Achieve Academic Excellence with the [Electronic Commerce,Schneider,8e] 2023 Test Bank

Chapter 1: Introduction to Electronic Commerce




TRUE/FALSE



1. IBM defines electronic business as "the transformation of key business processes through the use
of Internet technologies."


ANS: T PTS: 1 REF: 5



2. A transaction is an exchange of value.


ANS: T PTS: 1 REF: 6



3. A transaction always has one or more activities associated with it, and an activity will always be
related to a transaction.


ANS: F PTS: 1 REF: 7



4. Transferring funds, placing orders, sending invoices, and shipping goods to customers are all
types of activities or transactions.


ANS: T PTS: 1 REF: 7



5. Business-to-consumer electronic commerce occurs when a person sells an item through a Web
auction site to another person.


ANS: F PTS: 1 REF: 7



6. The U.S. government is one of the largest EDI trading partners in the world.

, ANS: T PTS: 1 REF: 9



7. Firms such as Wal-Mart and General Electric have been pioneers in using EDI to improve their
purchasing processes and their relationships with suppliers.


ANS: T PTS: 1 REF: 9



8. A value added network (VAN) is an independent firm that offers connection and EDI transaction-
forwarding services to buyers and sellers engaged in EDI.


ANS: T PTS: 1 REF: 9



9. The increase in broadband connections in homes is a key element in the B2C component of the
second wave.


ANS: T PTS: 1 REF: 11



10. In some cases, business processes use traditional commerce activities very effectively, and
technology cannot improve upon them.


ANS: T PTS: 1 REF: 14



11. The skills of merchandising and personal selling can be easy to practice remotely.


ANS: F PTS: 1 REF: 15



12. A small-denomination item is a product or service that is hard to distinguish from the same
product or services provided by other sellers.


ANS: F PTS: 1 REF: 15

,13. An outsourcing profile is the collection of attributes that affect how easily a product can be
packaged and delivered.


ANS: F PTS: 1 REF: 15



14. An airline ticket is an excellent example of an item with a high value-to-weight ratio.


ANS: T PTS: 1 REF: 16



15. A product that has a strong brand reputation is easier to sell over the Web than an unbranded
item.


ANS: T PTS: 1 REF: 16



16. Electronic commerce provides buyers with an easy way to customize the level of detail in the
information they obtain about a prospective purchase.


ANS: T PTS: 1 REF: 17



17. Electronic commerce reduces the speed and accuracy with which businesses can exchange
information.


ANS: F PTS: 1 REF: 17



18. Electronic payment can be easier to audit and monitor than payment made by check.


ANS: T PTS: 1 REF: 18



19. The legal environment in which electronic commerce is conducted is full of clear and concise
laws.

, ANS: F PTS: 1 REF: 19



20. Economists use a formal definition of a 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.


ANS: T PTS: 1 REF: 20



21. Most economists agree that markets are weak and ineffective mechanisms for allocating scarce
resources.


ANS: F PTS: 1 REF: 20



22. Businesses and individuals can use electronic commerce to reduce transaction costs by improving
the flow of information and increasing the coordination of actions.


ANS: T PTS: 1 REF: 24



23. Sellers and buyers in commodity markets experience significant transaction costs.


ANS: F PTS: 1 REF: 24



24. Using the value chain reinforces the idea that electronic commerce should be a business solution,
not technology implemented for its own sake.


ANS: T PTS: 1 REF: 31



25. Researchers estimate that about 20 percent of the content available on the Internet today is in
English.


ANS: F PTS: 1 REF: 34