Deck 1: Introduction to Electronic Commerce

Question 1

Economists use a formal definition of market that includes two conditions: first, the potential sellers of a good come into contact with potential buyers, and second, that a medium of exchange is available.

Answer 1

True

Question 2

A DVD is an excellent example of an item with a high value-to-weight ratio.

Answer 2

True

Question 3

A problem that EDI pioneers faced was the high cost of implementation.

Answer 3

True

Question 4

A product that has a strong brand reputation is easier to sell over the Web than an unbranded item.

Question 5

A product's shipping profile is a collection of details about the shipper.

Question 6

Electronic payment can be easier to audit and monitor than payment made by check.

Question 7

Business-to-business electronic commerce occurs when a person sells an item through a Web auction site to another person.

Question 8

Transferring funds, placing orders, sending invoices, and shipping goods to customers are all types of activities or transactions.

Question 9

Irrespective of the transferability of merchandising skills to the Web, products are difficult to sell on the Web.

Question 10

Electronic commerce reduces the speed and accuracy with which businesses can exchange information.

Question 11

The legal environment in which electronic commerce is conducted is full of clear and concise laws.

Question 12

In some cases, business processes use traditional commerce activities very effectively, and technology cannot improve them.

Question 13

The U.S. government is one of the largest electronic data interchange (EDI) trading partners in the world.

Question 14

The increase in broadband connections in homes is a key element in the B2C component of the second wave.

Question 15

All the activities associated with a transaction result in measurable and recordable transactions.

Question 16

Electronic commerce provides buyers with an easy way to customize the level of detail in the information they obtain about a prospective purchase.

Question 17

IBM defines electronic business as "the transformation of key business processes through the use of Internet technologies."

Question 18

A commodity item is a product or service that is hard to distinguish from the same product or service provided by other sellers.

Question 19

A transaction is an exchange of value, such as a purchase, a sale, or the conversion of raw materials into a finished product.

Question 20

Value-added networks are leased telephone lines that establish direct network connections to all trading partners of an organization.

Question 21

A(n) _____ is a set of processes that combine to achieve a company's primary goal, which is typically to yield a profit.

A) value system
B) industry value chain
C) strategic business unit
D) business model

Question 22

Businesses and individuals can use electronic commerce to reduce transaction costs by improving the flow of information and increasing the coordination of actions.

Question 23

A(n) _____ is an independent firm that offers connection and transaction-forwarding services to buyers and sellers engaged in electronic data interchange.

A) value-added network
B) freight forwarder
C) business incubator
D) online retailer

Question 24

Most economists agree that markets are weak and ineffective mechanisms for allocating scarce resources.

Question 25

_____ can be a better way to sell items that rely on personal selling skills.

A) M-commerce
B) Social commerce
C) Traditional commerce
D) E-commerce

Question 26

Consumer shopping on the Web is often called _____.

A) B2B
B) B2C
C) brick and mortar retailing
D) e-procurement

Question 27

A barrier to the predictability of costs and revenues of electronic commerce projects is _____.

A) the rapid changes in underlying technologies
B) the need for a critical mass willing to buy through the Internet
C) the cultural obstacles in conducting electronic commerce
D) the legal environment in which electronic commerce is conducted

Question 28

Buyers and sellers in commodity markets experience significant transaction costs.

Question 29

Using the value chain reinforces the idea that electronic commerce should be a business solution, not a technology implemented for its own sake.

Question 30

A(n) _____ is a specific collection of business processes used to identify customers, market to those customers, and generate sales to those customers.

A) industry value chain
B) strategic alliance
C) revenue model
D) value-added network

Question 31

The group of logical, related, and sequential activities and transactions in which businesses engage are often collectively referred to as _____.

A) business  services
B) business  processes
C) business  logistics
D) business  communications

Question 32

Electronic funds transfers are also called _____.

A) wire transfers
B) business transfers
C) data transfers
D) strategic transfers

Question 33

One significant component of _____ can be the investment a seller makes in equipment or in the hiring of skilled employees to supply the product or service to the buyer.

A) economic costs
B) transaction costs
C) opportunity costs
D) retention costs

Question 34

The combination of store design, layout, and product display knowledge to create store environments that help convince customers to buy is called _____.

A) merchandising
B) crowdsourcing
C) outsourcing
D) departmentalizing

Question 35

A freight forwarder is a company that arranges shipping and  insurance for international transactions.

Question 36

Banks use _____, which are electronic transmissions of account exchange information over private communications' networks.

A) wire transfers
B) machine translations
C) data analytics
D) big data

Question 37

_____ are the total of all costs that a buyer and a seller incur as they gather information and negotiate a purchase-and-sale transaction.

A) Opportunity costs
B) Operating costs
C) Transaction costs
D) Historical costs

Question 38

_____ is the use of interpersonal connections online to promote or sell goods and services.

A) Social integration
B) Social commerce
C) M-commerce
D) Vertical integration

Question 39

Businesses that engage in electronic data interchange with each other are called _____.

