

Digital Business and E-Commerce Review
Questions
Course Introduction
Digital Business and E-Commerce explores how organizations leverage digital technologies to create, deliver, and capture value in the modern marketplace. The course covers fundamental concepts such as online business models, digital marketing, payment systems, and web analytics. Students will learn about the development and management of e-commerce platforms, the impact of social media, cybersecurity challenges, and legal and ethical considerations in the digital environment. By examining real-world case studies, students gain practical insights into the strategies, tools, and trends shaping digital business transformation across various industries.
Recommended Textbook E Commerce 2014 10th Edition by Kenneth
C. Laudon
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12 Chapters
1032 Verified Questions
1032 Flashcards
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Page 2

Chapter 1: The Revolution Continues
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Sample Questions
Q1) Which of the following is a characteristic of the Reinvention phase of e-commerce?
A)massive proliferation of dot-com start-ups
B)widespread adoption of broadband networks
C)rapid growth of search engine advertising
D)widespread adoption of consumer mobile devices
Answer: D
Q2) E-commerce technologies have changed the traditional tradeoff between the richness and reach of a marketing message.Prior to the development of the Web:
A)marketing messages had little richness.
B)the smaller the audience reached, the less rich the message.
C)the larger the audience reached, the less rich the message.
D)richness equaled reach.
Answer: C
Q3) Social e-commerce is the largest type of e-commerce.
A)True
B)False
Answer: False
Q4) ________ refers to the complexity and content of a message.
Answer: Richness
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Chapter 2: E-Commerce Business Models and Concepts
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Sample Questions
Q1) Barriers to entry into the e-tail marketplace are high.
A)True
B)False
Answer: False
Q2) A business document that specifically details how you plan on selling your product and find new customers is called a:
A)sales analysis.
B)business plan.
C)competitive strategy.
D)market strategy.
Answer: D
Q3) Most first movers have the complementary resources needed to sustain their advantage.
A)True
B)False
Answer: False
Q4) Service providers primarily use the advertising revenue model.
A)True
B)False
Answer: False
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Chapter

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Sample Questions
Q1) An IPv4 address is expressed as a:
A)32-bit number that appears as a series of four separate numbers separated by semicolons.
B)64-bit number that appears as a series of four separate numbers separated by semicolons.
C)64-bit number that appears as a series of four separate numbers separated by periods.
D)32-bit number that appears as a series of four separate numbers separated by periods.
Answer: D
Q2) The concept behind document formatting had its roots in which of the following?
A)XML
B)SGML
C)HTML
D)GML
Answer: D
Q3) A TCP/IP network located within a single organization for the purposes of communication and information processing is called a(n)________.
Answer: intranet
Page 5
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Chapter 4: Building an E-Commerce Presence: Web Sites, Mobile Sites, and Apps
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Sample Questions
Q1) Which of the following would you use to identify orphan files?
A)HTTP
B)FTP
C)data capture tools
D)site management tools
Q2) Which of the following is the least expensive path to creating a mobile Internet presence?
A)developing a native app
B)resizing an existing Web site for mobile use
C)building a mobile Web app using HTML
D)building a mobile Web app using Java
Q3) A(n)________ is an application designed specifically to operate using a mobile device's hardware and operating system.
Q4) A(n)________ is a small, prebuilt chunk of code that executes automatically in your HTML Web page to perform a specific task such as providing weather information.
Q5) The systems development life cycle methodology is useful when creating an e-commerce Web site.
A)True
B)False
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Chapter 5: E-Commerce Security and Payment Systems
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Sample Questions
Q1) Smishing attacks exploit SMS messages.
A)True
B)False
Q2) What dimensions do digital signatures and hash digests add to public key encryption and how do they work?
Q3) Typically, the more security measures added to an e-commerce site, the slower and more difficult it becomes to use.
A)True
B)False
Q4) Which of the following is the current standard used to protect Wi-Fi networks?
A)WEP
B)TLS
C)WPA2
D)WPA3
Q5) An example of a privacy violation of e-commerce security is:
A)your e-mail being read by a hacker.
B)your online purchasing history being sold to other merchants without your consent.
C)your computer being used as part of a botnet.
D)your e-mail being altered by a hacker.
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Chapter 6: E-Commerce Marketing and Advertising Concepts
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Sample Questions
Q1) Impressions are a measure of the:
A)number of times an ad is clicked.
B)number of times an ad is served.
C)number of http requests.
D)number of pages viewed.
Q2) Which of the following is the top concern of Internet users about purchasing online?
A)inability to see and touch before buying
B)difficulty of returning products
C)shipping costs
D)lack of trust in the purchase process
Q3) Purchasing an online ad on a CPA basis means that the advertiser:
A)pays for impressions in 1,000 unit lots.
B)pays a prenegotiated fee for each click an ad receives.
C)pays only for those users who perform a specific action, such as registering, purchasing, etc.
D)exchanges something of equal value for the ad space.
Q4) E-commerce is a major conduit and generator of offline commerce.
A)True
B)False

