E-Commerce Chapter 1 Exam Questions and Correct Answers Latest Update Graded A+
IBM defines electronic business as "the transformation of key business processes through the use of Internet technologies." - Answers True
A transaction is an exchange of value, such as a purchase, a sale, or the conv...
IBM defines electronic business as "the transformation of key business processes through the use of
Internet technologies." - Answers True
A transaction is an exchange of value, such as a purchase, a sale, or the conversion of raw materials into
a finished product. - Answers True
All the activities associated with a transaction result in measurable and recordable transactions. -
Answers False
Transferring funds, placing orders, sending invoices, and shipping goods to customers are all types of
activities or transactions. - Answers True
Business-to-business electronic commerce occurs when a person sells an item through a Web auction
site to another person. - Answers False
The U.S. government is one of the largest electronic data interchange (EDI) trading partners in the
world. - Answers True
A problem that EDI pioneers faced was the high cost of implementation. - Answers True
Value-added networks are leased telephone lines that establish direct network connections to all
trading partners of an organization - Answers False
The increase in broadband connections in homes is a key element in the B2C component of the second
wave. - Answers True
In some cases, business processes use traditional commerce activities very effectively, and technology
cannot improve them. - Answers True
Irrespective of the transferability of merchandising skills to the Web, products are difficult to sell on the
Web. - Answers False
A commodity item is a product or service that is hard to distinguish from the same product or service
provided by other sellers. - Answers True
A product's shipping profile is a collection of details about the shipper. - Answers False
A DVD is an excellent example of an item with a high value-to-weight ratio. - Answers True
A product that has a strong brand reputation is easier to sell over the Web than an unbranded item. -
Answers True
Electronic commerce provides buyers with an easy way to customize the level of detail in the
information they obtain about a prospective purchase. - Answers True
, Electronic commerce reduces the speed and accuracy with which businesses can exchange information.
- Answers False
Electronic payment can be easier to audit and monitor than payment made by check. - Answers True
The legal environment in which electronic commerce is conducted is full of clear and concise laws. -
Answers False
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. -
Answers True
Most economists agree that markets are weak and ineffective mechanisms for allocating scarce
resources. - Answers False
Businesses and individuals can use electronic commerce to reduce transaction costs by improving the
flow of information and increasing the coordination of actions. - Answers True
Buyers and sellers in commodity markets experience significant transaction costs. - Answers False
Using the value chain reinforces the idea that electronic commerce should be a business solution, not a
technology implemented for its own sake. - Answers True
A freight forwarder is a company that arranges shipping and insurance for international transactions -
Answers True
Consumer shopping on the Web is often called _____. - Answers B2C
The group of logical, related, and sequential activities and transactions in which businesses engage are
often collectively referred to as _____. - Answers Business Processes
Banks use _____, which are electronic transmissions of account exchange information over private
communications' networks. - Answers Wire Transfers
Electronic funds transfers are also called _____. - Answers Wire Transfers
Businesses that engage in electronic data interchange with each other are called _____. - Answers
Trading Partners
A(n) _____ is an independent firm that offers connection and transaction-forwarding services to buyers
and sellers engaged in electronic data interchange. - Answers Value-Added Network
_____ is the use of interpersonal connections online to promote or sell goods and services - Answers
Social Commerce
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