e-Commerce Business MCQs

A key
success factor for Net-A-Porter is the ability to A) buy
what customers want from designers. B) provide services
at a lower cost. C) provide products to a niche market.
D) use IT for competitive advantage.

Net-A-Porter’s online store is an example of
A) business-to-employees EC. B)
business-to-consumer EC. C) business-to-business EC.
D) consumer-to-consumer EC.

A broader definition of EC that includes not just
the buying and selling of goods and services, but also servicing customers,
collaborating with business partners, and conducting electronic transactions
within an organization best defines A)
e-commerce. B) e-business.
C) e-government. D) e-tailing.

Depending on the degree of digitization, EC can take several
forms including A) the ordering system, processing, and
shipping method. B) the business process, the collaboration,
and the transaction. C) the payment method, the delivery
method, and the production method. D) the marketing channel,
the agent, and the collaboration method.

Organizations that conduct their business activities solely
online are A) click-and-mortar organizations. B)
pure-play organizations. C) brick-and-mortar organizations.
D) unrestricted commerce organizations.

Organizations that conduct some e-commerce
activities, usually as an additional marketing channel, are
A) brick-and-mortar organizations. B)
value-added organizations. C) pure-play
organizations. D) click-and-mortar organizations

A corporate or government network that uses
Internet tools, such as Web browsers, and Internet protocols best defines
A) social network. B)
extranet. C) intranet.
D) e-market.

An online marketplace where buyers and sellers meet
to exchange goods, services, money, or information best defines
A) electronic marketplace. B) farmers
market. C) digital marketplace.
D) webinar.

Referencing the Electronic Commerce Framework, marketing
and advertisement is in the category of A) electronic
commerce applications. B) infrastructure.
C) value chain. D) support services.

According to the Electronic Commerce Framework,
direct marketing, search jobs, and online banking are
A) electronic commerce applications. B)
support services. C) part of the EC
infrastructure. D) supply chain management
activities.

When Apple conducts online transactions with its trading
partners, this is an example of A) B2B. B) B2C.
C) e-CRM. D) EDI.

An e-commerce model in which all the participants are businesses
or other organizations describes A) business-to-consumer.
B) business-to-business. C)
business-to-business-to-consumer. D) consumer-to-business.

EC classifications include A) business-to-business.
B) business-to-consumer. C) consumer-to-business.
D) all of the above.

A business that provides some product or service
to a client business that maintains its own customers best describes the
E-commerce model of A) consumer-to-business.
B) intrabusiness EC.
C) business-to-business-to-consumer. D)
business-to-business.

Selling corporate products to one’s employees is an example of
A) business-to-consumer. B) intrabusiness EC.
C) business-to-business-to-consumer. D)
collaborative commerce.

EC activities include A) trading, buy, sell, and
exchange. B) communicate, collaborate, and learn.
C) improve performance. D) all of the above.

Traditional and electronic markets have three main
functions, which include each of the following except
A) matching buyers and sellers. B)
facilitating the exchange of information, goods, services, and payments
associated with market transactions.
C) financing the transformation of raw materials into finished
products. D) providing an institutional
infrastructure, such as a legal and regulatory framework that enables
the efficient functioning of the market.

The emergence of electronic marketplaces changed several
of the processes used in trading and supply chains including
A) lowering information search time and cost for buyers.
B) the ability of buyers, sellers, and the virtual
market to each be in a different location. C) the
ability for EC to leverage capabilities with increased effectiveness and
lower transaction and distribution costs, leading
to more efficient “friction-free” markets.
D) all of the above.

The portion of an e-seller’s business through which
customers interact, including the seller’s portal, electronic catalogs,
shopping cart, and payment gateway is referred to as the ________ of the
business. A) front end B) back end
C) infrastructure D) intermediary

A(n) ________ is a single point of access, through
a Web browser, to critical business information located inside and outside
(via Internet) an organization. A) browser B)
intermediary C) Web portal D) search engine

A method for Internet users to store, organize,
search, and manage bookmarks of Web pages on the Internet with the help of
metadata best defines A) tagging.
B) filtering. C)
social bookmarking. D) intermediating.

Types of virtual communities include each of the following
except A) relations or practices. B) virtual
worlds. C) mashups. D) social networks.

Facebook, LinkedIn, and catster.com are examples of
A) gender communities. B) communities of
practice. C) virtual worlds. D)
social network sites.

Which of the following is a global, multilanguage, social
network popular in Asia and parts of Europe, Africa, and South America?
A) Hi5.com B)
Piczo.com C) Friendsreunited.co.uk
D) Iwiw.net

Capabilities and services provided by social networking sites
include A) discussion forums. B) blogs for
discussion and dissemination of information. C) viewing and
sharing photos, videos, and documents. D) all of the above.

