turn on their cell phones.16 wireless standard for making broadband network access widely available for data and voice over a medium-sized area. and whose impact on ecommerce is still unclear. True False 26-M-commerce transactions and activities require ________ and ________. two factors limiting the success of micro-payment applications are transaction costs and nonpayment risks. This is an example of Global Positioning Systems (GPS). luring them back to gamble with mobile incentives and pitches. hardware and software infrastructures. Also. the hotel can determine when guests leave the hotel. True False 24-In Las Vegas. True False 22-Even though micro-payment technology has wide-ranging applications. devices. and portable computers. mobile web servers. a mobile operating system. a mobile application user interface. and GPS satellites. 29-Characteristics of mobile devices that create special requirements that hardware and software designers need to anticipate when designing mobile computing systems include all of the following EXCEPT: restricted input capabilities small screens broad bandwidth reduced memory 30-The exchange of updated information with other computing devices is called: data transferring synchronization.PDAs. receivers. smart phone. and devices. and cellular transmitters. Palm or Wintel notebook is called: a mobile application user interface. WAP gateways. and GPS satellites. mobile communications server switches. wireless middleware. smartphones. GPS locators. 28-Components of a wireless infrastructure that support delivery of services over a wireless connection are: WAP gateways. marking docking 31-A suite of network protocols designed to enable different kinds of wireless devices is called: Wireless Application Protocol. wireless middleware. 33-________ enables the determination of the location of an enabled device. microbrowsers. smartphones. and and cellular transmitters and microbrowsers. mobile communications server switches. and portable computers. Wireless Application Protocol. receivers. web servers. WAP GPS SMS PDA . 32-The application logic in a handheld PDA. network access points. GPS locators. a mobile operating system. mobile PDAs. network access points. 16. Most WWANs are cellular phone networks. hotspot IEEE 802.16 39-All of the following about wireless wide area networks (WWAN) are true EXCEPT: When a device is turned on.11g 802.11. Wi-Fi 38-The IEEE standard ________ offers bandwidth transfer rates of 200 to 540 Mbps. which is more commonly called ________. such as a single room.11.11n 802. a SIM card inside the device identifies itself to the WWAN. that are less than $10. 36-A ________ is suitable for mobile users who need to make very short-range device-todevice wireless connections within a small space. 802. WiMax IEEE 802. and most commonly with Bluetooth. that are less than $1. Bluetooth WLAN. IEEE 802.00. . which makes it impractical because it exceeds the limits of most broadband connections used by homes and small businesses. The service that allows the sending and receiving of such short text messages on mobile phones is called: SMS LOL TMG MSG 35-Micropayments are electronic payments: that are less than $100. from a mobile device.34-Rick sends a message from a delayed flight to his friend on her cell phone that he will be arriving late.00.00. At the center of each cell is a base station transceiver or cell tower that is used to send and receive signals to and from mobile devices operating within the cell. The single WWAN network standard insures compatibility of handsets within and between countries. wireless area network local area network Wi-Fi area network personal area network 37-Most WLANs run on a telecommunications standard known as ________.11b 802. 45-Mobile access supports the two functions of sales force mobilization and field service. and delivery scheduling. and economic factors EXCEPT: The improved price/performance of mobile services. m-commerce B2C applications are concentrated in each of the following areas EXCEPT: retail shopping for products and services telecommunications targeted advertising providing content for a fee through mobile portals 43-The major enterprise mobile applications are all of the following EXCEPT: logistics and supply chain e-mail and cell phone research and contacts development customer relations and sales force automation 44-By enabling sales force employees to record orders in real time. 42-As in e-commerce. The transition to a manufacturing economy. social. business. the organization benefits through each of the following EXCEPT: lower clerical and administrative overhead. more extensive collaboration fewer data improved manufacturing and sharing of customer entry errors. customer relationship management vendor management supply chain management inventory management . which extends the reach of ________ to both employees and business partners on a 24/7 basis to any place where recipients are located. The widespread availability of more powerful wireless devices.40-The major attributes that enable development of new applications that are possible only in a mobile environment include all of the following EXCEPT: Ubiquity Security Personalization Localization 41-The development of m-commerce is being driven by the following technological. The growth of a handset culture and mobile workforce. leads. or Timing. or monitoring the the precise time at a a route from one determining the movement of a person location to another. Prescriptions can be transferred electronically to the appropriate pharmacy for a no-wait pick-up by the patient. 49-The services provided through location-based m-commerce focus on key factors which include all of the following EXCEPT: Tracking. viable technology. geographical information system on-star system l-commerce system global positioning system 51-You are walking near a coffee shop and suddenly your cell phone beeps with a message: "Come inside and get a free biscotti with any purchase. volume. or determining Navigation. which is the science of measuring physical phenomena such as temperature. or an on/off condition at a remote point and transmitting the value to a distant recorder or observer." This is an example of: . or plotting Geocaching. and displaying spatial information. 48-All of the following are barriers to location-based m-commerce EXCEPT: Consumers see constant location data transmissions as a violation of privacy. telemetry RFID mobilization osmosis 47-WiMax and 3G wireless mobile technologies offer telemedicine application opportunities that include all of the following EXCEPT: Real-time consultation between a patient in one location and a medical specialist in another. sharing. topography of an area.46-One way to share information with supply chain partners is wireless ________. The accuracy of location technologies is often less than consumers expect. 50-A(n) ________ is a computer system capable of integrating. There are presently not Wireless enough location-based bandwidth is systems to make this a limited. analyzing. Wearable heart monitors linked to a cell phone can automatically contact doctors or family members at the first sign of health problems. Reduced threat of malpractice suits because there is no hands-on interaction between the remote physician and the patient. specific location or thing. editing. storing. True False . and plastic at a range of up to 100 feet. An RFID tag includes an antenna and a chip with information about the item. version. producer. giving the chip enough power to emit a 96-bit string of information. Remote telemetry E-911 Telematics Mobility 53-Many experts believe that the next major step in the evolution of computing will be ________ in which almost every object will have processing power and a wired or wireless connection to a network. wood. 55-One initiative underway that could lead to widespread support for the introduction of RFID is the ________. universal computing mobile computing persistent computing pervasive computing 54-All of the following about RFID are true EXCEPT: An RFID tag can hold 20 times the amount of information a bar code can hold. Smart Product Network Electronic Product Code Universal Product Code Sensor Network Chapter 10 Dynamic Trading 1-The Internet provides an infrastructure for executing auctions with many more participating sellers and buyers than with offline auctions.location-based advertising mcommerce customer relationship management permission marketing 52-________ refers to the integration of computers and wireless communications in order to improve information flow. and the tag can be read through cardboard. An RFID tag remains inactive until radio frequency energy from the tag's radio transmitter hits its antenna. but administrative costs are higher. and serial number of each item and does not require line-of-sight contact to be read. An RFID reader contains a radio transmitter and receiver. which identifies the manufacturer. and in other types of auctions. rather than horizontally between members of supply chains in different industries. True False 8-Specialized sites for vertical auctions are referred to as auction vortals. True False 4-Reverse auctions have two major purposes: liquidation and market efficiency. True False 9-Through e-auctions. True False 3-Dynamic pricing refers to a transaction in which the price is not fixed. True False 5-B2B reverse auctions are gaining popularity as an online mechanism for buying goods and services. True False 6-A popular type of auction model where there is one buyer and many potential sellers is the "name-your price" model that was pioneered by eBay. sellers can gain more customer dollars by offering items directly rather than through an expensive intermediary or by using an expensive physical auction. .2-In some types of auctions. True False 7-An auction that takes place between sellers and buyers in one industry or for one commodity is called a vertical auction because activity goes up and down the supply chain in a single industry. but fluctuates based on current supply-and-demand relationships. buyers post their product needs.com. sellers offer product. True False 12-Entering a high bid without ever planning to pay for the auction item is called sniping. True False 15-Double-auction markets tend to generate competitive outcomes because a double auction is an interactive market in which both buyers and sellers are competitive. True False .True False 10-A major benefit of e-auctions is the reduced rate of fraud because of the openness of the transaction. True False 14-Barter agents are software that can support the back-and-forth process of online negotiation. True False 11-The "name-your-own-price" model is based on the fundamental concept of the downward-sloping supply curve in which prices vary based on supply. which is the back-and-forth process of bargaining until a buyer and seller reach a mutually agreeable price. True False 16-Prices paid in online auctions are lower when auctions are an alternative selling channel rather than an exclusive selling arrangement. dynamic prices can be determined by online negotiation. True False 13-In addition to auctions. True False 22-The process of building auction applications is easy because of intelligent agents and other building tools. True False 20-Third-party escrow services are used for products valued at more than $200 to protect both the buyer and seller when either the buyer or seller feels the need for additional security. one of the strategic issues in B2B is the potential conflict with existing distributors and distribution channels.17-Negotiating prices transfers the burden of determining prices to the market itself so the resulting negotiated prices will always be fair and effective. which ended the tradition of sales being based on established relationships between grape growers and wineries. some companies use auctions only to liquidate obsolete. True False 21-When a company decides to use auctions as a sales channel. used. True False 23-WineryExchange successfully auctioned grapes to wineries. True False 19-Specialized authentication services are very effective and widely used to determine whether an item is genuine and described correctly as a way to protect against counterfeit products. or damaged products. Therefore. True False . refurbished. True False 18-Bid shielding is a type of e-auction fraud where sellers place phantom bidders to bid up the price of items they are selling and hide (shield) low bids by actual potential buyers. one.This type of strategic alliance will be very popular due to its win win possibilities.one seller. many potential seller buyers . many sellers sellers one-buyer.24-Privacy is one of the benefits of mobile auctions because the Internet cell phone is more private than a PC. one buyer. True False 25-Auctions may be used as a strategic tool by both online and offline companies. 27-Dynamic pricing refers to : prices that are determined prices that are regulated by government agencies. most consumer goods. onesellers seller one seller. many potential many buyers. many buyers sellers 30-Two purposes of a type of ________ auctions are liquidation and market efficiency. prices that prices that are maximize revenue. Forward auctions Dynamic exchanges Reverse auctions Bartering 29-The ________ auction model is popular in B2B. They are an established method They are suitable for They are a market of commerce for generations. by market forces. negotiated. many potential one-buyer. one buyer. True False 26-Auctions are all of the following EXCEPT: They are a marketing channel. 