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Question Type: True/False

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

 
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

2. Visiting the Web site of a car manufacturer (e.g., www.gm.com), entering the specifications for the car you want, and then picking up your car at your local dealership is an example of partial electronic commerce.

  
Section reference 1: Overview of E-Business and E-Commerce 
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

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

 
Section reference 1: Overview of E-Business and E-Commerce 
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

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

  
Section reference 1: Overview of E-Business and E-Commerce 
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

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

 
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.  

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

  
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce 
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.

7. You can make a purchase in a referral mall.

 
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.  

8. Selling products such as books and computers on the Internet may reduce vendors’ selling costs by 20 to 40 percent, with further reductions being difficult because the products must be delivered physically.

  
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce 
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.  

9. Virtual banks are those banks that are dedicated only to Internet trAnsweractions.

  
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.  

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

  
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce 
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.  

11. Internet advertising is impersonal, one-way mass communication.  

 
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.  

12. Banners are the most common form of advertisement on the Internet.  

  
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce 
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.  

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

 
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.  

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

 
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.  

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

 
Section reference 1: Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.3 Describe the three business models for business-to-business electronic commerce.

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

 
Section reference 1: Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.3 Describe the three business models for business-to-business electronic commerce.

17. Horizontal exchanges connect buyers and sellers across many industries.

  
Section reference 1: Business-to-Business (B2B) Electronic Commerce 
Difficulty: Easy
Learning Objective 1: LO 7.3 Describe the three business models for business-to-business electronic commerce.

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

  
Section reference 1:  Overview of E-Business and E-Commerce
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

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

  
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.

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

 
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.

21. E-commerce affects only businesses that sell products online.

 
Section reference 1: Opening  case  – Flash Crash
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.


22. Refer to IT’s About Business 7.1: Gemvara is an example of pure e-Commerce. 

 
Section reference 1: IT’s about businesses 7.1
Difficulty: Easy
Learning Objective 1: LO 7.0 Provide a real-world application of e-business and e-commerce.

23. Refer to IT’s About Business 7.1:  Selling luxury items online is as easy as selling books and DVDs.

 
Section reference 1: IT’s About Business 7.1
Difficulty Easy
Learning Objective 1: LO 7.0 Provide a real-world application of e-business and e-commerce

24.  Refer to IT’s About Business 7.4: Showrooming occurs when customers prefer to physically handle the products before purchasing them from the same store. 

Answer. False
Section reference 1: IT’s About Business 7.4
Difficulty Easy
Learning Objective 1: LO 7.0 Provide a real-world application of e-business and e-commerce


25.  Refer to IT’s About Business 7.5: eBay’s updates to its business model involved the development of new technologies. 

Answer. False
Section reference 1: IT’s About Business 7.5
Difficulty Easy
Learning Objective 1: LO 7.0 Provide a real-world application of e-business and e-commerce


 
Question Type: Multiple Choice

26. Which of the following is not an effect that E-commerce has had on organizations?
A. E-commerce enables smaller businesses to operate in areas dominated by larger companies.
B. E-commerce increases the number of potential customers to whom the company can market its products.
C. E-commerce is a costly medium for increasing market share.
D. E-commerce removes many barriers for start-up businesses.
E. E-commerce makes it easy to reach customers around the world.

Answer: C
Section reference 1: Material after Chapter opening case
Difficulty: Easy
Learning Objective 1: LO 7.0 Provide a real-world application of e-business and e-commerce

27. _____, which is a broader concept than _____, is the buying and selling of goods and services, as well as servicing customers, collaborating with business partners, and performing transactions within an organization.
A. Business-to-business electronic commerce, business-to-customer electronic commerce
B. Electronic commerce, electronic business
C. Business-to-customer electronic commerce, business-to-business electronic commerce
D. Business-to-business electronic commerce, intrabusiness electronic commerce
E. Electronic business, electronic commerce

Answer: E
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Medium
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

