Chapter 003

CHAPTER 3: Ebusiness: Electronic Business Value
True / False Questions

1. Disruptive technology tends to provide us with better, faster, and cheaper products.
True False
2. Disruptive and new technologies typically cut into the low-end of the marketplace and
eventually evolve to displace high-end competitors and their reigning technologies.
True False
3. Dell computer ranks highest on the list for expecting returns from new investments.
True False
4. What is best for an organization's current business could ruin it in the long term.
True False
5. Ebusiness is the buying and selling of goods and services over the Internet.
True False
6. Ebusiness is something that a business can just go out and buy.

True False
7. Future managers and workers need to understand the benefits MIS and ebusiness can offer
a company if it wants to take advantage of sustaining technologies.
True False
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8. A disruptive technology is a new way of doing things that initially does not meet the needs
of existing customers.
True False
9. A sustaining technology produces an improved product customers are eager to buy, such as
a faster car or larger hard drive.
True False
10. A sustaining technology is a new way of doing things that initially does not meet the
needs of existing customers.
True False
11. A disruptive technology produces an improved product customers are eager to buy, such
as a faster car or larger hard drive.
True False
12. The Innovator's Dilemma, a book by Clayton Christensen, discusses how established
companies can take advantage of disruptive technologies without hindering existing
relationships with customers, partners, and stakeholders.
True False
13. The Internet provides access to Internet information through documents including text,
graphics, audio, and video files that use a special formatting language called HTML.
True False
14. The WWW provides access to Internet information through documents including text,
True False
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15. The Internet is a massive network that connects computers all over the world and allows
them to communicate with one another.
True False
16. Hypertext markup language (HTML) links documents, allowing users to move from one
to another simply by clicking on a hot spot or link.
True False
17. The WWW, such as Internet Explorer or Mozilla's Firefox, allow users to access the
WWW.
True False
18. Hypertext transport protocol (HTTP) is the Internet protocol web browsers use to request
and display web pages using universal resource locators.
True False
19. A universal resource locator (URL) is the address of a file or resource on the web such as
www.apple.com.
True False
20. A universal resource locator (URL) identifies a URL address and in the previous example
apple.com is the domain name.
True False
21. URLs use domain names to identify particular websites.

True False
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22. Domain name hosting (web hosting) is a service that allows the owner of a domain name
to maintain a simple website and provide email capacity.
True False
23. A URL is a program that runs within another application such as a website.
True False
24. Ecommerce is the buying and selling of goods and services over the Internet. Ecommerce
refers only to online transactions.
True False
25. Ecommerce includes ebusiness along with all activities related to internal and external
business operations such as servicing customer accounts, collaborating with partners, and
exchanging real-time information. During Web 1.0, entrepreneurs began creating the first
forms of ecommerce.
True False
26. A paradigm shift occurs when a new radical form of business enters the market that
reshapes the way companies and organizations behave.
True False
27. A few examples of ebusiness advantages can include opening new markets, reducing
costs, and expanding global reach.
True False
28. Intermediaries occur when a customer sells directly to another customer online cutting out
the intermediary.
True False
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29. Interactivity measures advertising effectiveness by counting visitor interactions with the
target ad, including time spent viewing the ad, number of pages viewed, and number of repeat
visits to the advertisement.
True False
30. Information richness refers to the depth and breadth of details contained in a piece of
textual, graphic, audio, or video information.
True False
31. Information richness measures the number of people a firm can communicate with all over
the world.
True False
32. Mass customization is the ability of an organization to tailor its products or services to the
customers' specifications. For example, customers can order M&M's in special colors or with
customized sayings such as "Marry Me."
True False
33. Mass customization occurs when a company knows enough about a customer's likes and
dislikes that it can fashion offers more likely to appeal to that person, say by tailoring its
website to individuals or groups based on profile information, demographics, or prior
transactions.
True False
34. Cybermediation refers to the creation of new kinds of intermediaries that simply could not
have existed before the advent of ebusiness, including comparison-shopping sites such as
Kelkoo and bank account aggregation services such as Citibank.
True False
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35. In Reintermediation steps are removed from the value chain as new players find ways to
add value to the business process.
True False
36. Information reach refers to the number of people a business can communicate with, on a
global basis.
True False
37. An ebusiness model is a plan that details how a company creates, delivers, and generates
revenues.
True False
38. Content providers are companies that generate revenue by providing digital content such
as news, music, photos, or videos and examples include Netflix and iTunes.
True False
39. Transaction brokers process online sales transactions.

True False
40. Business-to-consumer applies to any business that sells its products or services directly to
consumers online.
True False
41. A click-and-motor business operates on the Internet only without a physical store.
True False
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42. The majority of eBay's customers are using a business-to-business (B2B) ebusiness
model.
True False
43. A business model is a plan that details how a company creates, delivers, and generates
revenues.
True False
44. A business model is a plan that details how a company creates, delivers, and generates
revenues on the Internet.
True False
45. Dot-com was the original term for a company operating on the Internet.
True False
46. A search engine is website software that finds other pages based on keyword matching
similar to Google.
True False
47. Search engine ranking evaluates variables that search engines use to determine where a
URL appears on the list of search results.
True False
48. Search engine optimization (SEO) combines art along with science to determine how to
make URLs more attractive to search engines resulting in higher search engine ranking.
True False
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49. Pay-per-call generates revenue each time a user clicks on a link to a retailer's website.
True False
50. Pay-per-click generates revenue each time a user clicks on a link that takes the user
directly to an online agent waiting for a call.
True False
51. Pay-per-conversion generates revenue each time a website visitor is converted to a

customer.
True False
52. Taxonomy is the set of ideas about how all information in a given context should be
organized.
True False
53. A Webinar is a form of Web conferencing, which blends videoconferencing with

document sharing and allows the user to deliver a presentation over the Web to a group of
geographically dispersed participants.
True False
54. Many businesses are using instant messaging as a way to answer and resolve questions or
problems quickly.
True False
55. An Internet service provider (ISP) is a company that provides access to the Internet for a
monthly fee.
True False
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56. Real-time communication occurs when a system updates information at the same rate it
receives it.
True False
57. Instant messaging (IMing) is a service that enables instant or real-time communication
between people.
True False
58. Instant messaging converts an audio broadcast to a digital music player.

True False
59. A videoconference allows people at two or more locations to interact via two-way video
and audio transmissions simultaneously as well as share documents, data, computer displays,
and whiteboards. Point-to-point videoconferences connect two people, and multipoint
conferences connect more than two people at multiple locations.
True False
60. Managing consumer trust is not a challenge for ebusinesses participants as the Internet has
numerous security technologies in place to completely protect consumers and their online
transactions.
True False
61. The Internet marketplace is free of most forms of traditional sales tax.
True False
62. The Internet uses such strong security technologies that ensuring consumer protection is
not a challenge for ebusinesses.
True False
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63. Web 2.0 is the next generation of Internet that uses a more mature, distinctive
communications platform characterized by new qualities such as collaboration, sharing, and
free.
True False
64. Source code is software made available free for any third party to review and modify.
True False
65. The most common form of collective intelligence found outside the organization is
crowdsourcing, or the wisdom of the crowd.
True False
66. An open system consists of nonproprietary hardware and software based on publicly
known standards that allows third parties to create add-on products to plug into or interoperate
with the system.
True False
67. An open system contains instructions written by a programmer specifying the actions to
be performed by computer software.
True False
68. Open source refers to any software whose source code is made available free (not on a fee
or licensing basis as in ebusiness) for any third party to review and modify.
True False
69. User-contributed content (or user-generated content) is created and updated by many users
for many users.
True False
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70. User-contributed content is a set of tools that supports the work of teams or groups by
facilitating the sharing and flow of information.
True False
71. Open systems tap into the core knowledge of all employees, partners, and customers.
True False
72. Knowledge can be a real competitive advantage for an organization. The most common
form of collective intelligence found inside the organization is knowledge management (KM),
which involves capturing, classifying, evaluating, retrieving, and sharing information assets in
a way that provides context for effective decisions and actions.
True False
73. The primary objective of knowledge management is to be sure that a company's

knowledge of facts, sources of information, and solutions are readily available to all
employees whenever it is needed.
True False
74. A knowledge management system (KMS) supports the capturing, organization, and
dissemination of knowledge (i.e., know-how) throughout an organization. KMS can distribute
an organization's knowledge base by interconnecting people and digitally gathering their
expertise.
True False
75. Tacit knowledge consists of anything that can be documented, archived, and codified,
often with the help of MIS. Examples of explicit knowledge are assets such as patents,
trademarks, business plans, marketing research, and customer lists.
True False
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76. Explicit knowledge is the knowledge contained in people's heads. The challenge inherent
in tacit knowledge is figuring out how to recognize, generate, share, and manage knowledge
that resides in people's heads.
True False
77. Social media refers to websites that rely on user participation and user-contributed
content, such as Facebook, YouTube, and Digg.
True False
78. Social tagging is similar to taxonomy except that crowdsourcing determines the tags or
keyword-based classification system.
True False
79. A social network is an application that connects people by matching profile information.
Providing individuals with the ability to network is by far one of the greatest advantages of
Business 2.0.
True False
80. Social networking is the practice of expanding your business and/or social contacts by
constructing a personal network.
True False
81. Social media maps group contacts (personal and professional) identifying who knows
each other and who works together. In a company it can provide a vision of how employees
work together.
True False
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82. Tags are specific keywords or phrases incorporated into website content for means of
classification or taxonomy.
True False
83. Social tagging describes the collaborative activity of marking shared online content with
keywords or tags as a way to organize it for future navigation, filtering, or search.
True False
84. A social bookmark is a locally stored URL or the address of a file or Internet page saved
as a shortcut.
True False
85. Social bookmarking allows users to share, organize, search, and manage bookmarks.
True False
86. The three Business 2.0 communication and collaboration tools a business can use to
harness the power of people include blogs, wikis, and mashups.
True False
87. A wiki is a Hawaiian word for quick and is a type of a collaborative Web page that allows
users to add, remove, and change content.
True False
88. RSS allows a website to constantly feed information and news to consumers instead of
having the consumer search for it.
True False
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89. Microblogging is the practice of sending brief posts (140 to 200 characters) to a personal
blog, either publicly or to a private group of subscribers who can read the posts as IMs or as
text messages.
True False
90. The network effect describes how products in a network increase in value to users as the
number of users increases.
True False
91. A mashup is a website or web application that uses content from more than one source to
create a completely new product or service. The term is typically used in the context of music;
putting Jay-Z lyrics over a Radiohead song makes something old new. The web version of a
mashup allows users to mix map data, photos, video, news feeds, blog entries, and so on to
create content with a new purpose.
True False
92. Content used in mashups is typically sourced from an RSS, which is a set of routines,
protocols, and tools for building software applications.
True False
93. Open source and sharing are both advantages and disadvantages of Business 2.0.
True False
94. Copyright laws protect collaborative websites like blogs and wikis allowing users to reuse
material freely and easily.
True False
95. Tim Berners-Lee was one of the founders of the Internet.

True False
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96. Egovernment involves the use of strategies and technologies to transform government by
improving the delivery of services and enhancing the quality of interaction between the
citizen-consumer within all branches of government.
True False
97. Web 3.0 refers to static text-based information websites.

True False
98. Mobile banking and mobile sales are both a part of the emerging mbusiness.
True False
Multiple Choice Questions

99. Which of the following terms implies that organizations that cannot adapt to the new
demands placed on them for surviving in the information age are doomed to extinction?
A. Collective intelligence
B. Digital Darwinism
C. Joint venture
D. Sole proprietorship
100. Which of the following produces an improved product customers are eager to buy, such
as a faster car or larger hard drive?
A. Sustaining technology
B. Disruptive technology
C. Reputation system
D. Personalization
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101. Which of the follow represents a form of disruptive technology?
A. Enter the marketplace at the low end
B. A new way of doing things that initially doesn't meet the needs of existing customers
C. Tend to open new markets and destroy old ones
D. All of the above are included
102. Which of the following is challenge of sustaining technology?

A. Provides a cheaper product for current customers
B. Provides a product that does not meet existing customer's future needs
C. Provides a better product for current customers
D. Provides a faster product for current customers
103. Which of the following is not included in the top five companies that are expecting
future growth to be generated from new investments?
A. Johnson & Johnson
B. Sears
C. Dell
D. None of the above
104. The Innovator's Dilemma suggests that established companies can take advantage of
___________ without hindering existing relationships with customers, partners, and
stakeholders.
B. Existing investments
C. Collective intelligence
D. Disruptive technology
105. Which of the following began as an essential emergency military communications

system operated by the U.S. Department of Defense (DARPA)?
A. Internet
B. Ecommerce
C. Ebusiness
D. WWW
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106. Which of the following terms could you use synonymously when referring to the Web?
A. Network, Paradigm shift
B. URL, Domain Name
C. HTML, Internet
D. Web browser, Blog
107. At a local marketing firm, Steve is the lead Web developer and is responsible for
working with customers on their Web designs, development, and graphics. Which of the
following would be a critical skill Steve must have to be able to perform his job?
A. Understanding that he must create a unique domain name for each client
B. Being able to work with HTML
C. Understanding of the World Wide Web and how hyperlinks work
D. All of the above
108. Which of the following is not a reason for the explosive growth of the WWW?
A. Basic Web pages are easy to create and extremely flexible
B. The microcomputer revolution made it possible for an average person to own a computer
C. Digital Darwinism
D. The speed, convenience, and low cost of email
109. Which term describes the WWW during its first few years of operation between 1991
and 2003?
A. Web 1.0
B. Eshop
C. Open source
D. All of the above
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110. What is the difference between ecommerce and ebusiness?
A. Ecommerce includes Internet network effects; ebusiness includes ecommerce and all
activities related to internal and external business operations
B. Ecommerce is buying and selling of goods or services online; ebusiness includes
ecommerce and all activities related to internal and external business operations
C. Ecommerce includes ecommerce and all activities related to internal and external business
operations; ebusiness includes all of the knowledge of management systems
D. Ebusiness is buying and selling of goods or services online; ecommerce includes
111. What is the Internet protocol Web browsers use to request and display Web pages using
universal resource locators?
A. Hypertext markup language (HTML)
B. URL
C. Hypertext transport protocol (HTTP)
D. DARPA
112. What allows user to access the WWW?

A. Web conferencing
B. Web browser
C. Web 2.0
D. Web business
113. Which of the following is a type of Web browser?

A. Microsoft Word and Excel
B. Internet Explorer and Mozilla Firefox
C. Facebook and MySpace
D. All of the above
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114. What caused Polaroid to go bankrupt?
A. It failed to have innovative technology and a captive customer base
B. One-hour film processing and digital cameras stole its market share
C. People who want instant access to their pictures also want a third party involved
D. Internet websites such as Flickr and Facebook stole its market share
115. Many social media sites today allow you to customize your Web address, for example
www.facebook.com/Womenwithdrive. What is an alternate name for a Web address such as
www.apple.com?
A. Digital bookmark
B. Internet bookmark
C. Universal resource locator
D. Web browser
116. Many industries have been forced to change due to technology advances. Which of the
below industries has felt the lowest amount of economic impact from ebusiness?
A. Auto industry
B. Retail industry
C. Travel industry
D. Waste or recycling industry
117. Universities were among some of the first users of the Internet. What was the Internet
first called?
A. HTML
B. ARPANET
C. OPT
D. WWO
118. What is the address of a file or resource on the web such as www.apple.com?
A. Hypertext markup language
B. Web browser
C. Hypertext transport protocol
D. Universal resource locator
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119. What links documents, allowing users to move from one to another simply by clicking
on a hot spot or link?
B. Web browser
120. What allows users to access the WWW?

B. Web browser
121. What is the Internet protocol web browsers use to request and display web pages using
universal resource locators?
B. Web browser
122. What identifies a URL address and in the previous example apple.com is the domain
name. URLs use domain names to identify particular websites?
A. Domain name
B. Domain name hosting
C. Applet
D. Paradigm shift
123. What is a service that allows the owner of a domain name to maintain a simple website
and provide email capacity?
A. Domain name
C. Applet
D. Paradigm shift
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124. What is a program that runs within another application such as a website?
A. Domain name
C. Applet
D. Paradigm shift
125. What occurs when a new radical form of business enters the market that reshapes the
way companies and organizations behave?
A. Domain name
C. Applet
D. Paradigm shift
126. What does digital Darwinism imply?

A. Organizations that can adapt to the new demands placed on them for surviving in the
information age are doomed to extinction
B. Organizations that cannot adapt to the new demands placed on them for surviving in the
C. Organizations that can adapt to new information systems are doomed to extinction
D. Organizations that cannot adapt to new information systems are doomed to exile
127. Which of the following is an example of a disruptive technology?

A. Oracle's database software
B. Sony's transistor-based consumer electronics (transistor radio)
C. Intel's low-end microprocessor
D. All of the above
128. Which of the following is an example of a sustaining technology?

A. Porsche's faster car
B. Intel's low-end microprocessor
C. Sony's transistor-based consumer electronics (transistor radio)
D. All of the above
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129. Which company is expecting to gain the majority of its returns on existing investments?
A. Dell Computer
B. Johnson & Johnson
C. Procter & Gamble
D. Phillips Petroleum
130. Which company is expecting to gain the majority of its returns on new investments?
A. General Motors
B. Sears Roebuck
C. Dell Computer
131. Which of the following is a reason for the growth of the World Wide Web?
A. The microcomputer revolution
B. Advancements in networking hardware
C. Web pages being easy to create and flexible
D. All of the above
132. What is information richness?

A. A global public network of computer networks that pass information from one to another
using common computer protocols
B. Refers to the depth and breadth of details contained in a piece of textual, graphic, audio, or
video information
C. Refers to the number of people a business can communicate with, on a global basis
D. Occurs when those with access to technology have great advantages over those without
access to technology
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133. What is information reach?
B. Refers to the depth and breadth of information transferred between customers and
businesses
C. Measures the number of people a firm can communicate with all over the world
134. Which of the following is not one of the Internet's impacts on information?
A. Easy to compile
B. Improved content
C. Digital divide
D. Increased richness
135. What are agents, software, or businesses that provide a trading infrastructure to bring
buyers and sellers together?
A. Intermediaries
B. Disintermediation
C. Reintermediation
D. Cybermediation
136. What occurs when a business sells directly to the customer online and cuts out the
middle man?
A. Intermediaries
C. Reintermediation
D. Cybermediation
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137. What occurs when steps are added to the value chain as new players find ways to add
value to the business process?
A. Intermediaries
C. Reintermediation
D. Cybermediation
138. What refers to the creation of new kinds of intermediaries that simply could not have
existed before the advent of ebusiness, including comparison-shopping sites such as Froogle
and bank account aggregation services such as Citibank?
A. Intermediaries
C. Reintermediation
D. Cybermediation
139. Both individuals and organizations have embraced ebusiness to do which of the
following?
A. Enhance productivity
B. Maximize convenience
C. Improve communication
D. All of the above
140. What is the depth and breadth of details contained in a piece of textual, graphic, audio, or
video?
A. Information richness
B. Information age
C. Information reach
D. Information browser
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141. What measures the number of people a firm can communicate with all over the world?
B. Information age
142. Which of the below would not be considered an advantage of ebusiness?

A. Expanding global reach
B. Opening new markets
C. Reducing costs
D. Reducing information reach
143. What is the ability of an organization to tailor its products or services to the customers'
specifications?
A. Personalization
B. Long tail
C. Mass customization
D. Information reach
144. Which of the below would not be considered a company operating in the long tail of a
typical sales curve?
A. Walmart
B. Netflix
C. iTunes
D. Zappos
145. M&M's offers people the opportunity to order the candy in special colors or with
customized sayings. How would you classify M&M's ebusiness strategy?
B. Mass customization
C. Personalization
D. Interactivity
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146. Amazon creates a unique recommendation listing for each customer that revisits its
website. How would you classify Amazon's ebusiness strategy?
C. Personalization
D. Interactivity
147. Netflix creates a unique recommendation listing for each customer that revisits its
website. How would you classify Netflix's ebusiness strategy?
C. Personalization
D. Interactivity
148. Nike offers people the opportunity to visit its website to create running shoes in the style
and color they choose. How would you classify Nike's ebusiness strategy?
C. Personalization
D. Interactivity
149. What uses the Internet to reassemble buyers, sellers, and other partners in a traditional
supply chain in new ways?
A. Content providers
B. Intermediaries
C. Reintermediation
D. Cybermediation
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150. When evaluating the business value of disintermediation the more ____________ that
are cut from the distribution chain, the lower the product price.
A. Technology
B. Customers
C. Data stream
D. Intermediaries
151. What is a type of mediation that refers to the creation of new kinds of intermediaries that
simply could not have existed before the advent of ebusiness?
A. Cybermediation
B. Interactivity
C. Reintermediation
D. Disintermediation
152. A company can reduce its costs using ebusiness to change its business processes. Which
of the following represents an example of a company reducing its costs through ebusiness?
A. Creating an online travel reservation
B. Ordering a product online
C. Purchasing a book online and picking it up in the store
D. Researching products to find the lowest price and visiting the store to purchase the item
153. Which of the below statements is correct?

