Deck 1: Introduction to Electronic Commerce

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

A transaction is an exchange of value.

Question 5

A transaction always has one or more activities associated with it, and an activity will always be related to a transaction.

Question 6

Firms such as Walmart and General Electric have been pioneers in using EDI to improve their purchasing processes and their relationships with suppliers.

Question 7

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

Question 8

The U.S.government is one of the largest EDI trading partners in the world.

Question 9

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

Question 10

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.

Question 11

The skills of merchandising and personal selling can be easy to practice remotely.

Question 12

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

Question 13

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

Question 14

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

Question 15

An outsourcing profile is the collection of attributes that affect how easily a product can be packaged and delivered.

Question 16

A value added network (VAN)is an independent firm that offers connection and transaction-forwarding services to buyers and sellers engaged in EDI.

Question 17

A small-denomination item is a product or service that is hard to distinguish from the same product or services provided by other sellers.

Question 18

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

Question 19

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

Question 20

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

Question 21

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 22

Consumer shopping on the Web is often called ____.

A)B2B
B)B2C
C)B2G
D)e-procurement

Question 23

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

Question 24

A(n)____ is an independent firm that offers connection and transaction-forwarding services to buyers and sellers engaged in EDI.

A)VAN
B)EFT
C)ERP
D)LAN

Question 25

____ is a good example of a company that sells its products to other businesses rather than to consumers.

A)Sohu.com
B)Amazon.com
C)BuyUSA.com
D)Intel

Question 26

Buyers and sellers in commodity markets experience significant transaction costs.

Question 27

Businesses often calculate ____ numbers before committing to any new technology.

A)return-on-investment
B)return-to-profit
C)productivity
D)return-to-value

Question 28

A(n)____ is a set of processes that combine to yield a profit.

A)value system
B)industry value chain
C)shipping profile
D)business model

Question 29

Businesses that engage in EDI with each other are called ____.

A)buyers
B)sellers
C)suppliers
D)trading partners

Question 30

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)SWOT analysis
D)retention costs

Question 31

The combination of store design, layout, and product display knowledge is called ____.

A)business process
B)business transaction
C)merchandising
D)service

Question 32

Researchers estimate that about 20 percent of the content available on the Internet today is in English.

Question 33

Electronic funds transfers are also called ____.

A)wire transfers
B)business transfers
C)money transfers
D)telephone transfers

Question 34

One force driving the growth in global online sales to consumers is the ever-increasing number of people who have access to ____.

A)higher education
B)the Internet
C)health care
D)legal counsel

Question 35

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

Question 36

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

Question 37

Some researchers define a fourth category of electronic commerce called ____, which includes individuals who buy and sell items among themselves.

A)C2C
B)B2B
C)C2B
D)B2C

Question 38

____ 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)Purchase costs
B)Sale costs
C)Transaction costs
D)Hardware costs

Question 39

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

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

Question 40

Which of the following statements is correct?

A)The first wave of electronic commerce was predominantly a U.S.phenomenon.
B)In the second wave of electronic commerce, Internet technologies are being integrated into B2B transactions and internal business processes by using bar codes and scanners to track parts, assemblies, inventories, and production status.
C)In the first wave of electronic commerce, radio-frequency devices and smart cards were combined with biometric technologies.
D)The use of e-mail in the second wave was used as a tool for relatively unstructured communication.

Question 41

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

Question 42

Porter uses the term ____ to describe 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)collaboration

Question 43

Many ____, such as wheat, sugar, and crude oil, are still traded in markets.

A)commodities
B)integrated items
C)products
D)transactions

Question 44

____ organizations are particularly well suited to technology industries that are information intensive.

A)Network
B)Retailing
C)Hierarchical
D)Manufacturing

Question 45

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 46

____________________ learning makes it possible for people to learn skills and earn degrees no matter where they live or which hours they have available for study.

Question 47

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)marketing process
B)market integration
C)vertical integration
D)horizontal integration

Question 48

A combination of ____________________ and traditional commerce strategies works best when the business process includes both commodity and personal inspection elements.

Question 49

For more than 40 years, banks have been using ____________________ which are electronic transmissions of account exchange information over private communications' networks.

Question 50

The term ____________________ refers to the theft of musical artists' intellectual property.

Question 51

In the mid-1990s, ____ used a SWOT analysis to create a business strategy that helped it become a strong competitor in its industry value chain.

A)HP Computer
B)Acer Computer
C)Dell Computer
D)NEC Computer

Question 52

In a ____, 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)value system
C)business model
D)network economic structure

Question 53

In the first wave of electronic commerce, Web pages were primarily in ____________________ (language), particularly on commerce sites.

Question 54

B2B electronic commerce is sometimes called ____________________.

Question 55

Before the Internet came into existence as we know it today, ____________________ provided the connections between most trading partners and were responsible for ensuring the security of the data transmitted.

Question 56

As more people participate in a network, the value of the network to each participant increases.This is known as the ____.

A)law of diminishing returns
B)network effect
C)listing effect
D)fax effect

Question 57

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)supply chain
B)supply group
C)value chain
D)value group

Question 58

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

Question 59

Businesses often have a(n)____________________ department devoted to the function of negotiating purchase transactions with their suppliers.

Question 60

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

A)strategic alliances
B)economic structure
C)virtual companies
D)virtual partnerships

Question 61

The combination of language and customs is often called ____________________.

Question 62

____________________ transactions usually require the coordinated efforts of customs brokers and freight forwarding agencies because the regulations and procedures governing them are so complex.

Question 63

An important element of business ____________________ is anticipating how the other party to a transaction will act in specific circumstances.

Question 64

Companies with established reputations in the physical world often create ____________________ by ensuring that customers know who they are.

Question 65

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

Question 66

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 67

Your e-mail account, which gives you access to a network of other people with e-mail accounts, is an example of a(n)____________________ effect.

Question 68

Software translation is also referred to as ____________________ translation.

Question 69

Human resource management and purchasing, in the value chain model, are known as ____________________ activities.

Question 70

Internet e-mail accounts are far more valuable than single-organization e-mail accounts because of the ____________________.

Question 71

Economists refer to large, hierarchical business organizations as ____________________.

Question 72

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

Question 73

____________________ transactions usually include only the seller, the buyer, their respective banks, and one freight carrier.

Question 74

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

Question 75

List the primary and support activities that are implemented in strategic business unit value chains.

Question 76

When conducting SWOT analysis, what are some of the questions that one should ask to identify strengths and weaknesses?

Question 77

A(n)____________________ organization always has a pyramid-shaped structure.

Question 78

Internet ____________________ includes the computers and software connected to the Internet and the communications networks over which the message packets travel.

Question 79

Discuss the importance of transaction costs.

Question 80

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