Deck 14: Electronic Business

Question 1

EDI falls into which area of electronic business?

A) Business to business
B) Business within an organization
C) Business to consumer
D) A and B

Answer 1

A

Question 2

Bar codes are most widely used in which application(s)?

A) General ledger
B) Sales order and accounts receivable
C) Accounts payable and purchase order
D) Inventory

Answer 2

D

Question 3

The symbology used to label a Scotch brand, 800 megabyte tape drive using its part number of SC800T would most likely be

A) Universal Product Code (UPC)
B) Code 39 B

Answer 3

B

Question 4

A barcode symbology that is not continuous is

A) Universal product code
B) Code 39
C) Interleaved 2 of 5
D) All of these symbologies are continuous.

Question 5

Which of the following EDI over the Internet approach uses templates to map the EDI messages from the way the data are stored in a database to the EDI standard message and processes the message on the client's side?

A) Internet EDI
B) Web-EDI
C) XML/EDI

Question 6

The basic EDI standard most commonly used by businesses in the USA is

A) ANSI
B) EDIFACT
C) X12
D) No single standard is used by most businesses in the USA.

Question 7

The most common EDI document is a(n)

A) Invoice
B) Purchase order
C) Shipping note
D) Price list

Question 8

DataGlyphs are created using

A) Ones and zeros
B) Plus and minus signs
C) Slashes and backslashes
D) Bars

Question 9

What is/are benefits of using automatic ID? (Bar code is the most common example.)

A) Low cost of implementation
B) Reduced cost of data entry
C) Significantly increased accuracy of data entry
D) Both A and B
E) A, B, and C E

Question 10

The technology permitting data on an ordinary business document to be encoded in what appear to be decorative touches on the document is

A) PDF417
B) OCR
C) ASCII
D) DataGlyphs

Question 11

If a purchaser pays for merchandise based upon the receiving report and no invoice is sent, the process is known as

A) Payment on receiving report (PRR)
B) Invoiceless settlement system (ISS)
C) Evaluated receipts settlement (ERS)
D) Paperless due settlement (PDS)

Question 12

What is the most frequently used barcode symbology in the grocery industry?

A) Code 39
B) Postnet
C) Universal Product Code (UPC)
D) Interleaved 2 of 5
E) PDF 417 C

Question 13

A standard barcode symbology that is not continuous is classified as

A) Discrete
B) Fixed length
C) Delimited
D) Unitized

Question 14

The EDI standard most commonly used by businesses in the USA is

A) A comprehensive standard that encompasses all lines of businesses
B) The only common factor in EDI used by USA businesses is that they are all approved by a standards setting organization.
C) There is a single standard with extensive standard variations to accommodate unique requirements of various industries.
D) Most businesses in the USA use an international standard.

Question 15

What would Interleaved 2 of 5 most likely be used for?

A) Drug items
B) Multiple unit packages
C) Small items
D) Items sold by weight
E) Items sold by volume C

Question 16

EDI transactions are typically between which of the following?

A) Companies in the same industry
B) Companies in different industries
C) A vendor and a value-added reseller
D) Both A and B

Question 17

Given the legal status of EDI transactions, which of the following is correct?

A) They should be followed up by legally binding paper documentation.
B) They can stand on their own merit legally and need no paper support.
C) They are legally unenforceable and depend on the trust engendered between trading partners.
D) They should be given legal status by written contracts executed between trading partners.

Question 18

What is the most significant benefit from EDI implementation?

A) Cost reduction from paper work elimination
B) The ability to capture and exercise a degree of control over customers
C) Increased speed in trading in merchandise
D) Increased bargaining ability with suppliers

Question 19

Which of the following statements best characterizes electronic business?

A) Electronic business is a sale or a purchase transaction completed over a computer network.
B) Electronic business is a cash receipts or a cash disbursements transaction completed over a computer network.
C) Electronic business is the identification of business opportunities over a computer network.
D) Electronic business is any process that a business organization conducts over a computer network.

Question 20

What characterizes a "discrete" bar code (as contrasted with "continuous")?

A) It has a fixed length.
B) It has inter-character gaps.
C) It represents a limited amount of data.
D) It uses white and black bars to represent data.
E) None of the above B

Question 21

The "quiet zone" is the white spaces between bar codes.

Question 22

Which of the following technologies would an organization use to prevent access to its private network?

A) Digital signature
B) Firewall
C) Web assurance service
D) Encryption

Question 23

What is the name of a business-to-business configuration where a company provides its own Web-based EDI hosting service?

A) Internet EDI
B) Web-EDI
C) XML/EDI
D) VAN/EDI

Question 24

Which of the following statements is/are true regarding a digital signature?

A) It is generated from the contents of the message and the sender's private key.
B) Extra data are appended to an electronic message to identify and authenticate the sender and message data using public-key encryption.
C) If the receiver of a message sees that a digital signature is attached, the receiver can be confident that no one has altered the message and that the sender is who the sender claims to be.
D) It is generated from the contents of the message and the sender's private key and extra data are appended to an electronic message to identify and authenticate the sender and message data using public-key encryption.

