Rainer, Information System, Third Canadian Edition Testbank

Chapter 5
E-business and E-commerce

Question Type: True/False

1) In traditional commerce, one or more of the following can be digital: the product or service, the process, and
the delivery agent.

Answer: False

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

2) You decide to start a landscaping business called Trim Grass. You type www.TrimGrass.com in a Web browser,
and no page with that name appears. The domain name is therefore available.

Answer: False

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

3) Visiting the Web site of a car manufacturer (e.g., www.gm.com), entering the specifications for the car you
want, and then picking up your car at your local dealership is an example of partial electronic commerce.

Answer: True

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

4) It is possible to “watch” vending machines over the Internet.

Answer: True

Learning Objective: Provide a real-world application of e-business and e-commerce.

Section Reference: IT’s About Business: Vending Goes Online
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

5) E-commerce is a broader definition of e-business.

Answer: False

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

6) eBay is a good example of business-to-consumer electronic commerce.

Answer: False

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

7) Forward auctions are auctions that sellers use as a channel to many potential buyers.

Answer: True

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

8) In a forward auction, the highest bid wins.

Answer: True

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

Question Type: Multiple Choice

Rainer, Information System, Third Canadian Edition Testbank

9) You decide to start a landscaping business called Trim Grass. One of your services will be to perform fertilizer
treatments. You will need to buy a great deal of fertilizer for your many clients. You can use all of the following
methods to purchase the fertilizer except:

a) Forward auction
b) Reverse auction
c) Name your Own Price
d) Electronic Marketplace
e) Multichanneling

Answer: e

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

10) You decide to start a landscaping business called Trim Grass. You created a Web site, but it doesn’t seem to
be attracting any clients. So, you decide to explore advertising on the Web. Which of the following advertising
methods probably would not be beneficial?

a) Banner ads
b) Pop-up or pop-under ads
c) Spamming
d) Permission marketing
e) Viral marketing

Answer: c

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

11) You decide to start a landscaping business called Trim Grass. Some of your residential clients would like to
pay their bills online. Which of the following methods will not be appropriate for this type of payment?

a) Electronic checks
b) Electronic credit cards
c) Purchasing cards
d) Person-to-person payments
e) Stored–value money cards

Answer: c
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

12) You decide to start a landscaping business called Trim Grass. You expect to use the Web to help clients find
you and communicate with you. You will mow lands, clean flower beds, and pick up leaves in the fall. You will
send your clients monthly bills. Which of the following is true?

a) Trim Grass is using an e-commerce model.

b) Trim Grass is using an e-business model.
c) Trim Grass is using a forward auction.
d) Trim Grass is an electronic marketplace.
e) Trim Grass needs to worry about channel conflict.

Answer: b

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

13) You have been running a landscaping business called Trim Grass for about two years. You have developed a
special blend of grass seed for your area that you use when you reseed your clients’ lawns. You are receiving e-
mails via your Web site from people who would like to purchase some. You decide to start selling seed online,
and you hire someone to rebuild your Web site. Which of the following statements is not true?

a) Trim Grass is now multichanneling.

b) Trim Grass needs to think about how to ship the seed.
c) Trim Grass will have to collect sales tax from all sales.
d) Trim Grass will have more expenses.
e) Trim Grass will need to consider different advertising methods.

Answer: c

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Hard

Question Type: True/False

14) Even though B2C EC is much larger by volume, B2B is more complex.
Rainer, Information System, Third Canadian Edition Testbank

Answer: False

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

15) An electronic storefront is a Web site on the Internet that represents a single store.

Answer: True

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

16) You can make a purchase in a referral mall.

Answer: False

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

17) Selling products such as books and computers on the Internet may reduce vendors’ selling costs by 20 to 40
percent, with further reductions being difficult because the products must be delivered physically.

Answer: True

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

18) A virtual bank involves conducting banking activities from home, a place of business, or on the road in
addition to a physical bank location.

