Question 1

A brick-and-mortar company is one where a significant or substantial part of its business involves the use of electronic or digital technologies to accomplish business tasks.

Accepted Answer

A brick-and-mortar company refers to a physical, concrete business location, such as a store or office, while the use of electronic or digital technologies may be a part of their operations, it does not make it a significant or substantial part of their business.

Question 2

The biggest challenge for e-commerce sites that want to comply with state sales tax laws is ___________________.
A) Getting customers to pay the tax
B) Determining a customer's legal state of residence
C) That regulations vary from state to state, creating a compliance nightmare.
D) Figuring out how to apply the law to international customers.

Accepted Answer

State sales tax laws vary from state to state, and compliance with these laws can be a complicated and time-consuming process for e-commerce sites. This can often result in a compliance nightmare for online retailers seeking to do business in multiple states.

Question 3

ProWeb Designs specializes in developing websites for small and medium sized businesses. They have an excellent reputation for servicing their client's needs. ProWeb Designs is most likely part of the business-to-consumer marketplace.

Accepted Answer

ProWeb Designs, by specializing in developing websites for small and medium-sized businesses, is primarily operating in the business-to-business (B2B) marketplace, as their services are aimed at other businesses rather than individual consumers.

Question 4

An e-business is a company where a significant or substantial part of its business involves the use of electronic or digital technologies to accomplish business tasks.

Accepted Answer

An e-business is defined as a company that uses digital technologies as a primary part of how they conduct business. Therefore, the statement is true.

Question 5

One consequence of the growth of e-commerce is disintermediation which has resulted in significant ___________________ in some industries.
A) Price increases
B) Job losses
C) Growth of jobs in foreign countries
D) Increase in product options and features

Accepted Answer

Disintermediation is the process of removing intermediaries, such as wholesalers or retailers, from a supply chain. As a result, direct sales between businesses and consumers can occur. This often results in job losses for intermediaries who are no longer needed to facilitate transactions between businesses and customers. Therefore, the best choice is B, job losses.

Question 6

Chegg sells and rents textbooks to college students. Chegg operates in the business-to-consumer marketplace.

Accepted Answer

Chegg is a textbook provider that targets college students, who are the end consumers. Therefore, Chegg operates in the business-to-consumer (B2C) marketplace.

Question 7

Google's sheer size, power, and unusually large breadth of services almost ensure that it will be scrutinized for workplace safety violations.

Accepted Answer

Google's size, power, and breadth of services primarily expose it to scrutiny regarding data privacy, antitrust issues, and digital market dominance rather than workplace safety violations, which are more commonly associated with industries involving manual labor or manufacturing processes.

Question 8

As a result of e-commerce, some industries have experienced ___________________. This occurs when new jobs are produced as a result of opportunities created by the growth of e-commerce.
A) Reinternetization
B) Intermediation
C) Reintermediation
D) Disintermediation

Accepted Answer

Reintermediation refers to the creation of new jobs and opportunities as a result of e-commerce. This can include jobs in online marketing, web design, and logistics, among others.

Question 9

Which of the following best describes the current status of sales tax law and e-commerce?
A) Consumers are only obligated to pay sales tax on e-commerce purchases if the merchant collects it at time of purchase.
B) Consumers have the option to pay or not pay sales tax at the time they make an e-commerce purchase.
C) Consumers are legally obligated to pay sales tax only if the e-commerce merchant is based in their home state.
D) Consumers who live in states that have sales tax are legally obligated to pay sales tax, even if it is not collected by the online merchant.

Accepted Answer

The current status of sales tax law and e-commerce is that consumers who live in states that have sales tax are legally obligated to pay sales tax, even if it is not collected by the online merchant. This is known as use tax and consumers are required to report and remit the tax to their state's tax authority. However, enforcement of this requirement is currently limited and varies by state. Some states have begun to enact laws that require online merchants to collect and remit sales tax even if they do not have a physical presence in the state, but this is not yet a universal requirement.

Question 10

Google is a very prosperous, global e-business. Most of its revenue is generated from a subscription business model.

Accepted Answer

Google's revenue is primarily generated from advertising, not a subscription business model.

Question 11

By giving away many of its services, Google looks as though they are trying to drive other companies out of business through a practice called predatory pricing, offering goods and services at prices that don't cover the costs of producing these services.

Accepted Answer

Google's practice of offering many of its services for free is a form of predatory pricing, as it is intended to drive other companies out of business by offering goods and services at prices that don't cover the costs of producing these services.

