Chapter 1 Overview of Electronic Commerce
1.1 True/False
1) Electronic commerce is the process of buying, selling, or exchanging products,
services, or information via computer.
Answer: TRUE
Diff: 1 Page Ref: 4
2) Buying an e-book from Amazon is an example of partial electronic commerce.
Answer: FALSE
Diff: 1 Page Ref: 4
3) A brick-and-mortar organization performs its primary business offline, selling physical
products by means of physical agents.
Answer: TRUE
Diff: 1 Page Ref: 4
4) An extranet is a network that uses private corporate networks to link together multiple
intranets.
Answer: FALSE
Diff: 2 Page Ref: 5
AACSB: Use of information technology
5) Selling and buying electronically can be either business-to-consumer or business-to-
business.
,Answer: TRUE
Diff: 1 Page Ref: 6
6) Purchasing a computer from dell.com is an example of B2B commerce.
Answer: FALSE
Diff: 2 Page Ref: 6
7) Net-a-Porter buying merchandise from its designers is an example of B2B commerce.
Answer: TRUE
Diff: 2 Page Ref: 6
8) Network infrastructures include cell phones and other electronic devices that are
located in various locations by telecommunications networks, including wireless ones.
Answer: TRUE
Diff: 2 Page Ref: 7
AACSB: Use of information technology
9) Today, over 90 percent of EC volume is B2C.
Answer: FALSE
Diff: 2 Page Ref: 8
10) If a company purchases Godiva chocolates as gifts for its employees and has Godiva
mail them directly to the recipient, the company is engaged in B2B2C.
Answer: TRUE
Diff: 2 Page Ref: 8
AACSB: Reflective thinking
,11) S-commerce refers to electronic commerce activities conducted on Facebook or
influenced by the site.
Answer: FALSE
Diff: 2 Page Ref: 11
12) Despite the failures of individual companies and initiatives, the total volume of EC
has been growing each year.
Answer: TRUE
Diff: 2 Page Ref: 11
AACSB: Use of information technology
13) The first generation of EC involves social networks, virtual worlds, and online
transactions.
Answer: FALSE
Diff: 1 Page Ref: 13
14) E-commerce 2.0 is based primarily on blogs and corporate-sponsored collaboration.
Answer: FALSE
Diff: 1 Page Ref: 13
AACSB: Use of information technology
15) According to O'Reilly (2005), Web 2.0 Level 1 applications operate offline but gain
features from going online.
Answer: TRUE
Diff: 3 Page Ref: 14
16) Social networking is the execution of any Web 2.0 activity, such as blogging and/or
, having a presence in a social network.
Answer: TRUE
Diff: 1 Page Ref: 15
AACSB: Use of information technology
17) By definition, enterprise social networks are public.
Answer: FALSE
Diff: 2 Page Ref: 16
18) Booking tickets on Facebook without leaving the social network is an example of
enterprise social commerce.
Answer: FALSE
Diff: 2 Page Ref: 16