CHAPTER 13: ELECTRONIC COMMERCE AND E-BUSINESS
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1 CHAPTER 13: ELECTRONIC COMMERCE AND E-BUSINESS Multiple Choice: 1. founded Amazon.com. A. Alan Kay B. Jeff Bezos C. Bill Gates D. Andy Grove Answer: B Reference: Jeff Bezos: The Virtual Bookseller Difficulty: Challenging 2. refers to sharing information, developing and maintaining business relationships, and using telecommunications networks to conduct business. A. E-commerce B. M-commerce C. B2C D. C2C Answer: A Reference: Electronic Commerce in Perspective 3. The World Wide Web was developed in the: A. 1960s. B. 1970s. C. 1980s. D. 1990s. Answer: D Reference: Electronic Commerce in Perspective Copyright 2008 Prentice-Hall. All rights reserved.
2 4. is defined as two or more parties exchanging products, services, and/or information using network technology. A. Netware B. E-commerce C. A neural network D. A network operating system Answer: B Reference: Electronic Commerce in Perspective Difficulty: Easy 5. Internet-based companies are often referred to as: A. CRMs. B. brick-and-mortar companies. C. Fortune 100 companies. D. dot coms. Answer: D Reference: How E-Commerce is Transforming Business Difficulty: Easy 6. M-commerce stands for: A. management commerce. B. macro commerce. C. mobile commerce. D. moderated commerce. Answer: C Reference: How E-Commerce is Transforming Business 7. When Wal-Mart uses the Internet to purchase inventory items from a vendor company, it is using the e-commerce model. A. C2C B. B2B C. B2E D. B2C Answer: B Reference: E-Commerce Models Difficulty: Easy Copyright 2008 Prentice-Hall. All rights reserved. 2
3 8. B2E most closely equates to: A. C2C. B. B2C. C. B2B. D. C2B. Answer: C Reference: E-Commerce Models 9. An example of B2C is: A. a law firm buying computer software for employees. B. Wal-Mart buying pet food directly from the manufacturer, Iams. C. a student buying a T-shirt from the Lands End website. D. a university buying desks from a manufacturer. Answer: C Reference: E-Commerce Models Difficulty: Easy 10. An example of C2C is: A. ebay. B. Microscoft.com. C. Amazon.com. D. United Airlines. Answer: A Reference: E-Commerce Models 11. All of the following are advantages of using an intranet EXCEPT: A. cross-platform capability. B. security restrictions so employees cannot access the company network from home. C. open standards. D. reduced hardware and software costs. Answer: B Reference: Intranets: E-Commerce to Support Internal Business Processes Difficulty: Easy Copyright 2008 Prentice-Hall. All rights reserved. 3
4 12. Communication software for an intranet includes: A. TCP/IP. B. VPN. C. LAN. D. WAN. Answer: A Reference: Characteristics of a B2E Intranet 13. An intranet includes all of the following EXCEPT: A. middleware. B. TCP/IP software. C. firewalls. D. malware. Answer: D Reference: Characteristics of a B2E Intranet 14. A is an essential component of an intranet. A. CRM B. LAN with a minimum of ten PCs C. computer with server software D. PDA Answer: C Reference: Characteristics of a B2E Intranet 15. Most intranets use topology to connect the nodes of the network. A. Ethernet B. fiber optic C. satellite D. wireless Answer: A Reference: Characteristics of a B2E Intranet Copyright 2008 Prentice-Hall. All rights reserved. 4
5 16. is communications software used by an intranet. A. Firmware B. Ethernet C. NICware D. Middleware Answer: D Reference: Characteristics of a B2E Intranet 17. manages the communication protocols for an intranet. A. Middleware B. TCP/IP C. Telecommunications D. NIC Answer: B Reference: Characteristics of a B2E Intranet 18. keeps unauthorized Internet users from accessing a computer. A. Middleware B. TCP/IP C. Firewalls D. Ethernet Answer: C Reference: Characteristics of a B2E Intranet 19. All of the following provide intranet security EXCEPT: A. data encryption. B. user authentication. C. firewall. D. data compression. Answer: D Reference: Characteristics of a B2E Intranet Copyright 2008 Prentice-Hall. All rights reserved. 5
6 20. All of the following are typical uses of an intranet EXCEPT: A. posting the employee handbook. B. allowing a group of employees to work on the same document. C. allowing customers to purchase products through the Web. D. posting changes to company policies. Answer: C Reference: How Organizations Use B2E Intranets Difficulty: Easy 21. A(n) connects many private networks from different companies for communication through a private interorganizational information system. A. intranet B. extranet C. Internet D. WAN Answer: B Reference: Extranets to Connect Business Alliances 22. Electronic communication between Wal-Mart and Proctor & Gamble is an example of a(n): A. intranet. B. extranet. C. neural network. D. CRM. Answer: B Reference: Extranets to Connect Business Alliances 23. A secure private network physically attaches intranets to an extranet through: A. coaxial cables. B. fiber optics. C. private leased phone lines. D. microwave and wireless transmissions. Answer: C Reference: Characteristics of a B2B Extranet Copyright 2008 Prentice-Hall. All rights reserved. 6