28-________ work best with many buyers and many sellers. mechanism. many potential many buyers. many buyers. many seller sellers sellers one seller. vertical auction exchange open auction negotiation vortal 35-All of the following are potential benefits from auctions to sellers EXCEPT: sellers can liquidate large sellers receive valuable auctions can broaden the sellers are always quantities of obsolete price sensitivity customer base and anonymous. and so on. many sellers one buyer. one. 36-In electronic auctions.one seller. items very quickly. many potential one-buyer. many buyers.one buyer. many sellers one-buyer. current supply and demand. many potential many buyers.31-Reverse auctions are a type of ________ auctions. or cattle. near-perfect market information is available about prices.com is a type of ________ auction. one. one-buyer. many potential one buyer. many potential buyers 32-The "name-your own-price" model pioneered by Priceline. This feature provides benefits to ________. onebuyers seller sellers 33-Auctions done in exchanges or double auctions are ________ auctions. many potential one seller. sellers buyers buyers and sellers companies and individuals 37-Benefits of electronics auctions (e-auctions) to sellers include all of the following EXCEPT: Anonymity Lower transaction and administrative costs Larger reach and increased revenues Removal of expensive intermediaries . such as flowers. reduce cycle time. information. cars. products. many potential seller buyers sellers 34-A(n) ________ takes place between sellers and buyers in one industry or for one commodity. auction prices are often ________ when there are very few bidders. 43-Compared to competitive markets. lower higher dynamic the same . The software bids in such a way as to minimize the final bid. fail more often than reach critical mass more other models. registration and participants' profiles. arranging financing. auction prices are often ________ when there are multiple bidders. Loyalty Frequent purchase Stickiness High repeat 39-Limitations of e-auctions include all of the following EXCEPT: Risk of fraud Higher order fulfillment costs Long cycle time Dynamic pricing 40-Research has shown that e-commerce sites that use an auction model tend to: reach critical mass more quickly become liquid.38-________ refers to the tendency of customers to stay at Web sites longer and come back more often. bidding agents. 41-The first step in the auction process is: preparing the bids. slowly than other models. the same higher lower dynamic 44-Compared to competitive markets. searching and comparing. than catalog-order-based. 42-Jackie uses a software system to place bids automatically on her behalf until her predetermined maximum price is reached. proxy bidding. pricing agents. This is referred to as: sniping. which awards the item to a very low bidding customer. The auction host helps him locate an expert that will tell him whether the novel is a genuine first edition or a fake. payment delays. bid fixing. auction. integrity. fees. authentication. the phantom bidders pull out. This practice is called: shilling. unreliable auction software. 46-The practice by sellers of having associates place fake bids in an auction as a way to drive up the selling price is called: bid shielding.45-The most serious disadvantage of e-auctions is: logistics. sniping. verification. the risk of fraud. bid shielding. This is an example of: certification. shilling. 50-Many companies use intermediaries or trading assistants instead of implementing eauctions themselves for each of the following reasons EXCEPT: To bring many Costs of auction intermediaries or To avoid tax The company name is more buyers to the assistants are less than the costs of and legal not widely recognized. 47-Bidders sometimes use phantom bidders to drive bid prices up rapidly at the beginning of an auction. two different authenticators may come up with different opinions regarding the authenticity and description of a given item. 48-John wants to know if the first edition novel he just purchased through an e-auction is actually a first edition. bid fixing. thus discouraging bidding from legitimate bidders. 49-A major shortcoming with authentication services is: it is impossible to tell whether many items are reproductions or genuine. 51-Each of the following is one of the three major categories of auction rules EXCEPT: . sniping. dishonest authenticators are the primary sources of fraud on the Internet. physical auctions. most auction sites forbid the use of authentication services. At the last minute. participating companies. Chapter 11 E-Commerce Security 1-Fraud refers to a business activity that relies on force or threats to deprive a person or company of property or other assets. 52-Each of the following is true about auction rules EXCEPT: Rules eliminate conflicts with existing distributors and distribution channels. . systems. m-commerce applications instant message notification authentication vortals 55-The limitations of mobile auctions are all of the following EXCEPT: Internet-enabled Internet cell phones have limited phones are less private than a PC. 54-Many auction sites are implementing ________ because of the significant increase in the number of users who browse the Internet wirelessly. The success of auctions depends on complying with auction rules. Portable devices are small and may have a problem showing pictures of auction items. 53-The process of building auction applications is complex for all of the following reasons EXCEPT: auctions must be integrated with the back-end offices. True False 2-The trend in online crimes shows that most new scammers and other con artists are not computer geniuses.timing rules clearing rules bidding rules information-revelation rules. the number of auctions must be integrated with auctions must needed features can the legacy systems of provide payment be very large. prevent fraud. memory capacity Wireless systems are not as safe as wireline ones. Rules are intended to Auction rules vary from smooth the auction country to country due to mechanism and to legal considerations. Web site. True False 9-Credit card issuers want to cooperate and share leads on criminal activity with each other and law enforcement even though prosecution with an uncertain outcome. and denial of service to authorized users. such as passwords for credit card transactions. or other asset. identity. True False 8-The EC industry ranks security over convenience. True False 4-Defending against online cons and compensating for the damages caused by identity thieves have significantly increased the costs of EC.True False 3-Identity theft has become the primary concern of online shoppers. information. True False 5-To minimize the risk of fraud from phishing and crimeware. that make online shopping safer even if those safeguards make it more inconvenient for customers. . So the EC industry strives to enforce safeguards. unauthorized modification of information. True False 6-An EC security strategy consists of firewalls and other types of technology to prevent and detect unauthorized use of the organization's brand. EC retailers need to authenticate the buyer. True False 7-Information assurance broadly refers to the protection of information systems against unauthorized access to information. e-mail. S. True False 12-Spammers use zombie computers to distribute spam because it is both cheaper and less risky. True False 11-Requiring stronger EC standards and information sharing by the credit card companies would not fix the security problems facing online retailers and shoppers. two of the top five reported vulnerabilities were within Web applications. True False 14-The legal standard of due care requires that a company take reasonable care to defend against risks affecting its EC business and online transactions. Internet services are vulnerable to attacks. True False . they can identify the source IP address and source ISP with timestamps and other identifying information. in most cases. Web hosting providers log all activity so. True False 13-According to the Mitre Corporation's list of Common Vulnerabilities and Exposures.True False 10-Most U. True False 15-Because of the lack of source authentication and data integrity checking in DNS operations. True False 16-Experts believe that a strict e-business risk management program that was rigorously managed could not have prevented many of the data breaches. which is the elapsed time between when a vulnerability is discovered and the time it is exploited. SEC and other government agencies cannot impose harsh penalties on companies whose confidential data has been breached unless a company employee caused the breach. True False 22-The time-to-exploitation.17-EC security programs have a life cycle during which their EC security requirements must be evaluated and adjusted annually. True False . True False 19-Nonrepudiation is closely associated with authentication and assures that an online customer or trading partner cannot falsely deny their purchase or transaction. the success and security of EC depends on the confidentiality. True False 23-Unlike denial of service (DOS) attacks. and accessibility of information and the business Web site. of most sophisticated spyware and worms has decreased from several months to a few weeks. True False 20-The FTC. True False 21-Phishing attacks rely on social engineering. which is a nontechnical attack that uses something to trick users into revealing information or performing an action that compromises a computer or network. botnet attacks are less dangerous because they cannot disrupt a web site or EC application. integrity. True False 18-According to the CIA security triad. S. Phishing Working and NameProtect. VeriSign. computer experts. 29-________ is a crimeware technique used to steal the identity of target companies to get the identities of their customers. and Internet Research Lab. a majority of potential customers do not shop online because they are too afraid of fraud to trust online merchants. AntiEight. and Anti-Phishing Working Group. . Group. True False 26-The incidence of online fraud and identify theft has increased for each of the following reasons except: New effective phishing Information is today's scams and schemes most valuable form of being carried out by international currency.24-The ability of a biometric system to identify a person depends on the existence of database of enrolled users that is searched for a match based on the person's biometric trait. The High-Tech Crime Network. True False 25-Virtual private networks (VPNs) are a special category of software that can monitor activity across a network or on a host computer. and Federal Trade Commission. watch for suspicious activity. Scammers outsourcing work to programmers to seize control of computers or wireless networks. Anti-Phishing Working Group. companies cannot expand their e-business to other countries with underdeveloped legal systems. The Computer Security Institute. agencies dedicated to eliminating fraud resulting from phishing and crimeware are: The High-Tech Crime The Group of Network. Growth in EC sales and the number of shoppers with higher incomes. 27-Cyber cons have a negative effect on EC because con artists have gone low-tech. and take automated action based on what it sees. defending against these cons and compensating for damages significantly increase the costs of EC. 28-The U. High-Tech Crime Network. or Argentina. the data itself may not be secure because backend databases may not function as planned. malicious intent. is a or damage that can result if software a threat exploits a bug. The Internet was designed The shift for maximum efficiency toward profitwithout regard for its motivated security or users with crimes. Strong EC security makes Sophisticated hackers online shopping use browsers to crack inconvenient and into Web sites. Online shoppers do not take necessary precautions to avoid becoming a victim. business continuity plans. India. of hackers reside? Turkey. is a weakness in software or is the probability other mechanisms that a hacker that a weakness will can use directly to gain access to be known and used. Brazil. or Russia. the data itself may not be secure because the application may not function as planned. In the G8 countries. and disaster recovery plans.Social engineering. 34-The underlying reasons why a comprehensive EC security strategy is needed include all of the following except: Managers treating EC security as a process. then the data itself is secure because web applications are not targeted by attackers. possibly as high as 95 percent. Germany. 32-It is currently known that if a front-end application such as a Web site is effectively secured. In South America. 31-The key reasons why EC criminals cannot be stopped include each of the following except: Lack of cooperation from credit card issuers and foreign ISPs. a system or network. Spamming. loss. Pretexting. Romania. demanding on customers. Phishing. vulnerability. Many companies fail to implement basic IT security management best practices. . China. 30-Where do a huge majority. 33-A vulnerability is the estimated cost. the data itself is secured by firewalls. 35-The protection of information systems against unauthorized access to or modification of information that is stored. functionality. Information defense. reliability. authentication. confidentiality. and privacy quality. information assurance. provide complete a confidence that the and transactions are secure. Information security triad. integrity. or being sent over a network is referred to as ________. and availability. and authorization. marketing and operational requirements. have been compromised by phishers and spammers. b 39-The most cost-effective approach to EC security is to develop and implement a strategy that requires digital signatures or digital certificates for all transactions. proactively meets regulatory. processed. confidentiality. an acceptable use policy (AUP) needs to specify rules for to inform all users of their to be written by to be incorporated . nonrepudiation. 