A) institutional partners
B) channel partners
C) commodity partners
D) trading partners

Question 40

_____ refers to technologies that include software that allows users of Web sites to participate in the creation, edition, and distribution of content on a Web site owned and operated by a third party.

A) Big data
B) Web 1.0
C) Pure dot-com
D) Web 2.0

Question 41

A _____ is a way of organizing the activities that each strategic business unit undertakes to design, produce, promote, market, deliver, and support the products or services it sells.

A) business activity
B) SWOT analysis
C) value chain
D) strategic alliance

Question 42

According to Porter, _____ describes the larger stream of activities into which a particular business unit's value chain is embedded.

A) business strategy
B) value system
C) business integration
D) value-added network

Question 43

SWOT is the acronym for _____.

A) supply, wealth, occupations, and threats
B) supply, weaknesses, opportunities, and testing
C) strengths, weaknesses, opportunities, and threats
D) strengths, wealth, occupations, and testing

Question 44

A product's _____ is the collection of attributes that affect how easily that product can be packaged and delivered.

Question 45

In a(n)_____, companies coordinate their strategies, resources, and skill sets by forming long-term, stable relationships with other companies and individuals based on shared purposes.

A) market economic structure
B) informal economic structure
C) hierarchical economic structure
D) network economic structure

Question 46

An infrastructure issue that a company faces when it conducts international commerce includes _____.

A) communication costs
B) language differences
C) trusting relationships
D) inhospitable cultures

Question 47

In _____ or telework, an employee logs in to the company network through the Internet instead of traveling to an office.

Question 48

_____ occurs when one business transmits computer-readable data in a standard format to another business.

Question 49

_____ is a primary activity undertaken by an organization's strategic business unit.

A) Identifying customers
B) Training employees
C) Research and development
D) Borrowing funds

Question 50

The practice of an existing firm replacing one or more of its supplier markets with its own hierarchical structure for creating the supplied product is called _____.

A) merchandising
B) crowdsourcing
C) vertical integration
D) horizontal integration

Question 51

Business-to-business (B2B) electronic commerce is sometimes called _____.

Question 52

Economists generally refer to large _____ as firms, or companies.

Question 53

As more people participate in a network, the value of the network to each participant increases. This increase in value is called a  _____.

A) telework model
B) network effect
C) network model
D) transactional effect

Question 54

The _____ refers to a strategy adopted by many companies and investors who believed that by being the first Web site to offer a particular type of product or service, they would be given opportunities to be successful.

Question 55

The term _____ refers to the theft of intellectual property from the Web.

Question 56

In SWOT analysis, the question "Are industry trends moving upward?" involves identifying the _____ of an organization.

A) strengths
B) weaknesses
C) opportunities
D) threats

Question 57

The highly sophisticated tools for investigating patterns and knowledge contained in big data are called _____.

Question 58

A(n) _____ is a gathering of people who share a common interest, and this gathering takes place on the Internet.

Question 59

The term _____ is used in business to describe very large stores of information such as that collected by online sellers about their customers.

Question 60

Strategic partnerships occurring between or among companies operating on the Internet are called _____.

A) network alliances
B) virtual integration
C) virtual companies
D) value-added partnerships

Question 61

What types of business processes are well suited to electronic commerce?

Question 62

Departments devoted to negotiating purchase transactions with suppliers are called _____.

Question 63

The only difference a buyer perceives when  shopping for a commodity item is its _____.

Question 64

A(n) _____ is a company that arranges the payment of tariffs and compliance with customs laws for international shipments.

Question 65

A(n) _____ is a task performed by a worker in the course of doing his or her job.

Question 66

_____ is a category of electronic commerce that includes individuals who buy and sell items among themselves.

Question 67

Human resource management and purchasing activities, which are part of a value chain model, are known as _____.

Question 68

Software translation is also referred to as _____ translation.

Question 69

The term _____ refers to a translation that considers multiple elements of an environment, such as business and cultural practices, in addition to dialect variations in the language.

Question 70

The _____  refer to the activities that each strategic business unit undertakes to design, produce, promote, market, deliver, and support the products or services it sells.

Question 71

List the primary and supporting activities organized by a value chain for a strategic business unit.

Question 72

List the three categories of electronic commerce that are most commonly used.

Question 73

A(n) _____ is a secure location where incoming international shipments can be held until customs requirements are satisfied or until payment arrangements are completed.

Question 74

_____ are mobile phones that include a Web browser, a full keyboard, and an identifiable operating system that allows users to run various software packages.

Question 75

The law of _____ says that most activities yield less value as the amount of consumption increases.

Question 76

What are the SWOT analysis questions that an analyst should be asking to identify an organization's strengths and weaknesses?

Question 77

What are transaction costs?

Question 78

The combination of language and customs is often called _____.

Question 79

A(n) _____ unit is an autonomous part of a company that is large enough to manage itself but small enough to respond quickly to changes in its business environment.

Question 80

Multiple firms that sell similar products to similar customers make up a(n) _____.