Answer: False

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

19) It is more difficult but possible to sell luxury goods online.

Answer: True

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

20) Virtual banks are those banks that are dedicated only to Internet transactions.

Answer: True

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

21) Channel conflict occurs when click-and-mortar companies have problems with their regular distributors
when they sell directly to customers online.

Answer: True

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

22) Internet advertising is impersonal, one-way mass communication.

Answer: False

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

23) Electronic malls are collections of individual shops under a single Internet address.

Answer: True

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

24) Banners are the most common form of advertisement on the Internet.

Answer: True

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

25) Hacking is the indiscriminate distribution of electronic ads without permission of the receiver.

Answer: False

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

26) Business-to-consumer applications comprise the majority of electronic commerce volume.

Answer: False

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

27) Channel conflict occurs when manufacturers disintermediate their channel partners by selling their products
directly to consumers.

Answer: True

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

28) The key mechanisms in the sell-side marketplace are customized electronic catalogs and reverse auctions.

Answer: False

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Easy

29) Forward auctions are the major method used in buy-side marketplaces.

Answer: False

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

30) The buy-side marketplace is similar to the business-to-consumer model.

Answer: False

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

31) When multiple buyers combine their orders so that they constitute a large volume and therefore attract
more seller attention, it is called group purchasing.

Answer: True

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

32) Horizontal exchanges connect buyers and sellers across many industries.

Answer: True

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

33) In most cases, traditional payment systems are not effective for electronic commerce.

Answer: True

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Easy

34) Stored-value money cards allow you to store a fixed amount of prepaid money and then spend it as
necessary.

Answer: True

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

35) Smart cards can be used as credit cards, debit cards, and/or loyalty cards.

Answer: True

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

36) Purchasing cards and electronic credit cards are equivalent.

Answer: True

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Medium

37) Each buyer needs only one e-wallet for all merchants.

Answer: False

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

38) Cybersquatting is illegal.

Answer: True

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Rainer, Information System, Third Canadian Edition Testbank

Section Reference: 5.4 Electronic Payments

Difficulty: Medium

39) Selling luxury items online is as easy as selling books and DVDs.

Answer: False

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: IT’s About Business: 5.3 Luxury Goods Turn to E-Commerce
Difficulty: Easy

40) Domain tasting is a practice of registrants using the five-day “grace period” at the beginning of a domain
registration to profit from pay-per-click advertising.

Answer: True

Learning Objective: Illustrate the ethical and legal issues relating to electronic commerce with two specific
examples of each issue, and describe how you would respond or react to the four examples you have provided.
Section Reference: 5.5 Ethical and Legal Issues in E-Business
Difficulty: Medium

Question Type: Multiple Choice

41) Treat America used _____________ to report on their vending machines.

a) e-business
b) e-commerce
c) the police
d) their service team

Answer: a

Learning Objective: Provide a real-world application of e-business and e-commerce.

Section: IT’s About Business: Vending Goes Online
Difficulty: Easy

42) _____, which is a broader concept than _____, is the buying and selling of goods and services, as well as
servicing customers, collaborating with business partners, and performing transactions within an organization.

a) Business-to-business electronic commerce, business-to-customer electronic commerce

b) Electronic commerce, electronic business
c) Business-to-customer electronic commerce, business-to-business electronic commerce
d) Business-to-business electronic commerce, intrabusiness electronic commerce
e) Electronic business, electronic commerce
Rainer, Information System, Third Canadian Edition Testbank

Answer: e

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

43) ____________ organizations have a limited geographical reach.

a) Brick-and-mortar
b) Business-to-consumer
c) Click-and-mortar
d) Virtual

Answer: a

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

44) The degree of digitization relates to all of the following except:

a) The product or service sold

b) The process by which the product is produced
c) The delivery agent or intermediary
d) The size of e-commerce transactions
e) None of these

Answer: d

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

45) In _______ e-commerce, the sellers and buyers are organizations.