28. The degree of digitization relates to all of the following except:
A. the product or service sold
B. the process by which the product is produced
C. the delivery agent or intermediary
D. the size of e-commerce transactions
E. none of the above

Answer: D
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Medium
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

29. In _______ e-commerce, the sellers and buyers are organizations.
A. government-to-citizen
B. consumer-to-consumer
C. business-to-business
D. business-to-consumer
E. consumer-to-business

Answer: C
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

30. In ________ e-commerce, an organization provides information and services to its workers.
A. business-to-employee
B. consumer-to-consumer
C. consumer-to-business
D. business-to-consumer
E. government-to-business

Answer: A
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy 
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

31. Direct payment of Social Security benefits is an example of ______ e-commerce.
A. government-to-citizen
B. consumer-to-consumer
C. consumer-to-business
D. business-to-consumer
E. business-to-business

Answer: A
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy 
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

32. If you are an worker managing your fringe benefits over your company’s intranet, you are engaging in _________ e-commerce.
A. business-to-business
B. business-to-consumer
C. consumer-to-consumer
D. business-to-employee
E. government-to-citizen

Answer: D
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

33. Which of the following statements regarding the relationship between electronic commerce and search is not correct?
A. Purchases often follow successful online searches.
B. Shopping carts are often abandoned after unsuccessful online searches.
C. Retailers will provide fewer product details to avoid information overload for customers.
D. Customers will be able to find the closest store offering the product that they want.
E. Customers will have more relevant product information in the near future.

Answer: C
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Medium
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

34. In _____ auctions, there is one buyer who wants to buy a product.  Suppliers submit bids, and the lowest bid wins.
A. forward
B. static
C. reverse
D. physical
E. simple

Answer: C
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

35. eBay uses a _____ auction.
A. forward
B. static
C. reverse
D. physical
E. simple

Answer: A
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

36. _____ auctions employ a request for quotation.
A. Forward
B. Static
C. Reverse
D. Physical
E. Simple

Answer: C
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy 
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

37. _____ auctions are the most common auction model for large purchases.
A. Forward
B. Static
C. Reverse
D. Physical
E. Simple

Answer: C
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy 
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

38. In which of the following business models do businesses request quotes from suppliers and use B2B with a reverse auction mechanism?
A. find-the-best-price
B. electronic tendering system
C. name-your-own-price
D. online direct marketing
E. affiliate marketing

Answer: B
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Difficult 
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

39. A vendor asks its business partners to place logos or banners on their Web sites.  If customers click on a logo, visit the vendor’s site, and make a purchase, then the vendor pays a commission to the partner.  This scenario illustrates which business model?
A. find-the-best-price
B. electronic tendering system
C. name-your-own-price
D. online direct marketing
E. affiliate marketing

Answer: E
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Medium 
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

40. Which type of electronic commerce is the largest by volume?
A. business-to-employee
B. consumer-to-consumer
C. business-to-business
D. business-to-consumer
E. none of the above

Answer: C
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.

41. Which type of electronic commerce does Amazon practice?
A. business-to-employee
B. consumer-to-consumer
C. consumer- to-business
D. business-to-consumer
E. employee-to-business

Answer: D
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce 
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.


42. _______ e-commerce is also known as e-tailing.
A. Business-to-business
B. Collaborative commerce
C. Intrabusiness
D. Business-to-consumer
E. Consumer-to-business

Answer: D
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.


43. The advantages of electronic commerce for consumers include all of the following except:
A. You can buy from home 24 hours per day, 7 days per week.
B. You have a wider variety of products to choose from.
C. You typically cannot access additional information, so you do not have information overload.
D. You can easily compare prices and features.
E. You can find unique items.

Answer: C
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.


44. Which of the following is not an electronic commerce application?
A. home banking
B. buying stocks
C. evaluating an employee
D. conducting an auction
E. buying real estate

Answer: C
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.


45. Which of the following is not an advantage of e-tailing?
A. You can buy from home, 24 hours per day.
B. You have only a few products to choose from.
C. You can obtain detailed information on products.
D. You can compare competitors’ products and prices.
E. All of the above

Answer: B
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce 
Difficulty: Medium
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.