A. Just putting up a website can create tremendous ebusiness value
B. Just putting up a website can create tremendous business buzz
C. Just putting up a website can limit product availability
D. Just putting up a website does not create an ebusiness
154. What is the exact pattern of a consumer's navigation through a site?

A. Web browsing
B. Hypertext
C. Clickstream data
D. Web data
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155. What is the best way to measure a company's ebusiness success?
A. Effective MIS metrics
B. Interactivity
C. Clickstream data
D. All of the above
156. Which of the following is an ebusiness marketing technique?

A. Cookies
B. Pop-up ad
C. Banner ad
D. All of the above
157. Which type of ebusiness marketing technique induces websites or users to pass on a
marketing message to other websites or users, creating exponential growth in the message's
visibility and effect?
A. Cookies
B. Click-through
C. Viral marketing
D. Pop-up ad
158. Bonnie Flat is a real estate agent who specializes in the luxury home market in the
Seattle, WA area. Bonnie is highly-technical and uses many types of online marketing
techniques to increase business. One of most successful online marketing techniques is to
place a box along the top of real estate websites and luxury custom furniture websites. What
type of marketing technique is Bonnie using?
A. A cookie
B. A banner ad
C. A pop-up ad
D. A click-through ad
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159. What is the business strategy that lets a company shorten the order process and add value
with reduced costs or a more responsive and efficient service, and occurs when a business
sells directly to the customer online?
A. Disintermediation
B. Intermediaries
C. Cybermediation
160. What measures the number of people a firm can communicate with all over the world?
A. Information
B. Mass communication
D. Cybertronics
161. Which of the following is an example of a clickstream data metric?

A. Dates and times of visits
B. Number of customers with shopping carts
C. The number of page views
D. All of the above
162. What is the difference between a business model and an ebusiness model?
A. A business model details how a company creates, delivers, and generates revenue; an
ebusiness model does all of the same except on the Internet
B. A business model and an ebusiness model are identical
C. A business model and an ebusiness model are complete opposites
D. An ebusiness model details how a company creates, delivers, and generates revenue; a
business model does all the same except on the internet
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163. What are the four main types of ebusiness models?
A. Business-to-borrower, business-to-consumer, consumer-to-business, and consumer-toconsumer
B. Business-to-business, business-to-consumer, consumer-to-business, and consumer-toconsumer
C. Business-to-business, business collaboration, collective business, and consumer-toconsumer
D. Ebusiness-to-ebusiness, ebusiness-to-ebusiness, econsumer-to-ebusiness, and econsumerto-econsumer
164. What is the difference between a B2C and a C2B?

A. B2C focuses on companies as customers and C2B focuses on consumers as customers
B. B2C focuses on collaboration and C2B focuses on consumers
C. B2C focuses on business to consumers and C2B focuses on consumers to business
D. B2C focuses on consumers as customers and C2B focuses on companies as customers
165. What is the ebusiness model which applies to customers offering goods and services to
each other over the Internet?
A. C2C
B. C2B
C. B2B
D. B2C
166. What is the ebusiness model that represents 80% of all online businesses and are
typically more complex requiring greater security needs?
A. Consumer-to-consumer
B. Business-to-consumer
C. Consumer-to-business
D. Business-to-business
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167. Which of the following represents businesses buying from and selling to each other over
the Internet?
A. B2B
B. B2C
C. C2B
D. C2C
168. Carfax is an example of a company who sells its products or services directly to its
consumer's online. Which ebusiness model is Carfax using?
A. C2B
B. C2C
C. B2C
D. B2B
169. What is another name for an eshop?

A. C2C
B. Estore or etailer
C. Ecustomer
D. Econsumer
170. Which category below represents the three common forms of business operations: brickand-mortar, click-and-mortar, and pure play?
A. C2B
B. C2C
C. B2C
D. All of the above
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171. John and Jenny have been saving for two years to take their six children on a vacation to
Disneyworld. They are surprised to find out that airline tickets are far more expensive than
they had anticipated. They decide to try to find cheaper tickets on Priceline where they are
allowed to set their own price they are willing to pay for the airline tickets. What form of
ebusiness model are John and Jenny using?
A. CBC
B. B2B
C. C2B
D. C2C
172. What type of revenue generation model is Google using when it generates revenue by
allowing advertisers to bid on common search terms?
A. Awesome
B. Analytics
C. Applications
D. Adwords
173. What is a business that operates in a physical store without an Internet presence?
A. Brick-and-mortar business
B. Click-and-mortar business
C. Virtual business
D. Pure-play business
174. What is a pure-play business?

A. A business that operates only on the Internet without a physical store
B. A business that sells products only in a physical store
C. A business that sells services only in a physical store
D. All of the above
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175. What are the three primary models that a B2C can use to operate?
A. Click-and-brick, click-and-mortar, pure-play
B. Brick-and-mortar, click-and-mortar, virtual
C. Brick-and-mortar, click-and-consumer, virtual-and-consumer
D. Brick-and-click, brick-and-mortar, brick-and-virtual
176. Which type of ebusiness model is Amazon using?

A. Pure-play
B. Brick-and-mortar
C. Click-and-mortar
D. Content provider
177. Which type of ebusiness model is Barnes & Noble using?

A. Pure-play
B. Brick-and-mortar
C. Click-and-mortar
D. Virtual
178. Which type of ebusiness model best describes Apple?

A. Pure-play
B. Brick-and-mortar
C. Click-and-mortar
D. Virtual
179. What is a plan that details how a company creates, delivers, and generates revenues on
the Internet?
A. Ebusiness
B. Ebusiness model
C. Ecommerce
D. Ecommerce model
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180. What occurs when a new radical form of business enters the market that reshapes the
way companies and organizations behave?
A. Ecommerce model
B. Eshop sale
C. Paradigm shift
D. Web 1.0
181. Which of the following represents a brick-and-mortar business?

A. The Gap
B. Amazon
C. Google
D. T.J.Maxx
182. All of the following are forms of ebusiness except ______________.

A. Subscription fee
B. Content provider
C. Infomediaries
D. Online marketplace
183. Which of the below is not a valid form of an ebusiness revenue model?
A. Value-added services fees
B. Subscription fees
C. Advertising fees
D. Service provider
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184. For the past 20 years, Perry has been an owner of several Coldwell Banker Real Estate
franchises. To increase business Perry spends a great deal of money marketing and advertising
his businesses online. Perry decides he would like to move beyond just marketing and create
an actual ebusiness that acts like a search engine but only focuses on the real estate industry.
The main revenue source for this Perry's ebusiness will be a charge of $50 a month for each
property that is listed on the website. What is the primary revenue model for Perry's new
business?
A. License fees
B. Advertising fees
C. Subscription fees
D. All of the above
185. What was the original term for a company operating on the Internet?
A. Dot-com
B. Search engine
C. Search engine ranking
D. Search engine optimization
186. What is website software that finds other pages based on keyword matching similar to
Google?
A. Dot-com
B. Search engine
187. What evaluates variables that search engines use to determine where a URL appears on
the list of search results?
A. Dot-com
B. Search engine
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188. What combines art along with science to determine how to make URLs more attractive
to search engines resulting in higher search engine ranking?
A. Dot-com
B. Search engine
189. What generates revenue each time a user clicks on a link to a retailer's website?
A. Pay-per-click
B. Pay-per-call
C. Pay-per-conversion
D. All of the above
190. What generates revenue each time a user clicks on a link that takes the user directly to an
online agent waiting for a call?
A. Pay-per-click
B. Pay-per-call
D. All of the above
191. What generates revenue each time a website visitor is converted to a customer?
A. Pay-per-click
B. Pay-per-call
D. All of the above
192. Websites can generate revenue by using which of the following?

A. Pay-per-click
B. Pay-per-call
D. All of the above
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193. Which of the following represents the connecting and communicating tools supporting
and driving ebusiness?
A. Email, instant messaging, podcasting, content management systems, and video and Web
conferencing
B. Content providers, infomediaries, online marketplaces, portals, service providers,
transaction brokers
C. B2B, B2C, C2C, C2B
D. Advertising fees, license fees, subscription fees, transaction fees, value-added services fees
194. Which of the following represents the primary forms of ebusiness?

conferencing
transaction brokers
195. Which of the following represents the primary ebusiness revenue models?
conferencing
transaction brokers
196. Which of the following represents the categories for ebusiness models?
conferencing
transaction brokers
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197. What is an ISP?
A. Instant service provider is a company that provides access to the Internet for a monthly fee.
B. Internet service provider is a company that provides access to the Internet for a monthly
fee.
C. Internet sales provider is a company that provides access to the Internet for a monthly fee.
D. Instant sales provider is a company that provides access to the Internet for a monthly fee
198. Which of the below is not an ISP?

A. Comcast
B. Facebook
C. AOL
D. Earthlink
199. What occurs when a system updates information at the same rate it receives the
information?
A. Collective intelligence system
B. Collaboration system
C. Real-time communication
D. Knowledge management system
200. What is the primary business advantage of using email?

A. Increasing the speed of order entry
B. Providing the ability to inform and communicate with many people simultaneously,
immediately, and with ease
C. Providing the ability to have friends all over the globe
D. Increasing the number of computers required in an office
201. What is another term for instant messaging?

A. IMing
B. HTML
C. Podcasting
D. Webing
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202. What is a service that enables instant or real-time communication between people?
A. URL
B. IMing
C. Tacit knowledge
D. Elicit knowledge
203. What are some of the immediate results businesses found from using instant messaging?
A. Quickly identify which employees are at their computers
B. Easily hold simultaneous IM sessions with multiple people
C. Resolve questions or problems immediately
D. All of the above
204. What converts an audio broadcast to a digital music player?

A. Podcasting
B. Videoconferencing
C. Photo sharing
D. Email
205. As a trainer for Exempla Healthcare, Tina is faced with many challenges to properly
training her new hires. There are over 40 different locations where Exempla employees work
across the Chicago metro area. Tina decides to implement some valuable ebusiness tools to
help reduce traveling costs, increase speed, and provide flexibility for completing training
sessions with all the new hires. Tina primarily uses PowerPoints and videos during her
training modules. What is the most effective ebusiness tool for Tina to implement and
accomplish all of her training goals?
A. IMing
B. Webinar
C. Blog
D. Email
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206. Companies use __________ as marketing communication channels discussing
everything from corporate strategies to detailed product overviews.
A. IMing
B. Web browsing
C. Email
D. Podcasting
207. Illuminate Live is a lecture program used in schools and is considered a _________ tool.
A. Instant messaging
B. Explicit knowledge
C. Web conferencing
D. Egovernment
208. What is a well-planned strategy that ensures the search and navigation functions are easy
to use and user-friendly on a website?
A. Blog
B. Taxonomy
C. Email
D. Podcast
209. What is the set of ideas about how all information in a given context should be
organized?
A. Information architecture
B. Collective intelligence
C. Content management system
D. Ebusiness model
210. Which of the below is not considered an advantage of a content management system?
A. Content management systems store website content
B. Content management systems increase order entry speed
C. Content management systems manage website creation
D. Content management systems allow editing and publication of information
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211. Which ebusiness tool increases the speed of business by allowing the transfer of
documents with the same speed as the telephone?
A. Knowledge management system
B. Podcasting
C. Email
D. Ebusiness
212. What is the ebusiness tool that can increase marketing reach and build customer loyalty
through audio broadcasting?
A. IMing
B. Email
C. Taxonomy
D. Podcasting
213. Which ebusiness tool plays a crucial role in getting site visitors to view more than just
the home page by providing clear navigation choices?
A. URL
B. CMS
C. Open system
D. Open source
214. Which of the following is a challenge facing an ebusiness?

A. Improving information content
B. Increasing convenience
C. Decreasing costs
D. Increasing liabilities
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215. What are the four challenges facing ebusinesses outlined in the text?
A. Identifying limited market segments, managing consumer trust, ensuring consumer
protection, and improving information content
B. Decreased costs, increased convenience, identifying limited market segments, and adhering
to taxation rules
C. Identifying limited market segments, managing consumer trust, ensuring consumer
protection, and adhering to taxation rules
D. Differs depending on the industry where the business operates
216. Managing consumer trust is a challenge for ebusinesses. Which of the following is a
good way to build trust when working with customers over the Internet?
A. Be accessible to communicate in-person
B. Be available to communicate in-person
C. Use customer testimonials that link to your client website
D. All of the above
217. Internet marketers must develop ___________ to build strong relationships with
customers to ensure loyalty.
A. Consumer trust
B. Consumer testimonials
C. Consumer segmentation
D. Market segmentation
218. Ben Schultz decides to purchase an iPad on eBay. After the transaction completes and the
money is withdrawn from Ben's PayPal account the iPad never shows up and the email
address of the seller bounces. What issue has Ben encountered?
A. The physical separation of buyer and seller
B. Adhering to taxation rules
C. Identifying limited market segments
D. All of the above
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219. Susan teaches many individuals and business professionals how, why, and the benefits
and challenges to using social media. Of the four ebusiness challenges which of the following
is the most crucial challenge to consider before engaging in social media?
A. Adhering to taxation rules
B. Ensuring consumer protection
D. Managing consumer relationships
220. Many believe that U.S. tax policy should provide a level playing field for traditional
retail businesses, mail order companies, and online merchants. What form of ebusiness
challenge is this statement referring to?
221. Which of the below statements is accurate when considering the ebusiness challenge of
adhering to taxation rules?
A. All online companies must pay sales tax
B. Online companies do not have to pay any sales tax
C. Some online companies have to charge sales tax
D. Online companies that sell physical products have to pay sales tax and online companies
that provide intangible services do not
222. Which of the below is not a characteristic of Business 2.0?

A. Encourages user participation
B. Technical skills are required
C. Eliminates entry barriers to publishing on the Web
D. Provides an exciting and vibrant virtual environment
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223. What are the four most common Business 2.0 characteristics?
A. Content sharing, user-contributed content, collaboration competition elimination, Web
browser organization
B. Content sharing through open source, specialty-contributed content only, collaboration
inside the community, specialized collaboration
C. Content sharing through open source, user-contributed content, collaboration inside the
organization, collaboration outside the organization
D. Consumer sharing through open systems, company-contributed content, collaboration
inside the organization, collaboration throughout the organization
224. What is the system that consists of nonproprietary hardware and software based on
publicly known standards that allows third parties to create add-on products to plug into or
interoperate with the system?
A. Management system
B. Reputation system
C. Knowledge system
D. Open system
225. Which of the below is not a characteristic associated with Mozilla Firefox?
A. Mozilla Firefox holds over 20% of the Web browser market
B. Mozilla Firefox offers a free email service called Thunderbird
C. Mozilla Firefox is a prime example of open source software
D. Mozilla Firefox is a prime example of a reputation system
226. What is Mozilla Firefox?

A. A competitor to Microsoft Word
B. A competitor to Microsoft Excel
C. A competitor to Adobe Photoshop
D. A competitor to Internet Explorer
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227. What is software whose source code is available free for any third party to review and
modify?
A. Free source
B. Open source
C. Code source
D. Network source
228. Erik is the president and owner of Watch Out, a local website development company that
helps clients create and build unique websites. Many of his daily tasks are heavily technical in
nature and require a high level of computer programming and Internet knowledge. Which of
the below would Erik primarily use when performing his daily tasks?
A. Source code
B. Brick-and-mortar
D. Explicit knowledge
229. Ebusiness was characterized by few companies or users posting content for the masses.
What characterizes Business 2.0?
A. A select few posting content for high level executives only
B. The masses posting content for a select few
C. The masses posting content for the masses
D. A select few posting specific content for the masses
230. What is Web content that is created and updated by many users for many users?
A. Cybermediation contributed content
B. User-contributed content
C. Executive generated content
D. Customer generated content
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231. eBay buyers voluntarily comment to other users and sellers on the quality of service,
promptness of shipping, and their general satisfaction with the product. This is one of the
most popular examples of user-generated content and is called ____________.
A. Reputation system
B. Knowledge system
C. Explicit system
D. User-generated sales cycle
232. What is the most common form of collective intelligence found inside the organization?
A. Crowdsourcing
B. Tacit management
C. Knowledge management
D. Tagging
233. What is the difference between asynchronous and synchronous communication?

A. Asynchronous is real-time communication; synchronous is one-way technology
B. Asynchronous is communication that does not occur at the same time; synchronous
communication occurs at the same time
C. Asynchronous communication includes instant messaging; synchronous communication
includes email
D. Asynchronous communication is fast and instant; synchronous communication is collected
at a single point in time
234. Which of the below is not a characteristic of Business 2.0?

A. Knowledge management
C. Web browser
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235. Which of the following is a set of tools that supports the work of teams or groups by
facilitating the sharing and flow of information?
A. Collaboration system
B. Collective system
C. Competitive system
D. Real simple syndication system
236. Lisa loves her job as an executive recruiter for a large hospital located in Dallas, Texas.
Part of Lisa's job requires her to gather industry information, collaborate with partners,
compare competitors, and tap into the knowledge of prospective employees, partners, and
customers. Which of the below would Lisa use to perform her job?
A. Interactivity metrics
B. Source code
C. Network effect
D. Collective intelligence
237. Which system supports the capturing, organization, and dissemination of knowledge
throughout an organization?
A. Cybermediation system
B. Knowledge management system
C. Source code system
D. Social media system
238. Which of the below focuses on user-generated content?

A. YouTube
B. Wikipedia
C. Netflix
D. All of the above
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239. What are the two categories that include intellectual and knowledge-based assets?
A. Explicit knowledge; tacit knowledge
B. Efficient knowledge; tacit knowledge
C. Intelligent knowledge; explicit knowledge
D. Open knowledge; closed knowledge
240. What is the type of knowledge that is contained in people's heads?

A. Explicit knowledge
B. Virtual knowledge
C. Tacit knowledge
D. Pure knowledge
241. What is the type of knowledge that consists of anything that can be documented,
archived, and codified, often with the help of a MIS department?
A. Tacit knowledge
C. Pure knowledge
D. Virtual knowledge
242. Which of the following is not an example of explicit knowledge?

A. Patent
B. Trademark
C. Employee opinion
D. Marketing research
243. What do Netflix and Amazon use to drive their recommendation tools?
A. Web 1.0 content
B. Open source content
C. Virtual content
D. User-generated content
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244. What are websites that rely on user participation and user-contributed content, such as
Facebook, LinkedIn, and YouTube?
A. Synchronous communication
B. Social media
C. Social networking
D. Asynchronous communication
245. What is the practice of expanding your business and social contacts by constructing a
personal network?
A. Network effects
B. Tagging
C. Social taxonomy
D. Social networking
246. What is a locally stored URL, or the address of a file or Internet page saved as a
shortcut?
A. Website bookmark
B. Social tag
C. Folksonomy
D. Taxonomy
247. Which of the below represents an example of why an employer would use social media?
A. To find potential job candidates via LinkedIn
B. To review potential job candidates by viewing their Facebook page
C. To attract new job candidates via YouTube
D. All of the above
248. What are the two basic functions that social networking sites provide?
A. The ability to create and publish your own software
B. The ability to create and maintain a profile that is your online identity and create
connections between other people within the network
C. The ability to capture and create URLs and RSSs
D. The ability to create URLs and edit RSS software
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249. Which of the below is not an example of a social bookmarking website?
A. Facebook
B. StumbleUpon
C. Del.icio.us
D. All of the above
250. What is an SNA?

A. Strong network applications
B. Social needs analysis
C. Social networking analysis
D. Steady network areas
251. What maps group contacts identifying who knows each other and who works together?
A. Social network effects
B. Mashup networking analysis
C. Web network effects
D. Social networking analysis
252. Many social media websites use _________ or specific keywords or phrases
incorporated into website content for means of classification or taxonomy.
A. Conferencing
B. Tags
C. Long tails
D. Categories
253. Social tagging describes the collaborative activity of marking shared online content with
keywords or tags as a way to ______________.
A. Organize it for future navigation
B. Organize it for future filtering
C. Organize it for future search
D. All of the above
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254. Cell phone manufacturers often refer to their products as mobile devices. Which of the
below would not be included in the folksonomy for a cell phone?
A. Cell
B. iPhone
C. Blackberry
D. Technology platform
255. What is the term that is similar to taxonomy except that crowdsourcing determines the
tag or keyword-based classification system?
A. Podcasting
B. Network effects
C. Folksonomy
D. Social bookmarking
256. How do the majority of potential customers find business websites?

