Managing Information Technology, 7e (Brown)
Chapter 7 E-Business Systems
1) A bricks-and-clicks company can be described as all of the following except:
A) multichannel.
B) pure-play.
C) integrating offline and online business.
D) click-and-mortar.
2) Which law describes the relative value of a network as proportional to the square of the
number of its members?
A) Moore’s Law
B) Metcalfe’s Law
C) M-commerce Law
D) McAffe’s Law
3) According to the textbook, which statement about electronic data interchange (EDI) is not
true?
A) EDI involves computer-to-computer communications between trading partners.
B) EDI saves costs due to automated transaction handling and the elimination of paper
documents.
C) EDI requires an Internet connection.
D) Some EDI standards are industry-specific.
4) In the first half of the 1990s, which of the following paved the way for today’s Internet?
A) The National Science Foundation lifted the ban on commercial usage of the Internet.
B) A commercial web browser was available.
C) Google bought PayPal.
D) both A and B
5) Which of the following was the first commercial Web browser?
A) Mosaic
B) Opera
C) Internet Explorer
D) Netscape Navigator
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6) Which statement about the growth of e-business in the 1990s is not true?
A) the U.S. Congress did not impose a sales tax on purchases via the Internet
B) credit card processing for online purchases was available even before the web browser
C) DSL and cable modems to U.S. homes increased the download speeds for web sites
D) search engines enabled users to find web sites without keying in their URLs
7) Which of the following uses cryptography to ensure secure transmission over a public
network?
A) digital signatures
B) communication protocols
C) web browsers
D) search engines
8) Which of the following are likely to have Web portals?
A) news sites
B) search engines
C) companies
D) all of the above
9) According to Porter’s model, which of the following is not one of the competitive forces that
business organizations typically face?
A) supplier power
B) threat of new entrants
C) threat of government regulation
D) threat of substitute products
10) According to Porter (2001), the Internet has had which kind of competitive impact?
A) widening of geographic markets to increase the reach to potential customers
B) increased difficulties in keeping a product or service offering proprietary
C) reduction in switching costs for customers
D) all of the above
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11) Which type of e-business is most dependent upon the number of individuals having Internet
access?
A) B2B
B) B2C
C) G2G
D) C2B
12) Which statement about Web 2.0 is true?
A) the World Wide Web is used as a platform for sharing personal information
B) the Web 2.0 browser is the one that succeeded Mosaic
C) it is a new protocol that has been approved by the W3C
D) it refers to the use of XML to replace EDI over the Internet
13) A potential seller benefit from B2C applications is:
A) lower costs from online channels.
B) multimedia opportunities for marketing.
C) new ways to research potential markets.
D) all of the above
14) Which statement about the usage of social media as a B2C platform is not true?
A) companies are using social media to communicate with customers
B) Fortune 500 companies are using Facebook, but not Twitter
C) blogs are being used to help “brand” a company or products
D) some companies have used online communities to generate and comment on product ideas
15) Which of the following businesses have a Web site that promotes a sense of “community” by
their consumers?
A) Amazon
B) Netflix
C) TD Ameritrade
D) both A and B
16) Which of the following was NOT a pioneer in providing online customers with the ability to
order customized products through their Web site?
A) Lands’ End
B) Blockbuster
C) Dell
D) all of the above
17) Which of the following was a pioneer in developing a superior online shopping experience
for consumers?
A) Amazon.com
B) Dell.com
C) Landsend.com
D) Netflix.com
18) Which of the following is not an example of an online intermediary?
A) Dell
B) e-Bay
C) Facebook
D) Google
19) Providing customized content to the user based on the actual geographic location of their
handheld device is a form of:
A) C2C
B) M-commerce
C) EDI
D) none of the above
20) What term refers to web sites that were designed to be an initial point of access, or gateway,
to other sites?
A) Web portal
B) Firewall
C) Web browser
D) Virus
21) In what industries are companies that serve as online B2B intermediaries more likely to have
a sustainable business model?
A) those with lots of buyers and few sellers
B) those with lots of buyers and lots of sellers
C) those with few buyers and lots of sellers
D) none of the above
22) Which is a major challenge that Facebook is continually facing?
A) user trust for maintaining the privacy of their personal information
B) finding more users
C) branding
D) none of the above
23) Which of the following is NOT a difference in e-business after the U.S. dot-com meltdown
when compared with before the meltdown?
A) less venture capital
B) pure-play businesses no longer exist
C) company valuations based on potential for earnings and profits
D) some state sales taxes
24) The 1999 end-of-year holiday season was considered a milestone in B2C e-business in the
U.S. because online sales approached what percentage of total holiday sales?
A) 1%
B) 2%
C) 5%
D) 10%
25) Which of the following is included in the 7Cs framework for evaluating B2C web sites by
Rayport and Jaworski?
A) content (site layout and design)
B) context (usage of text and other media)
C) community (enabling feelings of membership and shared interest)
D) all of the above
26) Which of the following companies uses the Web for both B2B and B2C?
A) Dell
B) Facebook
C) Staples
D) both A and C
27) Which of the following statements about Google is not true?
A) Google’s profitability has been based on revenues from targeted advertising
B) YouTube was purchased by Google
C) an open operating system platform for mobile devices, named Android, is a Google product
D) none of the above
28) Which of the following is an example of a “first mover” success not always being valid?
A) Google
B) eBay
C) Yahoo!
D) Staples
29) Why would a consumer want to see a TRUSTe seal on a web site?
A) TRUSTe is a government organization concerned with consumer trust
B) a TRUSTe seal signifies that the company’s website has a clear privacy policy
C) the company is affiliated with Apple computer
D) sites that do not display this seal are not trustworthy
30) Which of the following countries has a national policy that requires that all web sites be
registered and in compliance with national guidelines about certain content?
A) Japan
B) China
C) U.S.
D) U.K.
31) The World Wide Web Consortium (W3C) is an industry consortium that oversees the
assignment of domain names.
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32) An extranet is a private network operating within an organization that employs the TCP/IP
protocol to provide information, applications, and other tools for use by the organization’s
employees.
33) The Internet has its roots in ARPANET, a network of U.S. government and selected research
and development firms in the private sector that grew to include educational institutions and
other nonprofit organizations.
34) According to the textbook, traditional U.S. retailers that had developed a multichannel
capability appeared to have an online B2C advantage by 2005.