38-Digital signatures or digital certificates: are used to validate the sender and time stamp of the transaction so it cannot be later claimed that the transaction was unauthorized or invalid. and and availability speed 37-The basic security concepts relating to customers and other users are: authorization. nonrepudiation. depends on the trust and confidence of customers. Information integrity. financial. and nonrepudiation encryption. 40-To be effective. authentication. Information assurance. and authentication. integrity. protects against unauthorized transactions and overrides of accounting controls. and information assurance. 36-The success and security of EC depends on the ________ of information and the business Web site. confidentiality. authorization. service attack. LinkedIn. wikis and RSS attacks. causes a high enables online volume of gambling that are search engine actually fronts for traffic similar to international money a denial of laundering operations. computer legal department. and systems. Hardware and software security defenses protect against irresponsible business practices or corrupt management. not remain useful. 40 10 20 60 42-Which of the following statements about hardware and software security defenses is false? After the EC security program and policies are defined and risk assessment completed. and company networks. projects and intrusion detection proposals. monitoring. enables a malicious Web master to displace the pages of an EC Web site in the Search Engine Results Pages (SERPS) to redirect customers to another site. wireless devices. then the software and hardware needed to support and enforce them can be put in place. take advantage of Web are a combination 2. feeds.firewalls. 45-A botnet is: . customer data. 43-Social engineering attacks are: no longer considered to be serious Internet threats due to the increased security of MySpace." but which contains a trojan. a program that gives the sender control of the infected machine. and YouTube. 41-In 2005. human error was responsible for almost ________ percent information security breaches in organizations.0 applications like of technical and social networking sites. they will companies. equipment. an example of technical attacks requiring software or systems knowledge. nontechnical blogs. 44-A technique known as web page hijacking downloads what appears to be an "important document. If firewalls and There is no antivirus software are single hardware not upgraded and or software monitored solution for all constantly. access control responsibilities when using the company's into business lists. . is one of the major generally accepted protocols for securing ecommerce used by Microsoft and Netscape. the policy of role-specific security the policy of need-toacceptable use protocols where know where access where access is access is limited by a by all non-employees restricted by the user's level of trust. that is based on the Data Encryption Standard. a piece of code in a worm that spreads rapidly and exploits some known vulnerability. ACLs. a collection of a few hundred hijacked Internet computers that have been set up to forward traffic.S. and point-of-sale systems.a piece of software code that inserts itself into a host or operating system to launch DOS attacks. and network login IDs. firewall. was invented by Microsoft to use standard certificates for authentication and data encryption to ensure privacy or confidentiality. 49-Access to a network ought to be based on: the policy of least privilege where access to network resources are blocked and permitted only when needed to conduct business. government agencies. a coordinated network of computers that can scan for and compromise other computers and launch DOS attacks. 47-Public key infrastructure (PKI) is an authentication method that encrypts and decrypts large amounts of data effectively. which is also known as Transport Layer Security (TLS): is designed to handle all steps in the validation of credit card numbers. and biometric systems. that has become the cornerstone for secure e-payments and intranet applications. 48-Secure Socket Layer (SSL). passwords. 46-Which technologies are designed and used to secure EC communications across a network? PINs. Access control lists. which is the standard symmetric encryption algorithm supported by U. AUPs. including spam and viruses. intrusion detection systems. tokens. has been replaced by certificate authorities. to other computers on the Internet. and progressive tokens. is blocked. Plastic cards with magnetic strips. cryptocards. that uses encryption keys ranging from 64 bits to 128 bits. They help control inbound traffic to a network. application-level proxies. but do no real he or she is not authorized to work. bastion gateways. Spammers often use SMTP session hijacking to redirect email through the SMTP server of an unsuspecting host. IP blockers. Remote users can use broadband connections rather than make long distance calls to access an organization's private network. 53-The advantages of virtual private networks (VPN) for data communications include all of the following except: They can reduce communication costs dramatically because VPN equipment is cheaper than other remote solutions. They hide the IP addresses They help control of a company's internal outbound traffic to a computers. network. such as terminating network connections based on security policies. database servers. 52-All of the following are important security functions of proxy servers except: They improve network performance. and files that been tampered with or look like production whether a user has attempted to access files that systems. which allowing for remote access. which helps hide their identity. They ensure the confidentiality and integrity of the data transmitted over the Internet without requiring encyption. Can perform certain actions when an attack occurs. They are less expensive than private leased lines because they use the public Internet to carry information. Macros are the electronic equivalent of junk mail. Remote logins occur when an unauthorized users connects to a PC and gains control of it.50-Which of the following does not correctly describe what firewalls protect against? Some programs have bugs or special features that create application backdoors. Web or security-related files have servers. routers. Uses rules to analyze suspicious activity at the perimeter of a network or at key locations in the network . 51-Firewalls that filter requests from the Internet to a private network based on the IP address of the computer sending or receiving those requests are called: packet-filtering routers. 54-A host-based intrusion detection system (IDS): Resides on the server that is Consists of information system resources– being monitored where it can detect whether critical firewalls. which the federal laws place legal limits on monitoring activity? The Wiretap Act and CFAA The Wiretap Act and the Pen Register. the systems must determine whether a buyer's card is active and whether the cardholder has sufficient funds available for the purchase. True False 4-E-payment methods that can address the lower or higher end of the price continuum is unlikely to be widely accepted because of cost and security issues. Trap. True False 6-In the settlement process. have to maintain anonymity.use. True False 5-Credit cards and charge cards are e payment instruments that allow the holder to make purchases up to a fixed limit and charges interest each month on unpaid balances. special e-payment methods. 55-In the United States. The USA PATRIOT Act and CFAA Chapter 12 Electronic Payment Systems 1-E-payment systems that require the payer to install specialized security software have proven more likely to succeed. and Trace Devices statute The Computer Fraud and Abuse Act (CFAA) and the First Amendment. True False 2-The success of an e-payment method depends on its interoperability with existing enterprise systems and applications. such as e-cash. True False 3-To succeed. . True False . True False 9-In the authorization process. the systems determines whether a buyer's card is active and the customer has sufficient available credit line or funds. the money for a purchased item comes directly out of the holder's checking account with the actual transfer of funds from the holder's account to the merchant's taking place within one to two days. customers. True False 8-The processing of card payments has two major phases: identification and settlement. the processes and participants are essentially the same for off-line (card present) and online (card not present) purchases. True False 10-For a given type of payment card and processing system. True False 13-Recent surveys by CyberSource indicate that fraudulent card transactions are a growing problem for online merchants in spite of their increasing efforts to combat fraud despite improved anti-fraud measures. and financial networks that enable authorization and payments. True False 11-CyberSource and VeriSign are payment processing services that provide connectivity among merchants. True False 12-In the online world.True False 7-With a debit card. merchants are not held liable for fraudulent transactions. True False 18-In most cases. minorities.14-Because of their visibility and large sales volumes. True False 17-With virtual credit cards. immigrants. One reason for these rejects is simply that cardholders make mistakes in inputting their addresses or zip codes. specifically people with low incomes. True False 19-Stored-value cards are being marketed heavily to the those who do not have credit cards or do not have bank accounts. In the retail arena. meaning that the merchant rejects a valid order. the issuer must create a new credit card number for every purchase. and others. True False 16-One impact of anti-fraud tools is that merchants are rejecting a significant number of both valid and invalid orders due to suspicion of fraud. True False 15-One problem with the Address Verification System (AVS) for fraud prevention is the number of false positives. True False . smart cards are more secure than credit cards and can be extended with other payment services. seniors. young adults. many of these services are aimed at those establishments where payments are usually made in cash and speed and convenience are important. larger firms were more susceptible to fraud than smaller firms were. credit risk is reduced because payment is accessed via the creditworthiness of the issuing bank. True False 22-From the perspective of the billing firm. True False 26-Factors that come into play in determining whether a particular method of e-payment achieves critical mass include all of the following EXCEPT: the degree of security of the transfer.20-Regardless of the vendor's point of view. the buyers. credit card. True False 24-With letters of credit. applications . at least in the offline world. True False 23-EIPP is the process by which companies present invoices and make payments to one another. two advantages of e-billing are the reduction in expenses related to billing and processing payments and the ability for advertising customized to each individual customer. True False 25-Research shows that state and local governments are losing more than $100 billion per year in sales tax revenue on items purchased over the Internet. there is substantial evidence. True False 21-E-checks rely on current business and banking practices and can be used by any sized business that has a checking account. and debit card. interoperability with other full traceability of hardware and software enterprise systems and independence. that consumers are not willing to use their credit or debit cards for micropayments under $5 to minimize security risks. 27-A card that draws the payment amount directly from the user's checking account is called a(n): e-payment card. 30-The transfer of money from the buyer's to the seller's account is called: authorization. credit card. which are special accounts for credit card authorization and payment processing. customers. charge card. debit card. Acquiring banks Payment processing services Issuing banks Credit card associations 33-________ provide connectivity among merchants. authorization. Payment processing services Credit card associations Issuing banks Acquiring banks 32-________ are financial institutions that provides a customer with a payment card. debit card 28-A payment card that provides the holder with credit to make purchases up to a limit fixed by the card company and charges relatively high interest rates on unpaid balances is the: e-payment card. procurement. procurement. approval. and financial networks enabling authorization and payments is called the: Credit card associations Payment processing services Acquiring banks Issuing banks 34-________ are small online payments typically under US$10: . settlement. 29-The process of determining whether a card is active and whether the customer has sufficient funds for the purchase is called: settlement. approval. 31-________ offer Internet Merchant Accounts. charge card credit card. little process reengineering. and so require industry. to resolve. by individuals. than B2C payments. 36-The nationwide batch-oriented electronic funds transfer system that provides for interbank clearing of electronic payments for participating financial institutions is called the: Automated Clearinghouse Network. customer service provider. 