A. By applying analytics
B. Through search terms that match the content
C. Through viral advertisements
D. Through magazines and newspapers
257. How would a company like Flickr use social tagging on its website?
A. By applying keywords that do not match user content
B. By building a tagging game for customers to participate in
C. By allowing users to upload images and tag the images with their own keywords
D. By selecting the keywords to associate with each image a customer uploads
258. Using the collective power of a community to identify and classify content significantly
_________ content categorization costs.
A. Eliminates
B. Raises
C. Lowers
D. Balances
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259. A social bookmarking site is dedicated to providing all of the following except
________.
A. To reconnect with colleagues for business progress
B. To share favorites
C. To store & categorize favorite sites
D. To annotate
260. Which social media site works by allowing content to find the users, instead of the users
having to search for the content?
A. MySpace
B. Facebook
C. Google
D. StumbleUpon
261. What is the primary way that social networks work?

A. Connecting people by matching profile information
B. Charging users each time they use the service
C. Providing a security system for communication online
D. Helping grow website traffic by viral advertisements
262. What is one simplification that has occurred with Business 2.0?
A. By helping online users create anonymity
B. By limiting the sharing capabilities of devices
C. By improving access to information
D. By communicating via email
263. Which of the following identifies Business 2.0 communication and collaboration tools?
A. Microblogs, Tweets, RSS
B. API, RSS, tacit knowledge
C. Blogs, wikis, mashup
D. Tags, Web logs, RSS
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264. What is an online journal that allows users to post their own opinions, comments,
graphics, and video?
A. Web masters
B. Folksonomy
C. Disintermediation
D. A Blog or Web log
265. Why are Fortune 500 companies engaging in blogging?

A. To order supplies
B. To review favorite Internet providers
C. To gather feedback and share ideas
D. To pay employees
266. Twitter is an example of a __________.

A. Social bookmarking website
B. Social tagging website
C. Microblogging website
D. Blogging website
267. What is the practice of sending brief posts 140-200 characters to a personal blog either
publicly or to a private group of subscribers?
A. Ebusiness model
B. Tagging
C. Blogging
D. Microblog
268. Unlike traditional HTML, which of the following lets writers communicate and readers
respond on a regular basis through a simple online journal?
B. HTTP
C. Blog
D. Email
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269. What is the difference between a wiki and a blog?
A. A wiki is free and a blog has a subscription fee
B. A wiki user can alter the original content of an article, where a blog user can only add
information as a comment
C. A wiki is original content, where a blog is used sources
D. All of the above
270. What does RSS stand for?

A. Reorganized Site Syndicator
B. Really Simple Sites
C. Rented Site Syndication
D. Real Simple Syndication
271. Many websites use _______ to constantly feed news to consumers instead of having the
consumer search for the news.
A. Mashup
B. Source Code
C. RSS
D. SNA
272. Large wikis, such as Wikipedia, can protect the quality and accuracy of their information
by assigning users roles such as __________.
A. Reader
B. Subject matter expert
C. Editor
D. All of the above
273. What describes how products in a network increase in value to users as the number of
users increase?
A. Network effect
B. RSS
C. Mashup editor
D. Mcommerce
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274. Which of the following is one of the largest wikis on the Web and one of the 10 most
popular Web destinations?
A. Google
B. eBay
C. Wikipedia
D. Yahoo
275. Some of the benefits for a company to operate an internal wiki are that they are great
tools for all of the following except:
A. Collecting and disseminating knowledge
B. Building software applications
C. Sharing information between functional business areas
D. Distribute to employees or partners across geographical distances
276. What is a website or Web application that uses content from more than one source to
create a completely new product or service?
A. Social tagging
B. Mashup blog
C. Social media
D. Mashup
277. An API is a set of routines, protocols, and tools for ______________.

A. Building software applications
B. Providing a visual interface for a web mashup
C. Describing how products in a network work
D. Writing and editing HTML
278. What does API stand for?

A. Asynchronous Programming Information
B. Application Programming Interface
C. Application Provider for the Internet
D. Asynchronous Protocol Interaction
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279. What is the role of a mashup editor?
A. WYSIWYG's
B. Often it allows the user to drag and drop data points into a Web application
C. To provide a visual interface to build up a mashup
D. All of the above
280. Which of the following are challenges of Business 2.0?

A. Information vandalism
B. Technology dependence
C. Violations of copyright and plagiarism
D. All of the above
281. What is a potential problem or impact of technology dependence?

A. Outages hold potentially great havoc for people, business, and educational institutions that
rely heavily on technology
B. Many have a need to be continuously connected for every activity that potentially
eliminates crucial in-person social skills and could stunt psychological growth
C. How do people or businesses function if the connection is down?
D. All of the above
282. Which of the following demonstrates potential issues with Business 2.0 and information
vandalism?
A. Open source allows anyone to be able to edit, damage, or destroy content
B. Copyright protection
C. Decreases in employee productivity
D. Decreases in process productivity
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283. One of the most famous examples of wiki vandalism occurred when a false biography
entry read which of the following:
A. Michael Jackson and Madonna were siblings
B. JFK and Robert Kennedy were the same person
C. John Seigenthaler Sr. was assistant to Attorney General Robert F. Kennedy in the early
1960's and was involved in Kennedy's assassination as well as JFK's
D. Madonna and Britney Spears are sisters
284. Which of the following best describes Web 1.0?

A. Static text-based information websites
B. Static electricity and connectivity
C. Social media
D. Technology intelligence

A. Static websites
B. Intelligent websites
C. Social media and user-generated Web content
D. Hypertext markup language

A. User-generated online business
B. Based on the intelligent' Web where applications use natural language processing
C. Collaboration and social media
D. All of the above
287. Which statement below is inaccurate?

A. Web 2.0 is a simple static website without any interaction with its users
B. Web 2.0 brings people closer together with information using machines
C. Web 3.0 brings machines closer together using information
D. Web 3.0 is a rich intelligent' understanding and relationships among concept and topics
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288. What is a component of Web 3.0 that describes things in a way that computers can
understand?
A. Social tagging
B. Sustaining Web
C. Social Web
D. Semantic Web
289. Which statement below is incorrect?

A. The semantic Web captures, organizes, and disseminates knowledge (i.e., know-how)
throughout an organization
B. The semantic Web describes the relationships between things
C. The semantic Web describes the properties of things
D. The semantic Web is not about links between Web pages
290. Which of the following is not a topic or feature that is included in Web 3.0?
A. A worldwide database
B. Intelligent applications
D. Integration of legacy devices
291. What statement below describes Web 3.0's feature that ensure the integration of legacy
devices'?
A. The ability to use current devices such as iPhone and laptops as credit cards or ticket
B. The design of websites and other software so they can be easily integrated and work
together
C. The ability for software to be distributed and accessed from anywhere
D. The design of software to be easily integrated and work together
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292. Many industries have taken an active role in online business including the government.
Which of the following is the term that describes the use of strategies and technologies to
transform government by improving the delivery of services and enhancing the quality of
interaction between the citizen-consumer within all the branches of government?
A. Ecommerce
B. Information richness
C. Egovernment
D. Tacit knowledge
293. The website that was the primary catalyst for growing electronic government, and is the
official U.S. gateway to all government information?
A. Government.gov
B. TheUnitedStatesofAmerica.org
C. TheWhiteHouse.com
D. FirstGov.gov
294. Which of the following is the example of consumer-to-government (C2G) highlighted in

the figure extended ebusiness models?
A. eGov.com
B. conisint.com
C. Google.org
D. export.gov
295. What is the ability to purchase goods and services through a wireless Internet-enabled
device?
A. Ecommerce
B. Mobile business
C. Meconomics
D. Ebusiness model
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296. How would you categorize mobile entertainment, mobile sales, mobile ticketing, and
mobile banking?
A. Mobile business
B. Mbusiness
C. Mcommerce
D. All of the above
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Fill in the Blank Questions
297. Several companies were outlined in the book to launch new businesses by capitalizing on
disruptive technology. One example is _______________, who launched the revolutionary
products such as the iPod and the iPhone.
________________________________________
298. A __________ technology is a new way of doing things that initially does not meet the
________________________________________
299. Computers connected through the __________ can send and receive information
including text, graphics, voice, video, and software.
________________________________________
300. The World Wide Web provides access to ____________ information through documents
including text, graphics, audio, and video files that use a special formatting language called
HTML.
________________________________________
301. A ____________ shift occurs when a new radical form of business enters the market that
________________________________________
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302. An __________ is a program that runs within another application such as a website.
________________________________________
303. Web _________ is a term to refer to the World Wide Web during its first few years of
operation between 1991 and 2003.
________________________________________
304. A disruptive technology is a new way of doing things that initially does not meet the
needs of existing ________________.
________________________________________
305. A(n) ___________ technology produces an improved product customers are eager to
buy.
________________________________________
306. According to Christensen, companies may have placed too great an emphasis on
satisfying customer's ______ needs, while forgetting to adopt new disruptive technology that
will meet customer's future needs.
________________________________________
307. The Innovator's ___________ is a book by Clayton M. Christensen.

________________________________________
308. The WWW provides access to Internet information through documents including text,
graphics, audio, and video files that use a special formatting language called ________
markup language.
________________________________________
3-62

309. Information __________ refers to the depth and breadth of details contained in a piece of
________________________________________
310. Information __________ measures the number of people a firm can communicate with
all over the world.
________________________________________
311. Through ____________ data companies can observe the exact pattern of a consumer's
navigation through a site.
________________________________________
312. A __________ is an online marketing technique where a small file deposited on a hard
drive by a website containing information about customers and their browsing activities.
________________________________________
313. Information richness refers to the depth and breadth of ___________ contained in a piece
of textual, graphic, audio, or video information.
________________________________________
314. Information reach ___________ the number of people a firm can communicate with all
over the world.
________________________________________
315. _____________ occurs when a company knows enough about a customer's likes and
dislikes that it can fashion offers more likely to appeal to that person, say by tailoring its
transactions.
________________________________________
3-63

316. The __________ tail refers to the tail of a typical sales curve.
________________________________________
317. _________ are agents, software, or businesses that provide a trading infrastructure to
bring buyers and sellers together.
________________________________________
318. __________ measures advertising effectiveness by counting visitor interactions with the
target ad, including time spent viewing the ad, number of pages viewed, and number of repeat
visits to the advertisement.
________________________________________
319. An online version of a retail store where customers can shop at any hour is called a(n)
_________.
________________________________________
320. Business-to-Business applies to businesses buying from and selling to each other over
the ______________.
________________________________________
321. _________-com was the original term for a company operating on the Internet.
________________________________________
322. A(n) _________________ model is a plan that details how a company creates, delivers,
and generates revenues.
________________________________________
3-64

323. A(n) ___________ model is a plan that details how a company creates, delivers, and
generates revenues on the Internet.
________________________________________
324. A search __________ is website software that finds other pages based on keyword
matching similar to Google.
________________________________________
325. Search engine __________ evaluates variables that search engines use to determine
where a URL appears on the list of search results.
________________________________________
326. Search engine __________ combines art along with science to determine how to make
URLs more attractive to search engines resulting in higher search engine ranking.
________________________________________
327. Pay-per-_________ generates revenue each time a user clicks on a link to a retailer's
website.
________________________________________
328. Pay-per-___________ generates revenue each time a user clicks on a link that takes the
user directly to an online agent waiting for a call.
________________________________________
329. Pay-per-_______ generates revenue each time a website visitor is converted to a

customer.
________________________________________
3-65

330. An ebusiness model is a ________ that details how a company creates, delivers, and
________________________________________
331. Business-to-consumer applies to any __________ that sells its products or services
directly to consumers online.
________________________________________
332. Consumer-to-consumer applies to sites primarily offering goods and services to assist
____________ interacting with each other over the Internet.
________________________________________
333. Consumer-to-business applies to any _________ who sells a product or service to a

business on the Internet.
________________________________________
334. _____ and-mortar business operates in a physical store without an Internet presence.
________________________________________
335. Google is an example of a _________-play business.

________________________________________
336. Barnes & Noble is an example of a _________-and-mortar business.

________________________________________
337. T. J. Maxx is an example of a _________-and-mortar business.

________________________________________
3-66

338. __________ single-handedly increased the speed of business through the exchange of
digital messages over the Internet.
________________________________________
339. The blending of videoconferencing with document sharing is the ebusiness tool called
Web conferencing or a __________.
________________________________________
340. A(n) Internet service ______________ is a company that provides access to the Internet.
________________________________________
341. Instant ____________ is a service that enables instant or real-time communication

between people.
________________________________________
342. Real-time ______________ occurs when a system updates information at the same rate it
receives it.
________________________________________
343. _______________ converts an audio broadcast to a digital music player.

________________________________________
344. _______________ is the scientific classification of organisms into groups based on

similarities.
________________________________________
3-67

345. The main challenge to ebusiness is the lack of growth in some sectors due to product or
service __________.
________________________________________
346. One of the main challenges that ___________ face is ensuring consumer protection,
guarding them against unsolicited goods and invasion of privacy.
________________________________________
347. The Internet marketplace remains mostly free of traditional forms of sales tax, partially
because ecommerce law is vaguely defined making adhering to ___________ rules and laws a
challenge of ebusiness.
________________________________________
348. One of the most popular forms of user-generated content is a __________ system where
buyers post feedback on sellers.
________________________________________
349. The primary objective of __________ management is to be sure that a company's

knowledge of facts, sources of information and solutions are readily available to all
________________________________________
350. Traditional ebusiness communications were limited to face-to-face conversations and

one-way technologies that used _______________ communications or communication such
as email in which the message and the response do not occur at the same time.
________________________________________
3-68

351. A(n) _________ system consists of nonproprietary hardware and software based on
interoperate with the system.
________________________________________
352. Source _______ contains instructions written by a programmer specifying the actions to
be performed by computer software.
________________________________________
353. ________ source refers to any software whose source code is made available free for any
third party to review and modify.
________________________________________
354. ________ intelligence is collaborating and tapping into the core knowledge of all
employees, partners, and customers.
________________________________________
355. ______________ system is a set of tools that supports the work of teams or groups by
________________________________________
356. _____________ knowledge consists of anything that can be documented, archived, and
codified, often with the help of MIS.
________________________________________
357. __________ knowledge is the knowledge contained in people's heads.

________________________________________
3-69

358. Social __________ describes the collaborative activity of marking shared online content
with keywords or tags as a way to organize it for future navigation, filtering, or search.
________________________________________
359. A website dedicated to social ____________, provides users with a place to store,
categorize, annotate, and share favorites.
________________________________________
360. Social ___________ is an application that connects people by matching profile

information.
________________________________________
361. Social ____________ refers to websites that rely on user participation and usercontributed content, such as Facebook.
________________________________________
362. __________ are specific keywords or phrases incorporated into website content for
means of classification or taxonomy.
________________________________________
363. _______________ is similar to taxonomy except that crowdsourcing determines the tags
or keyword-based classification system.
________________________________________
364. A _____________ is a type of collaborative web page that allows users to add, remove,
and change content, which can be easily organized and reorganized as required.
________________________________________
3-70

365. ____________ editors are WYSIWYG.
________________________________________
366. The __________ effect describes how products in a network increase in value to users as
the number of users increases.
________________________________________
367. An example of a __________ is putting Jay-Z lyrics over a Radiohead song makes
something old new.
________________________________________
368. A Web _________ is another term for an online journal that allows users to post their
own comments, graphics, and video.
________________________________________
369. Twitter is one of the largest and most powerful _______________ websites.
________________________________________
370. John has a big issue with turning off his cell phone as he is continuously connected to his
friends and family via IMing. It has gotten so bad that John refuses to go to a movie because
he cannot possibly live for two hours without being connected. John is suffering from
technology __________, a clear challenge of Business 2.0.
________________________________________
371. You are in charge of creating and updating your company's Wikipedia page. You logon to
find that someone has placed inappropriate photos and blatant lies about your products on the
corporate Wikipedia page. Your company has been a victim of wiki _________, another major
challenge of the Business 2.0 environment.
________________________________________
3-71

372. You have just been promoted at work and you are now responsible for all marketing
communication through the different Internet channels. You logon to your corporate blog and
find that there are many direct paragraphs from competitor websites and product
manufacturing magazines. The first issue you will need to address as you redesign the
corporate blog is to ensure you are avoiding copyright violations and __________.
________________________________________
373. The Web version that is defining the next generation of online business is Web________,
or the "intelligent" Web application.
________________________________________
374. The ______________ Web is a component of Web 3.0 that describes things in a way that
computers can understand.
________________________________________
375. Mobile business is just now emerging and is also referred to as mcommerce or
____________.
________________________________________
3-72

Essay Questions
376. Compare disruptive and sustaining technologies, and explain how the Internet and
WWW caused business disruption.
377. Describe Web 1.0 along with ebusiness and its associated advantages.
378. Compare the four categories of ebusiness models.
379. Describe the six ebusiness tools for connecting and communicating.
3-73

380. Identify the four challenges associated with ebusiness.
381. Explain Web 2.0, and identify its four characteristics.
382. Explain how Business 2.0 is helping communities network and collaborate.
383. Describe the three Business 2.0 tools for collaborating.
3-74

384. Explain the three challenges associated with Business 2.0.
385. Describe Web 3.0 and the next generation of online business.
3-75
CHAPTER 3: Ebusiness: Electronic Business Value Key
True / False Questions

1. (p. 94) Disruptive technology tends to provide us with better, faster, and cheaper products.
FALSE
Sustaining technology tends to provide us with better, faster, and cheaper products.
AACSB: Reflective Thinking

AACSB: Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Outcome: 03-01
Topic: Disruptive Technology and Web 1.0
2. (p. 94) Disruptive and new technologies typically cut into the low-end of the marketplace and
TRUE
Disruptive and new technologies typically cut into the low-end of the marketplace and

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-76
3. (p. 95) Dell computer ranks highest on the list for expecting returns from new investments.
TRUE
This is true according to the disruptive versus sustaining technology figure.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
4. (p. 94) What is best for an organization's current business could ruin it in the long term.
TRUE
What is best for an organization's current business could ruin it in the long term.

AACSB: Technology
Blooms: Understand
5. (p. 96) Ebusiness is the buying and selling of goods and services over the Internet.
FALSE
Ecommerce is the buying and selling of goods and services over the Internet.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-77
6. (p. 96) Ebusiness is something that a business can just go out and buy.
FALSE
Ebusiness is not something that a business can just go out and buy.