7 24. A network is an extranet with poor security that is relatively inexpensive to set up and maintain. A. public B. secure private C. virtual private D. Internet virtual private Answer: A Reference: Characteristics of a B2B Extranet 25. Internet virtual private networks are preferred over extranets for all of the following reasons EXCEPT: A. data can be encapsulated. B. communications are kept private. C. good security. D. use of inexpensive leased phone lines. Answer: D Reference: Characteristics of a B2B Extranet 26. 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. m-business. Answer: A Reference: Characteristics of a B2B Extranet 27. When ordering a new computer from Dell s website, the individual is initiating a(n) transaction on the Internet. A. B2C B. C2C C. B2B D. B2E Answer: A Reference: Characteristics of a B2B Extranet Copyright 2008 Prentice-Hall. All rights reserved. 7
8 28. While shopping online, are used to keep track of what the customer has placed in the shopping cart. A. spiders B. cookies C. registers D. proxy servers Answer: B Reference: How it Works: Online Shopping Difficulty: Easy 29. When a customer chooses an item for purchase on a Web site, the item is placed in a virtual: A. basket. B. shopping bag. C. box. D. shopping cart. Answer: D Reference: How it Works: Online Shopping Difficulty: Easy 30. A stores a user preference for a particular website on the user s computer. A. cookie. B. VPN file. C. web authoring tool. D. WAV file. Answer: A Reference: How it Works: Online Shopping 31. When you purchase an item from ebay, the electronic payment can be facilitated using: A. SQL. B. ListServ. C. PayPal. D. CRM. Answer: C Reference: How it Works: Using PayPal for Electronic PaymentsDifficulty: Easy Copyright 2008 Prentice-Hall. All rights reserved. 8
9 32. When a home-based businesses uses e-commerce software developed by another company; it is using a(n): A. CRM system. B. FireWire. C. ARPAnet. D. Web hosting service. Answer: D Reference: Some Technical Requirements of E-Commerce 33. A code of ethics should address all of the following EXCEPT for: A. policy on privacy. B. permission to record personal information. C. intended use of recorded personal information. D. scalability. Answer: D Reference: Ethical Issues of E-Commerce Difficulty: Easy 34. A company s e-commerce policies and consumer information privacy should be addressed in a(n): A. information code of ethics B. CRM C. Information firewall D. VPN. Answer: A Reference: Ethical Issues of E-Commerce Difficulty: Easy 35. The requires health care providers and hospitals to protect the confidentiality of an individual s health information. A. ACM Code of Ethics B. Intellectual Property Act C. National Infrastructure Protection Center D. Health Insurance Portability and Accountability Act Answer: D Reference: Ethical Issues of E-Commerce Copyright 2008 Prentice-Hall. All rights reserved. 9
10 36. The European Union s establishes a high level of legal protection for the privacy of individuals and personal data. A. Health Insurance Portability and Accountability Act B. National Infrastructure Protection Center C. Data Protection Directive D. Code of Ethics Answer: C Reference: Ethical Issues of E-Commerce 37. The Children s of 1998 requires certain commercial Web sites to obtain parental consent before collecting, using, or disclosing personal information about children under 13. A. Online Privacy Protection Act B. Data Protection Directive C. National Infrastructure Protection Center D. Code of Ethics Answer: A Reference: Ethical Issues of E-Commerce Fill in the Blank: 38., the revolutionary Internet bookseller, was founded in Answer: Amazon.com Reference: Jeff Bezos: The Virtual Bookseller Difficulty: Easy 39. The principles of, conducting business transactions through telecommunications networks, became Internet based in the 1990s. Answer: e-commerce Reference: Electronic Commerce in Perspective 40. Internet-based companies are referred to as. Answer: dot coms Reference: How E-Commerce is Transforming Business 41. is a new growing type of e-commerce using small computers, cellular phones, PDAs, etc. connected to the Internet or an intranet. Answer: M-business Reference: How E-Commerce is Transforming Business Copyright 2008 Prentice-Hall. All rights reserved. 10
11 42. A family owned traditional restaurant is an example of a and mortar company. Answer: brick Reference: How E-Commerce is Transforming Business Difficulty: Easy 43. When a sports store uses network technology to buy inventory items directly from the manufacturer, it is using the e-commerce model known as. Answer: B2B Reference: E-Commerce Models 44. B2C stands for. Answer: business-to-consumer Reference: E-Commerce Models 45. B2E stands for. Answer: business-to-employee Reference: E-Commerce Models 46. C2C stands for. Answer: consumer-to-consumer Reference: E-Commerce Models 47. An internal company network available through a Web browser is known as a(n). Answer: intranet Reference: Characteristics of a B2E Intranet Difficulty: Easy 48. An intranet includes at least one server connected to many computers with software installed. Answer: client Reference: Characteristics of a B2E Intranet 49. Most intranets use topology to connect the computers, printers and other peripherals physically. Answer: Ethernet Reference: Characteristics of a B2E Intranet Difficulty: Challenging 50. is communications software that handles the actual physical connections between all devices on an intranet. Answer: Middleware Reference: Characteristics of a B2E Intranet 51. An intranet uses software to handle the protocols for communications among the computers on the network. Answer: TCP/IP Reference: Characteristics of a B2E Intranet Difficulty: Challenging 52. A(n) is a private interorganizational information system connecting the intranets of two or more companies. Answer: extranet or e-marketplace Reference: Extranets to Connect Business Alliances Difficulty: Easy Copyright 2008 Prentice-Hall. All rights reserved. 11