39-From the perspective of the customer. opportunity for targeted advertising. bill consolidator. all of the following are advantages of e-billing EXCEPT: greater security than other types of payments. systems. 37-Each of the following are ways to pay bills over the Internet EXCEPT: biller direct. universal availability. makes record keeping easier. online banking. electronic bill presentment and payment network. improved customer service. traditional paper checks. . simplifies and centralizes payment processing. Receiving Depository Financial Institution Federal Reserve System. lower costs. all of the following are advantages of e-billing EXCEPT: reduced processing expense. 38-From the perspective of the billing firm.E-smart payments E-micropayments E-minipayments E-cash 35-An advantage of e-checks is that they: operate outside the involve complex contain much more fit current business traditional banking internal processing information then practices. 40-Characteristics of B2B payments include all of the following EXCEPT: They are more likely to They are much They are significantly They require less involve disputes that larger than payments more complex than rigor and security require significant rework payments by individuals. error-prone. presentment and payment processes are all of the following EXCEPT: costly. 42-In financial supply chain management. online accounts receivable. accounting systems. sufficient remittance information. and payment. time consuming. electronic data interchange. the goal is to optimize all of the following EXCEPT: accounts receivable the physical supply chain accounts payable financial risks 43-Unlike the physical supply chain. secure. procurement. 47-For many firms. check. 45-Barriers inhibiting B2B electronic payment include all of the following EXCEPT: strict standard formats for remittance information. ________ characterize the financial supply chains of most companies. financial reporting.41-B2B payments are part of a much larger financial supply chain that includes all of the following EXCEPT: payment authorization. . greater accuracy efficiencies transparency inefficiencies 44-The vast majority of B2B payments are: electronic payments. 46-The process by which companies present invoices and make payments to one another through the Internet is known as: enterprise invoice presentment online accounts payable. contract administration. a lack of integration of inability of trading partners to send a shortage payment and or receive electronic payments with of IT staff. made using electronic funds transfer (EFT) made with letters of still made by paper credit. collecting or aggregating invoices from multiple sellers and payments from multiple buyers. bills are consolidated into a single payment. food. 49-________ is an EIPP many-to-many model with a third party acting as an intermediary. 52-In global trade. or wire transfer 51-All of the following are advantages of using purchase cards EXCEPT: purchasing departments report productivity gains. letter of credit micropayment bank check trade card payment 53-All of the following are benefits of letters of credit (LCs) EXCEPT: Payment is assured if all the terms in the LC are complied with. improved data that can lower improved invoice processing costs. a ________ is a written agreement by a bank to pay the seller. improved control. on account of the buyer.48-According to a survey by Credit Research Foundation. 54-The current Internet sales tax moratorium in the United States applies to: all retail sales all B2B clothing. the major reasons companies turn to EIPP solutions are all of the following EXCEPT: elimination of billing disputes better customer service for billing and remittance. ACH network Seller direct Buyer direct Consolidator 50-Among the forms of online B2B payments. they are widely accepted in international trade. Credit risk is reduced because payment is accessed via the creditworthiness of the issuing bank. letters of credit purchasing cards CTX Fedwire. cash flow. ________ is second only to ACH in terms of frequency of use. a sum of money upon presentation of certain documents. Political risk is reduced LCs are cheap if the LC is confirmed and easy to by a bank in the seller's establish. country. and all sales made over the Internet if the . True False 4-Order fulfillment involves activities such as providing customers with what they have ordered. True False .com initially operated as a totally virtual company. True False 2-Amazon. seller has no physical presence in the state where the buyer lives. accounting. they verify shipping addresses. delivery. 55-Many B2C and B2B businesses rely on specialized third-party software and services to calculate the taxes associated with a sale because: of the complexities. pharmaceuticals only.made over the Internet. of government regulations. True False 3-Both EC and traditional retailing are based on the concept of "pull" operations that begin with an order from a customer. such as packing. Chapter 13 Order Fulfillment 1-The implementation of most EC applications requires the use of support services. and logistics. and providing all related customer services. sales only. tax laws rarely change. but had to add physical warehouses with thousands of employees in order to expedite deliveries and reduce order fulfillment costs. True False 5-Front-office operations are the activities that support fulfillment of orders. delivering orders on time. True False 8-In B2C. True False 10-The order fulfillment processes for B2B and B2C activities are similar. and related information from point of origin to point of consumption. True False 9-When a customer returns items that have been ordered. . True False 13-The chance of supply chain problems. is lower for EC than for off-line commerce because of more advanced logistics support. the series of activities involved in that return are called return logistics. customers usually validate that they will pay by prepaying using a credit card. services. such as shipping the wrong items. True False 12-The inability to deliver products on time is a typical problem in both off-line and online commerce.6-Back-office operations are the operations involved in the efficient and effective flow and storage of goods. Elogistics shipments typically are small parcels sent to many customers' homes. True False 7-The EC order fulfillment process begins when an order is received and verified as being a real order. True False 11-The major difference between e-logistics and traditional logistics is that traditional logistics deal with the movement of large amounts of materials to a few destinations. internal units. True False 20-Delivery-value density is a decision support tool that helps determine whether it is economical to deliver goods to a neighborhood area in one trip.True False 14-Supply chain problems. such as errors in demand forecasting. EDI/Internet. True False 15-Many problems along the EC supply chain stem from two sources: uncertainties in forecasting demand and the need to coordinate several activities. True False 17-The B2C order-taking process can be improved when it is done via EDI. the better. or an extranet. . True False 16-Uncertainties in delivery time are a major cause of order fulfillment problems. True False 18-B2C fulfillment may be more complex than that of B2B because it has at least six dimensions of complexity rather than only two. True False 19-High delivery costs are justified only if there is a high concentration of orders from customers located in close proximity or if the value of the order is large enough. the Internet. The lower the density value. and business partners. RFID can help by locating shipments in real time to minimize delays and enhance customer service. jeopardize order fulfillment. and technology infrastructure lead to CRM success. frequently a ________ order. lower inventory. culture. and self-configuration. it is necessary to properly collect and analyze relevant customer data. True False 26-The implementation of most EC applications requires the use of all of the following support services EXCEPT: infrastructure and technology security manufacturing order fulfillment. True False 23-Benefits of CRM analytics lead to better customer relations in terms of sales and service. FAQs. . True False 25-Data mining is an important analytic activity that involves sifting through an immense amount of data to discover previously unknown patterns that can guide improvements in order-fulfillment and CRM efforts. To derive these benefits. better marketing strategies. and payment 27-Most EC applications are based on ________ that begin with an order.True False 21-According to researchers. True False 22-The integration of ERP and CRM must include low-level data synchronization as well as business process integration so that the integrity of business roles can be maintained across systems and workflow tasks can pass between the systems. True False 24-The primary customer-facing applications that support eCRM are self-tracking. and faster delivery. top management commitment. delivery. " front-office operations back-office operations order fulfillment logistics 32-A typical EC fulfillment process involves all of the following activities EXCEPT: Checking for in-stock availability. back-office operations. order fulfillment. Making sure the customer will pay.pull operations. front-office operations. customized push operations. 33-The administrative activities of order taking and fulfillment involve all of the following activities EXCEPT: sales quote. accounting and logistics are examples of: logistics. 30-Customer-facing activities or ________ are activities. customized 28-All services related to making sure a customer gets what he/she ordered within an acceptable amount of time is called: logistics. and related information from point of origin to point of consumption for the purpose of conforming to customer requirements. 29-Packing. that are visible to customers. and controlling the efficient and effective flow and storage of goods. order acknowledgment. services. delivery. implementing. such as advertising and order taking. accounts payable. back-office operations order fulfillment logistics front-office operations 31-The Council of Supply Chain Management Professionals defines ________ as "the process of planning. 34-The major difference between e-logistics and traditional logistics is: e-logistics deals with the traditional logistics deals traditional logistics e-logistics . order fulfillment. standard pull operations. Replenishment and returns. standard push operations. back-office operations. shipment release. Just-in-time inventory management. front-office operations. applies only to manufacturers. in global operations. but it is rarely a problem in domestic operations. are accomplished solely through improved links with logistics.movement of large with movement of large amounts of materials to a amounts of materials to a few destinations. the organization. 3PL RFID ERP CRM 38-Solutions to problems in the supply chain for EC companies are: critical during start-up but usually unique generic across both usually become manageable and for each EC EC and traditional insignificant as EC companies company. 39-Improvements in EC order-taking: may come from within the are accomplished are accomplished organization. outsources all logistics functions. few destinations. 36-________ are a major source of uncertainty in supply chains. . so complex that most EC companies cannot afford to implement them. Internal manufacturing schedules Demand forecasts Inventory delivery schedules Foreign currency exchange rates 37-________ helps locate shipments in real time to minimize delays and enhance customer service. commerce. 35-The inability to deliver products on time is a typical problem: in both off-line unique to eand e-commerce. in traditional logistics only because the problem has been solved in e-commerce. mature. linkages with payment systems. and through with payment systems. from solely through solely through improved links with implementing linkages improvements within logistics. companies. concern that ordered concerns products won't be delivered about fraud. to facilitate the delivery of large quantities of product to a small number of customers. Forwarders Outsourcers Expediters Shippers 43-All of the following apply to global logistics systems EXCEPT: An increase in global trading created a need for an effective global logistic system. Order fulfillment problems tend to be even larger in longer supply chains that cross country borders. These systems are secure when the Internet is the centric technology platform. 42-________ are intermediaries that prepare goods for shipping on air carriers. 45-________ is an innovative order fulfillment strategy in which components for a product come from two or more physical locations. Such systems also are useful in maintaining an inventory of repair items so repairs can be expedited. ERP systems Warehouse management systems Replenishment systems Stockkeeping unit systems 41-Automated warehouses for B2C companies are designed: to facilitate the delivery of small quantities of product to a very large number of customers. on time. 44-The second most often cited reason for customers not buying on the Web is: not being able to see or try the lack of a good on a product before buying return mechanism. which increases the need for coordination. Leveraged shipments Merge-in-transit Order postponement Rolling warehouse . communication. it. and collaboration. to help transition B2C companies into B2B companies. The number of partners in such situations is larger. to accommodate much larger inventory levels than traditional warehouses. or other transport means.40-________ are useful in reducing inventory and decreasing the incidence of out-of-stocks. trucks. 