Question 25

What can a company do to protect an e-commerce customer's personal information that the company has stored?

A) Assign user rights to company employees
B) Implement a proxy server
C) Require digital signatures
D) Adopt web assurance service standards

Question 26

How can companies that use e-commerce prevent repudiation?

A) Incorporate firewalls in their systems
B) Make payments using electronic funds transfer
C) Create audit trails by logging message transmissions
D) Use digital signatures

Question 27

The UPC bar code has a center divider with the field on the left and the field on the right representing

A) The industry and the company ID, respectively
B) The product ID and the company ID, respectively
C) The company ID and the product ID, respectively
D) The company ID and the industry, respectively

Question 28

A self-checking symbology is one that supports check digits.

Question 29

In addition to conducting business-to-business over the Internet, business-to-business can also be conducted over an Extranet.

Question 30

The barcode symbology that uses several (more than 2) bar widths is

A) Code 39
B) UPC

Question 31

The acronym "VAN" means value added network.

Question 32

Which of the following technologies acts as a go-between between a company employee and the Internet?

A) Digital signature
B) Proxy server
C) Web assurance service
D) Encryption

Question 33

Continuous bar codes are those that have no inter-character gaps.

Question 34

Which of the following web assurance services assures the consumer that the site is genuine and not a "spoof" site?

A) TRUSTe
B) VeriSign
C) BBB OnLine
D) WebTrust
E) SysTrust B

Question 35

Which of the following web assurance services provides a report indicating whether there are adequate controls over the company's IT-based system and a description of the management's assertions to the effectiveness of the controls?

A) TRUSTe
B) VeriSign
C) BBB OnLine
D) WebTrust
E) SysTrust E

Question 36

Which of the following is(are) common third-party web assurance service(s) for e- commerce?

A) TRUSTe
B) VeriSign
C) BBB OnLine
D) WebTrust
E) SysTrust
F) All of these

Question 37

Companies are rapidly moving their EDI transaction to the Internet because this approach is much less expensive while providing the same level of security as value-added networks.

Question 38

An Extranet consists of two Intranets and one value added network.

Question 39

Most bar code symbologies use both the spaces (white bars) as well as the dark bars to encode data.

Question 40

The international EDI standard is called EDIFACT representing Electronic Data Interchange for Administration, Commerce, and Transportation.

Question 41

Although the rapid availability of data is a benefit of bar codes, it is very expensive to implement.

Question 42

A security feature for Extranets is to create tunnels of secured data flows using cryptography and authorization algorithms.

Question 43

Electronic business is any transaction (such as a purchase or a sale) completed over a computer network that involves the transfer of ownership or rights to use goods or services.

Question 44

Identify the three approaches to support EDI over the Internet and briefly describe each one.

Question 45

Security issues related to e-business include confidentiality of the messages, authentication to determine if the sender is who the sender claims to be, and prevention of access to the clients and servers on the network.

Question 46

A firewall consists of hardware and software that filter messages going out on the Internet.

Question 47

If Jones Manufacturing (see preceding question) were requested by MasMart to affix barcodes to products sold to MasMart, which of the symbologies discussed in this chapter would most likely be selected and why?

Question 48

Identify the two barcode symbologies discussed in the text along with a brief description.

Question 49

EDI standards are set under the supervision of the American National Standards Institute domestically and the United Kingdom internationally.

Question 50

Briefly explain the difference in point-to-point versus value-added-network EDI architecture.

Question 51

Trading partners are two organizations who agree to join in a business arrangement to trade commodities.

Question 52

Electronic data interchange is the computer exchange of business documents between two organizations by telephone, radio, microwave, satellite transmission, or the Internet using a public standard format.

Question 53

In Web-EDI, a trading partner logs onto the web site and completes a form that is submitted to the web server where it is validated and packaged as an EDI message.

Question 54

Identify three of the four functions of a VAN listed in the chapter.

Question 55

Dave is designing a member ID card to issue to customers of his video rental store. He wishes to print a barcode on the card that represents a member's name and telephone number. Which symbology would you recommend to Dave and why? Select from those symbologies covered in this chapter.

Question 56

Jones Manufacturing Company has just received notice from its most important customer-MasMart-that EDI will be the sole method of handling all data exchanges and remittances with its suppliers within twelve months.
A. Describe the various ways that this change can benefit Jones.
B. Jones sells its product in North America, Latin America, and the Far East. If Jones anticipates using EDI with all its customers, what EDI protocol should it adopt as a standard? If MasMart uses X12, what does this suggest regarding EDI communications between Jones and MasMart?

Question 57

List the three types of e-business and give one example of each.

Question 58

Internet EDI employs the services of both the Internet and a VAN.

Question 59

Identify at least two benefits of EDI.

Question 60

The complete format specifications for any EDI document is known as a transaction set.

Question 61

Define a digital signature.

Question 62

Define an Electronic Data Interchange (EDI) system. List three advantages to using one of these systems.

Question 63

Explain the differences between VeriSign, TRUSTe, BBBOnline, CPA WebTrust, and SysTrust by indicating what each assurance service attests to.