Page 8
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Chapter 7: E-Commerce Marketing Communications
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Sample Questions
Q1) ________ is the leading mobile retailer.
Q2) ________ involves using a variety of tools to encourage users to interact with content and brand.
Q3) It is expected that by 2017, mobile commerce will account for 50% of all e-commerce.
A)True
B)False
Q4) By 2015, it is estimated that mobile marketing spending will account for around $16 billion annually.
A)True
B)False
Q5) Name and describe five of the marketing tools available with Facebook.
Q6) Which of the following statements is not true?
A)Mobile shoppers and buyers are more affluent than the online population in general.
B)Men are more likely than women to buy digital content with a mobile device.
C)Women are more active purchasers on smartphones than men.
D)Younger consumers are more likely to research products and prices on mobile devices than older consumers.
Q7) Facebook's new search engine, introduced in July 2013, is called ________.
Page 9
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Chapter 8: Ethical, Social, and Political Issues in

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Sample Questions
Q1) Registering the domain name goggle.com with the intent to divert Web traffic from people misspelling google.com is an example of:
A)cybersquatting.
B)typosquatting.
C)metatagging.
D)linking.
Q2) The Children's Internet Protection Act (CIPA)requires schools and libraries in the United States to install technology protection measures in an effort to shield children from pornography.
A)True
B)False
Q3) All of the following statements about patents are true except:
A)it is more difficult to obtain a copyright than it is to obtain a patent.
B)the four types of inventions protected by patent law are machines, manmade products, compositions of matter, and processing methods.
C)computer programs can be patented.
D)in order to be patented, an invention must be nonobvious.
Q4) ________ profiles identify people as belonging to highly specific and targeted groups.
Page 10
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Chapter 9: Online Retailing and Services
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Sample Questions
Q1) For a quick check of a firm's short-term financial health, examine its:
A)working capital.
B)gross margin.
C)long-term debt.
D)cost of sales.
Q2) The online mortgage industry has transformed the process of obtaining a mortgage.
A)True
B)False
Q3) All of the following services require extensive personalization except:
A)financial services.
B)legal services.
C)medical services.
D)accounting services.
Q4) Which of the following is not categorized as an operating expense?
A)the cost of products being sold
B)marketing costs
C)administrative overhead
D)amortization of goodwill
Q5) Explain why online career services are so well suited to the Web.
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Chapter 10: Online Content and Media
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Sample Questions
Q1) The publishing and entertainment industries make up the largest share of the commercial content marketplace, both online and offline
A)True
B)False
Q2) As of 2013, around how many Kindles of all types have been sold in the United States?
A)8 million
B)80 million
C)800 million
D)8 billion
Q3) Which of the following generates the largest share of media revenues?
A)video games
B)television
C)newspapers
D)radio
Q4) Amazon's ________ is not just an e-book reader but also a media and entertainment portable device.
Q5) Discuss the industry structure of the online entertainment industry and how it might be improved.
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Chapter 11: Social Networks, Auctions, and Portals
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Sample Questions
Q1) Howard Rheingold, one of The Well's early participants, coined the term ________ to refer to "cultural aggregations that emerge when enough people bump into each other often enough in cyberspace."
Q2) The term ________ refers to the advantages conferred the larger an auction site becomes in terms of visitors and products for sale.
Q3) Which of the following involves e-mailing another seller's bidders and offering the same product for less?
A)transaction interception
B)bid siphoning
C)shill bidding
D)persistent bidding
Q4) ________ is the tendency to gravitate toward, and bid for, auction listings with one or more existing bids.
A)Group buying
B)Winner's regret
C)Herd behavior
D)Bid rigging
Q5) E-mailing buyers to warn them away from a seller is a type of auction fraud known as ________.
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Chapter 12: B2b E-Commerce: Supply Chain Management and
Collaborative Commerce
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Sample Questions
Q1) EDI systems:
A)generally serve horizontal markets.
B)are seller-side solutions.
C)are based on a communications standard for sharing business documents.
D)no longer play an important role in B2B commerce.
Q2) A(n)________ market is one that provides expertise and products for a specific industry, such as automobiles.
Q3) B2B e-commerce systems originated with the Internet.
A)True
B)False
Q4) Industry consortia are usually owned collectively by the major firms participating in the consortia, while private industrial networks usually are created by a single sponsoring company.
A)True
B)False
Q5) The last step in the procurement process is:
A)sending a remittance payment.
B)sending the invoice.
C)shipping the goods.
D)delivering the goods.
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