46-A decision support tool that helps determine whether it is economical to deliver goods to a neighborhood area in one trip is: CRM model. knowledge forecasts analytics information . it requires integration with a company's other information systems. when needed. profitability analysis. vendor management. product quality. suppliers 48-Major limitations of CRM include all of the following EXCEPT: it is difficult to it is difficult to support it is difficult to justify the mobile employees with develop competitive expense of some CRM applications. knowledge system data base expert system data warehouse 52-Automating inquiry routing and answering queries requires ________ which can be generated from historical data and from human expertise and stored for use whenever needed. CRM applications. which may be difficult and expensive. CRM. delivery-value density. ERP model. SCM analysis. 51-Medium and large corporations organize and store data in a central repository called a(n) ________ so that it will be easy to analyze later on. 49-Metrics in customer service and CRM include all of the following EXCEPT: site availability. on-time order fulfillment. response time. 50-Data analytics are a valuable tool because it can provide all of the following EXCEPT: what-if scenarios. financial reporting customer segmentation groupings. customers management. 47-________ recognizes that ________ are the core of a business and that a company's success depends on effectively managing its relationships with them Supplier relationship Customer relationship Vendor relationship Partner relationship management. partners management. 53-To overcome the problem of finding buyers or sellers online, a company may use ________ such as B2Business.net or Yahoo! Small Business. intelligent agents search engines directory services industry-focused newsletters 54-TRUSTe, BBBOnline, and Ernst & Young's trust service are used both in B2C and B2B for all of the following reasons EXCEPT: One cannot touch the seller's products. Trust is critical Companies must outsource Buyers may not be for EC. known to sellers. trust services. 55-The major reasons why many companies prefer to outsource some of the support services include all of the following EXCEPT: Lack of experience or The desire to resources needed for many of concentrate on the the support services. core business. For a sustainable competitive advantage. The need to have services up and running rapidly. Chapter 14 E-Commerce Strategy and Global EC 1-Strategies are based on performance indexes that are used as targets and measures of success. True False 2-An organizational strategy is a detailed plan for how a business is going to accomplish its mission, what its goals should be, and what plans and policies it will need to accomplish these goals. True False 3-Any contemporary strategy-setting process must include the Internet. True False 4-In Porter's view, the majority of the Internet's impacts on the five competitive forces have been positive. True False 5-Researchers have suggested that more extensive strategic information systems planning in an uncertain environment produces greater planning success. True False 6-No matter how large or how small the organization, the strategic planning process forces corporate executives, a company's general manager, or a small business owner to assess the current position of the firm, where it should be, and how to get from here to there. True False 7-In the strategy initiation phase, the organization examines itself, its environment, and the potential contribution that the Internet and other emerging technologies can make to the business. True False 8-A value proposition is actually a financial statement that summarizes the annual revenue and profit targets. True False 9-The two major and successful Internet-based businesses Google and eBay have similar core competencies. True False 10-SWOT analysis is one method for scanning the business environment to collect and interpret relevant information about direct competitors, indirect competitors, and potential competitors. True False 11-In the strategy implementation phase, general long-term plans are developed for carrying out the projects that had been agreed on in the strategy formulation phase. True False 12-Resource allocation refers to the processes of making the selected applications and projects a reality, such as hiring staff; purchasing equipment; licensing, purchasing, or writing software; and contracting vendors. True False 13-Strategy assessment is the continuous evaluation of progress toward the organization's strategic goals, resulting in corrective action and, if necessary, strategy reformulation. True False 14-The basic method in scenario planning is that a group of analysts generates simulation games for policy makers. The games combine projected factors about the future, such as demographics, geography, and industrial information with plausible alternative social, technical, economic, and political trends. True False 15-A business plan is a tool that is an alternative to narrowly focused financial assessments by measuring organizational performance in four areas: finance, customers' assessments, internal business processes, and learning and growth. True False 16-The primary reasons for writing a business plan are to acquire funding and nonfinancial resources, to recruit senior management, and to force the business owner to think ahead, set achievable goals, seek out and analyze competitors. True False 17-Entrepreneurs in start-up companies use business plans to get funding from investors, such as a venture capitalist or a bank. especially in sell-side projects because the two activities could be competitors. the allocation of resources between off-line and online activities can create difficulties.True False 18-The information systems strategy is set primarily by determining what information and associated information systems are required to carry out the business strategy. evidence shows that there is always a real advantage to being the first mover in an industry or market segment. . True False 20-The disadvantages a brick-and-mortar company faces by creating an independent division are that it may be very costly. which was founded by major retailers such as Sears. was to reduce procurement costs and product prices for its members while making the purchase process more efficient. True False 23-Having a strong project champion on an e-commerce project is seldom important to the success of the project because of inter-personal conflicts caused by a powerful champion. True False 22-In a click-and-mortar business. True False 21-Disposing of excess equipment was the motivation behind the implementation of forward e-auctions at General Motors. True False 19-In e-commerce. risky. True False 24-The purpose of GlobalNetXchange. or both. This is an example of a technology-driven strategy because GM had a specific problem that an EC application could solve. political. 28-Projections of the business technological. True False 26-For ________ companies. information widely it easier to make marketing. The Internet allows buyers and sellers to find and transact business with one another more easily. functional strategy. company analysis. SWOT analysis 29-The unique combination of resources. day-to-day operations.True False 25-At the implementation stage. distribution. experiences. In those instances. business process reengineering (BPR) is usually necessary. it may be even more important to change strategies quickly. and other environments are called: competitive intelligence value propositions forecasts. competitive advantage. competitor analysis. core competencies. service retail traditional pure play 27-Capabilities of the Internet that have made it more difficult for companies to capture profits include all of the following EXCEPT: The Internet reduces the The Internet makes The Internet makes difficulty of purchasing. and expertise within a particular firm is called their: corporate strategy. and available. secure payments. economic. 31-All of the following about the strategic planning process are true EXCEPT: The process of The strategic The strategic planning process The strategic . 30-All of the following are elements of a company's strategy EXCEPT: forecasts. firms may need to dramatically change business processes to accommodate the changes an EC strategy brings. strengths. constraints. and weaknesses of the company functional strategy core competency company analysis value proposition 33-A specific outcome of the strategy initiation phase is a clear statement of the company's ________. or writing software. goals. such as a determination of goals. which summarizes the customer segment. 32-A specific outcome of the strategy initiation phase is the ________. a is cyclical and company's general manager. mission. which includes the vision. SWOT plan technology audit value proposition business plan 36-________ is the process of making the selected applications and projects a reality by hiring staff. functional strategy core competency value proposition company analysis 34-Google's ________ is its expertise in information search technology. Strategy assessment Project management Resource allocation Project planning 37-An analytical tool in which a company looks for points of differentiation between competitors and itself is called: . or a continuous. planning process forces corporate executives. where it should be. and the core differentiation of one's product from the offerings of competitors. planning process begins with strategy formulation. and contracting vendors. and risk analysis come together in a ________. competitor analysis. small business owner to assess the current position of the firm. competitor target. core competency company analysis functional strategy value proposition 35-Many of the outcomes from the first two phases of the strategic planning process. licensing.developing a strategy maybe even more important than the strategy. value proposition. capabilities. strategic opportunities. purchasing. and how to achieve objectives. purchasing equipment. BCG growth-share matrix. business strategy. 41-All of the following are situations when a business plan should be done EXCEPT: When an existing company is planning to create a separate division. balanced scorecard. When an existing company is planning to launch the company in a new direction. business plan. strategy reformulation. The company would need to develop a: business case. a magazine publisher decides to add the online distribution of its magazine to its existing traditional publishing business.competitor analysis grid strategy assessment scenario planning SWOT analysis 38-________ is the continuous evaluation of progress toward the organization's strategic goals. The content of a business case is similar to that of a business plan. 42-Which of the following about business plans and business cases is NOT correct? One difference is that the business plan concentrates on the viability of a company. if necessary. When an existing business is deploying a CRM system. The audiences are the same senior management and the board or directors. Web analytics. business metric. 40-After four years in business. The purposes are the same to justify a specific investment of funds. whereas a business case assesses both viability of the project and the fit of the initiative with the firm's mission and goals. Strategy assessment Competitor analysis grid Scenario planning SWOT analysis 39-A management tool that assesses organizational progress toward strategic goals by measuring performance in a number of different area is: SWOT analysis. 43-The risks of being a first mover include all of the following EXCEPT: the risk that the high cost of pioneering EC the move over the long run first movers are substantially the chance that a second wave of competitors will eliminate a first . resulting in corrective action and. When a new business is seeking start-up funds and other resources. Buying an equity stake in a existing EC company. operation. 45-The most efficient way to expand an organization's scope is: by expanding the firm's appeal to a new set of customers. the speed of market entry. 48-Incorrect approaches to EC strategy selection include all of the following EXCEPT: indiscriminately funding many "trend-surfing. high-stakes mover winners.will be too late. attract new talent. to introduce new products or by increasing the services into new or existing size or scale of markets without increasing the business. mover's lead through lower cost and innovation. to buy a company with complementary products or services. enhanced its EC future by: Creating a separate company. most fashionable idea. 46-Separating a company's online operations into a new company makes sense in each of the following situations EXCEPT: when the subsidiary can be created without dependence on current operations and legacy systems. strategy. less profitable than followers. when a new business model needs to be when the volume developed apart from the of anticipated econstraints of current business is large. the size of the opportunity. venture. initiative." or following betting it all in a using a lateprojects and hoping for a few the crowd to the newest and single. 47-Rite Aid. 44-Factors that determine whether a first mover succeeds or fails in the EC marketplace include all of the following EXCEPT: the nature of the product. production facilities or staff. a click-and mortar firm. whether the company can be the best in the market. Creating an online Forming a joint brand. initiatives. or raise additional funding. 