Question 12

Because of Google's sheer size, power, and unusually large breadth of services it has come under the scrutiny of anti-trust regulators in multiple countries.

Accepted Answer

Google's dominance in the market has led to investigations by antitrust regulators in various countries, including the United States, European Union, and India.

Question 13

Chegg sells and rents textbooks to college students. Chegg operates in the business-to-not-for-profit marketplace.

Accepted Answer

Chegg operates in the business-to-consumer (B2C) marketplace, as it sells and rents textbooks directly to individual college students.

Question 14

Safety-net.com is a consulting firm that advises the armed forces and Homeland Security agencies with regard to cybersecurity threats from terrorists and foreign intelligence services. Safety-net.com is most likely part of the business-to-government marketplace.

Accepted Answer

Safety-net.com is advising government agencies, so it falls under the business-to-government marketplace.

Question 15

While most of us use Google services like Gmail, Google Maps, YouTube and the search engine for free, the fact that it generates most of its revenue from other businesses means it is part of a business to business market.

Accepted Answer

Google generates most of its revenue from selling advertising space to businesses, making it a part of the business to business market. While consumers use Google services for free, the revenue comes from B2B transactions.

Question 16

Following a customer's order from an e-commerce site, merchants scramble to find products to be shipped, pack them, arrange for delivery, collect payment and handle returns of unwanted or defective products. These activities are collectively known as ______________________.
A) e-Commerce infrastructure
B) e-Payment
C) Order fulfillment
D) e-Billing

Accepted Answer

The process described in the question is that of order fulfillment, which refers to the series of activities involved in executing an order and ensuring that it is delivered to the customer. Options A, B and D are related to different aspects of e-commerce but do not specifically cover the entire process of order fulfillment.

Question 17

When making an out-of-state purchase as is often the case when buying online), consumers are usually obligated to pay a ________________, which is usually the same rate as a sales tax. However, most consumers ignore this requirement.
A) Use tax
B) State import fee
C) Compliance tax
D) Interstate trade tax

Accepted Answer

When making an out-of-state purchase, consumers are usually obligated to pay a use tax, which is essentially the same thing as a sales tax. However, since it is paid directly by the consumer rather than collected by the seller, many consumers ignore this requirement. The other options provided (state import fee, compliance tax, interstate trade tax) are not commonly used terms for this type of tax.

Question 18

Privacy is an increasing concern to Internet users. One privacy concern is related to a practice called _________________ , where a user's Web history
A) Online spying
B) Digital detection
C) Digital stalking
D) Web tracking
E)g. sites visited) is stored in files called "Cookies" and used to monitor individuals' movements on the Internet.

Accepted Answer

The practice referred to in the question where a user's Web history (e.g. sites visited) is stored in files called "Cookies" and used to monitor individuals' movements on the Internet is known as Web tracking.

Question 19

Safety-net.com is a consulting firm that advises the armed forces and Homeland Security agencies with regard to cybersecurity threats from terrorists and foreign intelligence services. Safety-net.com is most likely part of the government-to-business marketplace.

Accepted Answer

Safety-net.com is more likely part of the business-to-government (B2G) marketplace, as it provides services to government agencies.

Question 20

Google is a very prosperous, global e-business. Most of its revenue is generated from an advertising business model.

Accepted Answer

Google's main source of revenue is advertising, making it a very successful global e-business.

Quiz 6: E-Commerce Models and Strategies

A brick-and-mortar company is one where a significant or substantial part of its business involves the use of electronic or digital technologies to accomplish business tasks.

The biggest challenge for e-commerce sites that want to comply with state sales tax laws is ___________________.

ProWeb Designs specializes in developing websites for small and medium sized businesses. They have an excellent reputation for servicing their client's needs. ProWeb Designs is most likely part of the business-to-consumer marketplace.

An e-business is a company where a significant or substantial part of its business involves the use of electronic or digital technologies to accomplish business tasks.

One consequence of the growth of e-commerce is disintermediation which has resulted in significant ___________________ in some industries.

Chegg sells and rents textbooks to college students. Chegg operates in the business-to-consumer marketplace.

Google's sheer size, power, and unusually large breadth of services almost ensure that it will be scrutinized for workplace safety violations.

As a result of e-commerce, some industries have experienced ___________________. This occurs when new jobs are produced as a result of opportunities created by the growth of e-commerce.

Which of the following best describes the current status of sales tax law and e-commerce?