A virtual world is A) a user-defined world in
which people can interact, play, and do business. B) a single
point of access, through a Web browser, to critical business information
located inside and outside (via Internet) an organization.
C) a social network whose major interest is business topics.
D) a combination of two or more websites into a single website
that provides the content of both sites to deliver a novel product
to consumers.

Types of business activities in virtual worlds include
each of the following except A) creating and managing a virtual
business. B) operating a bed and breakfast in Nova Scotia.
C) providing services for those who build, manage, or make
money with virtual properties. D) conducting regular business
activities.

According to Internet Retailer (2009), approximately
________ percent of adult U.S. Internet users shop online or research offline
sales online. A) 25 B)
60 C) 65 D) 85

Retailers who sell over the Internet are A)
e-tailers. B) disintermediaries. C)
marketing managers. D) multichannel marketers.

With all else being equal in the online environment,
goods with any of the following product characteristics are expected to
facilitate greater online sales except A)
relatively expensive items. B) high brand
recognition. C) digitized format.
D) frequently purchased items.

Which of the following is a characteristic of e-tailing?
A) Competition is local. B) Customer relations are less
stable due to anonymous contacts. C) Price changes are
expensive, but can be done at anytime. D) Fewer resources are
needed to increase customer loyalty.

Major advantages of e-commerce to sellers include each of the
following except A) charging less for items. B)
lower supply chain costs. C) reacting quickly to customer’s
needs. D) competing with larger companies.

A business model where a company sells in multiple marketing
channels simultaneously best defines A) multichannel
business model. B) concurrent business model.
C) direct marketing. D) revenue enhancement.

The competitive advantages of a “pull” vehicle
distribution process include each of the following except
A) improved customer satisfaction and better pricing.
B) large cost savings in finished vehicle inventory
carrying costs. C) better cash flow to the
manufacturers. D) creating a build-to-stock
environment.

Firms that sell directly to consumers over the
Internet without maintaining a physical sales channel describes
A) click-and-mortar stores. B)
viral marketers. C) virtual e-tailers.
D) social network.

An online seller of travel services that generates
revenue by charging fees for its services is an example of a
A) market maker. B) transaction
broker. C) content disseminator.
D) viral marketer.

A marketer that uses e-mail to advertise to potential customers
is called a A) market maker. B) transaction broker.
C) content disseminator. D) viral marketer.

In an e-market, PayPal serves as a(n) A)
intermediary. B) service provider. C) content
disseminator. D) viral marketer.

A B2C model in which sales are done to meet the needs of special
events describes A) anniversary shopping. B)
time-based shopping. C) event shopping. D)
choreographed shopping.

Limitations of online travel services include A)
limited amount of free information. B) substantial discounts.
C) the difficulty of using virtual travel agents can be very
large. D) increases in provider’s commission and its processing.

Which of the following is not a characteristic of e-banking?
A) saves users time and money B) is more expensive
for banks C) is becoming an enabling feature of business growth
in the developing world D) is increasing peer-to-peer (P2P)
online lending

Security for online bank transactions includes each of the
following except A) firewalls. B) SSL encryption.
C) virtual biometrics. D) digital certificates.

Gateways to storefronts and e-malls are A)
shopping portals. B) shopbots. C) shopping
browsers. D) intelligent search engines.

Software tools that scout the Web on behalf of consumers who
specify search criteria are A) shopping portals.
B) shopbots. C) shopping browsers. D) intelligent
search engines.

The TRUSTe seal is an example of a(n) A) business
rating. B) intermediary. C) B2B exchange.
D) trustmark.

Key business drivers for B2B include each of the following
except A) the availability of a secure broadband Internet
platform. B) the ability to reduce delays.
C) the willingness of companies to incur higher costs to improve
collaboration. D) the need for collaborations between
suppliers and buyers.

E-commerce that focuses on a single company’s buying needs or
selling needs best defines A) computer exchange.
B) business-to-business e-commerce. C) private marketplace.
D) company-centric EC.

Many-to-many e-marketplaces, usually owned and run by a
third party or a consortium, in which many buyers and many sellers meet
electronically to trade with each other best describes
A) exchanges. B) public market.
C) company-centric EC. D)
spot purchases.

B2B transactions that involve communication, design,
planning, information sharing, and activities beyond financial transactions
among business partners defines A) exchanges.
B) collaborative commerce.
C) trading communities. D) public
marketplaces.

An online third party that brokers a transaction online between
a buyer and a seller best describes A) strategic source.
B) horizontal marketplace. C) vertical marketplace.
D) online intermediary.

Types of B2B transactions include A) strategic
sourcing. B) randomized buying. C)
intermediation. D) reverse purchasing.