AACSB: Technology
Blooms: Understand
7. (p. 94) Future managers and workers need to understand the benefits MIS and ebusiness can
offer a company if it wants to take advantage of sustaining technologies.
FALSE
Future managers and workers need to understand the benefits MIS and ebusiness can offer a
company if it wants to take advantage of disrupting technologies.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
8. (p. 94) A disruptive technology is a new way of doing things that initially does not meet the
TRUE
A disruptive technology is a new way of doing things that initially does not meet the needs of
existing customers.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-78
9. (p. 94) A sustaining technology produces an improved product customers are eager to buy,
such as a faster car or larger hard drive.
TRUE
A sustaining technology produces an improved product customers are eager to buy, such as a
faster car or larger hard drive.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
10. (p. 94) A sustaining technology is a new way of doing things that initially does not meet the
FALSE
A sustaining technology produces an improved product customers are eager to buy, such as a

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
11. (p. 94) A disruptive technology produces an improved product customers are eager to buy,
such as a faster car or larger hard drive.
FALSE
A disruptive technology is a new way of doing things that initially does not meet the needs of
existing customers.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-79
12. (p. 95) The Innovator's Dilemma, a book by Clayton Christensen, discusses how established
TRUE
The Innovator's Dilemma, a book by Clayton Christensen, discusses how established

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
13. (p. 96) The Internet provides access to Internet information through documents including
text, graphics, audio, and video files that use a special formatting language called HTML.
FALSE
The WWW provides access to Internet information through documents including text,

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
14. (p. 96) The WWW provides access to Internet information through documents including
text, graphics, audio, and video files that use a special formatting language called HTML.
TRUE
The WWW provides access to Internet information through documents including text,

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-80
15. (p. 96) The Internet is a massive network that connects computers all over the world and
allows them to communicate with one another.
TRUE
The Internet is a massive network that connects computers all over the world and allows them
to communicate with one another.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
16. (p. 96) Hypertext markup language (HTML) links documents, allowing users to move from
one to another simply by clicking on a hot spot or link.
TRUE
Hypertext markup language (HTML) links documents, allowing users to move from one to
another simply by clicking on a hot spot or link.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
17. (p. 96) The WWW, such as Internet Explorer or Mozilla's Firefox, allow users to access the
WWW.
FALSE
Web browsers, such as Internet Explorer or Mozilla's Firefox, allow users to access the
WWW.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-81
18. (p. 96) Hypertext transport protocol (HTTP) is the Internet protocol web browsers use to
request and display web pages using universal resource locators.
TRUE
Hypertext transport protocol (HTTP) is the Internet protocol web browsers use to request and
display web pages using universal resource locators.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
19. (p. 96) A universal resource locator (URL) is the address of a file or resource on the web
such as www.apple.com.
TRUE
A universal resource locator (URL) is the address of a file or resource on the web such as
www.apple.com.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
20. (p. 96) A universal resource locator (URL) identifies a URL address and in the previous
example apple.com is the domain name.
FALSE
A domain name identifies a URL address and in the previous example apple.com is the
domain name.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-82
21. (p. 96) URLs use domain names to identify particular websites.
TRUE
URLs use domain names to identify particular websites.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
22. (p. 96) Domain name hosting (web hosting) is a service that allows the owner of a domain
name to maintain a simple website and provide email capacity.
TRUE
Domain name hosting (web hosting) is a service that allows the owner of a domain name to
maintain a simple website and provide email capacity.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
23. (p. 96) A URL is a program that runs within another application such as a website.
FALSE
An applet is a program that runs within another application such as a website.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-83
24. (p. 96) Ecommerce is the buying and selling of goods and services over the Internet.
Ecommerce refers only to online transactions.
TRUE
Ecommerce is the buying and selling of goods and services over the Internet. Ecommerce
refers only to online transactions.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
25. (p. 96) Ecommerce includes ebusiness along with all activities related to internal and
external business operations such as servicing customer accounts, collaborating with partners,
and exchanging real-time information. During Web 1.0, entrepreneurs began creating the first
forms of ecommerce.
FALSE
Ebusiness includes ecommerce along with all activities related to internal and external
business operations such as servicing customer accounts, collaborating with partners, and
exchanging real-time information. During Web 1.0, entrepreneurs began creating the first
forms of ebusiness.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-84
26. (p. 96) A paradigm shift occurs when a new radical form of business enters the market that
TRUE
A paradigm shift occurs when a new radical form of business enters the market that reshapes
the way companies and organizations behave.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
27. (p. 98) A few examples of ebusiness advantages can include opening new markets, reducing
costs, and expanding global reach.
TRUE
Ebusiness advantages include 1) expanding global reach 2) opening new markets 3) reducing
costs 4) improving operations 5) improving effectiveness.

AACSB: Technology
Blooms: Understand
Topic: Advantages of Ebusiness
28. (p. 99) Intermediaries occur when a customer sells directly to another customer online
cutting out the intermediary.
FALSE
Disintermediation occurs when a business sells direct to the customer online and cuts out the
intermediary.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-85
29. (p. 100) Interactivity measures advertising effectiveness by counting visitor interactions with
the target ad, including time spent viewing the ad, number of pages viewed, and number of
repeat visits to the advertisement.
TRUE
This is the definition of interactivity.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
30. (p. 98) Information richness refers to the depth and breadth of details contained in a piece of
TRUE
Information richness refers to the depth and breadth of details contained in a piece of textual,
graphic, audio, or video information.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
31. (p. 98) Information richness measures the number of people a firm can communicate with all
over the world.
FALSE
Information reach measures the number of people a firm can communicate with all over the
world.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-86
32. (p. 98) Mass customization is the ability of an organization to tailor its products or services
to the customers' specifications. For example, customers can order M&M's in special colors or
with customized sayings such as "Marry Me."
TRUE
Mass customization is the ability of an organization to tailor its products or services to the
customers' specifications. For example, customers can order M&M's in special colors or with
customized sayings such as "Marry Me."

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
33. (p. 98) Mass customization occurs when a company knows enough about a customer's likes
and dislikes that it can fashion offers more likely to appeal to that person, say by tailoring its
transactions.
FALSE
Personalization occurs when a company knows enough about a customer's likes and dislikes
that it can fashion offers more likely to appeal to that person, say by tailoring its website to
individuals or groups based on profile information, demographics, or prior transactions.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-87
34. (p. 100) Cybermediation refers to the creation of new kinds of intermediaries that simply
could not have existed before the advent of ebusiness, including comparison-shopping sites
such as Kelkoo and bank account aggregation services such as Citibank.
TRUE
Cybermediation refers to the creation of new kinds of intermediaries that simply could not
Kelkoo and bank account aggregation services such as Citibank.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
35. (p. 100) In Reintermediation steps are removed from the value chain as new players find
ways to add value to the business process.
FALSE
In Reintermediation steps are added to the value chain as new players find ways to add value
to the business process.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
36. (p. 98) Information reach refers to the number of people a business can communicate with,
on a global basis.
TRUE
Information reach refers to the number of people a business can communicate with, on a
global basis.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-88
37. (p. 101) An ebusiness model is a plan that details how a company creates, delivers, and
generates revenues.
TRUE
An ebusiness model is an approach to conducting electronic business on the Internet.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Ebusiness Models
38. (p. 104) Content providers are companies that generate revenue by providing digital content
such as news, music, photos, or videos and examples include Netflix and iTunes.
TRUE
This is the definition of content provider in the figure showing ebusiness forms.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
39. (p. 104) Transaction brokers process online sales transactions.

TRUE
This is the definition of transaction brokers in the figure showing ebusiness forms.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-89
40. (p. 102) Business-to-consumer applies to any business that sells its products or services
TRUE
Business-to-consumer applies to any business that sells its products or services directly to
consumers online.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
41. (p. 103) A click-and-motor business operates on the Internet only without a physical store.
FALSE
This is the definition of pure-play (Virtual) business operates on the Internet only without a
physical store.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
42. (p. 102) The majority of eBay's customers are using a business-to-business (B2B) ebusiness
model.
FALSE
The majority of eBay's customers are using a consumer-to-consumer (C2C) ebusiness model.

AACSB: Technology
Blooms: Understand
3-90
43. (p. 101) A business model is a plan that details how a company creates, delivers, and
generates revenues.
TRUE
A business model is a plan that details how a company creates, delivers, and generates
revenues.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
44. (p. 101) A business model is a plan that details how a company creates, delivers, and
FALSE
An ebusiness model is a plan that details how a company creates, delivers, and generates
revenues on the Internet.

AACSB: Technology
Blooms: Understand
45. (p. 102) Dot-com was the original term for a company operating on the Internet.
TRUE
Dot-com was the original term for a company operating on the Internet.

AACSB: Technology
Blooms: Understand
3-91
46. (p. 105) A search engine is website software that finds other pages based on keyword
TRUE
A search engine is website software that finds other pages based on keyword matching similar
to Google.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
47. (p. 105) Search engine ranking evaluates variables that search engines use to determine
TRUE
Search engine ranking evaluates variables that search engines use to determine where a URL
appears on the list of search results.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
48. (p. 105) Search engine optimization (SEO) combines art along with science to determine
how to make URLs more attractive to search engines resulting in higher search engine
ranking.
TRUE
Search engine optimization (SEO) combines art along with science to determine how to make

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-92
49. (p. 105) Pay-per-call generates revenue each time a user clicks on a link to a retailer's
website.
FALSE
Pay-per-click generates revenue each time a user clicks on a link to a retailer's website.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
50. (p. 105) Pay-per-click generates revenue each time a user clicks on a link that takes the user
directly to an online agent waiting for a call.
FALSE
Pay-per-call generates revenue each time a user clicks on a link that takes the user directly to
an online agent waiting for a call.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
51. (p. 105) Pay-per-conversion generates revenue each time a website visitor is converted to a
customer.
TRUE
Pay-per-conversion generates revenue each time a website visitor is converted to a customer.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-93
52. (p. 108) Taxonomy is the set of ideas about how all information in a given context should be
organized.
FALSE
Information architecture is the set of ideas about how all information in a given context
should be organized.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Ebusiness Tools for Connecting and Communicating
53. (p. 108) A Webinar is a form of Web conferencing, which blends videoconferencing with
document sharing and allows the user to deliver a presentation over the Web to a group of
TRUE
A Webinar is a form of Web conferencing, which blends videoconferencing with document
sharing and allows the user to deliver a presentation over the Web to a group of

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
54. (p. 106) Many businesses are using instant messaging as a way to answer and resolve
questions or problems quickly.
TRUE
Instant messaging is a way to answer and resolve questions or problems quickly.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-94
55. (p. 106) An Internet service provider (ISP) is a company that provides access to the Internet
for a monthly fee.
TRUE
An Internet service provider (ISP) is a company that provides access to the Internet for a
monthly fee.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
56. (p. 106) Real-time communication occurs when a system updates information at the same
rate it receives it.
TRUE
Real-time communication occurs when a system updates information at the same rate it
receives it.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
57. (p. 106) Instant messaging (IMing) is a service that enables instant or real-time
communication between people.
TRUE
Instant messaging (IMing) is a service that enables instant or real-time communication
between people.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-95
58. (p. 107) Instant messaging converts an audio broadcast to a digital music player.
FALSE
Podcasting converts an audio broadcast to a digital music player.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
59. (p. 107) A videoconference allows people at two or more locations to interact via two-way
video and audio transmissions simultaneously as well as share documents, data, computer
displays, and whiteboards. Point-to-point videoconferences connect two people, and
multipoint conferences connect more than two people at multiple locations.
TRUE
A videoconference allows people at two or more locations to interact via two-way video and
audio transmissions simultaneously as well as share documents, data, computer displays, and
whiteboards. Point-to-point videoconferences connect two people, and multipoint conferences
connect more than two people at multiple locations.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
60. (p. 109) Managing consumer trust is not a challenge for ebusinesses participants as the
Internet has numerous security technologies in place to completely protect consumers and
their online transactions.
FALSE
Managing consumer trust is a challenge facing ebusinesses.

AACSB: Technology
Blooms: Understand
Topic: The Challenges of Ebusiness
3-96
61. (p. 109) The Internet marketplace is free of most forms of traditional sales tax.
TRUE
The Internet marketplace is mostly free of traditional forms of sales tax.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
62. (p. 109) The Internet uses such strong security technologies that ensuring consumer
protection is not a challenge for ebusinesses.
FALSE
Ensuring consumer protection is an ebusiness challenge.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
63. (p. 109) Web 2.0 is the next generation of Internet that uses a more mature, distinctive
free.
TRUE
This is the definition of Web 2.0 or Business 2.0

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Web 2.0 Advantages of Business 2.0
3-97
64. Source code is software made available free for any third party to review and modify.
FALSE
This is the definition of open source.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
65. The most common form of collective intelligence found outside the organization is
crowdsourcing, or the wisdom of the crowd.
TRUE
This is the definition of crowdsourcing.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
66. (p. 111) An open system consists of nonproprietary hardware and software based on publicly
known standards that allows third parties to create add-on products to plug into or interoperate
with the system.
TRUE
An open system consists of nonproprietary hardware and software based on publicly known
standards that allows third parties to create add-on products to plug into or interoperate with
the system.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-98
67. (p. 111) An open system contains instructions written by a programmer specifying the
actions to be performed by computer software.
FALSE
Source code contains instructions written by a programmer specifying the actions to be
performed by computer software.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
68. (p. 111) Open source refers to any software whose source code is made available free (not on
a fee or licensing basis as in ebusiness) for any third party to review and modify.
TRUE
Open source refers to any software whose source code is made available free (not on a fee or
licensing basis as in ebusiness) for any third party to review and modify.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
69. (p. 111) User-contributed content (or user-generated content) is created and updated by many
users for many users.
TRUE
User-contributed content (or user-generated content) is created and updated by many users for
many users.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-99
70. (p. 111) User-contributed content is a set of tools that supports the work of teams or groups
by facilitating the sharing and flow of information.
FALSE
A collaboration system is a set of tools that supports the work of teams or groups by

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
71. (p. 111) Open systems tap into the core knowledge of all employees, partners, and
customers.
FALSE
Collective intelligence is collaborating and tapping into the core knowledge of all employees,
partners, and customers.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-100
72. (p. 111) Knowledge can be a real competitive advantage for an organization. The most
common form of collective intelligence found inside the organization is knowledge
management (KM), which involves capturing, classifying, evaluating, retrieving, and sharing
information assets in a way that provides context for effective decisions and actions.
TRUE
Knowledge can be a real competitive advantage for an organization. The most common form
of collective intelligence found inside the organization is knowledge management (KM),
which involves capturing, classifying, evaluating, retrieving, and sharing information assets in
a way that provides context for effective decisions and actions.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
73. (p. 111) The primary objective of knowledge management is to be sure that a company's
knowledge of facts, sources of information, and solutions are readily available to all
TRUE
The primary objective of knowledge management is to be sure that a company's knowledge of
facts, sources of information, and solutions are readily available to all employees whenever it
is needed.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-101
74. (p. 111) A knowledge management system (KMS) supports the capturing, organization, and
expertise.
TRUE
A knowledge management system (KMS) supports the capturing, organization, and
expertise.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
75. (p. 112) Tacit knowledge consists of anything that can be documented, archived, and
codified, often with the help of MIS. Examples of explicit knowledge are assets such as
patents, trademarks, business plans, marketing research, and customer lists.
FALSE
Explicit knowledge consists of anything that can be documented, archived, and codified, often
with the help of MIS. Examples of explicit knowledge are assets such as patents, trademarks,
business plans, marketing research, and customer lists.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-102
76. (p. 112) Explicit knowledge is the knowledge contained in people's heads. The challenge
inherent in tacit knowledge is figuring out how to recognize, generate, share, and manage
knowledge that resides in people's heads.
FALSE
Tacit knowledge is the knowledge contained in people's heads. The challenge inherent in tacit
knowledge is figuring out how to recognize, generate, share, and manage knowledge that
resides in people's heads.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
77. (p. 113) Social media refers to websites that rely on user participation and user-contributed
content, such as Facebook, YouTube, and Digg.
TRUE
Social media refers to websites that rely on user participation and user-contributed content,
such as Facebook, YouTube, and Digg.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Networking Communities with Business 2.0
78. (p. 113) Social tagging is similar to taxonomy except that crowdsourcing determines the tags
or keyword-based classification system.
FALSE
Folksonomy is similar to taxonomy except that crowdsourcing determines the tags or
keyword-based classification system.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-103
79. (p. 113) A social network is an application that connects people by matching profile
information. Providing individuals with the ability to network is by far one of the greatest
advantages of Business 2.0.
TRUE
A social network is an application that connects people by matching profile information.
Business 2.0.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
80. (p. 113) Social networking is the practice of expanding your business and/or social contacts
by constructing a personal network.
TRUE
Social networking is the practice of expanding your business and/or social contacts by
constructing a personal network.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-104
81. (p. 113) Social media maps group contacts (personal and professional) identifying who
knows each other and who works together. In a company it can provide a vision of how
employees work together.
FALSE
Social networking analysis (SNA) maps group contacts (personal and professional)
identifying who knows each other and who works together. In a company it can provide a
vision of how employees work together.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
82. (p. 113) Tags are specific keywords or phrases incorporated into website content for means
of classification or taxonomy.
FALSE
Social networking analysis (SNA) maps group contacts (personal and professional)
identifying who knows each other and who works together. In a company it can provide a
vision of how employees work together.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-105
83. (p. 113) Social tagging describes the collaborative activity of marking shared online content
with keywords or tags as a way to organize it for future navigation, filtering, or search.
TRUE
Social tagging describes the collaborative activity of marking shared online content with
keywords or tags as a way to organize it for future navigation, filtering, or search.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
84. (p. 113) A social bookmark is a locally stored URL or the address of a file or Internet page
saved as a shortcut.
FALSE
A website bookmark is a locally stored URL or the address of a file or Internet page saved as
a shortcut.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
85. (p. 113) Social bookmarking allows users to share, organize, search, and manage
bookmarks.
TRUE
Social bookmarking allows users to share, organize, search, and manage bookmarks.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-106
86. (p. 116) The three Business 2.0 communication and collaboration tools a business can use to
harness the power of people include blogs, wikis, and mashups.
TRUE
Blogs, wikis, and mashups are the three primary Business 2.0 communication and
collaboration tools.

AACSB: Technology
Blooms: Understand
Topic: Business 2.0 Tools for Collaborating
87. (p. 117) A wiki is a Hawaiian word for quick and is a type of a collaborative Web page that
allows users to add, remove, and change content.
TRUE
This is part of the definition of a wiki. It allows users to add, remove, and change content,
which can be easily organized and reorganized as required.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
88. (p. 117) RSS allows a website to constantly feed information and news to consumers instead
of having the consumer search for it.
TRUE
In addition to facilitating syndication, RSS allows a website's frequent readers to track
updates on the site.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-107
89. (p. 117) Microblogging is the practice of sending brief posts (140 to 200 characters) to a
personal blog, either publicly or to a private group of subscribers who can read the posts as
IMs or as text messages.
TRUE
Microblogging is the practice of sending brief posts (140 to 200 characters) to a personal
blog, either publicly or to a private group of subscribers who can read the posts as IMs or as
text messages.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
90. (p. 117) The network effect describes how products in a network increase in value to users as
the number of users increases.
TRUE
The network effect describes how products in a network increase in value to users as the
number of users increases.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-108
91. (p. 117) A mashup is a website or web application that uses content from more than one
source to create a completely new product or service. The term is typically used in the context
of music; putting Jay-Z lyrics over a Radiohead song makes something old new. The web
version of a mashup allows users to mix map data, photos, video, news feeds, blog entries,
and so on to create content with a new purpose.
TRUE
A mashup is a website or web application that uses content from more than one source to
create a completely new product or service. The term is typically used in the context of music;
putting Jay-Z lyrics over a Radiohead song makes something old new. The web version of a

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
92. (p. 117) Content used in mashups is typically sourced from an RSS, which is a set of
routines, protocols, and tools for building software applications.
FALSE
Content used in mashups is typically sourced from an application programming interface
(API), which is a set of routines, protocols, and tools for building software applications.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-109
93. (p. 119) Open source and sharing are both advantages and disadvantages of Business 2.0.
TRUE
Open source and sharing are both major advantages and disadvantages of Business 2.0.

AACSB: Technology
Blooms: Understand
Topic: The Challenges of Business 2.0
94. (p. 119) Copyright laws protect collaborative websites like blogs and wikis allowing users to
reuse material freely and easily.
FALSE
Copyright infringement is a challenge of the online world and business 2.0 is seeing more
cases and problems with it online.

AACSB: Technology
Blooms: Understand
95. (p. 119) Tim Berners-Lee was one of the founders of the Internet.
TRUE
Tim Berners-Lee was one of the founders of the Internet.

AACSB: Technology
Blooms: Understand
Topic: Web 3.0
3-110
96. (p. 120) Egovernment involves the use of strategies and technologies to transform
government by improving the delivery of services and enhancing the quality of interaction
between the citizen-consumer within all branches of government.
TRUE
This is the definition of egovernment.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Web 3.0
97. (p. 120) Web 3.0 refers to static text-based information websites.
FALSE
Web 1.0 refers to static text-based information websites, Web 2.0 is about user-contributed
content, and Web 3.0 is based on "intelligent" Web applications using natural language
processing, machine-based learning and reasoning, and intelligent applications.

AACSB: Technology
Blooms: Understand
Topic: Web 3.0
98. (p. 120) Mobile banking and mobile sales are both a part of the emerging mbusiness.
TRUE
Mobile banking and mobile sales are both a part of the emerging mbusiness.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Web 3.0
3-111
Multiple Choice Questions

99. (p. 94) Which of the following terms implies that organizations that cannot adapt to the new
demands placed on them for surviving in the information age are doomed to extinction?
A. Collective intelligence
B. Digital Darwinism
C. Joint venture
D. Sole proprietorship
Digital Darwinism implies that organizations that cannot adapt to the new demands placed on
them for surviving in the information age are doomed to extinction.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
100. (p. 94) Which of the following produces an improved product customers are eager to buy,
such as a faster car or larger hard drive?
B. Disruptive technology
C. Reputation system
D. Personalization
Sustaining technology produces an improved product customers are eager to buy, such as a

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-112
101. (p. 94) Which of the follow represents a form of disruptive technology?
A. Enter the marketplace at the low end
B. A new way of doing things that initially doesn't meet the needs of existing customers
C. Tend to open new markets and destroy old ones
D. All of the above are included
Disruptive technology is 1) a new way of doing things that initially doesn't meet the needs of
existing customers, 2) tend to open new markets and destroy old ones, 3) enter the
marketplace at the low end and eventually evolve to displace high-end competitors and their
reigning technologies.