49-The most dangerous risk to a company engaged in e-commerce is: . when the company is unable to form new alliances. a multi-divisional EC a large. Measure the extent to which the EC strategy and ensuing projects are delivering what they were Reassess the initial strategy in order to learn from mistakes and improve future Identify what competitors are doing to avoid headon competition. negligent loss of data. reducing prices. sellers need smarter pricing strategies. threat posed by hackers. labor. 51-The ________ pricing strategy means adding up all the costs involved. To remain competitive and profitable. the ability of top management to corporate introduce change properly. 53-Implementing EC often requires significant investments in infrastructure. which include all of the following strategies EXCEPT: greater precision in more adaptability in setting prices. which increases their bargaining power. cost-plus revenue markup price percentage competitor model 52-Internet technologies can provide consumers with easier access to pricing information. business risk. a good way to start is to undertake ________. new ways of customer segmentation for differentiated pricing. Therefore. and adding a percentage mark-up as profit. culture.customer and business partner risk. the use of innovative processes that support collaboration. . supply chain temporary corporation co-opetition virtual corporation 55-The most important objectives of strategic assessment are all of the following EXCEPT: Determine if the EC strategy and projects are still viable in the current environment. 50-All of the following determine the degree of collaboration between off-line and online activities in a business EXCEPT: the pricing strategy. and so forth. changing prices. such as material. non-trivial EC one or a few small EC project project pilot projects a single division EC project 54-A ________ is a form of business alliance composed of several business partners that share the costs and resources for the development or production of a product or service. rent. overhead. planning Chapter 15 1-From 1995 through 2000. True False . EC justification decreases the credibility of EC projects. True False 4-One reason why EC justification is needed is that companies now realize that EC is not necessarily the solution to all problems. True False 5-According to a CIO Insight report. most IT executives acquired the knowledge and tools to do ROI calculations on proposed EC investments. many EC projects and start-up companies were funded with little analysis of their business viability or finances. True False 3-After the dot-com bust.supposed to deliver. True False 2-The result of the rush to invest in EC projects and start-up companies was the 2001— 2003 "dot-com bust." when hundreds of EC startups went out of business and the stock market crashed. True False 6-One basic way to categorize different EC investments is to distinguish between investment in infrastructure and investment in specific EC applications. providing a benefit to society. True False 11-Key performance indicators (KPI) are used to qualitatively track critical metrics or success factors. True False 10-Metrics are used to describe costs. or the ratio between them and need to be defined properly with a clear way to measure them. True False 12-A major difficulty in justifying EC projects is that many costs and benefits are intangible and therefore very difficult to measure. and improving the company's image are examples of tangible benefits that might be realized from an EC project. True False 8-Cost-benefit analysis is frequently assessed by return on investment (ROI). which is also the name of a specific method for evaluating investments. True False . True False 13-Creating a competitive advantage. benefits. True False 9-All EC investments need to be formally justified to insure that they align with the company's competitive strategy.7-Infrastructure investments are made for the short-term because of frequent technological changes. True False 18-The ROI method uses a formula that divides net revenues by the initial cost. True False . True False 17-In preparing the business case for EC investment. such as increased revenues via products or services from a larger global market because of more effective product marketing on the Web. True False 15-The results of any investment justification in eCRM depend on the time frame used to measure changes in productivity. analysts convert future values of benefits to their present-value equivalents by discounting future cash flows at the risk-free rate set by the Federal Reserve Bank. managers should examine the potential additional revenues that are expressed in the revenue models.14-Cannibalization occurs when a new EC initiative produces substantial online sales. but traditional sales fall such that no increase in total revenue occurs. True False 20-Given the diversity of activities involved in e-procurement. The result is a ratio that measures the ROI for each year or for an entire period. real productivity gains often do not get measured correctly. the metrics used to measure the value of e-procurement must reflect how well each process is accomplished. True False 19-In an NPV analysis. True False 16-Because many EC investments in eCRM take five to six years to show significant positive results. and take into consideration whether the company is a buyer or seller. and many public organizations. regulation. and a relatively few customers who own computers and credit cards. undependable delivery mechanisms. there are been mixed payoffs. and even the content of online ads. political influences. True False 24-Critical elements that can affect the value of EC across cultures are perceived trust. which provide a robust foundation from which to develop a budget. public companies must document every internal process and external effect that will have an impact on their financial health. unreliable telecommunications infrastructure. True False 25-Developing economies often face power blackouts. These limitations can be overcome when predicting EC investment payoffs by using a combination of break-even analysis and NPV. the justification for a Web portal must focus on both business ROI and technology ROI. True False 23-To comply with the Sarbanes-Oxley Act. mandate a formal evaluation of Companies now realize that EC is not necessarily the solution to all Demand for expanding or initiating e-business projects is no longer strong so there are The success of EC projects may be assessed in order to pay bonuses to those . True False 26-CIOs need to effectively communicate the value of proposed EC projects in order to gain approval for all of the following reasons EXCEPT: Some large companies. but a majority of companies have demonstrated a significantly positive ROI for their eCRM investments.21-According to recent surveys of eCRM applications. consumer loyalty. Thus. True False 22-Large companies often have several integrated intranet and other information systems that determine the success of a Web portal. When the relevant data When competitors are not available. are made for the longterm. indirect. 27-One basic way to categorize different EC investments is to distinguish between investments in infrastructure and investment in specific EC applications because benefits from infrastructure investments: have a low return. are very complex. fewer requests for funding. . 30-Metrics are used to describe all of the following EXCEPT: standards. not measurable. 29-Not all EC investments need to be formally justified. to-market. costs. 28-The basic reasons that companies invest in IT and EC are all of the following EXCEPT: to increase customer satisfaction and retention. do not count. other areas. All of the following are cases where formal evaluation may not be needed EXCEPT: When the value of the investment is relatively small for the organization. involved with the project. volatile. the ratio of costs to benefits. depend on the EC applications. 32-The relationship between EC investment and organizational performance is: shared with other investments. to improve business to reduce timeprocesses. 31-Productivity benefits from using EC are difficult to measure because: EC gains in certain areas of the there is no time qualitative benefits company may be offset by losses in lag in EC gains.requests for funding. direct. to justify new marketing campaigns. benefits. or are too type of investment. the payoffs are too short. problems. are have made that inaccurate. When the EC project is mandated and must be done regardless of the costs and benefits. operational and strategic. cost/price of the product. 38-The major steps in the process of justifying large-scale EC and IT projects include all of the following EXCEPT: Lay an appropriate foundation for analysis with your vendor. This case illustrates that: Tangible benefits can Tangible costs can be Intangible benefits be complex. reelection of candidates. direct and routine. substantial. achieved quickly.33-EC costs and benefits can be classified into two broad categories: short-term and capital. yet payoffs can be achieved quickly. convenience in purchasing 37-For Governments. and preventing invasion of the privacy of employees and customers. crew assignment and scheduling. Clarify all tendency of many assumptions. yet payoffs can be can be complex. managers). risk reduction. Intangible costs can be high. profit per customer. yet substantial. 34-The New York Metropolitan Transit Authority (MTA) did not need to open another airport for almost two decades. impact on the physical environment. an example of an intangible EC metric is: lower tax rates. Be careful not to overDocument and verify all estimate cost and underfigures used in the estimate benefits (a calculation. even though air traffic had tripled because of productivity gains derived from improved IT systems. tangible and intangible. an example of a tangible EC metric from the buyer's perspective is: ease of use of EC. including longterm ones. passenger and luggage check-in. and gate assignments. increase in participation in government programs. 35-An important category of intangible benefits is ________ factors that include comfort to employees. ecosystem transactional social subsystem net-enhanced 36-In B2C. and then conduct your ROI. IT systems added by the MTA played critical roles in ticket reservations. changes to the power distribution in an organization. runway maintenance and management. yet high. . Do not leave out strategic benefits. This is an example of: technology ROI.39-Types of costs and cost issues that need to be considered in justifying EC investments include all of the following EXCEPT: initial upfront costs. it is difficult to compare it assumes projects of unequal lifes reinvestment at the same rate. The most appropriate method for assessing this investment is: Break-even analysis. reduced inventory costs. 42-Pouilly's Poodle Shop wants to produce monthly cash flows from its Internet DoggieCam investment. pans or sizes 45-The following direct metrics indicate progress in e-procurement EXCEPT: increased order fulfillment rate. Oregon. 40-Traditional methods for evaluating EC investments include all of the following EXCEPT: Discount rate ROI NPV Break-even or payback period 41-Dan Welch. who owns three World Cup Coffee shops in Portland. technology IRR. Welch credits WiFi consumers with spending three times as much on food compared with the average consumer. system operating costs. Internal rate of return (IRR) Total cost of ownership Payoff Break-even analysis 44-The disadvantage of the NPV method for evaluating EC and IT is: it may be difficult to the true benefits classify outlays as expenses are difficult to or investments. estimates that his free Wi-Fi network has added 10 percent to his overall revenue. decreased number of rejects received from suppliers. one can compute the ________ of an IT investment. Total cost of ownership. the allocation of indirect costs. Internal rate of return (IRR). . Payoff. increased on-time deliveries. opportunity costs. business NPV. measure. 43-By calculating the difference between TCO and TBO. business ROI. competitive advantage. is not needed because it is wellknown that preventing network security problems is less labor intensive than cleaning up virus infections.shaped.related costs and related costs. transaction costs. This is an example of ________ to attract customers who value this automatic update. and legal costs. exchanges of for labor and technical data or brochures. usually poorly done. are different because the AVC of physical products declines as quantity increases forming a Lshape. 49-Transaction costs include all of the following EXCEPT: Search costs incurred by buyers and sellers in locating each other and specific products and services. 48-When computing agency cost. while the AVC of digital products is U-shaped. overhead. Negotiation costs result from Production meetings. Monitoring costs incurred when buyers and sellers make sure that the exchange proceeds according to the terms under which the sale was made. 50-McAfee allows users of its VirusScan virus-detection software to automatically update the latest security patches online. shaped. shaped. agility. . companies should consider: only production-related ignore productionrelated costs and costs and ignore transaction costs. core competency. while Lthe AVC of physical products is U. product or service differentiation. 