The purchase of goods and services as they are needed, usually
at prevailing market prices, best defines A) direct
materials. B) consolidation. C) spot
buying. D) strategic sourcing.

Purchases of goods and services based on long-term contracts
best defines A) direct materials. B)
consolidation. C) spot buying. D)
strategic sourcing.

Which of the following can be supported more effectively
and efficiently through direct buyer-seller negotiations?
A) strategic sourcing B) spot
buying C) B2C e-commerce
D) MRO

Materials used in the production of a product best defines
A) indirect materials. B) direct materials.
C) MRO materials. D) production materials.

Two types of materials and supplies that are traded in B2B are
A) digital and physical. B) direct and indirect.
C) horizontal and vertical. D) commodities and
nonproduction.

Materials used to support production are called A)
indirect materials. B) operational materials. C)
direct materials. D) virtual materials.

The major B2B service industries include each of the following
except A) travel and hospitality services. B)
financial services. C) banking and online financing.
D) retail

Which of the following is not one of the major benefits of B2B
for both buyers and sellers? A) expedites processing and reduces
cycle time B) reduces procurement costs C) enables
customized online catalogs with different prices for different customers
D) increases opportunities for collaboration

A business strategy that focuses on providing
comprehensive quality service to business partners best defines
A) customer relationship management.
B) supplier relationship management. C)
partner relationship management. D) supply chain
management.

The three major elements of Caterpillar Inc.’s learning
infrastructure include A) governance.
B) a learning technology infrastructure. C) an
alignment strategy. D) all of the above.

Caterpillar University enables e-learning through its knowledge
management system called A) Caterpillar Knowledge
Network. B) Butterfly Knowledge Network.
C) CAT Universal Network.

The e-commerce model in which a government entity
buys or provides goods, services, or information to businesses or individual
citizens best defines A) e-business.
B) e-government. C)
e-democracy. D) government integration.

Which of the following is the e-government category that
includes all the interactions between a government and its citizens?
A) government-to-business. B)
government-to-public. C) government-to-citizens.
D) government-to-individuals.

Each of the following is an example of e-government except a(n)
A) eBay-seller selling surplus army supplies.
B) contractor submitting an application for a building permit
using a city hall Web site. C) unemployed worker
consulting a Web site operated by the state employment department to
learn about job openings in his city. D)
citizen taking an online drivers’ education course.

An example of G2C is a(n) A) employee at the
Chamber of Commerce obtaining local demographic data from a U.S. census
site. B) driver paying for the
renewal of his auto tag online. C) road contractor using
the Internet to submit a closed bid on a paving contract.
D) regional hospital conducting an online reverse auction for cleaning
supplies.

Sharing information more quickly and conveniently between
the federal and state, local, and tribal governments is a performance
objective of which category of e-government? A)
G2C B) G2B C) G2G
D) IEE

Reducing the burden on business by enabling online
tax filing is a performance objective of which category of e-government?
A) G2C B) G2B
C) G2G D) IEE

Expanding access to information for people with
disabilities is a performance objective of which category of e-government?
A) G2C B) G2B
C) G2G D) IEE

Each of the following is a reason to implement electronic voting
except A) voting processes inherently are subject to errors.
B) voting processes cannot be confirmed. C) voting
processes are historically subject to manipulation. D) voting
processes are subject to fraud or attempts to rig the votes.

Politicians are using each of the following to communicate with
voters and citizens except A) RFID. B) blogs.
C) MySpace and Facebook. D) YouTube.

Which of the following is the e-government
category that includes interactions between governments and businesses?
A) government-to-enterprise.
B) government-to-business. C)
government-to-government. D)
government-to-corporation.

Which of the following is the e-government
category that includes activities within government units and those between
governments? A) government-to-unit
B) government-to-practice C)
government-to-government D)
government-to-business

Which of the following is the e-government category
that includes activities and services between government units and their
employees? A) government-to-unit
B) government-to-business C)
government-to-division D) government-to-employees

Governments use Web 2.0 tools mainly for A)
collecting local, state, and federal taxes. B) procurement,
voting, and e-learning. C) collaboration, dissemination of
information, e-learning, online forums, and citizen engagement.
D) distributing unemployment and welfare benefits.

The way government makes use of Web 2.0
technologies to interact with citizens and provide government services best
describes A) Government 2.0.
B) Social Networking 2.0. C) Internet 2.0.
D) Democracy 2.0.

According to an Australian Government 2.0 task
force report, by embracing Government 2.0 governments can
A) cultivate and harness the enthusiasm of citizens, letting
them more fully contribute to their well-being and
that of their community. B) unlock the immense
economic and social value of information and other content held by
governments to serve as a precompetitive platform for
innovation. C) make democracy more participatory
and informed. D) do all of the above.

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