a) government-to-citizen
b) consumer-to-consumer
c) business-to-business
d) business-to-consumer
e) consumer-to-business
Rainer, Information System, Third Canadian Edition Testbank

Answer: c

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

46) In ________ e-commerce, an organization provides information and services to its workers.

a) business-to-employee
b) consumer-to-consumer
c) consumer-to-business
d) business-to-consumer
e) government-to-business

Answer: a

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

47) Which of the following is a disadvantage of click-and-mortar organizations?

a) Limited geographical reach

b) Added complexity combining two different environments
c) Customers uncomfortable with online transactions
d) No face-to-face interaction with customers

Answer: b

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

48) __________ represents the vast majority of e-commerce.

a) B2B
b) B2C
c) C2C
d) G2C

Answer: a
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

49) In a reverse auction, the __________ bidder wins.

a) lowest
b) highest
c) neutral
d) nobody wins since this auction type doesn’t exist

Answer: a

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

50) ___________ marketing encourages receivers to send information about products/services to their friends.

a) Affiliate
b) Electronic
c) Group
d) Viral

Answer: d

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

51) Which of the following is a benefit of e-commerce to customers?

a) Makes national and international markets more accessible.

b) Lowering costs of processing, distributing, and retrieving information.
c) Access a vast number of products and services around the clock.
d) Ability to easily and conveniently deliver information, services, and products to people in cities, rural areas,
and developing countries.

Answer: c
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

52) Direct payment of Social Security benefits is an example of ______ e-commerce.

a) government-to-citizen
b) consumer-to-consumer
c) consumer-to-business
d) business-to-consumer
e) business-to-business

Answer: a

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

53) If you are an worker managing your fringe benefits over your company’s intranet, you are engaging in
_________ e-commerce.

a) business-to-business
b) business-to-consumer
c) consumer-to-consumer
d) business-to-employee
e) government-to-citizen

Answer: d

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

54) Which of the following statements regarding the relationship between electronic commerce and search is
not correct?

a) Purchases often follow successful online searches.

b) Shopping carts are often abandoned after unsuccessful online searches.
c) Retailers will provide fewer product details to avoid information overload for customers.
d) Customers will be able to find the closest store offering the product that they want.
e) Customers will have more relevant product information in the near future.
Rainer, Information System, Third Canadian Edition Testbank

Answer: c

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

55) In _____ auctions, there is one buyer who wants to buy a product. Suppliers submit bids, and the lowest bid
wins.

a) forward
b) static
c) reverse
d) physical
e) simple

Answer: c

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

56) eBay uses a _____ auction.

a) forward
b) static
c) reverse
d) physical
e) simple

Answer: a

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

57) _____ auctions employ a request for quotation.

a) Forward
b) Static
c) Reverse
Rainer, Information System, Third Canadian Edition Testbank

d) Physical
e) Simple

Answer: c

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

58) _____ auctions are the most common auction model for large purchases.

a) Forward
b) Static
c) Reverse
d) Physical
e) Simple

Answer: c

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

59) In which of the following business models do businesses request quotes from suppliers and use B2B with a
reverse auction mechanism?

a) Find-the-best-price
b) Electronic tendering system
c) Name-your-own-price
d) Online direct marketing
e) Affiliate marketing

Answer: b

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Hard

60) A vendor asks its business partners to place logos or banners on their Web sites. If customers click on a logo,
visit the vendor’s site, and make a purchase, then the vendor pays a commission to the partner. This scenario
illustrates which business model?
Rainer, Information System, Third Canadian Edition Testbank

a) Find-the-best-price
b) Electronic tendering system
c) Name-your-own-price
d) Online direct marketing
e) Affiliate marketing

Answer: e

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

61) Which type of electronic commerce is the largest by volume?

a) Business-to-employee
b) Consumer-to-consumer
c) Business-to-business
d) Business-to-consumer
e) None of these