46. ________ is the process whereby a fully automated electronic commerce transaction eliminates middlemen.
A. Disintegration
B. Supply chain integration
C. Direct sales
D. Disintermediation
E. Value-added services

Answer: D
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.


47. Cyberbanking offers all of the following advantages except:
A. It is convenient for customers.
B. It saves time for customers.
C. It includes inexpensive transactions for the bank.
D. It can help recruit remote customers.
E. It is more expensive for the customer.

Answer: E
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.


48. Which of the following is a problem that e-commerce can cause for the airline industry?
A. Too many fares
B. Mistakes in fares
C. Too few fares
D. No fares offered on certain routes
E. Too many fares offered on certain routes

Answer: B
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.


49. Refer to IT’s About Business 7.2: The service offered by ZocDoc is 
A. Digital
B. Physical
C. Both 
D. Neither

Answer: A
Section reference 1: IT’s About Business 7.2
Difficulty: Easy
Learning Objective 1: LO 7.0 Provide a real-world application of e-business and e-commerce.

50. In IT’s About Business 7.3: Macy has involved external companies to perform the following service
A. Increase traffic to the Macy’s website
B. Track Macy’s website traffic
C. Analyze Macy’s website performance
D. Create a mobile version on Macy’s website
E. Track customer details on Macy’s website

Answer: C
Section reference 1: IT’s About Business 7.3
Difficulty: Easy
Learning Objective 1: LO 7.0 Provide a real-world application of e-business and e-commerce.


51. Difficulties in order fulfillment are most closely associated with which type of electronic commerce?
A. business-to-business 
B. business-to-consumer 
C. government-to-citizen 
D. business-to-employee 
E. mobile commerce

Answer: B
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.

52. Internet advertising improves on traditional advertising in all of the following ways except: 
A. Internet ads can be updated at any time at minimal cost.
B. Internet ads can reach large numbers of potential buyers all over the world.
C. Internet ads are always more effective than other types of advertising.
D. Internet ads can make effective use of multimedia.
E. Internet ads are current.

Answer: C
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.

53. A _____ is automatically launched by some trigger and appears behind the active window.
A. keyword banner
B. random banner
C. pop-up ad
D. pop-under ad
E. text box

Answer: D
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.

54. _____ offer(s) consumers incentives to accept advertising and e-mail voluntarily.
A. Viral marketing
B. Personalized marketing
C. Permission marketing
D. Paper catalogs
E. Direct mail

Answer: C
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.

55.  _____ refers to online word-of-mouth marketing.
A. Permission marketing
B. One-to-one marketing
C. Personalized marketing
D. Viral marketing
E. Direct mail

Answer: D
Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.

56. In the _____ marketplace model, organizations attempt to sell their products or services to other organizations electronically.
A. buy-side
B. sell-side
C. group purchasing
D. desktop purchasing
E. electronic exchange

Answer: B
Section reference 1: Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.3 Describe the three business models for business-to-business electronic commerce.

57. The key mechanisms of the _____ marketplace model are forward auctions and electronic catalogs that can be customized for each large buyer.
A. buy-side
B. sell-side
C. group purchasing
D. desktop purchasing
E. electronic exchange

Answer: B
Section reference 1: Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy 
Learning Objective 1: LO 7.3 Describe the three business models for business-to-business electronic commerce.

58. In the _____ marketplace model, EC technology is used to streamline the purchasing process in order to reduce the cost of items purchased, the administrative cost of procurement, and the purchasing cycle time.
A. buy-side
B. sell-side
C. auctions
D. group purchasing
E. electronic exchange

Answer: A
Section reference 1: Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy 
Learning Objective 1: LO 7.3 Describe the three business models for business-to-business electronic commerce.

