Question 1

Consumers are legally obligated to pay sales tax only if the e-commerce merchant is based in their home state.

Accepted Answer

This statement is false. Consumers may be obligated to pay sales tax on online purchases based on various factors, such as the laws and regulations of their state and the e-commerce merchant's physical presence or economic nexus in their state.

Question 2

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 __________________ market.

Accepted Answer

The answer of While most of us use Google services...

Question 3

Privacy is an increasing concern to Internet users. One privacy concern is related to a practice called digital stalking, where a user's Web history
e.g. sites visited) is stored in files called "track bots" and used to monitor individuals' movements on the Internet.

Accepted Answer

The term "track bots" is not commonly used in this context; instead, cookies and tracking pixels are the technologies typically employed to monitor users' activities on the Internet for various purposes, including advertising and analytics.

Question 4

Your textbook listed a number of security requirements for conducting e-commerce. Nonrepudiation means that merchants are protected against customers unjustly claiming they did not place an order and customers are protected from merchants unjustly claiming they did not receive payment.

Accepted Answer

Nonrepudiation ensures that both parties cannot deny their actions in an e-commerce transaction, providing protection against fraudulent claims. Merchants cannot deny receiving payment, and customers cannot deny placing an order.

Question 5

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

This is true. Consumers are responsible for paying the sales tax to their state, even if the online merchant does not collect it. This is known as "use tax" and is typically reported on state tax returns.

Question 6

Your textbook listed a number of security requirements for conducting e-commerce. Integrity is necessary to ensure that data and information transmitted in e-commerce, such as orders, replies to queries, and payment authorizations, not be accidentally or maliciously altered or destroyed during transmission.

Accepted Answer

Integrity is one of the essential security requirements in e-commerce to ensure the data and information sent and received during transactions remain unaltered and complete.

Question 7

When consumers want to purchase products/services that are priced too low i.e. less than $1) to be paid with credit cards, mini-transfer payment system is often used.

Accepted Answer

Mini-transfer payment systems are not specifically designed for transactions under $1; instead, micropayment systems are used for small transactions, often for digital goods or services.

Question 8

Your textbook listed a number of security requirements for conducting e-commerce. Integrity helps insure that the buyer, the seller, and the paying institutions all know the identity of the parties with whom they are dealing.

Accepted Answer

Integrity refers to the consistency and accuracy of data, not the identification of parties involved in the transaction. Authentication and non-repudiation are the security measures that help in identifying the parties involved in e-commerce transactions.

Question 9

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 e-Payment.

Accepted Answer

The activities described in the statement are collectively known as e-fulfillment, not e-payment.

Question 10

Micropayments are often made using a cell phone.

Accepted Answer

Micropayments can be easily made using mobile phone technology, such as mobile wallets, SMS payments, or mobile banking apps.

Question 11

Privacy is an increasing concern to Internet users. One privacy concern is related to a practice called web tracking, 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.

Accepted Answer

Web tracking involves the use of cookies to monitor a user's web history and is a privacy concern for many Internet users.

Question 12

Online micropayments are often made using a credit card.

Accepted Answer

The answer of Online micropayments are often made using a...

Question 13

The biggest challenge for e-commerce sites that want to comply with state sales tax laws is determining a customer's legal state of residence.

Accepted Answer

The biggest challenge is accurately calculating and applying the correct sales tax rate, which can vary not only by state but also by county, city, and special jurisdictions, making compliance complex.

Question 14

Your textbook listed a number of security requirements for conducting e-commerce. Authentication helps insure that the buyer, the seller, and the paying institutions all know the identity of the parties with whom they are dealing.

Accepted Answer

Authentication is a crucial security requirement for e-commerce to ensure that all parties involved in a transaction know each other's identities.

Question 15

Google gives away services for free in order to attract users it can then offer to its advertising clients. However, by giving away these services, Google looks as though they are trying to drive other companies out of business through a practice called _________________, offering goods and services at prices that don't cover the costs of producing these services.

Accepted Answer

The answer of Google gives away services for free in...

Question 16

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

Accepted Answer

The answer of Google's sheer size, power, and unusually large...

Question 17

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

Accepted Answer

The answer of Google is a very prosperous, global e-business....

Question 18

An) ________________ 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

The answer of An) ________________ is a company where a...

Question 19

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 order fulfillment.

Accepted Answer

Correct, this statement accurately explains what order fulfillment entails for e-commerce merchants.

Question 20

The biggest challenge for e-commerce sites that want to comply with state sales tax laws is that regulations vary from state to state, creating a compliance nightmare.

Accepted Answer

State sales tax laws and regulations do vary from state to state, which can make compliance difficult and time-consuming for e-commerce sites that do business in multiple states.

Quiz 6: E-Commerce Models and Strategies