University of Houston, Downtown

EIS 3302

Chapter Number: 7

Question Type: Multiple Choice

1)Which of the following is not an effect that E-commerce has had on organizations?

1. E-commerce enables smaller businesses to operate in areas dominated by larger companies.
2. E-commerce increases the number of potential customers to whom the company can market its products.
3. E-commerce is a costly medium for increasing market share.
4. E-commerce removes many barriers for start-up businesses.
5. E-commerce makes it easy to reach customers around the world.

2.               , which is a broader concept than                  , is the buying and selling of goods and services, as well as servicing customers, collaborating with business partners, and performing transactions within an organization.

1. Business-to-business electronic commerce, business-to-customer electronic commerce
2. Electronic commerce, electronic business
3. Business-to-customer electronic commerce, business-to-business electronic commerce
4. Business-to-business electronic commerce, intrabusiness electronic commerce
5. Electronic business, electronic commerce

3. The degree of digitization relates to all of the following except:

1. the product or service sold
2. the process by which the product is produced
3. the delivery agent or intermediary
4. the size of e-commerce transactions
5. none of these

4. In                      e-commerce, the sellers and buyers are organizations.

1. government-to-citizen
2. consumer-to-consumer
3. business-to-business
4. business-to-consumer
5. consumer-to-business

5. In                        e-commerce, an organization provides information and services to its workers.

1. business-to-employee
2. consumer-to-consumer
3. consumer-to-business
4. business-to-consumer
5. government-to-business

6. Direct payment of Social Security benefits is an example of                           e-commerce.

1. government-to-citizen
2. consumer-to-consumer
3. consumer-to-business
4. business-to-consumer
5. business-to-business

7. If you are an worker managing your fringe benefits over your company’s intranet, you are engaging in        e-commerce.

1. business-to-business
2. business-to-consumer
3. consumer-to-consumer
4. business-to-employee
5. government-to-citizen

8. Which of the following statements regarding the relationship between electronic commerce and search is not correct?

1. Purchases often follow successful online searches.
2. Shopping carts are often abandoned after unsuccessful online searches.
3. Retailers will provide fewer product details to avoid information overload for customers.
4. Customers will be able to find the closest store offering the product that they want.
5. Customers will have more relevant product information in the near future.

9. In                auctions, there is one buyer who wants to buy a product. Suppliers submit bids, and the lowest bid wins.

1. forward

2. static
3. reverse
4. physical
5. simple

10. eBay uses a                 auction.

1. forward
2. static
3. reverse
4. physical
5. simple

11.                auctions employ a request for quotation.

1. Forward
2. Static
3. Reverse
4. Physical
5. Simple

12.                auctions are the most common auction model for large purchases.

1. Forward
2. Static
3. Reverse
4. Physical
5. Simple

13. In which of the following business models do businesses request quotes from suppliers and use B2B with a reverse auction mechanism?

1. find-the-best-price
2. electronic tendering system
3. name-your-own-price
4. online direct marketing
5. affiliate marketing

14. A vendor asks its business partners to place logos or banners on their Web sites. If customers click on a logo, visit the vendor’s site, and make a purchase, then the vendor pays a commission to the partner. This scenario illustrates which business model?

1. find-the-best-price
2. electronic tendering system
3. name-your-own-price
4. online direct marketing
5. affiliate marketing

15. Which type of electronic commerce is the largest by volume?

1. business-to-employee
2. consumer-to-consumer
3. business-to-business
4. business-to-consumer
5. none of these

16. Which type of electronic commerce does Amazon practice?

1. business-to-employee
2. consumer-to-consumer
3. consumer- to-business
4. business-to-consumer
5. employee-to-business

17.                     e-commerce is also known as e-tailing.

1. Business-to-business
2. Collaborative commerce
3. Intrabusiness
4. Business-to-consumer
5. Consumer-to-business

18. The advantages of electronic commerce for consumers include all of the following except:

1. You can buy from home 24 hours per day, 7 days per week.
2. You have a wider variety of products to choose from.
3. You typically cannot access additional information, so you do not have information overload.
4. You can easily compare prices and features.

5. You can find unique items.

19. Which of the following is not an electronic commerce application?

1. home banking
2. buying stocks
3. evaluating an employee
4. conducting an auction
5. buying real estate

20. Which of the following is not an advantage of e-tailing?

1. You can buy from home, 24 hours per day.
2. You have only a few products to choose from.
3. You can obtain detailed information on products.
4. You can compare competitors’ products and prices.
5. All of these

21.                        is the process whereby a fully automated electronic commerce transaction eliminates middlemen.

1. Disintegration
2. Supply chain integration
3. Direct sales
4. Disintermediation
5. Value-added services

22. Cyberbanking offers all of the following advantages except:

1. It is convenient for customers.
2. It saves time for customers.
3. It includes inexpensive transactions for the bank.
4. It can help recruit remote customers.
5. It is more expensive for the customer.

23. Which of the following is a problem that e-commerce can cause for the airline industry?

1. Too many fares
2. Mistakes in fares
3. Too few fares
4. No fares offered on certain routes
5. Too many fares offered on certain routes

24. Refer to IT’s About Business 7.1: Which of the following is not true about Persson’s Minecraft?

1. Persson developed Minecraft on his own.
2. Minecraft is played through a Web browser.
3. Minecraft is distributed by Apple Co.
4. Mojang is a mobile version of Minecraft that will be distributed through app stores.
5. Minecraft players build landscapes.

