Beekman7 TB 13

CHAPTER 13:
ELECTRONIC COMMERCE AND E-BUSINESS
Multiple Choice:
1.
Who founded Amazon.com?

A. Steve Wozniak
B. Jeff Bezos
C. Phil Knight
D. Steven Jobs
Answer: B
2.
Reference: Jeff Bezos: The Virtual Bookseller
Difficulty: Easy
Traditional e-commerce tools include all of the following EXCEPT:

A. fax communication.
B. a local area network.
C. a wide area network.
D. printing system.
Answer: D
3.
Reference: Electronic Commerce in Perspective
Difficulty: Easy
What involves sharing information, developing and maintaining business relationships, and the use of
telecommunications networks to conduct business?
A. E-commerce
B. Business-to-business (B2B) commerce
C. Business-to-consumer (B2C) commerce
D. Consumer-to-consumer (C2C) commerce
Answer: A
Copyright 2006 Prentice-Hall. All rights reserved.
Difficulty: Moderate
Chapter 13: Electronic Commerce and E-Business

4.
The World Wide Web was developed in the decade of the:

A. 1960s.
B. 1970s.
C. 1980s.
D. 1990s.
Answer: D
5.
The dot-com bust of 2000-2001 caused approximately ___________ technology start-up businesses to
close.
A. 100
B. 1,000
C. 10,000
D. 35,000
Answer: B
6.
Internet-based companies are often referred to as:

A. technology-savvy companies.
B. brick-and-mortar companies.
C. Fortune 100 companies.
D. dot coms.
Answer: D
7.
Reference: How E-Commerce is Transforming Business
Difficulty: Easy
E-commerce sales currently account for approximately ____________ percent of the U.S. economy.
A. 5
B. 10
C. 25
D. 35
Answer: A

8.
In a survey of CEOs that asked how e-commerce has changed the way they do business, CEOs cited all of
the following EXCEPT:
A. boosted online sales.
B. decreased productivity.
C. improved relationships with customers and suppliers.
D. created more efficient supply chains.
Answer: B
9.
What did a University of Texas study find in regard to market share growth for Internet-based companies in
comparison to U.S. businesses overall?
A. Internet-based companies are two and a half times higher than U.S. businesses overall.
B. Internet-based companies have about the same rate of market share growth.
C. Internet-based companies have slightly less market share growth than U.S. businesses overall.
D. Internet-based companies have ten times higher overall business growth.
Answer: A
10.
The basic idea of ____________ is that a minimum of two parties exchange products, services, and/or
information using network technology.
A. m-commerce
B. e-commerce
C. information interchange
D. business-to-business structures
Answer: B
11.
Reference: E-Commerce Models
Business-to-employee (B2E) most closely equates to and is sometimes referred to as:

A. consumer-to-consumer (C2C).
B. business-to-consumer (B2C).
C. business-to-business (B2B).
D. consumer-to-business (C2B).
Answer: C

12.
____________ refers to an intranet that handles activities that take place within an organization.
A. C2C
B. B2C
C. B2B
D. B2E
Answer: D
13.
Difficulty: Easy
An example of B2C is:

A. a law firm buying computer software for employees.
B. Wal-Mart buying pet food directly from Iams.
C. a student buying a snowboard from burton.com.
D. a university buying desks from a manufacturer.
Answer: C
14.
Difficulty: Easy
An example of C2C is:

A. eBay.
B. burton.com.
C. Amazon.com.
D. Yahoo!.
Answer: A
15.
A ____________ is a necessary part of an intranet.

A. printer
B. LAN with a minimum of ten PCs
C. computer with server software
D. mainframe
Answer: C
Reference: Characteristics of a B2E Intranet

16.
Most intranets use ____________ topology to connect the nodes of the network.
A. Ethernet
B. fiber optic
C. satellite
D. wireless
Answer: A
17.
The communication software that an intranet uses is known as:

A. firmware.
B. Ethernet software.
C. NICware.
D. middleware.
Answer: D
18.
____________ manages the communication protocols for an intranet.