Answer: c

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

62) ____________ advertising is when the company only pays for measurable results.

a) Brand
b) Click-through
c) Impression-based
d) Performance-based

Answer: d

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

63) Which of the following are luxury shoppers’ requirements that a Web site could not originally provide?

a) Hands-on customer service

Rainer, Information System, Third Canadian Edition Testbank

b) Guidance on the latest fashions

c) Trying on/looking at the products
d) All of the above are things that couldn’t originally be provided

Answer: d

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium

64) Which type of electronic commerce does Amazon practice?

a) Business-to-employee
b) Consumer-to-consumer
c) Consumer- to-business
d) Business-to-consumer
e) Employee-to-business

Answer: d

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

65) _______ e-commerce is also known as e-tailing.

a) Business-to-business
b) Collaborative commerce
c) Intrabusiness
d) Business-to-consumer
e) Consumer-to-business

Answer: d

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

66) The advantages of electronic commerce for consumers include all of the following except:

a) You can buy from home 24 hours per day, 7 days per week.
b) You have a wider variety of products to choose from.
c) You typically cannot access additional information, so you do not have information overload.
d) You can easily compare prices and features.
Rainer, Information System, Third Canadian Edition Testbank

e) You can find unique items.

Answer: c

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium

67) An electronic storefront represents ____________.

a) the Internet
b) a single store
c) multiple stores
d) a web page

Answer: b

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

68) ____________ is when steps are added to the value chain as new players find ways to add value to the
business process.

a) Cybermediation
b) Disintermediation
c) Intermediation
d) Reintermediation

Answer: d

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

69) __________ are electronic billboards.

a) Advertisements
b) Banners
c) Pop-up ads
d) Pop-under ads

Answer: b
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

70) Which of the following is not an electronic commerce application?

a) Home banking
b) Buying stocks
c) Evaluating an employee
d) Conducting an auction
e) Buying real estate

Answer: c

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

71) Which of the following is not an advantage of e-tailing?

a) You can buy from home, 24 hours per day.

b) You have only a few products to choose from.
c) You can obtain detailed information on products.
d) You can compare competitors’ products and prices.
e) All of these

Answer: b

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium

72) ________ is the process whereby a fully automated electronic commerce transaction eliminates middlemen.

a) Disintegration
b) Supply chain integration
c) Direct sales
d) Disintermediation
e) Value-added services

Answer: d

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Rainer, Information System, Third Canadian Edition Testbank

Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce

Difficulty: Medium

73) Cyberbanking offers all of the following advantages except:

a) It is convenient for customers.

b) It saves time for customers.
c) It includes inexpensive transactions for the bank.
d) It can help recruit remote customers.
e) It is more expensive for the customer.

Answer: e

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium

74) Which of the following is a problem that e-commerce can cause for the airline industry?

a) Too many fares

b) Mistakes in fares
c) Too few fares
d) No fares offered on certain routes
e) Too many fares offered on certain routes

Answer: b

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium

75) Treat America turned to E-business for all of the following reasons except:

a) The company needed to capture extensive data from each vending machine.
b) The company wanted a competitive advantage over competitors that simply raised prices.
c) The company’s vending machines are unmanned.
d) Gas prices are increasing.
e) The company’s vending machines are open beyond “normal” business hours.

Answer: a

Learning Objective: Provide a real-world application of e-business and e-commerce.

Section Reference: IT’s About Small Business: 5.2 Vending Goes Online
Difficulty: Easy
Rainer, Information System, Third Canadian Edition Testbank

76) Difficulties in order fulfillment are most closely associated with which type of electronic commerce?

a) Business-to-business
b) Business-to-consumer
c) Government-to-citizen
d) Business-to-employee
e) Mobile commerce

Answer: b

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium

77) Internet advertising improves on traditional advertising in all of the following ways except:

a) Internet ads can be updated at any time at minimal cost.

b) Internet ads can reach large numbers of potential buyers all over the world.
c) Internet ads are always more effective than other types of advertising.
d) Internet ads can make effective use of multimedia.
e) Internet ads are current.