47-The average-cost curve (AVC) of physical products and digital products: are different because the AVC of digital products declines as quantity are both are both Uincreases forming a L-shape. transaction costs. is not done should be done because ROI because employee calculators are not security training is available.46-Justifying information security projects: should focus on defending against external threats such as hackers and malware. communicationcosts incurred related expenses. entertainment. only transaction costs both productionand ignore production. 51-A Web-based seller of CDs carefully monitors the prices charged by its competitors for identical products. This company has the ability to change a given price within three minutes in response to changes by competitors. This is an example of EC: competitive advantage. agility. core competency. product or service differentiation. 52-All of the following are critical success factors (CSFs) of the Old Economy EXCEPT: Create new partnerships, stay with core competency. Deliver highvalue products. Build market share to get Compete to sell economies of scale. product. 53-As a company moves to incorporate an online presence with its traditional brick-andmortar operation, it adds the costs related to training for all personnel in the capabilities of the EC system and a new advertising campaign to announce its new site to the costs directly associated with building the new Web presence. In this case, training and advertising are examples of: direct costs. transaction costs. complementary investments. indirect costs. 54-One of the strengths of EC is the ease with which its adopters can reach a global population of consumers. However, EC-driven businesses must consider the critical elements affecting the value of EC across cultures. Those elements include all of the following EXCEPT: perceived trust. delivery delays. political influences. consumer loyalty. 55-All of the following apply to EC in developing economies EXCEPT: The potential volume of transactions in developed countries can make EC investments more attractive for established firms than new firms because established firms have already recovered the costs of their IT infrastructures. Developing economies struggle with various issues that create too many business and technology risks to justify investment in those economies at this time. Developing economies often face power blackouts and unreliable infrastructure and delivery mechanisms creating limitations that make it difficult for firms to predict whether EC investments will pay off, and when. Developing economies, such as China and India, represent a significant opportunity for EC to connect businesses to customers, as well as other businesses. Chpater 16 1-Unlike the brick-and-mortar marketplace, the failure rate for online companies is low. True False 2-Online businesses may be pure play companies or click-and-mortar companies that add online projects, such as e-procurement or selling online, as additional marketing channels. True False 3-To create successful entrepreneurial ventures in EC, Maier suggests that starting small with many founders is the best option. True False 4-The first step is creating a new company is to identify a consumer or business need in the marketplace and an innovation to address that need. True False 5-Many good ideas and realistic initiatives have failed because of poor execution due to the lack of sufficient business skills by the owners or principals of the business. True False 6-As a general guideline, although virtually anything is available for sale on the Internet, the degree of sales success is somewhat dependent on the type of item or service being offered for sale and how it can be delivered. True False 7-Medium and large businesses, or those seeking external funding, must have an informal business plan. True False 8-The primary reason an entrepreneur writes a business plan is to acquire funding from a bank, an angel investor, a venture capitalist, or the financial markets. True False 9-Some entrepreneur may simply invest personal funds from savings, personal lines of credit, or a house mortgage since these sources of "bootstrap funding" are typically enough. True False 10-When the entrepreneur's personal funds are insufficient, the entrepreneur will go to friends, family members, or to financial institutions. True False 11-An important source of financial support or direct funding, for pre-VC firms is an incubator. True False 12-Venture capitalists tend to invest in companies that have identified what seems to be an outstanding business opportunity, have taken some action to make the opportunity happen, such as written a new software application or secured a patent , and need an infusion of funds and management expertise to expand and launch the business. True False 13-There is a serious downside for start-up businesses that acquire venture capital because they lose control over the business. True False 14-Once the company is well known and successful, it can go to a stock exchange to raise money via an initial public offer or IPO. True False rather than on just a hunch. but also a sharp break from the past. True False 17-Transforming an existing business to an e-business means a manager must change business processes. and more. radio-style presentations. which builds customer loyalty. speeches. True False . True False 18-An informational Web site provides opportunities for the customers and the business to communicate and share information. True False 20-Up-to-the-minute dynamic content is what attracts new and returning customers ("eyeballs") and makes them stay longer ("stickiness"). True False 21-Because podcasts are audio-based media files. but not the way people work or communicate. including music.15-Organizational transformation is a comprehensive concept that implies not only a major change. True False 16-Business process management (BPM) systems monitor the execution of the business processes so that managers can analyze and change processes in response to data. True False 19-Selecting a domain name is an important marketing and branding consideration for a business because it will be the business's online address and create an identity for the business. it enables companies to deliver audiospecific content. com offers personalize content by tracking visitors' behavior via cookies. True False 25-Card-not-present (CNP) transactions increase the risk and uncertainty of online transactions. help the founders remember what they are trying to accomplish. True False 26-When creating a new business. identify a consumer or business need that isn't presently being met. provide an operational framework for the business. True False 24-Web site usability means that people who use the Web site can do so quickly and easily to accomplish their tasks and may also consider such factors as cost-effectiveness and usefulness.22-Amazon. True False 23-Web designers execute successful site navigation through consistency and through navigation aids such as a navigation bar. 27-The principle reason for writing a business plan is to: provide strategic direction to employees. which is used to generate dynamic Web pages that recommend products based on previous purchases and recently viewed items. write a business case or plan. a site map. acquire external funding. Amazon. the first step is to: acquire financing needed to make the business successful. investigate all existing opportunities.com offers this personalized content because it is very inexpensive and does not impact performance. which increases transaction fees to offset the increased risks. and search tools. 28-The key difference between an e-business plan and a traditional business plan is that the entrepreneur must: . a navigation column. business on the Internet. incubator angel entrepreneur venture capitalist 32-________ is money invested in a business by an individual or a group of individuals in exchange for equity in the business. the loss of control a venture capitalist demands. business cases are all businesses need a brief and general. but only existing is a part of businesses planning a major EC every business or IT initiative should develop a plan. business case. per share. start-up funding operating capital venture capital advance funding 33-The greatest difficulty in dealing with venture capital is: finding the money a venture capitalist will require. incubator venture capitalist angel entrepreneur 31-A(n) ________ is a company. the angel investor will pay the highest price per share . but only while business plans new businesses need a are long and business plan. university. 34-The relationship between stock price and when an investor invests is: the entrepreneur will pay the venture capitalist IPO investors will will pay the highest pay the highest price the highest price per share price per share. understand that the Internet is a unique sales channel. or nonprofit organization that supports promising businesses in their initial stages of development. detailed. understand all aspects of understand that traditional the technology required to rules do not apply when doing implement the plan. business case. finding a willing venture capitalist. relocating the business to an incubator. 29-The difference between a business plan and a business case is: all new businesses should have a a business case business plan. 30-A(n) ________ is a wealthy individual who contributes personal funds and possibly expertise at the earliest stage of business development.develop a ten-year plan. None of this information has changed since the Web site was developed. 38-A(n) ________ Web site does little more than provide information about the business and its products. This is an example of adding: a portal. phone numbers.35-Chaplin's Pet Store has been in business for many years. e-procurement. will also provide general information about how to select electronic merchandise and informational pages about the Reprise company today and its management team. Chaplin. and general e-mail addresses for each of these studios. 37-In an organizational transformation: there is a change in the change may affect outlook. a storefront. a conglomerate that manufactures and sells all kinds of electronic goods under several brand names. infrastructure. or special service is called: . dynamic informational transactional interactive 39-A major entertaining company has four studios that have been in the same location for more than ten years. rebate. a portal. the present owner. The company decides to bring all of the Web sites together through a single site that. This is an example of ________ content. currently has separate Web sites for each of its brands. a storefront. there is always a sharp there are incremental break with the past and changes to the ways every aspect of the things have always business will probably been done. but rarely a only one or a few of change in procedures or the functional areas investment in of the business. change. decides to open an online sales channel where he can advertise and sell the same gourmet pet food. This is an example of adding: a reverse auction. a reverse auction 36-Reprise Electronics. e-procurement. The company includes a page on its Web site with addresses. in addition to providing links to the brand pages. dynamic organizational functional static 40-Secondary content that offers a coupon. URL name host name domain name IP address . 42-The ________ is how Web pages are organized. 47-The ________ is the name-based address that identifies an Internet-connected server. the domain name how to protect the Web site from hackers 45-A(n) ________ is an exact duplicate of the original Web site physically located on a Web server on another continent. up selling. promotion. promotion. promotion. comment. using a storebuilder. testimonials. labeled. staff. up selling. 41-Reviews. cross-selling. up selling. expert advice. backup site a download site mirror site a hot site 46-The Web hosting option under which the business acquires the hardware. or further explanation about the product are called: comment. and dedicated telecommunications services needed to host a Web site is called: mirror hosting self-hosting. software.cross-selling. ISP hosting. cross-selling. 44-One of the first decisions to be made in building a Web site is: whether to provide personalized who will content host it. Web design information architecture Web site map Web layout 43-Creating content that offers upgraded or more expensive versions of the product is called: comment. and navigated to support browsing and searching. This is an example of: internal Web site promotion search engine optimization using a meta tag. the Amazon. fees are higher for online processing CNP transactions are less secure and riskier. standard. CNP 53-________ offers one of the most popular storefront packages at with three levels of merchant solutions: starter. making sure Web pages look the same no matter which browser a customer is using.com Web site is easily searchable by book title and author. These enhancements make the Amazon site a favorite for readers. commodity content. it provides the fastest speed to market.com 54-Options for acquiring storefronts include all of the following EXCEPT: . 49-The concept of consistency in Web site design includes: making sure the messages sent to customers who contact the company are consistent. and the resulting site. Google eBay Yahoo! Amazon. and professional. 52-In addition to providing an easy mechanism for buying books. 50-All of the following are advantages of building Web sites internally EXCEPT: it allows the company to use inhouse expertise. premium content.48-Content not available anywhere else on the Web is called: restricted content. making sure customers are treated consistently when they contact customer service. 