Question 1

A financial cybermediary is an Internet-based company that makes it easy for one person to pay another over the Internet.

Accepted Answer

A financial cybermediary is indeed an Internet-based company that facilitates online payments between individuals.

Question 2

A horizontal e-marketplace brings together buyers and sellers from the same industry.

Accepted Answer

A horizontal e-marketplace connects buyers and sellers across different industries, offering products and services that are more general and not industry-specific.

Question 3

Click-and-mortar organizations have both a physical and electronic presence.

Accepted Answer

Click-and-mortar organizations refers to businesses that have both a physical location (brick-and-mortar) and an online presence (click). Examples include Walmart, Target, and Best Buy.

Question 4

The theory behind the Long Tail is that e-commerce has a social effect on not only the users of e-commerce,but on society as a whole.

Accepted Answer

The Long Tail theory primarily focuses on how e-commerce and digital marketplaces allow for a vast variety of products, particularly niche products, to find an audience, thereby expanding the market beyond mainstream hits. It does not primarily focus on the social effects on society but rather on the economic and market dynamics enabled by digital distribution.

Question 5

An integrated e-marketplace brings together buyers and sellers from multiple industries,often for direct materials.

Accepted Answer

An integrated e-marketplace typically focuses on a specific industry or sector, facilitating transactions for direct and indirect materials among businesses within that industry, rather than across multiple industries.

Question 6

Mass customization refers to designing products which appeal to as many people as possible.

Accepted Answer

Mass customization refers to designing products specifically for individual customers, allowing them to customize and personalize the product to their own preferences. It is not about appealing to as many people as possible with a one-size-fits-all product.

Question 7

Encryption scrambles the contents of a file so that no unauthorized personnel can read it.

Accepted Answer

Encryption is a method of securing data by converting plain text to cipher text to prevent unauthorized access to the information.

Question 8

An electronic marketplace or e-marketplace is an interactive business providing a centralized market where many buyers and suppliers can come together for e-commerce or commerce-related activities.

Accepted Answer

An e-marketplace is a centralized platform or website that connects multiple buyers and sellers, making it easier to conduct e-commerce or commerce-related activities.

Question 9

The direct computer-to-computer transfer of transaction information contained in standard business documents,conducted in a standard format,is termed Electronic Data Interchange.

Accepted Answer

Electronic Data Interchange (EDI) is the direct computer-to-computer transfer of transaction information contained in standard business documents, conducted in a standard format.

Question 10

Electronic checks are simply faxed copies of normal checks.

Accepted Answer

Electronic checks are not faxed copies of normal checks. They are digital transactions that transfer money from one bank account to another. Sometimes they are also called eChecks.

Question 11

Maintenance,repair,and operations materials are also referred to as direct materials.

Accepted Answer

Maintenance, repair, and operations (MRO) materials are considered indirect materials because they are used in the production process but do not become part of the final product. Direct materials, on the other hand, are those that become an integral part of the finished product.

Question 12

If your browser displays a small picture of a lock or if the Web address begins httpq,then you're using secure sockets layers to connect to another Web page.

Accepted Answer

A secure connection is indicated by a lock icon and the URL beginning with "https," not "httpq."

Question 13

An online or banner ad is an ad that appears on a Web site.

Accepted Answer

An online or banner ad is indeed an ad that appears on a Web site.

Question 14

Viral marketing uses viruses transmitted via e-mail to advertise products.

Accepted Answer

Viral marketing refers to a strategy that encourages individuals to share a marketing message or product information with others, creating potential for exponential growth in the message's exposure and influence. It does not involve the use of actual viruses or malicious software.

Question 15

A reverse auction occurs when a seller posts a list of items for sale and then accepts bids from interested buyers.

Accepted Answer

A reverse auction occurs when a buyer posts a request for a product or service and then receives bids from potential sellers competing to fulfill the buyer's request at the lowest price.

Question 16

Digital wallets are plastic cards the size of a credit card which feature an embedded chip capable of storing digital information.

Accepted Answer

Digital wallets are not physical cards, but rather software applications or platforms that allow users to store and manage their digital payment information.

Question 17

Encryption schemes can only utilize a single key.

Accepted Answer

Encryption schemes can utilize both symmetric and asymmetric encryption, which use different types of keys. Symmetric encryption uses a single key for both encryption and decryption, while asymmetric encryption uses a public key for encryption and a private key for decryption.

Question 18

Secure Socket Layer (SSL)enables the merchant to verify the customer's identity and is endorsed by major credit cards.

Accepted Answer

SSL (Secure Socket Layer) primarily encrypts data between the user's browser and the website, ensuring secure online transactions. It does not verify the customer's identity; instead, it focuses on creating a secure connection. Verification of customer identity involves other mechanisms beyond SSL.

Question 19

An affiliate program between two e-commerce sites directs viewers from one site to the other.

Accepted Answer

An affiliate program is a marketing strategy in which an individual or a company promotes another company's products or services and earns a commission for each sale or lead generated through their referral. In the case of e-commerce sites, an affiliate program can direct viewers from one site to the other, driving traffic and potential sales.

Question 20

The government is using digital technologies to become more competitive.

Accepted Answer

The answer of The government is using digital technologies to...

Quiz 5: Electronic Commerce: Strategies for the New Economy