12 53. A(n) network uses privately leased phone lines to physically connect intranets. Answer: secure private Reference: Characteristics of a B2B Extranet 54. A(n) network uses special protocols on a public network to provide a secure personal tunnel between intranets. Answer: virtual private Reference: Characteristics of a B2B Extranet Difficulty: Easy 55. VPN stands for. Answer: virtual private networkreference: Characteristics of a B2B Extranet 56. Organizations can set up an extranet as a(n) network using a public network with special protocols so that there is a secure tunnel connecting the intranets of business partners. Answer: virtual private Reference: Characteristics of a B2B Extranet 57. A(n) provides a secure, private environment for communication between vendors and suppliers. Answer: extranet Reference: Characteristics of a B2B Extranet 58. Business alliances with vendors, suppliers, and other organizations may also be referred to as a(n). Answer: e-marketplace Reference: 59. When a company uses privately leased telephone lines to physically attach intranets to an extranet, the connection is referred to as a(n) network. Answer: secure private Reference: Characteristics of a B2B Extranet Difficulty: Challenging 60. CommerceOne, an e-commerce software and services company is developing a multi-industry worldwide extranet called. Answer: Global Trading Web Reference: How Business Alliances Use B2B Extranets Difficulty: Challenging 61. While customers shop online, keep track of web pages visited and contents of the shopping cart. Answer: cookies Reference: How it Works: Online Shopping Difficulty: Easy 62. When a customer shops online, a confirmation is sent to the customer once the transaction has been accepted. Answer: Reference: How it Works: Online Shopping Difficulty: Easy Copyright 2008 Prentice-Hall. All rights reserved. 12
13 63. The is a consortium of Web hosting companies whose purpose is to protect consumers from unscrupulous host providers. Answer: Web Host Guild Difficulty: Challenging Reference: Some Technical Requirements of E-Commerce 64. With regard to privacy standards, the U.S. prefers a policy of, as opposed to legislation, because companies fear that legislation will quash e-commerce. Answer: self-regulation Reference: Ethical Issues or E-Commerce 65. A typical system uses a database to record customer preferences and purchases. Answer: CRM Reference: Customer Relationship Management 66. CRM stands for. Answer: customer relationship management Reference Customer Relationship Management Difficulty: Challenging 67. is the ability to expand to handle increases in capacity. Answer: Scalability Reference: Some Technical Requirements of E-Commerce 68. The consortium of Web hosting companies is called the. Answer: Web Host Guild Difficulty: Challenging Reference: Some Technical Requirements of E-Commerce 69. A(n) service provides e-commerce software and expertise for an online business. Answer: Web hosting Reference: Some Technical Requirements of E-Commerce 70. To make employees and customers clearly aware of a company s Web and e-commerce policies, the company should publish a(n) on its Web site. Answer: code of ethics Reference: Ethical Issues of E-Commerce 71. The Act requires health care providers and hospitals to protect the confidentiality of an individual s health information. Answer: Health Insurance Portability and Accountability Reference: Ethical Issues of E-Commerce 72. The Act of 1998 requires certain commercial Web sites to obtain parental consent before collecting, using, or disclosing personal information about children under 13. Answer: Children s Online Privacy Protection Reference: Ethical Issues of E-Commerce Difficulty: Challenging Copyright 2008 Prentice-Hall. All rights reserved. 13
14 73. In 1998, the Directive established a high level of legal protection for the privacy of individuals and personal data within the EU. Answer: Data Protection Reference: Ethical Issues of E-Commerce Difficulty: Challenging Matching: 74. Match the following e-commerce ethics issues, acts, and organizations to their descriptions: I. European Union s Data Protection Directive A. protects privacy of medical information II. COPPA B. requires parental consent before collecting, using, or disclosing personal information of children under age 13. III. Health Insurance Portability and Accountability Act IV. Federal Trade Commission C. government agency that oversees e-commerce privacy violations D. adopted in 1998 establishing a high level of legal protection of personal data Answers: D, B, A, C Reference: Ethical Issues of E-Commerce Difficulty: Easy 75. Match the following terms to their meanings: I. CRM A. allows staff members access to the organization s intranet from home II. TCP/IP III. B2E IV. VPN B. secure tunnel through the Internet or between intranets C. administers customer relationships in an organized manner D. facilitates communication using a set of network protocols V. B2B E. companies provide goods or services to other companies Answer: C, D, A, B, E Reference: Multimedia Difficulty: Easy Copyright 2008 Prentice-Hall. All rights reserved. 14
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