A. Middleware
B. TCP/IP
C. Telecommunications
D. NIC
Answer: B
19.
What keeps unauthorized Internet users from accessing a computer?

A. Middleware
B. TIP/IP
C. Firewall
D. Secure wall
Answer: C

20.
All of the following are examples of typical uses of an intranet EXCEPT:

A. posting the employee handbook.
B. allowing a group of employees to work on a file simultaneously.
C. allowing customers to purchase products through the Web.
D. posting changes in company health insurance policies.
Answer: C
21.
Reference: How Organizations Use B2E Intranets
Difficulty: Easy
The connection of multiple private networks that can communicate through a private interorganizational
information system is known as a(n):
A. intranet.
B. extranet.
C. Internet.
D. WAN.
Answer: B
22.
Reference: Extranets to Connect Business Alliances
A secure private network physically attaches intranets to an extranet through:

A. coaxial cable.
B. fiber optics.
C. private leased phone lines.
D. microwave and wireless transmissions.
Answer: C
23.
Reference: Characteristics of a B2B Extranet
A ___________ network has fairly low security and is relatively inexpensive.

A. public
B. secure private
C. virtual private
D. Internet virtual private
Answer: A

24.
Internet virtual private networks are preferred for extranets for all of the following reasons EXCEPT they
are:
A. relatively economical in comparison to other options.
B. reasonably private.
C. fairly secure.
D. complex which makes them more secure.
Answer: D
25.
The ability of Proctor & Gamble to have up-to-the-minute inventory information and to know when to ship
more product to Wal-Mart is an example of:
A. B2B.
B. C2C.
C. B2C.
D. an expert system.
Answer: A
26.
Reference: How Business Alliances Use B2B Extranets
Electronic communication between Wal-Mart and Proctor & Gamble is an example of a(n):
A. intranet.
B. extranet.
C. LAN.
D. WAN.
Answer: B
27.
A typical problem with extranets is:

A. employees dont trust the security provided.
B. high cost.
C. transaction costs are much higher than with traditional methods.
D. extranet transactions are much slower than traditional methods.
Answer: A

28.
The Global Trading Web Council involves companies from all of the following regions EXCEPT:
A. Asia.
B. North America.
C. Europe.
D. South America.
Answer: D
29.
Difficulty: Challenging
The primary obstacles that retails face in expansion of B2C e-commerce include all EXCEPT:
A. ensuring safe transactions.
B. ensuring private transactions.
C. the complexity of Web pages.
D. consumer perception of the safety of the Internet.
Answer: C
30.
Reference: Customer-Centered Web Design
An important Web site feature that companies use to foster customer loyalty is:
A. allowing feedback from customers.
B. creating multiple Web pages so customers do not get bored.
C. creating complex Web pages.
D. sending a thank-you e-mail after a purchase.
Answer: A
31.
Difficulty: Easy
What does a company like UPS use to track packages through the transportation process?
A. An extranet
B. An intranet
C. A VPN
D. Bluetooth technology
Answer: D
Reference: How It Works 13.1: Package Routing and Tracking Difficulty: Moderate

32.
When a customer chooses an item for purchase on a Web site, the item is placed in a virtual:
A. hand basket.
B. paper bag.
C. grocery bag.
D. shopping cart.
Answer: D
33.
Reference: How It Works 13.2: Online Shopping
Difficulty: Easy
A small Web file that contains information on particular items and is sent to and stored on a users
computer is known as a(n):
A. cookie.
B. archived file.
C. cracker.
D. private security file.
Answer: A
34.
When a customer enters private credit card information on a Web site, it is:
A. coded.
B. encrypted.
C. deciphered.
D. programmed.
Answer: B
35.
Many small- and medium-sized businesses use e-commerce software developed by other businesses; these
businesses therefore use:
A. server software.
B. server firewalls.
C. Web client software.
D. Web hosting service.
Answer: D
Reference: Some Technical Requirements of E-Commerce

