INSY 3330 Exam 1 ACTUAL UPDATED QUESTIONS AND
CORRECT ANSWERS
E-Commerce the use of the Internet, the Web, and apps to transact business
E-Business the digital enabling of transactions and processes within a firm, involving
information systems in control of the firm
Web 2.0 a set of applications and technologies that allows users to:
- create, edit, and distribute content
- share preferences, bookmarks, and online personas
- participate in virtual lives
- build online communities
Marketspace a marketplace extended beyond traditional boundaries and removed from a
temporal and geographic location
Interactivity technology that allows for two-way communication between merchant and
consumer
Information Density the total amount and quality of information available to all market participants
Internet a worldwide network of computer networks built on common standards
The Web provides access to billions of Web pages that run on the Internet infrastructure
Mobile Platform provides the ability to access the Internet from a variety of highly mobile devices
such as smartphones, tablets, and other ultra-lightweight laptop computers
HTML5 a new markup language that will enable more dynamic Web content and allow for
bower-accessible Web apps that are as appealing as device-specific apps
Disintermediation displacement of market middlemen who traditionally are intermediaries between
producers and consumers by a new direct relationship between producers and
consumers
Network Effect occurs where users receive value from the fact that everyone else uses the same
tool or product
Business Model a set of planned activities designed to result in a profit in a marketplace
, Business Plan a document that describes a firm's business model, taking into account the
competitive environment
Value Proposition defines how a company's product or service fulfills the needs of customers
Revenue Model describes how the firm will earn revenue, produce profits, and produce and
superior return on invested capital
Seed Capital typically, an entrepreneur's personal funds from savings, credit card advances,
home equity loans, or from family and friends
Incubators typically provide a small amount of funding and an array of services to start-up
companies
Venture Capital Investors typically invest funds they manage for other investors; usually invest in the later-
stages of a start-up
Crowdfunding involves using the Internet to enable individuals to collective contribute money to
support a project
Transaction Broker sites that process transactions for consumers that are normally handled in person,
by phone, or by mail
Scale Economies efficiencies that arise from increasing the size of a business
Industry Structural Analysis an effort to understand and describe the nature of competition in an industry, the
nature of substitute products, the barriers to entry, and the relative strength of
consumers and suppliers
Value Chain the set of activities performed in an industry or in a firm that transforms raw inputs
into final products and services
Packet the discrete units into which digital messages are sliced for transmission over the
Internet
Packet Switching a method of slicing digital messages into packets, sending the packets along
different communication paths as they become available, and the reassembling
the packets once they arrive at their destination
TCP/IP the core communications protocol for the Internet; governs the formatting,
ordering, compressing, and error checking of messages during transmission
Domain Name System (DNS) system for expressing numeric IP addresses in natural language
Uniform Resource Locator (URL) the address used by a Web browser to identify the location of content on the
Web
CORRECT ANSWERS
E-Commerce the use of the Internet, the Web, and apps to transact business
E-Business the digital enabling of transactions and processes within a firm, involving
information systems in control of the firm
Web 2.0 a set of applications and technologies that allows users to:
- create, edit, and distribute content
- share preferences, bookmarks, and online personas
- participate in virtual lives
- build online communities
Marketspace a marketplace extended beyond traditional boundaries and removed from a
temporal and geographic location
Interactivity technology that allows for two-way communication between merchant and
consumer
Information Density the total amount and quality of information available to all market participants
Internet a worldwide network of computer networks built on common standards
The Web provides access to billions of Web pages that run on the Internet infrastructure
Mobile Platform provides the ability to access the Internet from a variety of highly mobile devices
such as smartphones, tablets, and other ultra-lightweight laptop computers
HTML5 a new markup language that will enable more dynamic Web content and allow for
bower-accessible Web apps that are as appealing as device-specific apps
Disintermediation displacement of market middlemen who traditionally are intermediaries between
producers and consumers by a new direct relationship between producers and
consumers
Network Effect occurs where users receive value from the fact that everyone else uses the same
tool or product
Business Model a set of planned activities designed to result in a profit in a marketplace
, Business Plan a document that describes a firm's business model, taking into account the
competitive environment
Value Proposition defines how a company's product or service fulfills the needs of customers
Revenue Model describes how the firm will earn revenue, produce profits, and produce and
superior return on invested capital
Seed Capital typically, an entrepreneur's personal funds from savings, credit card advances,
home equity loans, or from family and friends
Incubators typically provide a small amount of funding and an array of services to start-up
companies
Venture Capital Investors typically invest funds they manage for other investors; usually invest in the later-
stages of a start-up
Crowdfunding involves using the Internet to enable individuals to collective contribute money to
support a project
Transaction Broker sites that process transactions for consumers that are normally handled in person,
by phone, or by mail
Scale Economies efficiencies that arise from increasing the size of a business
Industry Structural Analysis an effort to understand and describe the nature of competition in an industry, the
nature of substitute products, the barriers to entry, and the relative strength of
consumers and suppliers
Value Chain the set of activities performed in an industry or in a firm that transforms raw inputs
into final products and services
Packet the discrete units into which digital messages are sliced for transmission over the
Internet
Packet Switching a method of slicing digital messages into packets, sending the packets along
different communication paths as they become available, and the reassembling
the packets once they arrive at their destination
TCP/IP the core communications protocol for the Internet; governs the formatting,
ordering, compressing, and error checking of messages during transmission
Domain Name System (DNS) system for expressing numeric IP addresses in natural language
Uniform Resource Locator (URL) the address used by a Web browser to identify the location of content on the
Web
