

Electronic Business
Chapter Exam Questions
Course Introduction
Electronic Business explores the strategic, managerial, and technological aspects of conducting business in the digital era. This course examines how organizations can leverage the internet and digital platforms to enhance operations, reach new markets, and deliver value to customers. Covering topics such as e-commerce models, electronic payment systems, digital marketing, cybersecurity, and supply chain integration, students will learn about the opportunities and challenges faced by businesses in the online environment. Through case studies and practical projects, students gain insights into emerging trends and acquire skills necessary to develop and manage electronic business strategies effectively.
Recommended Textbook Ecommerce 2013 9th Edition by
Kenneth C. Laudon
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Page 2

Chapter 1: The Revolution Is Just Beginning
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Sample Questions
Q1) 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
Q2) In 2012, roughly ________ million people in the United States accessed the Internet via mobile devices.
A) 30
B) 65
C) 80
D) 120
Answer: D
Q3) The costs incurred by merchants in having to change product prices (such as the costs of reentering prices into computer systems) are referred to as ________ costs.
Answer: menu
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Chapter 2: E-Commerce Business Models and Concepts
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Sample Questions
Q1) All of the following can be considered a direct or indirect competitor of Amazon.com except:
A) eBay.
B) Apple's iTunes Store.
C) Barnesandnoble.com.
D) Starbucks.
Answer: D
Q2) What is the primary revenue model for an e-distributor?
A) sales
B) transaction fee
C) advertising
D) subscription
Answer: A
Q3) In order to be considered successful, a firm must produce returns greater than alternative investments.
A)True
B)False
Answer: True
Q4) ________ is a social network based on 140-character messages.
Answer: Twitter
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Chapter

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Sample Questions
Q1) The backbone of the Internet is formed by:
A) Internet Exchange Points (IXPs).
B) Network Service Providers (NSPs).
C) Internet Service Providers (ISPs).
D) Metropolitan Area Exchanges (MAEs).
Answer: B
Q2) Tablet computers rely on the Internet cloud for processing and storage.
A)True
B)False
Answer: True
Q3) Which of the following is currently the most popular Web browser?
A) Internet Explorer
B) Netscape
C) Safari
D) Firefox
Answer: A
Q4) ________ refers to delays in messages caused by the uneven flow of information packets through the network.
Answer: Latency
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 system functionality must your Web site have in order to be able to personalize or customize a product for a client?
A) an ad server
B) a site tracking and reporting system
C) an inventory management system
D) customer on-site tracking
Q2) ________ is a programming language invented by Netscape used to control the objects on an HTML page and handle interactions with the browser.
A) VBScript
B) ActiveX
C) ColdFusion
D) JavaScript
Q3) A "native" app is one designed to specifically operate using a mobile device's hardware and operating system.
A)True
B)False
Q4) Discuss some of the unique features that must be taken into account when designing a mobile Web presence.
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Q5) A SWOT analysis describes strengths, weaknesses, opportunities, and ________.

Chapter 5: E-Commerce Security and Payment Systems
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Q1) ________ is a widely used e-mail public key encryption software tool.
Q2) Which of the following is not an example of an access control?
A) firewalls
B) proxy servers
C) digital signatures
D) login passwords
Q3) If you used a symmetric key encryption for large documents, with public key encryption to encrypt and send the symmetric key, you would be using a digital: A) envelope.
B) signature.
C) certificate.
D) hash.
Q4) A digital certificate contains all of the following except the: A) subject's private key.
B) subject's public key.
C) digital signature of the certification authority.
D) digital certificate serial number.
Q5) What dimensions do digital signatures and hash digests add to public key encryption and how do they work?
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Chapter 6: E-Commerce Marketing Concepts: Social,
Mobile, Local
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Sample Questions
Q1) Conversations between a firm and the consumers of its products in various forums such as blogs, Facebook, and Twitter feeds are referred to collectively as ________.
Q2) Which of the following is not a kind of Twitter marketing product?
A) Promoted Shopping
B) Promoted Tweets
C) Promoted Accounts
D) Promoted Trends
Q3) In 2012, what was the approximate Internet penetration rate for individuals that have attained less than a high-school education?
A) 45 percent
B) 60 percent
C) 75 percent
D) 90 percent
Q4) On average, which of the following activities was most frequently engaged in by Internet users in 2012?
A) checking the weather
B) banking online
C) buying a product
D) rating a product
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Chapter 7: E-Commerce Marketing Communications
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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) ________ involves using the social graph to communicate brand images and to directly promote sales of products and services.
Q3) Conversion rate is a measure of the:
A) percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages.
B) percentage of visitors who become customers.
C) percentage of existing customers who continue to buy on a regular basis.
D) percentage of shoppers who do not return within a year after their initial purchase.
Q4) The ________ rate is an e-mail campaign metric that measures the percentage of e-mails that could not be delivered.
Q5) A(n) ________ permits a firm to place its logo, banner ad, or text link on another firm's Web site from which users of that site can click through to the originating site.
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Page 9