AACSB: Technology
Blooms: Understand
102. (p. 94) Which of the following is challenge of sustaining technology?

A. Provides a cheaper product for current customers
B. Provides a product that does not meet existing customer's future needs
C. Provides a better product for current customers
D. Provides a faster product for current customers
Sustaining technology produces an improved product customers are eager to buy, such as a
faster car or larger hard drive. They tend to provide us with better, faster, and cheaper
products in established markets.

AACSB: Technology
Blooms: Understand
3-113
103. (p. 94) Which of the following is not included in the top five companies that are expecting
future growth to be generated from new investments?
A. Johnson & Johnson
B. Sears
C. Dell
The top five companies expecting future growth from new investments, the top five ranked,
are 1) Dell, 2) Johnson & Johnson, 3) Procter & Gamble, 4) Walmart, 5) Cisco.

AACSB: Technology
Blooms: Understand
104. (p. 94) The Innovator's Dilemma suggests that established companies can take advantage of
___________ without hindering existing relationships with customers, partners, and
stakeholders.
B. Existing investments
C. Collective intelligence
D. Disruptive technology
The book "Innovator's Dilemma," discusses how established companies can take advantage of
disruptive technologies without hindering existing relationships with customers, partners, and
stakeholders.

AACSB: Technology
Blooms: Understand
3-114
105. (p. 95) Which of the following began as an essential emergency military communications
system operated by the U.S. Department of Defense (DARPA)?
A. Internet
B. Ecommerce
C. Ebusiness
D. WWW
Originally the Internet was essentially an emergency military communications system
operated by the U.S. Department of Defense (DARPA).

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
106. (p. 96) Which of the following terms could you use synonymously when referring to the
Web?
A. Network, Paradigm shift
B. URL, Domain Name
C. HTML, Internet
D. Web browser, Blog
When referring to the Web, URL (Universal Resource Locator) and a Domain name mean the
same thing or are the most interchangeable.

AACSB: Technology
Blooms: Understand
3-115
107. (p. 96) At a local marketing firm, Steve is the lead Web developer and is responsible for
working with customers on their Web designs, development, and graphics. Which of the
following would be a critical skill Steve must have to be able to perform his job?
A. Understanding that he must create a unique domain name for each client
B. Being able to work with HTML
C. Understanding of the World Wide Web and how hyperlinks work
D. All of the above
At a local marketing firm, Steve is the lead Web Developer. Among his responsibilities are
working with customers, Web design and development, and graphic design techniques. More
than likely he will be required to utilize URLs, Domain names, HTML, World Wide Web
knowledge, Web browsers, and HTTP.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
108. (p. 96) Which of the following is not a reason for the explosive growth of the WWW?
A. Basic Web pages are easy to create and extremely flexible
B. The microcomputer revolution made it possible for an average person to own a computer
C. Digital Darwinism
D. The speed, convenience, and low cost of email
Some of the reasons for the growth of the world wide Web are 1) the microcomputer
revolution made it possible for an average person to own a computer, 2) advancements in
networking hardware, software, and media made it possible for business computers to be
connected to larger networks at a minimal cost, 3) browser software gave computer users an
easy-to-use interface to download, find, and display Web pages, 4) the speed, convenience,
and low cost of email, and 5) basic Web pages are easy to create and extremely flexible.
Digital Darwinism implies that organizations that cannot adapt to the new demands placed on
them for surviving in the information age are doomed to extinction.

AACSB: Technology
Blooms: Understand
3-116
109. (p. 96) Which term describes the WWW during its first few years of operation between
1991 and 2003?
A. Web 1.0
B. Eshop
C. Open source
D. All of the above
Web 1.0 refers to the World Wide Web during its first few years of operation from 1991-2003.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
110. (p. 96) What is the difference between ecommerce and ebusiness?
A. Ecommerce includes Internet network effects; ebusiness includes ecommerce and all
activities related to internal and external business operations
B. Ecommerce is buying and selling of goods or services online; ebusiness includes
C. Ecommerce includes ecommerce and all activities related to internal and external business
operations; ebusiness includes all of the knowledge of management systems
D. Ebusiness is buying and selling of goods or services online; ecommerce includes
Ecommerce is the buying and selling of goods and services over the internet and refers only to
online transactions; Ebusiness includes ecommerce along with all activities related to internal
and external business operations such as servicing customer accounts, collaborating with
partners, and exchanging real-time information.

AACSB: Technology
Blooms: Understand
3-117
111. (p. 96) What is the Internet protocol Web browsers use to request and display Web pages
using universal resource locators?
A. Hypertext markup language (HTML)
B. URL
C. Hypertext transport protocol (HTTP)
D. DARPA
Hypertext transport protocol is the Internet protocol Web browsers use to request and display
Web pages using universal resource locators.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
112. (p. 96) What allows user to access the WWW?

A. Web conferencing
B. Web browser
C. Web 2.0
D. Web business
This is the definition of a Web browser.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-118
113. (p. 96) Which of the following is a type of Web browser?

A. Microsoft Word and Excel
B. Internet Explorer and Mozilla Firefox
C. Facebook and MySpace
D. All of the above
This is the definition of a Web browser.

AACSB: Technology
Blooms: Understand
114. (p. 95) What caused Polaroid to go bankrupt?

A. It failed to have innovative technology and a captive customer base
B. One-hour film processing and digital cameras stole its market share
C. People who want instant access to their pictures also want a third party involved
D. Internet websites such as Flickr and Facebook stole its market share
Polaroid went bankrupt because of one-hour film processing and digital cameras stole its
market share.

AACSB: Technology
Blooms: Understand
3-119
115. (p. 96) Many social media sites today allow you to customize your Web address, for
example www.facebook.com/Womenwithdrive. What is an alternate name for a Web address
such as www.apple.com?
A. Digital bookmark
B. Internet bookmark
C. Universal resource locator
D. Web browser
Many social media sites today allow you to customize your Web address, for example
www.facebook.com/Womenwithdrive. This address is also called a Universal resource locator
(URL).

AACSB: Technology
Blooms: Understand
116. (p. 97) Many industries have been forced to change due to technology advances. Which of
the below industries has felt the lowest amount of economic impact from ebusiness?
A. Auto industry
B. Retail industry
C. Travel industry
D. Waste or recycling industry
Industries that have been revamped by the disruption of ebusiness include 1) auto, 2)
publishing, 3) education & training, 4) entertainment, 5) financial services, 6) retail, and 7)
travel.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-120
117. (p. 96) Universities were among some of the first users of the Internet. What was the
Internet first called?
A. HTML
B. ARPANET
C. OPT
D. WWO
The first name of the internet was ARPANET.

AACSB: Technology
Blooms: Understand
118. (p. 96) What is the address of a file or resource on the web such as www.apple.com?
B. Web browser
Universal resource locator is the address of a file or resource on the web such as
www.apple.com.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-121
119. (p. 96) What links documents, allowing users to move from one to another simply by
clicking on a hot spot or link?
B. Web browser
Hypertext transport protocol links documents, allowing users to move from one to another
simply by clicking on a hot spot or link.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
120. (p. 96) What allows users to access the WWW?

B. Web browser
Web browsers, such as Internet Explorer or Mozilla's Firefox, allow users to access the
WWW.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-122
121. (p. 96) What is the Internet protocol web browsers use to request and display web pages
using universal resource locators?
B. Web browser
Hypertext transport protocol (HTTP) is the Internet protocol web browsers use to request and
display web pages using universal resource locators.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
122. (p. 96) What identifies a URL address and in the previous example apple.com is the domain
name. URLs use domain names to identify particular websites?
A. Domain name
C. Applet
D. Paradigm shift
A domain name identifies a URL address and in the previous example apple.com is the
domain name. URLs use domain names to identify particular websites.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-123
123. (p. 96) What is a service that allows the owner of a domain name to maintain a simple
website and provide email capacity?
A. Domain name
C. Applet
D. Paradigm shift
Domain name hosting (web hosting) is a service that allows the owner of a domain name to
maintain a simple website and provide email capacity.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
124. (p. 96) What is a program that runs within another application such as a website?
A. Domain name
C. Applet
D. Paradigm shift
An applet is a program that runs within another application such as a website.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-124
125. (p. 96) What occurs when a new radical form of business enters the market that reshapes
the way companies and organizations behave?
A. Domain name
C. Applet
D. Paradigm shift
A paradigm shift occurs when a new radical form of business enters the market that reshapes
the way companies and organizations behave.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
126. (p. 94) What does digital Darwinism imply?

A. Organizations that can adapt to the new demands placed on them for surviving in the
B. Organizations that cannot adapt to the new demands placed on them for surviving in the
C. Organizations that can adapt to new information systems are doomed to extinction
D. Organizations that cannot adapt to new information systems are doomed to exile
This is the definition of digital Darwinism.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-125
127. (p. 94) Which of the following is an example of a disruptive technology?

A. Oracle's database software
B. Sony's transistor-based consumer electronics (transistor radio)
C. Intel's low-end microprocessor
D. All of the above
All of the above are examples of disruptive technologies as displayed in the figure companies
that capitalize on disruptive technology.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
128. (p. 94) Which of the following is an example of a sustaining technology?

A. Porsche's faster car
B. Intel's low-end microprocessor
C. Sony's transistor-based consumer electronics (transistor radio)
D. All of the above
Sustaining technologies tend to provide us with better, faster, and cheaper products such as a

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-126
129. (p. 94) Which company is expecting to gain the majority of its returns on existing
investments?
A. Dell Computer
B. Johnson & Johnson
C. Procter & Gamble
According to the disruptive versus sustaining technology figure, Phillips Petroleum is
expecting returns on existing investments to equal 97%.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
130. (p. 94) Which company is expecting to gain the majority of its returns on new
investments?
A. General Motors
B. Sears Roebuck
C. Dell Computer
According to the disruptive versus sustaining technology figure, Dell Computer is expecting
major returns on new investments.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-127
131. (p. 96) Which of the following is a reason for the growth of the World Wide Web?
A. The microcomputer revolution
B. Advancements in networking hardware
C. Web pages being easy to create and flexible
D. All of the above
All of the above are reasons for the growth of the WWW.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
132. (p. 98) What is information richness?

B. Refers to the depth and breadth of details contained in a piece of textual, graphic, audio, or
video information
C. Refers to the number of people a business can communicate with, on a global basis
This is the definition of information richness.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-128
133. (p. 98) What is information reach?

B. Refers to the depth and breadth of information transferred between customers and
businesses
C. Measures the number of people a firm can communicate with all over the world
This is the definition of information reach.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
134. (p. 98) Which of the following is not one of the Internet's impacts on information?
A. Easy to compile
B. Improved content
C. Digital divide
D. Increased richness
The digital divide is not one of the Internet's impacts on information.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-129
135. (p. 99) What are agents, software, or businesses that provide a trading infrastructure to
bring buyers and sellers together?
A. Intermediaries
C. Reintermediation
D. Cybermediation
This is the definition of intermediaries.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
136. (p. 99) What occurs when a business sells directly to the customer online and cuts out the
middle man?
A. Intermediaries
C. Reintermediation
D. Cybermediation
This is the definition of disintermediation.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-130
137. (p. 99) What occurs when steps are added to the value chain as new players find ways to
add value to the business process?
A. Intermediaries
C. Reintermediation
D. Cybermediation
This is the definition of reintermediation.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
138. (p. 99) What refers to the creation of new kinds of intermediaries that simply could not
Froogle and bank account aggregation services such as Citibank?
A. Intermediaries
C. Reintermediation
D. Cybermediation
This is the definition of cybermediation.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-131
139. (p. 98) Both individuals and organizations have embraced ebusiness to do which of the
following?
A. Enhance productivity
B. Maximize convenience
C. Improve communication
D. All of the above
Both individuals and organizations have embraced ebusiness to enhance productivity,
maximize convenience, and improve communications.

AACSB: Technology
Blooms: Understand
140. (p. 98) What is the depth and breadth of details contained in a piece of textual, graphic,
audio, or video?
B. Information age
Information richness refers to the depth and breadth of details contained in a piece of textual,
graphic, audio, or video information.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-132
141. (p. 98) What measures the number of people a firm can communicate with all over the
world?
B. Information age
Information reach measures the number of people a firm can communicate with all over the
world.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
142. (p. 98) Which of the below would not be considered an advantage of ebusiness?
A. Expanding global reach
B. Opening new markets
C. Reducing costs
D. Reducing information reach
Ebusiness advantages include 1) expanding global reach, 2) opening new markets, 3) reducing
costs, 4) improving operations, 5) improving effectiveness.

AACSB: Technology
Blooms: Understand
3-133
143. (p. 98) What is the ability of an organization to tailor its products or services to the
customers' specifications?
A. Personalization
B. Long tail
C. Mass customization
D. Information reach
This is the definition of mass customization.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
144. (p. 99) Which of the below would not be considered a company operating in the long tail of
a typical sales curve?
A. Walmart
B. Netflix
C. iTunes
D. Zappos
Niche markets that are excellent examples of long tail sales include Netflix, Amazon, Zappos,
and iTunes.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-134
145. (p. 98) M&M's offers people the opportunity to order the candy in special colors or with
customized sayings. How would you classify M&M's ebusiness strategy?
C. Personalization
D. Interactivity
M&M's offers people the opportunity to order M&M's in special colors or with customized
sayings which is an example of mass customization.

AACSB: Technology
Blooms: Understand
146. (p. 98) Amazon creates a unique recommendation listing for each customer that revisits its
website. How would you classify Amazon's ebusiness strategy?
C. Personalization
D. Interactivity
Amazon uses personalization to create unique recommendations for each customer and this is
an example of personalization.

AACSB: Technology
Blooms: Understand
3-135
147. Netflix creates a unique recommendation listing for each customer that revisits its
website. How would you classify Netflix's ebusiness strategy?
C. Personalization
D. Interactivity
Netflix uses personalization to create unique recommendations for each customer and this is
an example of personalization.

AACSB: Technology
Blooms: Understand
148. (p. 98) Nike offers people the opportunity to visit its website to create running shoes in the
style and color they choose. How would you classify Nike's ebusiness strategy?
C. Personalization
D. Interactivity
Nike's customized shoes are an example of mass customization.

AACSB: Technology
Blooms: Understand
3-136
149. (p. 100) What uses the Internet to reassemble buyers, sellers, and other partners in a
traditional supply chain in new ways?
A. Content providers
B. Intermediaries
C. Reintermediation
D. Cybermediation
This is the definition of reintermediation.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
150. (p. 99) When evaluating the business value of disintermediation the more ____________
that are cut from the distribution chain, the lower the product price.
A. Technology
B. Customers
C. Data stream
D. Intermediaries
When evaluating the business value of disintermediation the more intermediaries that are cut
from the distribution chain, the lower the product price.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-137
151. (p. 100) What is a type of mediation that refers to the creation of new kinds of
intermediaries that simply could not have existed before the advent of ebusiness?
A. Cybermediation
B. Interactivity
C. Reintermediation
D. Disintermediation
The type of mediation that refers to the creation of new kinds of intermediaries that simply
could not have existed before the advent of ebusiness is the definition of cybermediation.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
152. (p. 100) A company can reduce its costs using ebusiness to change its business processes.
Which of the following represents an example of a company reducing its costs through
ebusiness?
A. Creating an online travel reservation
B. Ordering a product online
C. Purchasing a book online and picking it up in the store
D. Researching products to find the lowest price and visiting the store to purchase the item
These are some examples that demonstrate how a company can reduce costs by changing
some of their business processes and utilizing ebusiness 1) air travel reservations done online
instead of over the phone, 2) the online ordering process of a product. Researching cost
savings online does not help the company it only helps the customer. Going to the store and
purchasing the product does not take advantage of ebusiness.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-138
153. (p. 100) Which of the below statements is correct?

A. Just putting up a website can create tremendous ebusiness value
B. Just putting up a website can create tremendous business buzz
C. Just putting up a website can limit product availability
D. Just putting up a website does not create an ebusiness
Just putting up a website doesn't create an ebusiness. The website must also create buzz, be
innovative, add value, and provide useful information. They must build a sense of community
and collaboration.

AACSB: Technology
Blooms: Understand
154. (p. 100) What is the exact pattern of a consumer's navigation through a site?
A. Web browsing
B. Hypertext
C. Clickstream data
D. Web data
This is the definition of clickstream data.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-139
155. (p. 100) What is the best way to measure a company's ebusiness success?
A. Effective MIS metrics
B. Interactivity
C. Clickstream data
D. All of the above
The best way to measure a company's ebusiness success is by using different effective MIS
metrics, such as interactivity and clickstream data.

AACSB: Technology
Blooms: Understand
156. (p. 101) Which of the following is an ebusiness marketing technique?

A. Cookies
B. Pop-up ad
C. Banner ad
D. All of the above
Ways of marketing through Ebusiness Include 1) an associate program, 2) banner ads, 3)
click-through, 4) cookies, 5) pop-up ads, and 6) viral marketing.

AACSB: Technology
Blooms: Understand
3-140
157. (p. 101) Which type of ebusiness marketing technique induces websites or users to pass on
a marketing message to other websites or users, creating exponential growth in the message's
visibility and effect?
A. Cookies
B. Click-through
C. Viral marketing
D. Pop-up ad
Viral marketing is a marketing technique that induces websites or users to pass on a marketing
message to other websites or users, creating exponential growth in the message's visibility and
effect.

AACSB: Technology
Blooms: Understand
158. (p. 101) Bonnie Flat is a real estate agent who specializes in the luxury home market in the
Seattle, WA area. Bonnie is highly-technical and uses many types of online marketing
techniques to increase business. One of most successful online marketing techniques is to
place a box along the top of real estate websites and luxury custom furniture websites. What
type of marketing technique is Bonnie using?
A. A cookie
B. A banner ad
C. A pop-up ad
D. A click-through ad
A banner ad is a box running across a website that advertises the products and services of
another business, usually another ebusiness. The banner often contains a hyperlink to the
advertiser's website.

AACSB: Technology
Blooms: Understand
3-141
159. (p. 98) What is the business strategy that lets a company shorten the order process and add
value with reduced costs or a more responsive and efficient service, and occurs when a
business sells directly to the customer online?
A. Disintermediation
B. Intermediaries
C. Cybermediation
This is the definition of disintermediation.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
160. (p. 99) What measures the number of people a firm can communicate with all over the
world?
A. Information
B. Mass communication
D. Cybertronics
This is the definition of information reach.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-142
161. (p. 101) Which of the following is an example of a clickstream data metric?
A. Dates and times of visits
B. Number of customers with shopping carts
C. The number of page views
D. All of the above
Examples of clickstream data metrics include 1) the number of page views, 2) the pattern of
websites visited, including most frequent exit page and prior website, 3) length of stay on the
website, 4) dates and times of visits, 5) number of registrations filled out per 100 visitors, 6)
number of abandoned registrations, 7) demographics of registered visitors, 8) number of
customers with shopping carts, and 9) number of abandoned shopping carts.

AACSB: Technology
Blooms: Understand
162. (p. 101) What is the difference between a business model and an ebusiness model?
A. A business model details how a company creates, delivers, and generates revenue; an
ebusiness model does all of the same except on the Internet
B. A business model and an ebusiness model are identical
C. A business model and an ebusiness model are complete opposites
D. An ebusiness model details how a company creates, delivers, and generates revenue; a
business model does all the same except on the internet
A business model details how a company creates, delivers, and generates revenue; ebusiness
does all the same except on the internet.

AACSB: Technology
Blooms: Understand
3-143
163. (p. 102) What are the four main types of ebusiness models?
A. Business-to-borrower, business-to-consumer, consumer-to-business, and consumer-toconsumer
B. Business-to-business, business-to-consumer, consumer-to-business, and consumer-toconsumer
C. Business-to-business, business collaboration, collective business, and consumer-toconsumer
D. Ebusiness-to-ebusiness, ebusiness-to-ebusiness, econsumer-to-ebusiness, and econsumerto-econsumer
The four main types of ebusiness models are 1) business-to-business (B2B), 2) business-toconsumer (B2C), 3) consumer-to-business (C2B), and 4) consumer-to-consumer (C2C).