36.
The Web Host Guild develops industry standards for:

A. Web hosting companies.
B. Web page design.
C. hyperlinks and Web page graphics.
D. ethical standards of e-commerce.
Answer: A
37.
A business code of ethics should include all of the following EXCEPT information on:
A. the organizations privacy policy.
B. the companys intent to use personal information.
C. how the company monitors Web usage behavior.
D. how company employees should treat one another within a technical environment.
Answer: D
Reference: Ethical Issues of E-Commerce
Fill in the Blank:

38.
____________, the revolutionary Internet bookseller, was founded in 1994.
Answer: Amazon.com
39.
Traditional businesses are also called ____________ companies.
Answer: brick-and-mortar
42.
The term ____________ is sometimes used interchangeably with the term e-commerce.
Answer: e-business
41.
Difficulty: Easy
The principles of ____________, conducting business transactions through telecommunications networks,

are based on 50-year-old business practices.
Answer: e-commerce
40.
Reference: Jeff Bezos: The Virtual Bookseller
____________ is connecting to the Internet and intranets through handheld computers, cell phones, and
PDAs.
Answer: M-commerce or Mobile commerce

10

43.
When a nursery buys from a farmer who grows plants specifically for nurseries, it is known as
____________.
Answer: B2B or business-to-business

44.
B2C stands for ____________.
Answer: business-to-consumer Reference: E-Commerce Models

45.
Reference: Information Access for Employees
Reference: Internal Business Transactions
Business alliances with vendors, suppliers, and other organizations may also be referred to as a(n)
____________.
Answer: e-marketplace
54.
The enabling of business alliances with vendors and suppliers in a secure, private environment through
technology is known as a(n) ____________.
Answer: extranet
53.
To access information through an intranet, a user needs ____________ software.
Answer: browser
52.
Difficulty: Easy
Information within a company is often stored in ____________ that employees can access, depending on
their positions within the company.
Answer: databases
51.
VPN stands for ___________.
Answer: virtual private network

50.
On a network, there is a computer with server software and computers with ____________ software.
Answer: client
49.
An internal company network is known as a(n) ____________.
Answer: intranet
48.
C2C stands for ____________.
Answer: consumer-to-consumer
47.
B2E stands for ____________.
Answer: business-to-employee Reference: E-Commerce Models

46.
When a company uses private leased telephone lines to physically attach intranets to an extranet, this
connection is referred to as a(n) ____________ network.
Answer: secure or private
11

55.
A well-designed Web page should include a tool to find product or service information within the Web site;
this tool is known as a(n) ____________.
Answer: search engine

56.
Difficulty: Easy
Difficulty: Easy
To make employees and customers clearly aware of a companys Web policies and e-commerce policies,
the company should publish a(n) ____________ on its Web site.
Answer: code of ethics

64.
Most Web servers use ____________, Unix- or Linux-based operating systems.
Answer: WindowsDifficulty: Moderate

63.
Reference: Customer Relationship Management
A confirmation ___________ is sent to a consumer after a transaction has been approved and the order is
filled.
Answer: email
62.
When an Internet shopper proceeds to checkout, a(n) ____________ part of the Web site is accessed and
personal data is encrypted.
Answer: secure
61.
CRM stands for ____________.
Answer: customer relationship management

60.
Three interactive features that enable users to provide feedback to a company are email, discussion groups,
and ____________.
Answer: chat rooms

59.
Message ____________ standards use software to authenticate the parties involved in a credit card
purchase on the Internet, thereby making Web transactions fairly secure.
Answer: encryption
58.
___________ is an example of an electronic payment system.
Answer: PayPal
57.
The United States FTC, which stands for ____________, handles complaints in regard to e-commerce
business abuse of customers private and personal information.
Answer: Federal Trade Commission
12

