Test Bank for Electronic Commerce 12th Edition by Gary Schneider

Name: Class: Date: Copyright Cengage Learning. Powered by Cognero. Page 1 Test Bank for All chapters Chapter 01 Introduction to Electronic Commerce 1. IBM defines electronic business as "the transformation of key business processes through the use of Internet technologies." a. True b. False ANSWER: True 2. A transaction is an exchange of value, such as a purchase, a sale, or the conversion of raw materials into a finished product. a. True b. False ANSWER: True 3. All the activities associated with a transaction result in measurable and recordable transactions. a. True b. False ANSWER: False 4. Transferring funds, placing orders, sending invoices, and shipping goods to customers are all types of activities or transactions. a. True b. False ANSWER: True 5. Business -to-business electronic commerce occurs when a person sells an item through a Web auction site to another person. a. True b. False ANSWER: False 6. The U.S. government is one of the largest electronic data interchange (EDI) trading partners in the world. a. True b. False ANSWER: True 7. A problem that EDI pioneers faced was the high cost of implementation. a. True b. False ANSWER: True 8. Value -added networks are leased telephone lines that establish direct network connections to all trading partners of an organization. a. True Name: Class: Date: Copyright Cengage Learning. Powered by Cognero. Page 2 b. False ANSWER: False 9. The increase in broadband connections in homes is a key element in the B2C component of the second wave. a. True b. False ANSWER: True 10. In some cases, business processes use traditional commerce activities very effectively, and technology cannot improve them. a. True b. False ANSWER: True 11. Irrespective of the transferability of merchandising skills to the Web, products are difficult to sell on the Web. a. True b. False ANSWER: False 12. A commodity item is a product or service that is hard to distinguish from the same product or service provided by other sellers. a. True b. False ANSWER: True 13. A product's shipping profile is a collection of details about the shipper. a. True b. False ANSWER: False 14. A DVD is an excellent example of an item with a high value -to-weight ratio. a. True b. False ANSWER: True 15. A product that has a strong brand reputation is easier to sell over the Web than an unbranded item. a. True b. False ANSWER: True 16. Electronic commerce provides buyers with an easy way to customize the level of detail in the information they obtain about a prospective purchase. a. True b. False ANSWER: True Name: Class: Date: Copyright Cengage Learning. Powered by Cognero. Page 3 17. Electronic commerce reduces the speed and accuracy with which businesses can exchange information. a. True b. False ANSWER: False 18. Electronic payment can be easier to audit and monitor than payment made by check. a. True b. False ANSWER: True 19. The legal environment in which electronic commerce is conducted is full of clear and concise laws. a. True b. False ANSWER: False 20. Economists use a formal definition of market that includes two conditions: first, the potential sellers of a good come into contact with potential buyers, and second, that a medium of exchange is available. a. True b. False ANSWER: True 21. Most economists agree that markets are weak and ineffective mechanisms for allocating scarce resources. a. True b. False ANSWER: False 22. Businesses and individuals can use electronic commerce to reduce transaction costs by improving the flow of information and increasing the coordination of actions. a. True b. False ANSWER: True 23. Buyers and sellers in commodity markets experience significant transaction costs. a. True b. False ANSWER: False 24. Using the value chain reinforces the idea that electronic commerce should be a business solution, not a technology implemented for its own sake. a. True b. False ANSWER: True 25. A freight forwarder is a company that arranges shipping and insurance for international transactions. a. True Name: Class: Date: Copyright Cengage Learning. Powered by Cognero. Page 4 b. False ANSWER: True 26. Consumer shopping on the Web is often called _____. a. B2B b. B2C c. brick and mortar retailing d. e-procurement ANSWER: b 27. The group of logical, related, and sequential activities and transactions in which businesses engage are often collectively referred to as _____. a. business services b. business processes c. business logistics d. business communications ANSWER: b 28. Banks use _____, which are electronic transmissions of account exchange information over private communications’ networks. a. wire transfers b. machine translations c. data analytics d. big data ANSWER: a 29. Electronic funds transfers are also called _____. a. wire transfers b. business transfers c. data transfers d. strategic transfers ANSWER: a 30. Businesses that engage in electronic data interchange with each other are called _____. a. institutional partners b. channel partners c. commodity partners d. trading partners ANSWER: d 31. A(n) _____ is an independent firm that offers connection and transaction -forwarding services to buyers and sellers engaged in electronic data interchange. a. value -added network b. freight forwarder c. business incubator d. online retailer ANSWER: a 32. _____ refers to technologies that include software that allows users of Web sites to participate in the creation, edition, and distribution of content on a Web site owned and operated by a third party. a. Big data b. Web 1.0 c. Pure dot-com d. Web 2.0 ANSWER: d 33. _____ is the use of interpersonal connections online to promote or sell goods and services. a. Social integration b. Social commerce c. M-commerce d. Vertical integration