AACSB: Technology
Blooms: Understand
164. (p. 102) What is the difference between a B2C and a C2B?
A. B2C focuses on companies as customers and C2B focuses on consumers as customers
B. B2C focuses on collaboration and C2B focuses on consumers
C. B2C focuses on business to consumers and C2B focuses on consumers to business
D. B2C focuses on consumers as customers and C2B focuses on companies as customers
Business-to-consumer, consumer-to-business.

AACSB: Technology
Blooms: Understand
3-144
165. (p. 102) What is the ebusiness model which applies to customers offering goods and
services to each other over the Internet?
A. C2C
B. C2B
C. B2B
D. B2C
The customer-to-customer (C2C) ebusiness model applies to customers offering goods and
services to each other over the Internet.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
166. (p. 102) What is the ebusiness model that represents 80% of all online businesses and are
typically more complex requiring greater security needs?
A. Consumer-to-consumer
B. Business-to-consumer
C. Consumer-to-business
D. Business-to-business
B2B relationships represent 80% of all online businesses and are typically more complex
requiring greater security needs than the other types.

AACSB: Technology
Blooms: Understand
3-145
167. (p. 102) Which of the following represents businesses buying from and selling to each other
over the Internet?
A. B2B
B. B2C
C. C2B
D. C2C
This is the definition of B2B.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
168. (p. 102) Carfax is an example of a company who sells its products or services directly to its
consumer's online. Which ebusiness model is Carfax using?
A. C2B
B. C2C
C. B2C
D. B2B
This is the definition of B2C.

AACSB: Technology
Blooms: Understand
3-146
169. (p. 102) What is another name for an eshop?

A. C2C
B. Estore or etailer
C. Ecustomer
D. Econsumer
An eshop is also referred to as an estore or etailer.

AACSB: Technology
Blooms: Understand
170. (p. 102) Which category below represents the three common forms of business operations:
brick-and-mortar, click-and-mortar, and pure play?
A. C2B
B. C2C
C. B2C
D. All of the above
These are all forms of B2C.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-147
171. (p. 102) John and Jenny have been saving for two years to take their six children on a
vacation to Disneyworld. They are surprised to find out that airline tickets are far more
expensive than they had anticipated. They decide to try to find cheaper tickets on Priceline
where they are allowed to set their own price they are willing to pay for the airline tickets.
What form of ebusiness model are John and Jenny using?
A. CBC
B. B2B
C. C2B
D. C2C
C2B applies to any consumer who sells a product or service to a business on the Internet.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
172. (p. 102) What type of revenue generation model is Google using when it generates revenue
by allowing advertisers to bid on common search terms?
A. Awesome
B. Analytics
C. Applications
D. Adwords
Adwords, a part of the Google site, allows advertisers to bid on common search terms. The
advertisers simply enter in the keywords they want to bid on and the maximum amounts they
want to pay per click per day.

AACSB: Technology
Blooms: Understand
3-148
173. (p. 103) What is a business that operates in a physical store without an Internet presence?
A. Brick-and-mortar business
B. Click-and-mortar business
C. Virtual business
D. Pure-play business
This is the definition of brick-and-mortar.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
174. (p. 103) What is a pure-play business?

A. A business that operates only on the Internet without a physical store
B. A business that sells products only in a physical store
C. A business that sells services only in a physical store
D. All of the above
Pure-play or virtual business is a business that operates only on the Internet without a physical
store, such as Google or Amazon.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-149
175. (p. 103) What are the three primary models that a B2C can use to operate?
A. Click-and-brick, click-and-mortar, pure-play
B. Brick-and-mortar, click-and-mortar, virtual
C. Brick-and-mortar, click-and-consumer, virtual-and-consumer
D. Brick-and-click, brick-and-mortar, brick-and-virtual
The three ways for a business-to-consumer business to operate are brick-and-mortar, clickand-mortar, and virtual or pure-play.

AACSB: Technology
Blooms: Understand
176. (p. 103) Which type of ebusiness model is Amazon using?

A. Pure-play
B. Brick-and-mortar
C. Click-and-mortar
D. Content provider
Amazon.com is an example of a B2C pure-play business.

AACSB: Technology
Blooms: Understand
3-150
177. (p. 103) Which type of ebusiness model is Barnes & Noble using?
A. Pure-play
B. Brick-and-mortar
C. Click-and-mortar
D. Virtual
Barnes & Noble is a click-and-mortar business as it operates on the Internet and has physical
stores.

AACSB: Technology
Blooms: Understand
178. (p. 103) Which type of ebusiness model best describes Apple?
A. Pure-play
B. Brick-and-mortar
C. Click-and-mortar
D. Virtual
Apple is a click-and-mortar business as it operates on the Internet and has physical stores.

AACSB: Technology
Blooms: Understand
3-151
179. (p. 101) What is a plan that details how a company creates, delivers, and generates revenues
on the Internet?
A. Ebusiness
B. Ebusiness model
C. Ecommerce
D. Ecommerce model
This is the definition of an ebusiness model.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
180. (p. 96) What occurs when a new radical form of business enters the market that reshapes
the way companies and organizations behave?
A. Ecommerce model
B. Eshop sale
C. Paradigm shift
D. Web 1.0
This is the definition of paradigm shift.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-152
181. (p. 103) Which of the following represents a brick-and-mortar business?

A. The Gap
B. Amazon
C. Google
D. T.J.Maxx
T.J. Maxx is the only company above that operates using a brick-and-mortar business.

AACSB: Technology
Blooms: Understand
182. (p. 104) All of the following are forms of ebusiness except ______________.
A. Subscription fee
B. Content provider
C. Infomediaries
D. Online marketplace
As more and more companies began jumping into ebusiness new forms of ebusiness emerged
which are 1) content providers, 2) infomediaries, 3) online marketplace, 4) portals, 5) service
providers, and 6) transaction brokers.

AACSB: Technology
Blooms: Understand
3-153
183. (p. 104) Which of the below is not a valid form of an ebusiness revenue model?
A. Value-added services fees
B. Subscription fees
C. Advertising fees
D. Service provider
Examples of ebusiness revenue models are 1) advertising fees, 2) license fees, 3) subscription
fees, 4) transaction fees, 5) value-added services fees.

AACSB: Technology
Blooms: Understand
184. (p. 106) For the past 20 years, Perry has been an owner of several Coldwell Banker Real
Estate franchises. To increase business Perry spends a great deal of money marketing and
advertising his businesses online. Perry decides he would like to move beyond just marketing
and create an actual ebusiness that acts like a search engine but only focuses on the real estate
industry. The main revenue source for this Perry's ebusiness will be a charge of $50 a month
for each property that is listed on the website. What is the primary revenue model for Perry's
new business?
A. License fees
B. Advertising fees
C. Subscription fees
D. All of the above
This is an example of using the subscription fees ebusiness revenue model.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-154
185. (p. 102) What was the original term for a company operating on the Internet?
A. Dot-com
B. Search engine
Dot-com was the original term for a company operating on the Internet.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
186. (p. 105) What is website software that finds other pages based on keyword matching similar
to Google?
A. Dot-com
B. Search engine
A search engine is website software that finds other pages based on keyword matching similar
to Google.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-155
187. (p. 105) What evaluates variables that search engines use to determine where a URL
appears on the list of search results?
A. Dot-com
B. Search engine
Search engine ranking evaluates variables that search engines use to determine where a URL
appears on the list of search results.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
188. (p. 105) What combines art along with science to determine how to make URLs more
attractive to search engines resulting in higher search engine ranking?
A. Dot-com
B. Search engine
Search engine optimization (SEO) combines art along with science to determine how to make

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-156
189. (p. 105) What generates revenue each time a user clicks on a link to a retailer's website?
A. Pay-per-click
B. Pay-per-call
D. All of the above
Pay-per-click generates revenue each time a user clicks on a link to a retailer's website.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
190. (p. 105) What generates revenue each time a user clicks on a link that takes the user directly
to an online agent waiting for a call?
A. Pay-per-click
B. Pay-per-call
D. All of the above

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-157
191. (p. 105) What generates revenue each time a website visitor is converted to a customer?
A. Pay-per-click
B. Pay-per-call
D. All of the above

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
192. (p. 105) Websites can generate revenue by using which of the following?
A. Pay-per-click
B. Pay-per-call
D. All of the above
Websites can generate revenue by using All of the above.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-158
193. (p. 106) Which of the following represents the connecting and communicating tools
supporting and driving ebusiness?
conferencing
transaction brokers
The six primary ebusiness tools for connecting and communicating are email, instant
messaging, podcasting, content management systems, and video and Web conferencing.

AACSB: Technology
Blooms: Understand
194. (p. 102) Which of the following represents the primary forms of ebusiness?
conferencing
transaction brokers
The primary forms of ebusiness highlighted in the figure include content providers,
infomediaries, online marketplaces, portals, service providers, transaction brokers.

AACSB: Technology
Blooms: Understand
3-159
195. (p. 106) Which of the following represents the primary ebusiness revenue models?
conferencing
transaction brokers
The primary ebusiness revenue models include advertising fees, license fees, subscription
fees, transaction fees, and value-added services fees as detailed in the figure.

AACSB: Technology
Blooms: Understand
196. (p. 102) Which of the following represents the categories for ebusiness models?
conferencing
transaction brokers
The categories for ebusiness models include B2B, B2C, C2C, and C2B.

AACSB: Technology
Blooms: Understand
3-160
197. (p. 106) What is an ISP?

A. Instant service provider is a company that provides access to the Internet for a monthly fee.
B. Internet service provider is a company that provides access to the Internet for a monthly
fee.
C. Internet sales provider is a company that provides access to the Internet for a monthly fee.
D. Instant sales provider is a company that provides access to the Internet for a monthly fee
This is the definition of an ISP.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
198. (p. 106) Which of the below is not an ISP?

A. Comcast
B. Facebook
C. AOL
D. Earthlink
Examples of ISP's include AOL, AT&T, Comcast, Earthlink, Netzero, Juno, and many more.

AACSB: Technology
Blooms: Understand
3-161
199. (p. 106) What occurs when a system updates information at the same rate it receives the
information?
A. Collective intelligence system
C. Real-time communication
D. Knowledge management system
This is the definition of real-time communication.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
200. (p. 106) What is the primary business advantage of using email?
A. Increasing the speed of order entry
B. Providing the ability to inform and communicate with many people simultaneously,
immediately, and with ease
C. Providing the ability to have friends all over the globe
D. Increasing the number of computers required in an office
The primary business advantage to email is the ability to inform and communicate with many
people simultaneously, immediately, and with ease.

AACSB: Technology
Blooms: Understand
3-162
201. (p. 106) What is another term for instant messaging?

A. IMing
B. HTML
C. Podcasting
D. Webing
Instant messaging is also abbreviated to IMing.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
202. (p. 106) What is a service that enables instant or real-time communication between people?
A. URL
B. IMing
C. Tacit knowledge
D. Elicit knowledge
This is the definition of instant messaging.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-163
203. (p. 106) What are some of the immediate results businesses found from using instant
messaging?
A. Quickly identify which employees are at their computers
B. Easily hold simultaneous IM sessions with multiple people
C. Resolve questions or problems immediately
D. All of the above
All of the above were results businesses found from utilizing instant messaging.

AACSB: Technology
Blooms: Understand
204. (p. 107) What converts an audio broadcast to a digital music player?
A. Podcasting
B. Videoconferencing
C. Photo sharing
D. Email
This is the definition of podcasting.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-164
205. (p. 108) As a trainer for Exempla Healthcare, Tina is faced with many challenges to
properly training her new hires. There are over 40 different locations where Exempla
employees work across the Chicago metro area. Tina decides to implement some valuable
ebusiness tools to help reduce traveling costs, increase speed, and provide flexibility for
completing training sessions with all the new hires. Tina primarily uses PowerPoints and
videos during her training modules. What is the most effective ebusiness tool for Tina to
implement and accomplish all of her training goals?
A. IMing
B. Webinar
C. Blog
D. Email
Web conferencing blends videoconferencing with document sharing and allows the user to
deliver a presentation over the Web to a group of geographically dispersed participants.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
206. (p. 107) Companies use __________ as marketing communication channels discussing
everything from corporate strategies to detailed product overviews.
A. IMing
B. Web browsing
C. Email
D. Podcasting
Companies use podcasting as marketing communication channels discussing everything from
corporate strategies to detailed product overviews.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-165
207. (p. 108) Illuminate Live is a lecture program used in schools and is considered a _________
tool.
C. Web conferencing
D. Egovernment
Illuminate Live is a lecture program used in schools that utilizes the ebusiness tool Web
conferencing to deliver the lecture.

AACSB: Technology
Blooms: Understand
208. (p. 108) What is a well-planned strategy that ensures the search and navigation functions
are easy to use and user-friendly on a website?
A. Blog
B. Taxonomy
C. Email
D. Podcast
A well-planned taxonomy ensures search and navigation are easy and user-friendly on a
website.

AACSB: Technology
Blooms: Understand
3-166
209. (p. 108) What is the set of ideas about how all information in a given context should be
organized?
A. Information architecture
B. Collective intelligence
C. Content management system
D. Ebusiness model
This is the definition of Information architecture.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
210. (p. 108) Which of the below is not considered an advantage of a content management
system?
A. Content management systems store website content
B. Content management systems increase order entry speed
C. Content management systems manage website creation
D. Content management systems allow editing and publication of information
A content management system (CMS) can help companies manage the creation, storage,
editing, and publication of their website content.

AACSB: Technology
Blooms: Understand
3-167
211. (p. 106) Which ebusiness tool increases the speed of business by allowing the transfer of
documents with the same speed as the telephone?
A. Knowledge management system
B. Podcasting
C. Email
D. Ebusiness
Email is the ebusiness tool which increases the speed of business by allowing the transfer of
documents with the same speed as the telephone.

AACSB: Technology
Blooms: Understand
212. (p. 107) What is the ebusiness tool that can increase marketing reach and build customer
loyalty through audio broadcasting?
A. IMing
B. Email
C. Taxonomy
D. Podcasting
Podcasting is the ebusiness tool that can increase marketing reach and build customer loyalty
through audio broadcasting.

AACSB: Technology
Blooms: Understand
3-168
213. (p. 108) Which ebusiness tool plays a crucial role in getting site visitors to view more than
just the home page by providing clear navigation choices?
A. URL
B. CMS
C. Open system
D. Open source
Content management systems is the ebusiness tool that plays a crucial role in getting site
visitors to view more than just the home page by having clear navigation choices for visitors.

AACSB: Technology
Blooms: Understand
214. (p. 108) Which of the following is a challenge facing an ebusiness?

A. Improving information content
B. Increasing convenience
C. Decreasing costs
D. Increasing liabilities
Increased liability is an ebusiness challenge.

AACSB: Technology
Blooms: Understand
3-169
215. (p. 109) What are the four challenges facing ebusinesses outlined in the text?
A. Identifying limited market segments, managing consumer trust, ensuring consumer
protection, and improving information content
B. Decreased costs, increased convenience, identifying limited market segments, and adhering
to taxation rules
C. Identifying limited market segments, managing consumer trust, ensuring consumer
protection, and adhering to taxation rules
D. Differs depending on the industry where the business operates
The four ebusiness challenges that the book outlines are identifying limited market segments,
managing consumer trust, ensuring consumer protection, and adhering to taxation rules.

AACSB: Technology
Blooms: Understand
216. (p. 109) Managing consumer trust is a challenge for ebusinesses. Which of the following is
a good way to build trust when working with customers over the Internet?
A. Be accessible to communicate in-person
B. Be available to communicate in-person
C. Use customer testimonials that link to your client website
D. All of the above
Managing consumer trust is a challenge for ebusinesses. Ways to build trust include being
accessible and available to communicate in person, and also by using customers' testimonials
that link to your clients website.

AACSB: Technology
Blooms: Understand
3-170
217. (p. 109) Internet marketers must develop ___________ to build strong relationships with
customers to ensure loyalty.
A. Consumer trust
B. Consumer testimonials
C. Consumer segmentation
D. Market segmentation
Internet marketers must develop the ebusiness challenge, managing consumer trust, to ensure
strong relationships with customers to ensure loyalty.

AACSB: Technology
Blooms: Understand
218. (p. 109) Ben Schultz decides to purchase an iPad on eBay. After the transaction completes
and the money is withdrawn from Ben's PayPal account the iPad never shows up and the
email address of the seller bounces. What issue has Ben encountered?
A. The physical separation of buyer and seller
B. Adhering to taxation rules
D. All of the above
The physical separation of buyer and seller and the merchandise is always a risk that is taken
into account when trying to improve the managing consumer trust ebusiness challenge.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-171
219. (p. 109) Susan teaches many individuals and business professionals how, why, and the
benefits and challenges to using social media. Of the four ebusiness challenges which of the
following is the most crucial challenge to consider before engaging in social media?
Of the four ebusiness challenges ensuring consumer protection is the most crucial challenge to
consider before engaging in social media sites.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
220. (p. 109) Many believe that U.S. tax policy should provide a level playing field for
traditional retail businesses, mail order companies, and online merchants. What form of
ebusiness challenge is this statement referring to?
Many believe that U.S. tax policy should provide a level playing field for traditional retail
businesses, mail order companies, and online merchants, through the ebusiness challenge
adhering to taxation rules.

AACSB: Technology
Blooms: Understand
3-172
221. (p. 109) Which of the below statements is accurate when considering the ebusiness
challenge of adhering to taxation rules?
A. All online companies must pay sales tax
B. Online companies do not have to pay any sales tax
C. Some online companies have to charge sales tax
D. Online companies that sell physical products have to pay sales tax and online companies
that provide intangible services do not
Some online companies have to charge sales tax and some do not.

AACSB: Technology
Blooms: Understand
222. (p. 110) Which of the below is not a characteristic of Business 2.0?
A. Encourages user participation
B. Technical skills are required
C. Eliminates entry barriers to publishing on the Web
D. Provides an exciting and vibrant virtual environment
Business 2.0 (Web 2.0) encourages user participation and the formation of communities to
contribute to the content. Technical skills are no longer required to use and publish
information to the Web, and eliminate entry barriers for online business. They also provide a
virtual environment that is vibrant and important to many.

AACSB: Technology
Blooms: Understand
3-173
223. (p. 110) What are the four most common Business 2.0 characteristics?
A. Content sharing, user-contributed content, collaboration competition elimination, Web
browser organization
B. Content sharing through open source, specialty-contributed content only, collaboration
inside the community, specialized collaboration
C. Content sharing through open source, user-contributed content, collaboration inside the
organization, collaboration outside the organization
D. Consumer sharing through open systems, company-contributed content, collaboration
inside the organization, collaboration throughout the organization
The four most common business 2.0 characteristics are 1) content sharing through open
source, 2) user-contributed content, 3) collaboration inside the organization, 4) collaboration
outside the organization.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
224. (p. 110) What is the system that consists of nonproprietary hardware and software based on
interoperate with the system?
A. Management system
B. Reputation system
C. Knowledge system
D. Open system
This is the definition of open system.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-174
225. (p. 111) Which of the below is not a characteristic associated with Mozilla Firefox?
A. Mozilla Firefox holds over 20% of the Web browser market
B. Mozilla Firefox offers a free email service called Thunderbird
C. Mozilla Firefox is a prime example of open source software
D. Mozilla Firefox is a prime example of a reputation system
The Web browser Mozilla Firefox now holds over 20% of the Web browser market, offers a
free email service called Thunderbird and is open source software.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
226. (p. 111) What is Mozilla Firefox?

A. A competitor to Microsoft Word
B. A competitor to Microsoft Excel
C. A competitor to Adobe Photoshop
D. A competitor to Internet Explorer
Mozilla Firefox is a Web browser and is a competitor to Internet Explorer.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-175
227. (p. 111) What is software whose source code is available free for any third party to review
and modify?
A. Free source
B. Open source
C. Code source
D. Network source
This is the definition of open source.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
228. (p. 111) Erik is the president and owner of Watch Out, a local website development
company that helps clients create and build unique websites. Many of his daily tasks are
heavily technical in nature and require a high level of computer programming and Internet
knowledge. Which of the below would Erik primarily use when performing his daily tasks?
A. Source code
B. Brick-and-mortar
Source code contains instructions written by a programmer specifying the actions to be
performed by computer software. This is his main role or responsibility.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-176
229. (p. 111) Ebusiness was characterized by few companies or users posting content for the
masses. What characterizes Business 2.0?
A. A select few posting content for high level executives only
B. The masses posting content for a select few
C. The masses posting content for the masses
D. A select few posting specific content for the masses
Ebusiness was characterized by few companies or users posting content for the masses.
Business 2.0 is characterized by the masses posting content for the masses.