59. In the _____ B2B application, the orders of many buyers are aggregated so that they comprise a large volume, in order to merit more seller attention.
A. buy-side
B. sell-side
C. auctions
D. group purchasing
E. electronic exchange

Answer: D
Section reference 1: Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.3 Describe the three business models for business-to-business electronic commerce.

60. In _____, direct and indirect materials in one industry are purchased on an as-needed basis.
A. horizontal exchanges
B. vertical exchanges
C. buy-side marketplaces
D. functional exchanges
E. sell-side marketplaces

Answer: B
Section reference 1: Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy
Learning Objective 1: LO 7.3 Describe the three business models for business-to-business electronic commerce.

61. _____ connect buyers and sellers across many industries and are used mainly for indirect materials.
A. Horizontal exchanges
B. Vertical exchanges
C. Buy-side marketplaces
D. Functional exchanges
E. Sell-side marketplaces

Answer: A
Section reference 1: Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy 
Learning Objective 1: LO 7.3 Describe the three business models for business-to-business electronic commerce.

62. All of the following are limitations of traditional payment methods in electronic commerce except:
A. Cash cannot be used because there is no face-to-face contact.
B. Paying for goods and services via the mail takes more time. 
C. Not all organizations accept credit cards.
D. It is more secure for the buyer to use the telephone than to complete a secure transaction  on a computer.
E. None of the above

Answer: D
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Medium
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

63. _____ are a payment mechanism that are similar to regular bank checks but are transmitted  electronically, with a signature in digital form. 
A. Electronic checks
B. Electronic credit cards
C. Electronic cash transactions
D. Electronic wallets
E. Electronic debit cards

Answer: A
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

64. _____ use credit card numbers, transmitted electronically over the Internet, to pay for goods and services. They are either unencrypted or encrypted, with coded data readable by an intermediary between the buyer’s and seller’s banks. 
A. Electronic checks
B. Electronic credit cards
C. Electronic cash transactions
D. Electronic wallets
E. Electronic debit cards

Answer: B
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  


65. ______ are a form of e-cash that enable you to store a fixed amount of prepaid money and then spend it as necessary.
A. Electronic checks
B. Stored-value money cards
C. Purchasing cards
D. Smart cards
E. Person-to-person payments

Answer: B
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

66. _____ contain a chip that can store information and be used for several purposes.
A. Electronic checks
B. Stored-value money cards
C. Purchasing cards
D. Smart cards
E. Person-to-person payments

Answer: D
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

67. _____ enable two individuals to transfer funds without using a credit card.
A. Electronic checks
B. Stored-value money cards
C. Purchasing cards
D. Smart cards
E. Person-to-person payments

Answer: E
Section reference 1: Overview of E-Business and E-Commerce s
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  


68. The practice of using similar but not identical domain names is called _____.
A. domain spoofing
B. domain masquerading
C. domain tasting
D. cybersquatting
E. domain fraud

Answer: C
Section reference 1: Ethical and Legal Issues in E-Business
Difficulty: Easy
Learning Objective: LO 7.4 Identify the ethical and legal issues related to electronic commerce, providing examples.

69. _____ refers to the practice of registering or using domain names for the purpose of profiting from the goodwill or trademark belonging to someone else.
A. Domain spoofing
B. Domain masquerading
C. Domain tasting
D. Cybersquatting
E. Domain fraud

Answer: D
Section reference 1: Ethical and Legal Issues in E-Business
Difficulty: Easy
Learning Objective: LO 7.4 Identify the ethical and legal issues related to electronic commerce, providing examples.

70. Which of the following statements about eBureau is true: 
A. eBureau is used by eCommerce websites
B. eBureau does not violate any privacy laws
C. eBureau gets permission from consumers 
D. eBureau creates ranks and scores consumers
E. eBureau only uses publicly available information 

Answer: D
Section reference 1: Closing Case
Difficulty: Easy
Learning Objective:  LO 7.0 Provide a real-world application of e-business and e-commerce.

71. Companies use Web sites for all of the following reasons except:
A. To reduce operational and transaction costs. 
B. To enhance their reputation. 
C. To sell goods and services.
D. To reduce the amount of actual cash they need to deal with.
E. To induce people to visit a physical location.  