51-Banks are more selective about who gets an account for accepting credit cards online because online transactions do not produce much revenue for banks dot com failures have made banks less willing to work with online companies. It also has book reviews and suggests titles based on previous purchase activity. reserved content. making sure all visitors consistently find what they are looking for. it allows the company to it allows the company to exert protect proprietary greater control on the process technology. Build them from components Build from templates or storebuilders. or other types of messaging media to promote products or services is called media spam. Join a mall. True False 4-The volume of e-mail spam has decreased because of the widespread use and effectiveness of antispam software and ISP spam filters. True False 5-Spam sent to blogs. True False . True False 3-Companies use search engine marketing (SEM) methods to increase their chance of "getting found" among competing Web sites. True False 2-All marketing methods used to increase the ranking of a company's Web site in the search results are ethical. 55-Before choosing the appropriate Web site development option. you need to consider all of the following issues in order to generate a list of requirements and capabilities EXCEPT: Can customers What might be the place orders reaction of competitors? online? What kinds of products or Who are the target services will the business sell customers? online? Chapter 17 1-For many e-businesses. cellular phones.Build from scratch. a majority of their customer online traffic comes from search engines. True False 10-Legal precedents are decisions by judges that may be used as standards in similar legal cases that follow. and symbols. names. such as inventions. literary and artistic works.6-Web pages that have been created to trick search engines into offering poor-quality results are referred to as search engine spam. or free speech. . True False 13-Due process is a legal claim that others not interfere with a protected interest. True False 11-Political spam. True False 7-Acts or activities that are unethical are also illegal. regardless of its content. True False 12-Significant changes in the nature of business or crimes lead to new laws because laws must remain responsive to new threats or abuses. True False 8-Creations of the mind. intellectual property. such as privacy. and designs. images. is legal in the United States because it is a form of speech protected by the Constitution. used in commerce are known as private property. True False 9-Questions or disputes about the legality of spam can be resolved easily by referring to relevant laws. True False 17-EC web site content needs to be reviewed by attorneys with cyber law expertise to ensure that there nothing is unethical or illegal and that all required statements and disclaimers are properly included. True False . do not apply to information collected in e-commerce. trackback spam filters are implemented in blog publishing systems.True False 14-Because of intellectual property law. True False 16-A corporate code of ethics should specify whether the company allows employees to set up their own Web pages on the company intranet and the rules for private e-mail usage during working hours. the recording industry can file lawsuits for copyright infringement against YouTube or MySpace if it profits from the recording industry's property without authorization and compensation. such as notifying customers of information practices before collecting it. True False 18-Ethical principles that apply to the collection and use of personal information. True False 15-A company can be sued for libel if its EC site contains a defamatory or untrue statement that causes damage to a person or another company. True False 19-As a defense against abusive trackback tactics by profit-motivated spammers. 20-Blocking tools cannot stop adware or software that gets bundled with other popular applications. from delivering pop-up ads because they originate from the desktop. True False 21-Unlike hate sites that can cause problems for corporations or lead to lawsuits. and not the browser. True False 24-Several public organizations and private companies attempt to protect consumers and build users' trust and confidence in the Internet through a seal of quality. True False 22-Online merchants reject about 10 percent of incoming orders because of suspicions of fraud. such as Trustmark and BBBOnline. True False 25-Online sellers can better protect themselves against fraud by requiring customers whose billing address is different from the shipping address to call their bank and have the alternate address added to their bank account. True False 26-Approximately what percent of Internet shoppers use search engines to find products and services? 75% 50% 10% 25% . fan sites are beneficial and welcomed by the entertainment industry. such as Kazaa. True False 23-Electronic signatures improve EC by helping to distinguish between legitimate and fraud transactions and build trust and predictability needed by parties doing business online. and about 3% of accepted orders turn out to be fraudulent. 27-Sending spam that disguises a sales pitch to look like a personal e-mail so that it will bypass e-mail spam filters violates the: Controlling the Assault of NonSolicited Pornography and Marketing (CAN-SPAM) Act. . it is illegal it leads to political favoritism 32-Due process is a legal obligation not to interfere with a protected interest a guarantee of basic fairness and fair procedures in legal action. Implemented spam site Implemented reporting systems. clogs mail dependence on wealthy servers. storage. honeypots. Built algorithms that check for and penalize deceptive rank-boosting practices. and creates security risks fundraisers. MSN Search. and dissemination of personal information is included in the category of: duties rights privacy property 30-A decision by a judge that may be used as a standard in similar cases that follow is referred to as: legal precedent common law intellectual property tort 31-Critics of political spam are against its use because they believe that: it increases candidates' all spam is a nuisance. a legal claim that others a set of enforceable not interfere with a rules and protected interest. 29-Having control over the collection. Google. and Yahoo have turned to all of the following aggressive measures except: Banned violators' sites. regulations. Computer Fraud and Abuse Act (CFAA) Children's Internet Protection Act (CIPA) First Amendment 28-To defend against unethical and illegal business tactics that exploit EC operations. electronic databases. The right to exclude others from the property. Civil laws CFAA Common laws Criminal laws 37-Intellectual property law is the area of law that is associated with each of the following EXCEPT: visual and performing arts. protected interest action. and video games. 34-Property rights relevant to e-commerce include all of the following EXCEPT: The right to benefit.33-A duty is a guarantee of basic a legal obligation not to a legal claim that others fairness and fair not interfere with a interfere with a procedures in legal protected interest. advertising. violator. The right to bring criminal charges against a transfer. trademark law. copyright law. a set of enforceable rules and regulations. and trade secret law. after work is created and in a tangible form such as through Copyright protection on artistic property such as a movie or . but In the United States. or sell the property. 35-A music company can file a ________ against YouTube and MySpace for any interference with the ability to profit from its IP or for profiting from the recording industry's property without authorization and compensation lawsuit or civil charge nuisance charge negligence charge criminal charge 36-________ enable an organization that has suffered a loss due to spammers to bring a lawsuit against spammers responsible for the loss. led primarily by the Motion Picture Association of America The Recording Industry Association of America (RIAA) uses lawsuits against universities. Control of the use of the property. patent law. business contracts 38-Which of the following is true about copyrights? The entertainment industry. environment. and future generations. Typically. and punish violators. unlimited number of years. it is much more difficult to enforce acceptable behaviors and eliminate unacceptable behaviors. 41-Which of the following is true about the scope of business ethics? The scope of business ethics has expanded to encompass the nature and quality of the relationships with shareholders. that copyrighted material can be used for noncommercial purposes without paying royalties or getting permission. The scope of business ethics has been limited to company's actions with regard to how it treats employees and obeys laws. movie. restrict its usage. writing or recording.(MPAA) and RIAA. not students. FTC. The scope of business ethics has not changed even though laws have expanded. is trying technical solutions via the legal system to protect its interests. suppliers. employees may be using it includes a it required company e-mail to corporate code by the advertise their own of ethics. that the author or creator that copyrighted of a book. 42-An Internet acceptable use policy (AUP) is an important safeguard because: without a formal AUP. The scope of business ethics has not changed because laws have not changed. even after the death of the author or creator. 39-Each of the following statements about digital rights management (DRM) is true EXCEPT: DRM are technologybased protection measures. DRM is an umbrella term for DRM technologies any arrangement that allows a were developed with vendor of content in electronic strict regard for form to control the material and privacy protection. . the content is a copyrighted digital work to which the vendor holds right. music lasts forever. the author can apply for a federal copyright. to stamp out rampant music piracy on university campuses. the community. customers. or material can be musical composition can digitally protected use their creations for an against misuse. businesses. business partners. 40-Fair use means that a copyright holder has exclusive rights to the invention for a fixed number of years. messages. 47-Private online communities that are only open to those who belong to them are called: splogs darknets RFIDs blogs 48-A domain name is: intangible property protected by law tangible property protected by law intangible property that is tangible property that is not protected by law not protected by law 49-The ________ give law enforcement agencies broader range in their efforts to protect the public. Firewalls. or text loggers. the right of free speech is not unlimited. 44-Companies can improve their responsibility as custodians of customers' personal data by implementing: AUP. 45-Which of the following statements about the rights to privacy and free speech is not correct? As with all rights. requires protects monitoring of privacy. gives the FTC authority to take action against companies whose lax security practices could expose customers' financial information to theft or loss. blogs. Defamation laws put restrictions on what may be freely said or published. IM. Stealing the Wiretapping individual's communication lines. . and to EC. employees' e-mail. Opt in and opt out information practices. computer. Those rights have an The Internet has increasingly important role destroyed the in an information society right to privacy.43-Section 5 of the FTC Act does each of the following EXCEPT: prohibits unfair or deceptive EC practices. 46-All of the following are ways to use the Internet to find information about an individual EXCEPT: Using cookies. Reading an individual's espyware or keystroke mail. E-mail monitoring. S. Microsoft. Minimizing the pop-up window. 53-A legally binding contract requires a few basic elements. 52-All of the following statements apply to hate Web sites EXCEPT: Web sites that contain legitimate complaints that aren't defamatory. and Nike. or infringe upon trademark rights by confusing consumers are usually protected by the First Amendment. The intent of most hate Web sites is to commit fraud. sponsored by competitors. a few of them will click on one of the linked advertisements and earn them a few cents for each click. Which of the following is not one of those elements? an offer acceptance consideration agreement 54-Examples of electronic signatures to help distinguish between legitimate and fraud transactions include all of the following EXCEPT: a name typed at the a Web site end of an e-mail development message by the sender agreement a digitized image of a a secret code or PIN handwritten signature to identify the sender attached to an electronic to the recipient document 55-EC sellers need to protect against fraud and each of the following EXCEPT: . Spammers Phishers Trackbacks Sploggers 51-The least effective method to protect against pop-up ads and their risk is: Pop-up blocking software on users' computers. Many hate sites are directed against large corporations such as Wal-Mart.Electronic Freedom Foundation (EFF) American Civil Liberties Union (ACLU) U. Department of Justice (DOJ) USA PATRIOT Act 50-________ work on the principle that once Web surfers arrive at their site. Mozilla and Firefox Web ISPs using tools that browsers preventing pop. appearing.stop pop-ups from ups. Cyberbashing is the registration of a domain name that criticizes an organization or person. and services provided. Use of their name Customers who deny by imposter that they placed an sellers. order.Customers who give false credit card or bad Public check information in payment for products keys. .