Test Bank all Chapters, MCQs Answer

Electronic Commerce, 12e Gary Schneider

(Test Bank all Chapters, MCQ’s Answer are marked with *)

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Chapter 1

• IBM defines electronic business as "the transformation of key

business processes through the use of Internet technologies."

*a. True

• False

• A transaction is an exchange of value, such as a purchase, a sale,

or the conversion of raw materials into a finished product.

*a. True

• False

• All the activities associated with a transaction result in

measurable and recordable transactions.

• True

*b. False

• Transferring funds, placing orders, sending invoices, and shipping

goods to customers are all types of activities or transactions.

*a. True

• False

• Business-to-business electronic commerce occurs when a person sells

an item through a Web auction site to another person.

• True

*b. False

• The U.S. government is one of the largest electronic data

interchange (EDI) trading partners in the world.

*a. True

• False

• A problem that EDI pioneers faced was the high cost of

implementation.

*a. True

• False

• Value-added networks are leased telepho ne lines that establish

direct network connections to all trading partners of an organization.

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• True

*b. False

• The increase in broadband connections in homes is a key element in

the B2C component of the second wave.

*a. True

• False

• In some cases, business processes use traditional commerce

activities very effectively, and technology cannot improve them.

*a. True

• False

• Irrespective of the transferability of merchandising skills to the

Web, products are difficult to sell on the Web.

• True

*b. False

• A commodity item is a product or service that is hard to

distinguish from the same product or service provided by other sellers.

*a. True

• False

• A product's shipping profile is a collection of details about the

shipper.

• True

*b. False

• A DVD is an excellent example of an item with a high value -to-

weight ratio.

*a. True

• False

• A product that has a strong brand reputation is easier to sell over

the Web than an unbranded item.

*a. True

• False

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• Electronic commerce provides buyers with an easy way to customize

the level of detail in the information they obtain about a prospective purchase.

*a. True

• False

• Electronic commerce reduces the speed and accuracy with which

businesses can exchange information.

• True

*b. False

• Electronic payment can be easier to audit and monitor than payment

made by check.

*a. True

• False

• The legal environment in which electronic commerce is conducted is

full of clear and concise laws.

• True

*b. 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.

*a. True

• False

• Most economists agree that markets are weak and ineffective

mechanisms for allocating scarce resources.

• True

*b. False

• Businesses and individuals can use electronic commerce to reduce

transaction costs by improving the flow of information and increasing the coordination of actions.

*a. True

• False

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