Answer: D
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

Question Type: Essay


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

Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Medium
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

73. Discuss the various types of electronic commerce.

Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Medium
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

74.  Differentiate between forward and reverse auctions.

Section reference 1: Overview of E-Business and E-Commerce 
Difficulty: Medium
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

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

Section reference 1: Business-to-Business (B2B) Electronic Commerce
Difficulty: Hard
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.

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

Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.

77.  Discuss the reasons for E-commerce failures.

Section reference 1: Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.


78. Discuss the benefits and limitations of electronic commerce.

Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Hard
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.  

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

Section reference 1: Business-to-Consumer (B2C) Electronic Commerce 
Difficulty: Hard
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.

80. Discuss the various methods of online advertising.

Section reference 1: Business-to-Consumer (B2C) Electronic Commerce 
Difficulty: Hard
Learning Objective 1: LO 7.2 Discuss the various online services of business-to-consumer electronic commerce, providing a specific example of each.

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

Section reference 1: Overview of E-Business and E-Commerce 
Difficulty: Medium
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.

82. Describe the various types of electronic payments.

Section reference 1: 
Overview of E-Business and E-Commerce 

Difficulty: Hard
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce

83. What is domain tasting?  Should it be made illegal?

Section reference 1: Ethical and Legal Issues in E-Business
Difficulty: Hard
Learning Objective 1: LO 7.4 Identify the ethical and legal issues related to electronic commerce, providing examples.

Question Type: True/False 

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

 
Section reference 1: Ethical and Legal Issues in E-Business 
Difficulty: Medium
Learning Objective 1: LO 7.4 Identify the ethical and legal issues related to electronic commerce, providing examples.


Question Type: Multiple Choice 


85. You decide to start a landscaping business called Trim Grass. One of your services will be to perform fertilizer treatments. You will need to buy a great deal of fertilizer for your many clients.  You can use all of the following methods to purchase the fertilizer except:
A.  Forward auction
B.  Reverse auction
C.  Name your Own Price
D.  Electronic Marketplace
E.  Multichanneling
 
Answer: E
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce

86. You decide to start a landscaping business called Trim Grass. You created a Web site, but it doesn’t seem to be attracting any clients. So, you decide to explore advertising on the Web. Which of the following advertising methods probably would not be beneficial?
A. Banner ads
B.  Pop-up or pop-under ads
C.  Spamming
D.  Permission marketing
E.  Viral marketing

Answer: C
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Medium
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce


87. You decide to start a landscaping business called Trim Grass. Some of your residential clients would like to pay their bills online. Which of the following methods will not be appropriate for this type of payment?
A. Electronic checks
B.  Electronic credit cards
C.  Purchasing cards
D.  Person-to-person payments
E.  Stored–value money cards

Answer: C
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Easy
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce

88. You decide to start a landscaping business called Trim Grass. You expect to use the Web to help clients find you and communicate with you. You will mow lands, clean flower beds, and pick up leaves in the fall. You will send your clients monthly bills. Which of the following is true?
A. Trim Grass is using an e-commerce model.
B.  Trim Grass is using an e-business model.
C.  Trim Grass is using a forward auction.
D.  Trim Grass is an electronic marketplace.
E.  Trim Grass needs to worry about channel conflict.

Answer: B
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Medium
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce


89. You have been running a landscaping business called Trim Grass for about two years. You have developed a special blend of grass seed for your area that you use when you reseed your clients’ lawns. You are receiving e-mails via your Web site from people who would like to purchase some. You decide to start selling seed online, and you hire someone to rebuild your Web site.  Which of the following statements is not true?

A. Trim Grass is now multichanneling.
B. Trim Grass needs to think about how to ship the seed.
C. Trim Grass will have to collect sales tax from all sales.
D. Trim Grass will have more expenses.
E. Trim Grass will need to consider different advertising methods.