25. In IT’s About Business 7.2, Treat America turned to E-business for all of the following reasons except:

1. The company needed to capture extensive data from each vending machine.
2. The company wanted a competitive advantage over competitors that simply raised prices.
3. The company’s vending machines are unmanned.
4. Gas prices are increasing.
5. The company’s vending machines are open beyond “normal” business hours.

26. Difficulties in order fulfillment are most closely associated with which type of electronic commerce?

1. business-to-business
2. business-to-consumer
3. government-to-citizen
4. business-to-employee
5. mobile commerce

27. Internet advertising improves on traditional advertising in all of the following ways except:

1. Internet ads can be updated at any time at minimal cost.
2. Internet ads can reach large numbers of potential buyers all over the world.
3. Internet ads are always more effective than other types of advertising.

4. Internet ads can make effective use of multimedia.
5. Internet ads are current.

28. A                 is automatically launched by some trigger and appears behind the active window.

1. keyword banner
2. random banner
3. pop-up ad
4. pop-under ad
5. text box

29.                offer(s) consumers incentives to accept advertising and e-mail voluntarily.

1. Viral marketing
2. Personalized marketing
3. Permission marketing
4. Paper catalogs
5. Direct mail

30. refers to online word-of-mouth marketing.

1. Permission marketing
2. One-to-one marketing
3. Personalized marketing
4. Viral marketing
5. Direct mail

31. In the

marketplace model, organizations attempt to sell their products or services to

other organizations electronically.

1. buy-side
2. sell-side
3. group purchasing
4. desktop purchasing
5. electronic exchange

32. The key mechanisms of the                   marketplace model are forward auctions and electronic

catalogs that can be customized for each large buyer.

1. buy-side
2. sell-side
3. group purchasing
4. desktop purchasing
5. electronic exchange

33. In the                marketplace model, EC technology is used to streamline the purchasing process in order to reduce the cost of items purchased, the administrative cost of procurement, and the purchasing cycle time.

1. buy-side
2. sell-side
3. auctions
4. group purchasing
5. electronic exchange

34. In the                B2B application, the orders of many buyers are aggregated so that they comprise a large volume, in order to merit more seller attention.

1. buy-side
2. sell-side
3. auctions
4. group purchasing
5. electronic exchange

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

1. horizontal exchanges
2. vertical exchanges
3. buy-side marketplaces
4. functional exchanges
5. sell-side marketplaces

36.                connect buyers and sellers across many industries and are used mainly for indirect materials.

1. Horizontal exchanges

2. Vertical exchanges
3. Buy-side marketplaces
4. Functional exchanges
5. Sell-side marketplaces

37. All of the following are limitations of traditional payment methods in electronic commerce except:

1. Cash cannot be used because there is no face-to-face contact.
2. Paying for goods and services via the mail takes more time.
3. Not all organizations accept credit cards.
4. It is more secure for the buyer to use the telephone than to complete a secure transaction on a computer.
5. None of these

38.                are a payment mechanism that are similar to regular bank checks but are transmitted electronically, with a signature in digital form.

1. Electronic checks
2. Electronic credit cards
3. Electronic cash transactions
4. Electronic wallets
5. Electronic debit cards

39.                use credit card numbers, transmitted electronically over the Internet, to pay for goods and services. They are either unencrypted or encrypted, with coded data readable by an intermediary between the buyer’s and seller’s banks.

1. Electronic checks
2. Electronic credit cards
3. Electronic cash transactions
4. Electronic wallets
5. Electronic debit cards

40.                are typically used for unplanned B2B purchases for amounts under $2000.

1. Electronic checks
2. Stored-value money cards

3. Purchasing cards
4. Smart cards
5. Person-to-person payments

41.                  are a form of e-cash that enable you to store a fixed amount of prepaid money and then spend it as necessary.

1. Electronic checks
2. Stored-value money cards
3. Purchasing cards
4. Smart cards
5. Person-to-person payments

42.                contain a chip that can store information and be used for several purposes.

1. Electronic checks
2. Stored-value money cards
3. Purchasing cards
4. Smart cards
5. Person-to-person payments

43.                enable two individuals to transfer funds without using a credit card.

1. Electronic checks
2. Stored-value money cards
3. Purchasing cards
4. Smart cards
5. Person-to-person payments

44.                are software mechanisms that provide security measures and convenience for electronic commerce purchasing.

1. Electronic checks
2. Digital wallets
3. Purchasing cards
4. Smart cards
5. Person-to-person payments

45. The practice of using similar but not identical domain names is called                          .

1. domain spoofing
2. domain masquerading
3. domain tasting
4. cybersquatting
5. domain fraud

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

1. Domain spoofing
2. Domain masquerading
3. Domain tasting
4. Cybersquatting
5. Domain fraud

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

1. the amount of money in the machine at any given minute.
2. the amount of product inventory remaining.
3. whether the machine had been moved.
4. the number of customers.
5. whether the door had been opened after business hours.

48. Companies use Web sites for all of the following reasons except:

1. To reduce operational and transaction costs.
2. To enhance their reputation.
3. To sell goods and services.
4. To reduce the amount of actual cash they need to deal with.
5. To induce people to visit a physical location.