AACSB: Technology
Blooms: Understand
230. (p. 111) What is Web content that is created and updated by many users for many users?
A. Cybermediation contributed content
B. User-contributed content
C. Executive generated content
D. Customer generated content
This is the definition of user-contributed content or user-generated content.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-177
231. (p. 111) eBay buyers voluntarily comment to other users and sellers on the quality of
service, promptness of shipping, and their general satisfaction with the product. This is one of
the most popular examples of user-generated content and is called ____________.
A. Reputation system
B. Knowledge system
C. Explicit system
D. User-generated sales cycle
One of the most popular forms of user-generated content is reputation system, where buyers
post feedback on sellers.

AACSB: Technology
Blooms: Understand
232. (p. 111) What is the most common form of collective intelligence found inside the
organization?
A. Crowdsourcing
B. Tacit management
C. Knowledge management
D. Tagging
The most common form of collective intelligence found inside the organization is knowledge
management.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-178
233. (p. 111) What is the difference between asynchronous and synchronous communication?
A. Asynchronous is real-time communication; synchronous is one-way technology
B. Asynchronous is communication that does not occur at the same time; synchronous
communication occurs at the same time
C. Asynchronous communication includes instant messaging; synchronous communication
includes email
D. Asynchronous communication is fast and instant; synchronous communication is collected
at a single point in time
Asynchronous is communication such as email in which the message and the response do not
occur at the same time, where synchronous is communications that occur at the same time
such as IM or chat.

AACSB: Technology
Blooms: Understand
234. (p. 111) Which of the below is not a characteristic of Business 2.0?
A. Knowledge management
C. Web browser
When reviewing the business 2.0 characteristic of collaboration inside the organization it
includes the terms 1) collaboration system, 2) collective intelligence, 3) knowledge
management, 4) knowledge management system, 5) explicit knowledge, and 6) tacit
knowledge. Web browser is part of Business 1.0.

AACSB: Technology
Blooms: Understand
3-179
235. (p. 111) Which of the following is a set of tools that supports the work of teams or groups
by facilitating the sharing and flow of information?
A. Collaboration system
B. Collective system
C. Competitive system
D. Real simple syndication system
This is the definition of collaboration system.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
236. (p. 111) Lisa loves her job as an executive recruiter for a large hospital located in Dallas,
Texas. Part of Lisa's job requires her to gather industry information, collaborate with partners,
compare competitors, and tap into the knowledge of prospective employees, partners, and
customers. Which of the below would Lisa use to perform her job?
A. Interactivity metrics
B. Source code
C. Network effect
D. Collective intelligence
Collective intelligence is collaborating and tapping into the core knowledge of all employees,
partners, and customers.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-180
237. (p. 111) Which system supports the capturing, organization, and dissemination of
knowledge throughout an organization?
A. Cybermediation system
B. Knowledge management system
C. Source code system
D. Social media system
This is the definition of a knowledge management system.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
238. (p. 111) Which of the below focuses on user-generated content?

A. YouTube
B. Wikipedia
C. Netflix
D. All of the above
Some real life ebusiness that operate with the help of user-generated content include YouTube,
Wikipedia, Flickr, Digg, Yelp, Amazon, Netflix, and eBay.

AACSB: Technology
Blooms: Understand
3-181
239. (p. 112) What are the two categories that include intellectual and knowledge-based assets?
A. Explicit knowledge; tacit knowledge
B. Efficient knowledge; tacit knowledge
C. Intelligent knowledge; explicit knowledge
D. Open knowledge; closed knowledge
The two categories that intellectual and knowledge-based assets fall into are 1) explicit
knowledge and 2) tacit knowledge.

AACSB: Technology
Blooms: Understand
240. (p. 112) What is the type of knowledge that is contained in people's heads?
A. Explicit knowledge
B. Virtual knowledge
C. Tacit knowledge
D. Pure knowledge
This is the definition of tacit knowledge.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-182
241. (p. 112) What is the type of knowledge that consists of anything that can be documented,
archived, and codified, often with the help of a MIS department?
A. Tacit knowledge
C. Pure knowledge
D. Virtual knowledge
This is the definition of explicit knowledge.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
242. (p. 112) Which of the following is not an example of explicit knowledge?
A. Patent
B. Trademark
C. Employee opinion
D. Marketing research
Examples of explicit knowledge include patents, trademarks, business plans, marketing
research, and customer lists.

AACSB: Technology
Blooms: Understand
3-183
243. (p. 111) What do Netflix and Amazon use to drive their recommendation tools?
A. Web 1.0 content
B. Open source content
C. Virtual content
D. User-generated content
Both Netflix and Amazon use user-generated content to drive their recommendation tools.

AACSB: Technology
Blooms: Understand
244. (p. 113) What are websites that rely on user participation and user-contributed content, such
as Facebook, LinkedIn, and YouTube?
A. Synchronous communication
B. Social media
D. Asynchronous communication
This is the definition of social media.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-184
245. (p. 113) What is the practice of expanding your business and social contacts by constructing
a personal network?
A. Network effects
B. Tagging
C. Social taxonomy
D. Social networking
This is the definition of social networking.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
246. (p. 114) What is a locally stored URL, or the address of a file or Internet page saved as a
shortcut?
A. Website bookmark
B. Social tag
C. Folksonomy
D. Taxonomy
This is the definition of website bookmark.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-185
247. (p. 113) Which of the below represents an example of why an employer would use social
media?
A. To find potential job candidates via LinkedIn
B. To review potential job candidates by viewing their Facebook page
C. To attract new job candidates via YouTube
D. All of the above
Companies are utilizing all of the following strategies to expand, develop and grow their
businesses via social media sites.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
248. (p. 114) What are the two basic functions that social networking sites provide?
A. The ability to create and publish your own software
B. The ability to create and maintain a profile that is your online identity and create
connections between other people within the network
C. The ability to capture and create URLs and RSSs
D. The ability to create URLs and edit RSS software
The two basic functions that social networking sites provide are the ability to create and
maintain a profile that is your online identity and second is the ability to create connections
between other people within the network.

AACSB: Technology
Blooms: Understand
3-186
249. (p. 114) Which of the below is not an example of a social bookmarking website?
A. Facebook
B. StumbleUpon
C. Del.icio.us
D. All of the above
Del.icio.us, and StumbleUpon are examples of social bookmarking sites. Facebook is not a
social bookmarking website.

AACSB: Technology
Blooms: Understand
250. (p. 114) What is an SNA?

A. Strong network applications
B. Social needs analysis
C. Social networking analysis
D. Steady network areas
SNA means social networking analysis.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-187
251. (p. 114) What maps group contacts identifying who knows each other and who works
together?
A. Social network effects
B. Mashup networking analysis
C. Web network effects
D. Social networking analysis
This is the definition of social networking analysis (SNA).

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
252. (p. 114) Many social media websites use _________ or specific keywords or phrases
incorporated into website content for means of classification or taxonomy.
A. Conferencing
B. Tags
C. Long tails
D. Categories
This is the definition of tags.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-188
253. (p. 114) Social tagging describes the collaborative activity of marking shared online content
with keywords or tags as a way to ______________.
A. Organize it for future navigation
B. Organize it for future filtering
C. Organize it for future search
D. All of the above
Social tagging describes the collaborative activity of marking shared online content with
keywords or tags as a way to organize them for future navigation, filtering, or search.

AACSB: Technology
Blooms: Understand
254. (p. 114) Cell phone manufacturers often refer to their products as mobile devices. Which of
the below would not be included in the folksonomy for a cell phone?
A. Cell
B. iPhone
C. Blackberry
D. Technology platform
Cell phone manufacturers often refer to their products as mobile devices, the folksonomy
could include mobile phone, wireless phone, smart phone, iPhone, Blackberry, Droid, and
many others.

AACSB: Technology
Blooms: Understand
3-189
255. (p. 114) What is the term that is similar to taxonomy except that crowdsourcing determines
the tag or keyword-based classification system?
A. Podcasting
B. Network effects
C. Folksonomy
D. Social bookmarking
This is the definition of folksonomy.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
256. (p. 114) How do the majority of potential customers find business websites?
A. By applying analytics
B. Through search terms that match the content
C. Through viral advertisements
D. Through magazines and newspapers
The majority of websites are found online through search terms that match the content.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-190
257. (p. 114) How would a company like Flickr use social tagging on its website?
A. By applying keywords that do not match user content
B. By building a tagging game for customers to participate in
C. By allowing users to upload images and tag the images with their own keywords
D. By selecting the keywords to associate with each image a customer uploads
Flickr allows users to upload images and tag them with appropriate keywords. After enough
people have done so, the resulting tag collection will identify images correctly and without
bias.

AACSB: Technology
Blooms: Understand
258. (p. 114) Using the collective power of a community to identify and classify content
significantly _________ content categorization costs.
A. Eliminates
B. Raises
C. Lowers
D. Balances
Using the collective power of a community to identify and classify content significantly
lowers content categorization costs, because there is no complicated nomenclature to learn.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-191
259. (p. 114) A social bookmarking site is dedicated to providing all of the following except
________.
A. To reconnect with colleagues for business progress
B. To share favorites
C. To store & categorize favorite sites
D. To annotate
Social bookmarking sites provide users with a place to store, categorize, annotate, and share
favorites. LinkedIn is primarily used to reconnect with colleagues for business progress.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
260. (p. 114) Which social media site works by allowing content to find the users, instead of the
users having to search for the content?
A. MySpace
B. Facebook
C. Google
D. StumbleUpon
StumbleUpon represents a new social media networking model in which content finds the
user instead of the other way around.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-192
261. (p. 114) What is the primary way that social networks work?
A. Connecting people by matching profile information
B. Charging users each time they use the service
C. Providing a security system for communication online
D. Helping grow website traffic by viral advertisements

AACSB: Technology
Blooms: Understand
262. (p. 114) What is one simplification that has occurred with Business 2.0?
A. By helping online users create anonymity
B. By limiting the sharing capabilities of devices
C. By improving access to information
D. By communicating via email
Business 2.0 simplifies access to information and improves the ability to share it.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-193
263. (p. 116) Which of the following identifies Business 2.0 communication and collaboration
tools?
A. Microblogs, Tweets, RSS
B. API, RSS, tacit knowledge
C. Blogs, wikis, mashup
D. Tags, Web logs, RSS
Business 2.0 communication and collaboration tools include blogs, wikis, and mashups.

AACSB: Technology
Blooms: Understand
264. (p. 116) What is an online journal that allows users to post their own opinions, comments,
graphics, and video?
A. Web masters
B. Folksonomy
C. Disintermediation
D. A Blog or Web log
This is the definition of a blog.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-194
265. (p. 116) Why are Fortune 500 companies engaging in blogging?
A. To order supplies
B. To review favorite Internet providers
C. To gather feedback and share ideas
D. To pay employees
Many fortune 500 companies are engaging in blogging for the purpose of marketing, sharing
ideas, gathering feedback, press response, and image shaping.

AACSB: Technology
Blooms: Understand
266. (p. 116) Twitter is an example of a __________.

A. Social bookmarking website
B. Social tagging website
C. Microblogging website
D. Blogging website
Twitter is one of the largest examples of microblogging.

AACSB: Technology
Blooms: Understand
3-195
267. (p. 116) What is the practice of sending brief posts 140-200 characters to a personal blog
either publicly or to a private group of subscribers?
A. Ebusiness model
B. Tagging
C. Blogging
D. Microblog
This is the definition of microblogging.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
268. (p. 116) Unlike traditional HTML, which of the following lets writers communicate and
readers respond on a regular basis through a simple online journal?
B. HTTP
C. Blog
D. Email
Unlike traditional HTML, blogs or Web logs, lets writers communicate, and readers respond,
on a regular basis through a simple online journal.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-196
269. (p. 116) What is the difference between a wiki and a blog?
A. A wiki is free and a blog has a subscription fee
B. A wiki user can alter the original content of an article, where a blog user can only add
information as a comment
C. A wiki is original content, where a blog is used sources
D. All of the above
The difference between a wiki and a blog is that a wiki user can alter the original content of
an article, where a blog user can only add information as a comment.

AACSB: Technology
Blooms: Understand
270. (p. 116) What does RSS stand for?

A. Reorganized Site Syndicator
B. Really Simple Sites
C. Rented Site Syndication
D. Real Simple Syndication
RSS stands for Real Simple Syndication.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-197
271. (p. 117) Many websites use _______ to constantly feed news to consumers instead of
having the consumer search for the news.
A. Mashup
B. Source Code
C. RSS
D. SNA
Many websites use RSS, to constantly feed news to consumers instead of having them search
for it.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
272. (p. 117) Large wikis, such as Wikipedia, can protect the quality and accuracy of their
information by assigning users roles such as __________.
A. Reader
B. Subject matter expert
C. Editor
D. All of the above
Large wikis can protect the quality and accuracy of their information by assigning users roles
such as reader, editor, administrator, patroller, policy maker, subject matter expert, content
maintainer, software developer, and system operator.

AACSB: Technology
Blooms: Understand
3-198
273. (p. 117) What describes how products in a network increase in value to users as the number
of users increase?
A. Network effect
B. RSS
C. Mashup editor
D. Mcommerce
This is the definition of a network effect.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
274. (p. 117) Which of the following is one of the largest wikis on the Web and one of the 10
most popular Web destinations?
A. Google
B. eBay
C. Wikipedia
D. Yahoo
Wikipedia is one of the largest wikis on the Web and one of the 10 most popular Web
destinations.

AACSB: Technology
Blooms: Understand
3-199
275. (p. 117) Some of the benefits for a company to operate an internal wiki are that they are
great tools for all of the following except:
A. Collecting and disseminating knowledge
B. Building software applications
C. Sharing information between functional business areas
D. Distribute to employees or partners across geographical distances
Benefits for a company to operate an internal wiki are that they are great tools for collecting
and disseminating knowledge throughout an organization, across geographic distances, and
between functional business areas.

AACSB: Technology
Blooms: Understand
276. (p. 117) What is a website or Web application that uses content from more than one source
to create a completely new product or service?
A. Social tagging
B. Mashup blog
C. Social media
D. Mashup
This is the definition of a mashup.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-200
277. (p. 117) An API is a set of routines, protocols, and tools for ______________.
A. Building software applications
B. Providing a visual interface for a web mashup
C. Describing how products in a network work
D. Writing and editing HTML
This is the definition of an API or application programming interface.

AACSB: Technology
Blooms: Understand
278. (p. 117) What does API stand for?

A. Asynchronous Programming Information
B. Application Programming Interface
C. Application Provider for the Internet
D. Asynchronous Protocol Interaction
API stands for Application Programming Interface.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-201
279. (p. 117) What is the role of a mashup editor?

A. WYSIWYG's
B. Often it allows the user to drag and drop data points into a Web application
C. To provide a visual interface to build up a mashup
D. All of the above
This is the definition of a mashup editor.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
280. (p. 119) Which of the following are challenges of Business 2.0?
A. Information vandalism
B. Technology dependence
C. Violations of copyright and plagiarism
D. All of the above
The challenges of Business 2.0 are 1) technology dependence, 2) information vandalism, and
3) violations of copyright and plagiarism.

AACSB: Technology
Blooms: Understand
3-202
281. (p. 119) What is a potential problem or impact of technology dependence?

A. Outages hold potentially great havoc for people, business, and educational institutions that
rely heavily on technology
B. Many have a need to be continuously connected for every activity that potentially
eliminates crucial in-person social skills and could stunt psychological growth
C. How do people or businesses function if the connection is down?
D. All of the above
Technology dependence can cause All of the above scenarios.

AACSB: Technology
Blooms: Understand
282. (p. 119) Which of the following demonstrates potential issues with Business 2.0 and
information vandalism?
A. Open source allows anyone to be able to edit, damage, or destroy content
B. Copyright protection
C. Decreases in employee productivity
D. Decreases in process productivity
Potential issues facing Business 2.0 and information vandalism are with open source websites,
which allow anyone to be able to edit, damage, or destroy content.

AACSB: Technology
Blooms: Understand
3-203
283. (p. 119) One of the most famous examples of wiki vandalism occurred when a false
biography entry read which of the following:
A. Michael Jackson and Madonna were siblings
B. JFK and Robert Kennedy were the same person
C. John Seigenthaler Sr. was assistant to Attorney General Robert F. Kennedy in the early
1960's and was involved in Kennedy's assassination as well as JFK's
D. Madonna and Britney Spears are sisters
One of the most famous examples of wiki vandalism occurred when a false biography entry
read that John Seigenthaler Sr. was assistant to Attorney General Robert F. Kennedy in the
early 1960's and was involved in Kennedy's assassination as well as JFK's. Seigenthaler was
an assistant to Robert, but was not involved in either of the assassinations.

AACSB: Technology
Blooms: Remember
284. (p. 120) Which of the following best describes Web 1.0?
A. Static text-based information websites
B. Static electricity and connectivity
C. Social media
D. Technology intelligence

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Web 3.0
3-204
A. Static websites
B. Intelligent websites
C. Social media and user-generated Web content
D. Hypertext markup language

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Web 3.0
A. User-generated online business
B. Based on the intelligent' Web where applications use natural language processing
C. Collaboration and social media
D. All of the above

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Web 3.0
3-205
287. (p. 120) Which statement below is inaccurate?

A. Web 2.0 is a simple static website without any interaction with its users
B. Web 2.0 brings people closer together with information using machines
C. Web 3.0 brings machines closer together using information
D. Web 3.0 is a rich intelligent' understanding and relationships among concept and topics
Difference between Web 2.0 and Web 3.0 include 1) Web 2.0 brings people closer together
with information using machines, 2) Web 3.0 brings machines closer together using
information, 3) Web 3.0 is a rich intelligent' understanding and relationships among concept
and topics.

AACSB: Technology
Blooms: Understand
Topic: Web 3.0
288. (p. 120) What is a component of Web 3.0 that describes things in a way that computers can
understand?
A. Social tagging
B. Sustaining Web
C. Social Web
D. Semantic Web
This is the definition of semantic Web.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Web 3.0
3-206
289. (p. 120) Which statement below is incorrect?

A. The semantic Web captures, organizes, and disseminates knowledge (i.e., know-how)
throughout an organization
B. The semantic Web describes the relationships between things
C. The semantic Web describes the properties of things
D. The semantic Web is not about links between Web pages
To understand the semantic Web you need to understand that it is not about links between
Web pages, rather it describes the relationship between things (such as A is a part of B and Y
is a member of Z) and the properties of things (size, weight, age, price).

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
Topic: Web 3.0
290. (p. 120) Which of the following is not a topic or feature that is included in Web 3.0?
A. A worldwide database
B. Intelligent applications
D. Integration of legacy devices
Topics or features that are sure to be included in Web 3.0 include 1) integration of legacy
devices, 2) intelligent applications, 3) open ID, 4) open technologies, and 5) a worldwide
database.

AACSB: Technology
Blooms: Understand
Topic: Web 3.0
3-207
291. (p. 120) What statement below describes Web 3.0's feature that ensure the integration of
legacy devices'?
A. The ability to use current devices such as iPhone and laptops as credit cards or ticket
B. The design of websites and other software so they can be easily integrated and work
together
C. The ability for software to be distributed and accessed from anywhere
D. The design of software to be easily integrated and work together
Web 3.0's feature integration of legacy devices' means or includes the ability to use current
devices such as iPhone, laptops, and so on, as credit cards, tickets, and reservation tools.

AACSB: Technology
Blooms: Understand
Topic: Web 3.0
292. (p. 120) Many industries have taken an active role in online business including the
government. Which of the following is the term that describes the use of strategies and
technologies to transform government by improving the delivery of services and enhancing
the quality of interaction between the citizen-consumer within all the branches of
government?
A. Ecommerce
B. Information richness
C. Egovernment
D. Tacit knowledge
This is the definition of egovernment.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Web 3.0
3-208
293. (p. 120) The website that was the primary catalyst for growing electronic government, and
is the official U.S. gateway to all government information?
A. Government.gov
B. TheUnitedStatesofAmerica.org
C. TheWhiteHouse.com
D. FirstGov.gov
The website that was the primary catalyst for growing electronic government, and is the
official U.S. gateway to all government information is FirstGov.gov.