Answer: C
Section reference 1: Overview of E-Business and E-Commerce
Difficulty: Hard
Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce


 ## CH 8 ##
Package Title: Testbank Questions
Course Title: IS 5e
Chapter Number: 8

Question Type: True/False


1. Wireless computing does not really affect productivity.

 
Section reference 1: chapter opening case
Difficulty: Easy 
Learning Objective 1: LO 8.0 Provide a real-world application of wireless, mobile computing, and mobile commerce.

2. Wireless is a term used to describe telecommunications in which electromagnetic waves carry the signal between communicating devices.

  
Section reference 1: chapter opening case 
Difficulty: Easy 
Learning Objective 1: LO 8.0 Provide a real-world application of wireless, mobile computing, and mobile commerce.

3. Wireless technologies are not changing the ways that organizations are doing business, but they are enabling organizations to do business faster.

 
Section reference 1: chapter opening case 
Difficulty: Easy 
Learning Objective 1: LO 8.0 Provide a real-world application of wireless, mobile computing, and mobile commerce.

4. Short message service allows users to send short text messages on digital cell phones.  

  
Section reference 1: Wireless Technologies 
Difficulty: Easy 
Learning Objective 1: LO 8.1 Identify advantages and disadvantages of each of the four main types of wireless transmission media.

5. Microwave transmissions are affected by environmental conditions such as storms.

  
Section reference 1: Wireless Technologies 
Difficulty: Easy 
Learning Objective 1: LO 8.1 Identify advantages and disadvantages of each of the four main types of wireless transmission media.

6. The higher the orbit of a satellite, the larger its footprint.

  
Section reference 1: Wireless Technologies
Difficulty: Easy 
Learning Objective 1: LO 8.1 Identify advantages and disadvantages of each of the four main types of wireless transmission media.

7. The global positioning system is supported by GEO satellites.

 
Section reference 1: Wireless Technologies 
Difficulty: Easy 
Learning Objective 1: LO 8.1 Identify advantages and disadvantages of each of the four main types of wireless transmission media.

8. Radio transmissions are highly secure.  

 
Section reference 1: Wireless Technologies
Difficulty: Easy 
Learning Objective 1: LO 8.1 Identify advantages and disadvantages of each of the four main types of wireless transmission media.

9. Bluetooth is a wireless standard that enables temporary, short-range connection between mobile devices.  

  
Section reference 1: Wireless Computer Networks and Internet Access
Difficulty: Easy 
Learning Objective 1: LO 8.2 Describe how businesses can use technology employed by short-range, medium-range, and long-range networks respectively.


10. A hotspot is a small geographical perimeter within which a wireless access point provides service to a number of users.

  
Section reference 1: Wireless Computer Networks and Internet Access 
Difficulty: Easy 
Learning Objective 1: LO 8.2 Describe how businesses can use technology employed by short-range, medium-range, and long-range networks respectively.

11. Wi-Fi provides excellent security.

Answer:  False
Section reference 1: Wireless Computer Networks and Internet Access
Difficulty: Easy 
Learning Objective 1: LO 8.2 Describe how businesses can use technology employed by short-range, medium-range, and long-range networks respectively.


12. In a mesh network, the motes transmit their data to a central computer.

 
Section reference 1: Pervasive Computing
Difficulty: Easy 
Learning Objective 1: LO 8.4 Describe technologies that underlie pervasive computing, providing examples of how businesses can utilize each one.


13. Mesh networks are reliable, efficient, and fault tolerant.

  
Section reference 1: Pervasive Computing
Difficulty: Easy 
Learning Objective 1: LO 8.4 Describe technologies that underlie pervasive computing, providing examples of how businesses can utilize each one.

14. Personalization means that a mobile device can provide real-time communication, independent of the user’s location.  

 
Section reference 1: Mobile Computing and Mobile Commerce
Difficulty: Easy 
Learning Objective 1: LO 8.3 Provide a specific example of how each of the five major m-commerce applications can benefit a business.


