Question 1

Differentiate between electronic storefronts and electronic malls, and provide examples of each.

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Question 2

Discuss the benefits and limitations of electronic commerce.

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Question 3

You have an entrepreneurial spirit and decide to start your own business. You know you first have to consider the degree of digitization you are going to pursue for your new business. What does this mean? What are your options? Which option would you choose and why?

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Question 4

Discuss the various types of electronic commerce.

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Question 5

Discuss the various business-to-consumer applications (e.g., e-tailing, electronic storefronts, electronic malls).

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Question 6

______ are a form of e-cash that enable you to store a fixed amount of prepaid money and then spend it as necessary.

Accepted Answer

Stored-value money cards are specifically designed to carry preloaded funds that can be used to make payments for purchases to service providers. They are usually used for smaller expenses like transportation or parking fees or for buying refreshments. Stores, restaurants, public transport systems, and other entities issue these cards as a quick and convenient payment method that does not require carrying cash.

Question 7

Differentiate among sell-side marketplaces, buy-side marketplaces, and electronic exchanges.

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Question 8

Discuss the reasons for B2C E-commerce failures.

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Question 9

_____ use credit card numbers, transmitted electronically over the Internet, to pay for goods and services. They are either unencrypted or encrypted, with coded data readable by an intermediary between the buyer's and seller's banks.

Accepted Answer

Electronic credit cards use credit card numbers transmitted over the internet for payment.

Question 10

All of the following are limitations of traditional payment methods in electronic commerce except:

Accepted Answer

It is actually more secure for the buyer to use secure online transactions than to give their credit card information over the telephone, as there is a higher risk of the information being intercepted or stolen. The other options listed are all valid limitations of traditional payment methods in electronic commerce.

Question 11

_____ are typically used for unplanned B2B purchases for amounts under $2000.

Accepted Answer

Purchasing cards are ideal for unplanned B2B purchases for amounts under $2000. These cards are also referred to as procurement cards, and they enable employees to make purchases quickly and easily without the need for a time-consuming and often bureaucratic purchase order process. They are also used for travel expenses and other small purchases.

Question 12

Differentiate between pure and partial electronic commerce. Provide examples of companies in each category.

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Question 13

Differentiate between forward and reverse auctions.

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Question 14

What is disintermediation? How does the web facilitate disintermediation? Is disintermediation inevitable for all industries? Why or why not?

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Question 15

_____ are a payment mechanism that are similar to regular bank cheques but are transmitted electronically, with a signature in digital form.

Accepted Answer

Electronic cheques are similar to regular bank cheques but are transmitted electronically, with a signature in digital form. Electronic credit cards, electronic cash transactions, electronic wallets, and electronic debit cards are all different payment mechanisms.

Question 16

____________ contain a chip called a microprocessor that can store a considerable amount of information.

Accepted Answer

Smart cards contain a microprocessor chip that can store a significant amount of information, including personal account details, medical records, and other sensitive data. This feature makes them more secure than other payment methods like stored-value money cards or e-checks. Smart cards are often used to access various services and facilities, including banking, public transit, and building security systems.

Question 17

Which of the following is NOT a form of electronic cash?

Accepted Answer

Purchasing cards are not a form of electronic cash. They are payment cards used by businesses to purchase goods and services from vendors. Person-to-person payments, smart cards, and stored-value money cards are all considered forms of electronic cash.

Question 18

_____ enable two individuals to transfer funds without using a credit card.

Accepted Answer

Person-to-person payments allow for direct transfer of funds between two individuals without the use of credit cards. Electronic checks, stored-value money cards, purchasing cards, and smart cards all involve some form of electronic payment but may still require the use of a credit card or intermediary party.

Question 19

_____ contain a chip that can store information and be used for several purposes.

Accepted Answer

Smart cards contain a chip that can store information and be used for several purposes. Electronic checks, stored-value money cards, purchasing cards, and person-to-person payments may not necessarily have a chip for storing information.

Question 20

_____ are software mechanisms that provide security measures and convenience for electronic commerce purchasing.

Accepted Answer

Digital wallets provide security measures and convenience for electronic commerce purchasing by storing the user's payment information (such as credit card details) and using encryption to protect that information when transactions are processed. Digital wallets also often allow for easy and quick checkout without needing to enter payment information for each individual purchase.

Quiz 7: E-Business and E-Commerce