AACSB: Technology
Blooms: Understand
Topic: Web 3.0
294. (p. 120) Which of the following is the example of consumer-to-government (C2G)
highlighted in the figure extended ebusiness models?
A. eGov.com
B. conisint.com
C. Google.org
D. export.gov
The example of consumer to government highlighted in the figure extended ebusiness models
is eGov.com.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
Topic: Web 3.0
3-209
295. (p. 121) What is the ability to purchase goods and services through a wireless Internetenabled device?
A. Ecommerce
B. Mobile business
C. Meconomics
D. Ebusiness model
This is the definition of mobile business.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Web 3.0
296. (p. 121) How would you categorize mobile entertainment, mobile sales, mobile ticketing,
and mobile banking?
A. Mobile business
B. Mbusiness
C. Mcommerce
D. All of the above
Mobile business (or mbusiness, mcommerce) includes mobile entertainment, mobile sales,
mobile banking, mobile ticketing, and mobile payments.

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Web 3.0
3-210
Fill in the Blank Questions
297. (p. 94) Several companies were outlined in the book to launch new businesses by
capitalizing on disruptive technology. One example is _______________, who launched the
revolutionary products such as the iPod and the iPhone.
Apple

AACSB: Technology
Blooms: Understand
298. (p. 94) A __________ technology is a new way of doing things that initially does not meet
the needs of existing customers.
Disruptive

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
299. (p. 95) Computers connected through the __________ can send and receive information
including text, graphics, voice, video, and software.
Internet

AACSB: Technology
Blooms: Understand
3-211
300. (p. 96) The World Wide Web provides access to ____________ information through
documents including text, graphics, audio, and video files that use a special formatting
language called HTML.
Internet

AACSB: Technology
Blooms: Understand
301. (p. 96) A ____________ shift occurs when a new radical form of business enters the market
that reshapes the way companies and organizations behave.
Paradigm

AACSB: Technology
Blooms: Understand
302. (p. 95) An __________ is a program that runs within another application such as a website.
Applet

AACSB: Technology
Blooms: Understand
303. (p. 95) Web _________ is a term to refer to the World Wide Web during its first few years
of operation between 1991 and 2003.
1.0

AACSB: Technology
Blooms: Understand
3-212

304. (p. 94) A disruptive technology is a new way of doing things that initially does not meet the
needs of existing ________________.
Customers

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
305. (p. 94) A(n) ___________ technology produces an improved product customers are eager
to buy.
Sustaining

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
306. (p. 94) According to Christensen, companies may have placed too great an emphasis on
satisfying customer's ______ needs, while forgetting to adopt new disruptive technology that
will meet customer's future needs.
Current

AACSB: Technology
Blooms: Understand
3-213
307. (p. 94) The Innovator's ___________ is a book by Clayton M. Christensen.

Dilemma

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
308. (p. 95) The WWW provides access to Internet information through documents including
text, graphics, audio, and video files that use a special formatting language called ________
markup language.
Hypertext

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
309. (p. 98) Information __________ refers to the depth and breadth of details contained in a
piece of textual, graphic, audio, or video information.
Richness

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
310. (p. 98) Information __________ measures the number of people a firm can communicate
with all over the world.
Reach

AACSB: Technology
Blooms: Remember
3-214

Difficulty: 1 Easy
311. (p. 101) Through ____________ data companies can observe the exact pattern of a
consumer's navigation through a site.
Clickstream

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
312. (p. 101) A __________ is an online marketing technique where a small file deposited on a
hard drive by a website containing information about customers and their browsing activities.
Cookie

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
313. (p. 98) Information richness refers to the depth and breadth of ___________ contained in a
piece of textual, graphic, audio, or video information.
Details

AACSB: Technology
Blooms: Understand
3-215
314. (p. 101) Information reach ___________ the number of people a firm can communicate
with all over the world.
Measures

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
315. (p. 98) _____________ occurs when a company knows enough about a customer's likes
and dislikes that it can fashion offers more likely to appeal to that person, say by tailoring its
transactions.
Personalization

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
316. (p. 98) The __________ tail refers to the tail of a typical sales curve.
Long

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-216
317. (p. 99) _________ are agents, software, or businesses that provide a trading infrastructure
to bring buyers and sellers together.
Intermediaries

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
318. (p. 100) __________ measures advertising effectiveness by counting visitor interactions
with the target ad, including time spent viewing the ad, number of pages viewed, and number
of repeat visits to the advertisement.
Interactivity

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
319. (p. 101) An online version of a retail store where customers can shop at any hour is called
a(n) _________.
Eshop

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-217
320. (p. 102) Business-to-Business applies to businesses buying from and selling to each other
over the ______________.
Internet

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
321. (p. 101) _________-com was the original term for a company operating on the Internet.
Dot

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
322. (p. 101) A(n) _________________ model is a plan that details how a company creates,
delivers, and generates revenues.
Business

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
323. (p. 101) A(n) ___________ model is a plan that details how a company creates, delivers,
and generates revenues on the Internet.
Ebusiness

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-218

324. (p. 105) A search __________ is website software that finds other pages based on keyword
Engine

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
325. (p. 105) Search engine __________ evaluates variables that search engines use to determine
Ranking

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
326. (p. 105) Search engine __________ combines art along with science to determine how to
make URLs more attractive to search engines resulting in higher search engine ranking.
Optimization

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-219
327. (p. 105) Pay-per-_________ generates revenue each time a user clicks on a link to a
retailer's website.
Click

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
328. (p. 105) Pay-per-___________ generates revenue each time a user clicks on a link that takes
the user directly to an online agent waiting for a call.
Call

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
329. (p. 105) Pay-per-_______ generates revenue each time a website visitor is converted to a
customer.
Conversion

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
330. (p. 102) An ebusiness model is a ________ that details how a company creates, delivers,
and generates revenues on the Internet.
Plan

AACSB: Technology
Blooms: Remember
3-220

Difficulty: 1 Easy
331. (p. 102) Business-to-consumer applies to any __________ that sells its products or services
Business

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
332. (p. 102) Consumer-to-consumer applies to sites primarily offering goods and services to
assist ____________ interacting with each other over the Internet.
Consumers

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
333. (p. 102) Consumer-to-business applies to any _________ who sells a product or service to a
business on the Internet.
Consumer

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-221
334. (p. 103) _____ and-mortar business operates in a physical store without an Internet
presence.
Brick

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
335. (p. 103) Google is an example of a _________-play business.

Pure

AACSB: Technology
Blooms: Understand
336. (p. 103) Barnes & Noble is an example of a _________-and-mortar business.

Click

AACSB: Technology
Blooms: Understand
337. (p. 103) T. J. Maxx is an example of a _________-and-mortar business.

Brick

AACSB: Technology
Blooms: Understand
3-222
338. (p. 106) __________ single-handedly increased the speed of business through the exchange
of digital messages over the Internet.
Email

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
339. (p. 106) The blending of videoconferencing with document sharing is the ebusiness tool
called Web conferencing or a __________.
Webinar

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
340. (p. 105) A(n) Internet service ______________ is a company that provides access to the
Internet.
Provider

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
341. (p. 105) Instant ____________ is a service that enables instant or real-time communication
between people.
Messaging

AACSB: Technology
Blooms: Remember
3-223

Difficulty: 1 Easy
342. (p. 106) Real-time ______________ occurs when a system updates information at the same
rate it receives it.
Communication

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
343. (p. 107) _______________ converts an audio broadcast to a digital music player.
Podcasting

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
344. (p. 105) _______________ is the scientific classification of organisms into groups based on
similarities.
Taxonomy

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-224
345. (p. 109) The main challenge to ebusiness is the lack of growth in some sectors due to
product or service __________.
Limitations

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
346. (p. 109) One of the main challenges that ___________ face is ensuring consumer
protection, guarding them against unsolicited goods and invasion of privacy.
Ebusiness

AACSB: Technology
Blooms: Understand
347. (p. 109) The Internet marketplace remains mostly free of traditional forms of sales tax,
partially because ecommerce law is vaguely defined making adhering to ___________ rules
and laws a challenge of ebusiness.
Tax

AACSB: Technology
Blooms: Understand
3-225
348. (p. 110) One of the most popular forms of user-generated content is a __________ system
where buyers post feedback on sellers.
Reputation

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
349. (p. 110) The primary objective of __________ management is to be sure that a company's
knowledge of facts, sources of information and solutions are readily available to all
Knowledge

AACSB: Technology
Blooms: Understand
350. (p. 110) Traditional ebusiness communications were limited to face-to-face conversations
and one-way technologies that used _______________ communications or communication
such as email in which the message and the response do not occur at the same time.
Asynchronous

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-226
351. (p. 111) A(n) _________ system consists of nonproprietary hardware and software based on
interoperate with the system.
Open

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
352. (p. 111) Source _______ contains instructions written by a programmer specifying the
actions to be performed by computer software.
Code

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
353. (p. 111) ________ source refers to any software whose source code is made available free
for any third party to review and modify.
Open

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-227
354. (p. 111) ________ intelligence is collaborating and tapping into the core knowledge of all
employees, partners, and customers.
Collective

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
355. (p. 111) ______________ system is a set of tools that supports the work of teams or groups
by facilitating the sharing and flow of information.
Collaboration

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
356. (p. 112) _____________ knowledge consists of anything that can be documented, archived,
and codified, often with the help of MIS.
Explicit

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
357. (p. 112) __________ knowledge is the knowledge contained in people's heads.
Tacit

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-228

358. (p. 114) Social __________ describes the collaborative activity of marking shared online
content with keywords or tags as a way to organize it for future navigation, filtering, or
search.
Tagging

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
359. (p. 114) A website dedicated to social ____________, provides users with a place to store,
categorize, annotate, and share favorites.
Bookmarking

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
360. (p. 113) Social ___________ is an application that connects people by matching profile
information.
Network

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3-229
361. (p. 114) Social ____________ refers to websites that rely on user participation and usercontributed content, such as Facebook.
Media

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
362. (p. 114) __________ are specific keywords or phrases incorporated into website content for
means of classification or taxonomy.
Tags

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
363. (p. 114) _______________ is similar to taxonomy except that crowdsourcing determines
the tags or keyword-based classification system.
Folksonomy

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
364. (p. 117) A _____________ is a type of collaborative web page that allows users to add,
remove, and change content, which can be easily organized and reorganized as required.
Wiki

AACSB: Technology
Blooms: Remember
3-230

Difficulty: 1 Easy
365. (p. 117) ____________ editors are WYSIWYG.

Mashup

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
366. (p. 117) The __________ effect describes how products in a network increase in value to
users as the number of users increases.
Network

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
367. (p. 116) An example of a __________ is putting Jay-Z lyrics over a Radiohead song makes
something old new.
Mashup

AACSB: Technology
Blooms: Understand
3-231
368. (p. 116) A Web _________ is another term for an online journal that allows users to post
their own comments, graphics, and video.
Log

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
369. (p. 116) Twitter is one of the largest and most powerful _______________ websites.
Microblogging

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
370. (p. 119) John has a big issue with turning off his cell phone as he is continuously connected
to his friends and family via IMing. It has gotten so bad that John refuses to go to a movie
because he cannot possibly live for two hours without being connected. John is suffering from
technology __________, a clear challenge of Business 2.0.
Dependence

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-232
371. (p. 119) You are in charge of creating and updating your company's Wikipedia page. You
logon to find that someone has placed inappropriate photos and blatant lies about your
products on the corporate Wikipedia page. Your company has been a victim of wiki
_________, another major challenge of the Business 2.0 environment.
Vandalism

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
372. (p. 119) You have just been promoted at work and you are now responsible for all
marketing communication through the different Internet channels. You logon to your
corporate blog and find that there are many direct paragraphs from competitor websites and
product manufacturing magazines. The first issue you will need to address as you redesign the
corporate blog is to ensure you are avoiding copyright violations and __________.
Plagiarism

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
373. (p. 120) The Web version that is defining the next generation of online business is
Web________, or the "intelligent" Web application.
3.0

AACSB: Technology
Blooms: Understand
Topic: Web 3.0
3-233
374. (p. 120) The ______________ Web is a component of Web 3.0 that describes things in a
way that computers can understand.
Semantic

AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Topic: Web 3.0
375. (p. 120) Mobile business is just now emerging and is also referred to as mcommerce or
____________.
Mbusiness

AACSB: Technology
Blooms: Understand
Topic: Web 3.0
3-234
Essay Questions
376. (p. 94) Compare disruptive and sustaining technologies, and explain how the Internet and
WWW caused business disruption.
Disruptive technologies offer a new way of doing things that initially does not meet the needs
of existing customers. Disruptive technologies redefine the competitive playing fields of their
respective markets, open new markets and destroy old ones, and cut into the low end of the
marketplace and eventually evolve to displace high-end competitors and their reigning
technologies.
Sustaining technologies produce improved products customers are eager to buy, such as a
faster car or larger hard drive. Sustaining technologies tend to provide us with better, faster,
and cheaper products in established markets and virtually never lead in markets opened by
new and disruptive technologies.
The Internet and WWW caused business disruption by allowing people to communicate and
collaborate in ways that were not possible before the information age. The Internet and WWW
completely disrupted the way businesses operate, employees communicate, and products are
developed and sold.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
377. (p. 98) Describe Web 1.0 along with ebusiness and its associated advantages.
Web 1.0 is a term to refer to the World Wide Web during its first few years of operation
between 1991 and 2003. Ebusiness includes ecommerce along with all activities related to
internal and external business operations such as servicing customer accounts, collaborating
with partners, and exchanging real-time information. During Web 1.0, entrepreneurs began
creating the first forms of ebusiness. Ebusiness advantages include expanding global reach,
opening new markets, reducing costs, and improving operations and effectiveness.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-235
378. (p. 106) Compare the four categories of ebusiness models.

Business-to-business (B2B) applies to businesses buying from and selling to each other over
the Internet. Business-to-consumer (B2C) applies to any business that sells its products or
services to consumers over the Internet. Consumer-to-business (C2B) applies to any consumer
that sells a product or service to a business over the Internet. Consumer-to-consumer (C2C)
applies to sites primarily offering goods and services to assist consumers interacting with each
other over the Internet. The primary difference between B2B and B2C are the customers; B2B
customers are other businesses while B2C markets to consumers. Overall, B2B relations are
more complex and have higher security needs; plus B2B is the dominant ebusiness force,
representing 80 percent of all online business.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
379. (p. 108) Describe the six ebusiness tools for connecting and communicating.
As firms began to move online, more MIS tools were created to support ebusiness processes
and requirements. The ebusiness tools used to connect and communicate include email,
instant messaging, podcasting, content management systems, videoconferencing, and Web
conferencing.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-236
380. (p. 109) Identify the four challenges associated with ebusiness.
Although the benefits of ebusiness are enticing, developing, deploying, and managing
ebusiness systems is not always easy. The challenges associated with ebusiness include
identifying limited market segments, managing consumer trust, ensuring consumer protection,
and adhering to taxation rules.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
381. (p. 113) Explain Web 2.0, and identify its four characteristics.
Web 2.0, or Business 2.0, is the next generation of Internet usea more mature, distinctive
free. Web 2.0 encourages user participation and the formation of communities that contribute
to the content. In Web 2.0, technical skills are no longer required to use and publish
information to the World Wide Web, eliminating entry barriers for online business. The four
characteristics of Web 2.0 include content sharing through open sourcing, user-contributed
content, collaboration inside the organization, collaboration outside the organization.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-237
382. (p. 116) Explain how Business 2.0 is helping communities network and collaborate.
Business 2.0. Social networking is the practice of expanding your business and/or social
contacts by constructing a personal network. Business 2.0 simplifies the way individuals
communicate, network, find employment, and search for information.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
383. (p. 117) Describe the three Business 2.0 tools for collaborating.
The three tools that harness the "power of the people" for Business 2.0 include blogs, wikis,
and mashups. A blog, or Web log, is an online journal that allows users to post their own
comments, graphics, and video. Blog websites let writers communicateand reader's respond
on a regular basis through a simple yet customizable interface that does not require any
programming. A wiki is a type of collaborative Web page that allows users to add, remove,
and change content, which can be easily organized and reorganized as required. While blogs
have largely drawn on the creative and personal goals of individual authors, wikis are based
on open collaboration with any and everybody. A mashup is a website or Web application that
uses content from more than one source to create a completely new product or service. A

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
3-238
384. (p. 118) Explain the three challenges associated with Business 2.0.
As much as Business 2.0 has positively changed the global landscape of business, a few
challenges remain in open source software, user-contributed content systems, and
collaboration systems. These challenges include individuals forming unrealistic dependencies
on technology, vandalism of information on blogs and wikis, and the violation of copyrights
and plagiarism.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
385. (p. 119) Describe Web 3.0 and the next generation of online business.
Web 3.0 is based on "intelligent" Web applications using natural language processing,
machine-based learning and reasoning, and intelligent applications. Web 3.0 is the next step in
the evolution of the Internet and Web applications. Business leaders who explore its
opportunities will be the first to market with competitive advantages. Web 3.0 offers a way for
people to describe information such that computers can start to understand the relationships
among concepts and topics.

AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
Topic: Web 3.0
3-239

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CHAPTER 3: Ebusiness: Electronic Business Value

True / False Questions

6. Ebusiness is something that a business can just go out and buy.

CHAPTER 3: Ebusiness: Electronic Business Value

CHAPTER 3: Ebusiness: Electronic Business Value

21. URLs use domain names to identify particular websites.

CHAPTER 3: Ebusiness: Electronic Business Value

CHAPTER 3: Ebusiness: Electronic Business Value

CHAPTER 3: Ebusiness: Electronic Business Value

39. Transaction brokers process online sales transactions.

CHAPTER 3: Ebusiness: Electronic Business Value

CHAPTER 3: Ebusiness: Electronic Business Value

51. Pay-per-conversion generates revenue each time a website visitor is converted to a

53. A Webinar is a form of Web conferencing, which blends videoconferencing with

CHAPTER 3: Ebusiness: Electronic Business Value

58. Instant messaging converts an audio broadcast to a digital music player.

CHAPTER 3: Ebusiness: Electronic Business Value

CHAPTER 3: Ebusiness: Electronic Business Value

73. The primary objective of knowledge management is to be sure that a company's

CHAPTER 3: Ebusiness: Electronic Business Value

CHAPTER 3: Ebusiness: Electronic Business Value

CHAPTER 3: Ebusiness: Electronic Business Value

95. Tim Berners-Lee was one of the founders of the Internet.

CHAPTER 3: Ebusiness: Electronic Business Value

97. Web 3.0 refers to static text-based information websites.

Multiple Choice Questions

CHAPTER 3: Ebusiness: Electronic Business Value

102. Which of the following is challenge of sustaining technology?

105. Which of the following began as an essential emergency military communications

CHAPTER 3: Ebusiness: Electronic Business Value

CHAPTER 3: Ebusiness: Electronic Business Value

112. What allows user to access the WWW?

113. Which of the following is a type of Web browser?

CHAPTER 3: Ebusiness: Electronic Business Value

CHAPTER 3: Ebusiness: Electronic Business Value

120. What allows users to access the WWW?

CHAPTER 3: Ebusiness: Electronic Business Value

126. What does digital Darwinism imply?

127. Which of the following is an example of a disruptive technology?

128. Which of the following is an example of a sustaining technology?

CHAPTER 3: Ebusiness: Electronic Business Value

132. What is information richness?

CHAPTER 3: Ebusiness: Electronic Business Value

CHAPTER 3: Ebusiness: Electronic Business Value

CHAPTER 3: Ebusiness: Electronic Business Value

142. Which of the below would not be considered an advantage of ebusiness?

CHAPTER 3: Ebusiness: Electronic Business Value

CHAPTER 3: Ebusiness: Electronic Business Value

153. Which of the below statements is correct?

154. What is the exact pattern of a consumer's navigation through a site?

CHAPTER 3: Ebusiness: Electronic Business Value

156. Which of the following is an ebusiness marketing technique?

CHAPTER 3: Ebusiness: Electronic Business Value

161. Which of the following is an example of a clickstream data metric?

CHAPTER 3: Ebusiness: Electronic Business Value

164. What is the difference between a B2C and a C2B?

CHAPTER 3: Ebusiness: Electronic Business Value

169. What is another name for an eshop?

CHAPTER 3: Ebusiness: Electronic Business Value

174. What is a pure-play business?

CHAPTER 3: Ebusiness: Electronic Business Value

176. Which type of ebusiness model is Amazon using?

177. Which type of ebusiness model is Barnes & Noble using?

178. Which type of ebusiness model best describes Apple?