15. A voice portal is a standard Web site that accepts voice commands.

 
Section reference 1: Mobile Computing and Mobile Commerce
Difficulty: Easy 
Learning Objective 1: LO 8.3 Provide a specific example of how each of the five major m-commerce applications can benefit a business.

16. Mobile wallets enable users to make purchases with a single click from a mobile device.

  
Section reference 1: Mobile Computing and Mobile Commerce
Difficulty: Easy 
Learning Objective 1: LO 8.3 Provide a specific example of how each of the five major m-commerce applications can benefit a business.

17. Telemetry is the science that measures physical remoteness by means of wireless transmissions from a remote source to a receiving station.  

  
Section reference 1: Mobile Computing and Mobile Commerce
Difficulty: Easy 
Learning Objective 1: LO 8.3 Provide a specific example of how each of the five major m-commerce applications can benefit a business.


18. Pervasive computing and virtual reality are just different names for the same thing.  

 
Section reference 1: Pervasive Computing
Difficulty: Easy 
Learning Objective 1: LO 8.4 Describe technologies that underlie pervasive computing, providing examples of how businesses can utilize each one.

19.  Two systems being developed to replace bar codes are QR codes and RFID systems.

   
Section reference 1: Pervasive Computing
Difficulty: Medium 
Learning Objective 1: LO 8.4 Describe technologies that underlie pervasive computing, providing examples of how businesses can utilize each one.


20. Rogue access points can be set up by employees.

  
Section reference 1: Wireless Security
Difficulty: Easy 
Learning Objective 1: LO 8.5 Explain how the four major threats to wireless networks can damage a business.

21. War driving is the act of locating wireless networks while driving around a certain area.

  
Section reference 1: Wireless Security
Difficulty: Easy 
Learning Objective 1: LO 8.5 Explain how the four major threats to wireless networks can damage a business.


22. Refer to IT’s About Business 8.6 – BP Uses Wireless Technologies: Wireless sensors can be used to increase safety and reliability by doing tasks that are too dangerous for humans. 

 
Section reference 1: IT’s About Business 8.6
Difficulty: Medium
Learning Objective 1: LO 8.0 Provide a real-world application of wireless, mobile computing, and mobile commerce.

23. Refer to IT’s About Business 8.7 – Brazil Uses Smart Meters: Smart Meters can be used to monitor electricity consumption and detect theft.

  
Section reference 1: IT’s About Business 8.7
Difficulty: Easy
Learning Objective 1: LO 8.0 Provide a real-world application of wireless, mobile computing, and mobile commerce.

Question Type:  Multiple Choice


24. Individuals are finding it convenient and productive to use wireless devices for which of the following reasons?
A. To make use of time that was formerly wasted
B. To become more efficient
C. Work locations are more flexible
D. To be able to allocate working time around personal and professional obligations
E. All of the above

Answer: E
Section reference 1: Wireless Technologies
Difficulty: Medium
Learning Objective 1:  LO 8.1 Identify advantages and disadvantages of each of the four main types of wireless transmission media.


25. Of the following, which is the major problem with smart phones?
A. They are too slow.
B. They are too expensive.
C. They can be used to compromise security.
D. Their screens are too small.
E. Their browsers are not fully functional.

Answer: C
Section reference 1: Wireless Technologies
Difficulty: Medium
Learning Objective 1:  LO 8.1 Identify advantages and disadvantages of each of the four main types of wireless transmission media.


26. The capabilitie

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1. In traditional commerce, one or more of the following can be digital: the product or service, the process, and the delivery agent.   Section reference 1: Overview of E-Business and E-Commerce Difficulty: Easy Learning Objective 1: LO 7.1 Describe the six common types of electronic commerce.   2. Visiting the Web site of a car manufacturer (e.g., www.gm.com), entering the specifications for the car you want, and then picking up your car at your local dealership is an example of partial electronic commerce.    Section reference 1: Overview of E-Business and E-Commerce  Difficulty: Easy Learning Objective 1: LO 7.1 Describe the...
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