Question 1

One type of B2B model focuses on

Accepted Answer

The question asks for a B2B model, which typically involves business-to-business transactions. Facilitating sales transactions between businesses fits this criteria, while the other options focus on individual consumers or product costs, which are not specifically B2B models.

Question 2

Christopher notices that his Discover Card statement gives the company's Web address (Discovercard.com) and directs him there to pay his bills and answer his questions. What e-business strategy is Discover employing with this reference to its Web site?

Accepted Answer

Discover is using a cost-cutting e-business strategy by directing customers to its website to pay their bills and answer their questions, reducing the need for costly customer service representatives and mail-based billing systems.

Question 3

An Internet distributor of office supplies has a system of bidding and awarding contracts online for customer purchases. This is most likely a ____ model.

Accepted Answer

The fact that the business is dealing with other businesses (customers) and using an online platform for bidding and awarding contracts suggests that this is a B2B (business-to-business) model.

Question 4

An Internet consulting company uses its Web site to allow its corporate clients to obtain information, analyze data, and ask questions. This consulting company is using a ____ model.

Accepted Answer

The company is providing services to other businesses, making it a B2B (business-to-business) model.

Question 5

Money that an electronics retailer receives through the online sales of extended warranty plans provides a(n) ____ for the company.

Accepted Answer

Money received through the online sales of extended warranty plans creates a new revenue stream for the company, as it is a separate source of income from its primary sales of electronics.

Question 6

Peer-to-peer software that allows users to share information over the Internet is known as a ____ model.

Accepted Answer

Peer-to-peer software is a type of technology that allows individuals to connect directly with one another to share files and other digital resources. This is known as a consumer-to-consumer (C2C) model, as users are sharing information directly with other users rather than through an intermediary such as a business or vendor. The other answer choices refer to different types of e-commerce models and are not relevant to peer-to-peer software.

Question 7

Rosie's Flowers Company in Tulips, Ohio, uses an e-commerce software program on its Web site to allow customers to enter their own orders for flowers that are delivered by the end of the next business day. Rosie's Flowers follows a(n) ____ model.

Accepted Answer

Rosie's Flowers is using an e-commerce software program to accept orders from customers on its website, which indicates that it follows a business-to-customer (B2C) model.

Question 8

Commerce through smartphones and other mobile devices is known as

Accepted Answer

M-commerce stands for mobile commerce which refers to buying and selling goods and services through mobile devices such as smartphones, tablets, and other handheld devices. The transactions can be done via mobile websites or mobile applications.

Question 9

Bit Torrent is an example of ____ model.

Accepted Answer

Bit Torrent is a consumer-to-consumer model where users share files directly with each other without going through a central server.

Question 10

Which of the following would be considered a revenue stream?

Accepted Answer

All four options listed (advertising, subscription fees, sales of products, and sales of services) can generate revenue for a business, which makes E the correct answer.

Question 11

Which of the following would not be considered a revenue stream?

Accepted Answer

The sale of a Sony music warehouse would result in a one-time cash inflow, rather than an ongoing revenue stream. The other options all involve regular sales or fees that generate continuous revenue.

Question 12

The Wall Street Journal's online edition is not provided free to Internet users. Therefore, the primary revenue stream for this online version is probably

Accepted Answer

The text explicitly states that "The Wall Street Journal's online edition is not provided free to Internet users", indicating that a subscription fee is required to access the content. Therefore, the primary revenue stream for the online version is subscription fees paid by its readers.

Question 13

Creating a Web site so that customers can search for information instead of calling the company's offices and speaking to a customer-service representative is an e-business strategy designed to increase profit by

Accepted Answer

Creating a website for customers to search for information instead of calling the company's offices and speaking to a customer-service representative is an e-business strategy that reduces expenses by reducing the need for a large customer service team. This reduction in expenses can lead to an increase in profit for the company.

Question 14

The ABC Auto Supply Company of Burlington, Vermont, uses an e-commerce software program on its Web site to allow customers such as Quickeeze Body Shop to enter their own orders for auto parts. ABC is following a(n) ____ business model.

Accepted Answer

The use of e-commerce software program to allow customers to enter their own orders for auto parts suggests that ABC Auto Supply Company is following a business-to-business (B2B) model, where they are providing a platform for businesses like Quickeeze Body Shop to purchase their products online.

Question 15

Claire browses for clothing at Banana Republic's Web site, but goes to a Banana Republic store to try on and purchase the clothing. This demonstrates what aspect of e-business?

Accepted Answer

This situation demonstrates the concept of a firm's Web site leading to increased sales in its physical stores, also known as the "web-to-store" model. Claire was able to browse and research clothing on Banana Republic's website, but chose to go to a physical store to try on and purchase the clothing. This demonstrates the importance of having an integrated online and offline presence for a successful e-business strategy.

Question 16

What is usually the primary revenue stream for online auction sites such as eBay?

Accepted Answer

The primary revenue stream for online auction sites such as eBay is fees charged for selling products on the site. eBay charges a listing fee for each item, a final value fee based on the selling price, and additional fees for optional services such as featured listings or international selling. Access fees, sales of products, and advertising fees may contribute to revenue, but they are not the primary source. Shipping charges are typically paid to the seller and do not go to the auction site.

Question 17

Advertising and the sales revenues earned from sales conducted over the Internet are popular

Accepted Answer

"Revenue streams" refers to the income generated by a company's activities, such as sales. Therefore, the sales revenues earned from Internet sales would be considered a revenue stream. Choices A, B, C, and D are not as specific to the income generated from Internet sales.

Question 18

A business model represents a ____ in a business situation.

Accepted Answer

A business model represents a group of common characteristics and behaviors that define a company's approach to creating, delivering, and capturing value. It outlines how a business creates and delivers products or services to customers while generating revenue and profits. Shared focus on customers, suppliers, profits, and values may be components of a business model but do not fully define it.

Question 19

Marta invests a substantial amount of money to take her business online. She is extremely discouraged when three months pass and she has not produced enough new revenues to offset the high start-up costs. What sound advice could you give Marta?

Accepted Answer

It is common for businesses, including e-businesses, to take time to recover the initial start-up costs. Marta should be patient and give it more time to determine the long-term success of the venture. Cutting losses or taking the business offline prematurely may not be the best solution. Doubling the investment may not be feasible or necessary at this point.

Question 20

McDonald's and Burger King share a similar ____ because they offer about the same products and need about the same type of employees.

Accepted Answer

McDonald's and Burger King have a similar business model as both are fast-food chains that offer similar products and require similar employees. They both have a focus on fast service and convenience for customers. This makes their business models comparable.

Quiz 16: Social Media, E-Business, and Accounting