Deck 7: E-Business and E-Commerce

Question 1

____ accounts for the majority of e-commerce transactions.

A) B2C
B) B2B
C) C2C
D) B2E
E) G2C

Answer 1

B

Question 2

The sales tax laws that apply to brick-and-mortar stores also apply to all e-commerce stores.

Answer 2

False

Question 3

When organizations request for bids for contracts on their own Web site for procurement, such business is classified as a(n):

A) Buy-side marketplace.
B) Sell-side marketplace.
C) Electronic exchange.
D) None of these.

Answer 3

A

Question 4

For a small-to-medium enterprise, the benefits of setting up an e-commerce store front include (choose all that apply):

A) The ability to offer a larger selection of products.
B) The ability to eliminate advertising.
C) The ability to offer lower prices to customers.
D) The ability to reach a wider customer base.

Question 5

The opening case illustrates how e-commerce has increased (choose all that apply):

A) The speed at which we do business.
B) The occurrence of human errors.
C) The volume of business transactions.
D) The skill with which computers are able to handle unexpected situations.

Question 6

Virtual credit cards create new credit card accounts that are valid only for a pre-defined number of transactions.

Question 7

eBay employs the ___ auction mechanism.

A) Forward
B) Reverse
C) Dutch
D) Proprietary eBay

Question 8

Due to privacy issues, it is illegal for e-commerce Web sites to use cookies to record their customer's past behaviors and discover their identity.

Question 9

Vertical exchanges are typically used only to buy and sell materials required for an organization's support activities.

Question 10

Businesses and organizations set up Web sites to:

A) Sell goods and services.
B) Induce people to visit a physical location.
C) Reduce operational and transaction costs.
D) Enhance their reputation.
E) All of these.

Question 11

In general, e-commerce Web sites of click-and-mortar companies carry the same variety of merchandise as their brick-and-mortar stores.

Question 12

In an e-credit card transaction, the clearinghouse plays the following role:

A) Initiates the transfer of money
B) Validates and verifies the seller's payment information
C) Transfers funds between the seller's bank and the buyer's bank
D) All of these

Question 13

When organizations come to a company's Web site for procurement, such business is classified as a(n):

A) Buy-side marketplace.
B) Sell-side marketplace.
C) Electronic exchange.
D) None of these.

Question 14

____ and ____ are the two major challenges for the sellers in e-commerce.

A) Order fulfillment, large orders
B) Channel conflict, advertising
C) Advertising, large orders
D) Channel conflict, order fulfillment

Question 15

In order to be considered as an e-commerce Web site, the site must sell some tangible good.

Question 16

The fee for a monetary transaction between a buyer and a seller using PayPal is paid for by:

A) The payee.
B) The payer.
C) Both the payee and the payer.
D) Neither party; PayPal is a free service

Question 17

In general, the e-commerce Web sites of click-and-mortar companies operate only during the business hours of their brick-and-mortar stores.

Question 18

Downloading a book on an Amazon Kindle is an example of:

A) Pure e-commerce.
B) Partial e-commerce.
C) Both of these are correct.
D) Neither of these correct.

Question 19

Information is the major component of the e-commerce offerings of service industries.

Question 20

Internet marketing typically is one-way and impersonal.

Question 21

Cybersquatting refers to the tampering of existing Web sites and selling unrelated products.