Matching:
65.
Match the following e-commerce ethics issues, acts, and organizations to their descriptions:
I.
European Unions Data Protection Directive
A. requires client confidentiality
II.
COPPA
B. responsibility of businesses to institute their

own privacy and protection laws
III. Health Insurance Portability and

Accountability Act
C. requirement of parental consent before

collecting, using, or disclosing personal
information of children under age 13
IV. Self-regulation
D. government agency that oversees ecommerce privacy violations
V.
E. legal protection of privacy of personal data
Federal Trade Commission
Answers: E, C, A, B, D
66.
Difficulty: Easy
Complete the following phrases for well-designed Web sites:

I.
Speed of
A. Product selection
II.
Large, up-to-date
B. Secure
III. Ease of
C. Transaction
IV. transactions
D. After-sale
V.
E. Use
features
Answers: C, A, E, B, D
13

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CHAPTER 13:

ELECTRONIC COMMERCE AND E-BUSINESS

Who founded Amazon.com?

Reference: Jeff Bezos: The Virtual Bookseller

Traditional e-commerce tools include all of the following EXCEPT:

Reference: Electronic Commerce in Perspective

Reference: Electronic Commerce in Perspective

Copyright 2006 Prentice-Hall. All rights reserved.

Chapter 13: Electronic Commerce and E-Business

The World Wide Web was developed in the decade of the:

Reference: Electronic Commerce in Perspective

Reference: Electronic Commerce in Perspective

Internet-based companies are often referred to as:

Reference: How E-Commerce is Transforming Business

Reference: How E-Commerce is Transforming Business

Copyright 2006 Prentice-Hall. All rights reserved.

Chapter 13: Electronic Commerce and E-Business

Reference: How E-Commerce is Transforming Business

Reference: How E-Commerce is Transforming Business

Reference: E-Commerce Models

Business-to-employee (B2E) most closely equates to and is sometimes referred to as:

Reference: E-Commerce Models

Copyright 2006 Prentice-Hall. All rights reserved.

Chapter 13: Electronic Commerce and E-Business

Reference: E-Commerce Models

An example of B2C is:

Reference: E-Commerce Models

An example of C2C is:

Reference: E-Commerce Models

A ____________ is a necessary part of an intranet.

Reference: Characteristics of a B2E Intranet

Copyright 2006 Prentice-Hall. All rights reserved.

Chapter 13: Electronic Commerce and E-Business

Reference: Characteristics of a B2E Intranet

The communication software that an intranet uses is known as:

Reference: Characteristics of a B2E Intranet

____________ manages the communication protocols for an intranet.

Reference: Characteristics of a B2E Intranet

What keeps unauthorized Internet users from accessing a computer?

Reference: Characteristics of a B2E Intranet

Copyright 2006 Prentice-Hall. All rights reserved.

Chapter 13: Electronic Commerce and E-Business

All of the following are examples of typical uses of an intranet EXCEPT:

Reference: How Organizations Use B2E Intranets

Reference: Extranets to Connect Business Alliances

A secure private network physically attaches intranets to an extranet through:

Reference: Characteristics of a B2B Extranet

A ___________ network has fairly low security and is relatively inexpensive.

Reference: Characteristics of a B2B Extranet

Copyright 2006 Prentice-Hall. All rights reserved.

Chapter 13: Electronic Commerce and E-Business

Reference: Characteristics of a B2B Extranet

Reference: How Business Alliances Use B2B Extranets

Reference: How Business Alliances Use B2B Extranets

A typical problem with extranets is:

Reference: How Business Alliances Use B2B Extranets

Copyright 2006 Prentice-Hall. All rights reserved.

Chapter 13: Electronic Commerce and E-Business

Reference: How Business Alliances Use B2B Extranets

Reference: Customer-Centered Web Design

Reference: Customer-Centered Web Design

Copyright 2006 Prentice-Hall. All rights reserved.

Chapter 13: Electronic Commerce and E-Business