Chapter 8: Ethical, Social, and Political Issues in E-Commerce
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Q1) The Unlawful Internet Gambling Enforcement Act has eliminated all online gambling in the United States.
A)True
B)False
Q2) Disputes over federal trademarks involve establishing:
A) underlying ideas.
B) intent.
C) piracy.
D) infringement.
Q3) The placing of a cookie on a user's hard drive by one site that is then used by another site to sell that user related products without the knowledge of the user is:
A) legal in the United States but illegal in Europe.
B) illegal in the United States but legal in Europe.
C) legal in both the United States and Europe.
D) illegal in both the United States and Europe.
Q4) An ISP basic service plan, allowing 300GB of data transfer per month, with additional data transfer available for $15 for 50GB, is an example of a tiered plan called ________.
Q5) The main stakeholders arguing against net neutrality are ________.
Page 10
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Chapter 9: Online Retail and Services
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Sample Questions
Q1) In 2012, the number of online buyers was around 150 million.
A)True
B)False
Q2) In the United States, banks, insurance firms, and brokerage firms are prohibited from having significant financial interests in one another.
A)True
B)False
Q3) Which of the following would not be considered a current asset?
A) long-term investments
B) cash
C) accounts receivable
D) marketable securities
Q4) Define the terms goods and services and discuss the limitations of those definitions in today's evolving marketplace.
Q5) Online career sites are being threatened by both job search engines and aggregators.
A)True
B)False
Q6) 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) As of 2012, 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
Q2) Which of the following together comprised the largest component of online paid content in 2012?
A) online games and online TV
B) online music and online games
C) online music and online video
D) online video and online games
Q3) All of the the following are examples of media convergence except:
A) iPad.
B) Amazon Books Publishing.
C) Google TV.
D) cell phones.
Q4) In 2011, online movie viewing doubled.
A)True
B)False
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Chapter 11: Social Networks, Auctions, and Portals
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Q1) The time spent watching and reviewing auction bids is a part of ________ costs.
Q2) A(n) ________ offer members focused discussion groups, help, information, and knowledge related to an area of shared practice.
Q3) 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."
Q4) Facebook is an example of a(n):
A) interest-based social network.
B) affinity community/social network.
C) general community/social network.
D) practice network.
Q5) A(n) ________, in which the highest bidder wins, is the most common form of auction.
A) Dutch Internet auction
B) Japanese auction
C) English auction
D) reverse auction
Q6) ________ help employees navigate to the firm's human resource and corporate content such as corporate news and announcements.
Page 13
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Chapter 12: B2B E-Commerce: Supply Chain Management and Collaborative
Commerce
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Q1) ________ services include automation of a firm's entire procurement process on the buyer side and automation of the selling business processes on the seller side.
Q2) Which of the following is not a major trend in B2B e-commerce in 2012-2013?
A) decreased growth of B2B e-commerce due to the recession
B) use of social networks by B2B firms
C) growing use of mobile platform for B2B systems
D) B2B systems move to cloud providers
Q3) ________ systems are corporate-wide systems that relate to all aspects of production.
Q4) Office supplies are an example of:
A) direct goods.
B) indirect goods.
C) MRO goods.
D) distributed goods.
Q5) The four main types of Net marketplaces are e-distributors, e-procurement networks, exchanges, and ________.
Q6) The topology of EDI systems is often referred to as a(n) ________ system, with the buyers in the center and the suppliers connected to the center via private dedicated networks.
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