Answer: c

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium

78) A _____ is automatically launched by some trigger and appears behind the active window.

a) keyword banner
b) random banner
c) pop-up ad
d) pop-under ad
e) text box

Answer: d

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

79) _____ offer(s) consumers incentives to accept advertising and e-mail voluntarily.
Rainer, Information System, Third Canadian Edition Testbank

a) Viral marketing
b) Personalized marketing
c) Permission marketing
d) Paper catalogs
e) Direct mail

Answer: c

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

80) _____ refers to online word-of-mouth marketing.

a) Permission marketing
b) One-to-one marketing
c) Personalized marketing
d) Viral marketing
e) Direct mail

Answer: d

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Easy

81) The _________ marketplace is similar to the B2C model in which the buyer comes to the seller’s site, views
catalogs, and places and order.

a) buy-side
b) sell-side
c) reverse auction
d) e-procurement

Answer: b

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

82) ____________ exchanges connect buyers and sellers in a given industry.

a) Functional
Rainer, Information System, Third Canadian Edition Testbank

b) Horizontal
c) Mixed
d) Vertical

Answer: d

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

83) ____________ exchanges are used mostly for MRO materials.

a) Functional
b) Horizontal
c) Mixed
d) Vertical

Answer: b

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Medium

84) In the _____ marketplace model, organizations attempt to sell their products or services to other
organizations electronically.

a) buy-side
b) sell-side
c) group purchasing
d) desktop purchasing
e) electronic exchange

Answer: b

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

85) The key mechanisms of the _____ marketplace model are forward auctions and electronic catalogs that can
be customized for each large buyer.

a) buy-side
b) sell-side
c) group purchasing
Rainer, Information System, Third Canadian Edition Testbank

d) desktop purchasing
e) electronic exchange

Answer: b

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

86) In the _____ marketplace model, EC technology is used to streamline the purchasing process in order to
reduce the cost of items purchased, the administrative cost of procurement, and the purchasing cycle time.

a) buy-side
b) sell-side
c) auctions
d) group purchasing
e) electronic exchange

Answer: a

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

87) In the _____ B2B application, the orders of many buyers are aggregated so that they comprise a large
volume, in order to merit more seller attention.

a) buy-side
b) sell-side
c) auctions
d) group purchasing
e) electronic exchange

Answer: d

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

88) In _____, direct and indirect materials in one industry are purchased on an as-needed basis.

a) horizontal exchanges
b) vertical exchanges
c) buy-side marketplaces
Rainer, Information System, Third Canadian Edition Testbank

d) functional exchanges
e) sell-side marketplaces

Answer: b

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

89) _____ connect buyers and sellers across many industries and are used mainly for indirect materials.

a) Horizontal exchanges
b) Vertical exchanges
c) Buy-side marketplaces
d) Functional exchanges
e) Sell-side marketplaces

Answer: a

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Easy

90) Purchasing cards are the ___________ equivalent of electronic credit cards.

a) B2B
b) B2C
c) C2C
d) G2C

Answer: a

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

91) _________ is(are) used for unplanned B2B purchases.

a) E-checks
b) Electronic credit cards
c) Purchasing cards
d) Stored value money cards

Answer: c
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

92) ____________ contain a chip called a microprocessor that can store a considerable amount of information.

a) E-checks
b) Person-to-person payments
c) Smart cards
d) Stored-value money cards

Answer: c

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

93) Which of the following is NOT a form of electronic cash?

a) Person-to-person payments
b) Purchasing cards
c) Smart cards
d) Stored-value money cards

Answer: b

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

94) All of the following are limitations of traditional payment methods in electronic commerce except:

a) Cash cannot be used because there is no face-to-face contact.

b) Paying for goods and services via the mail takes more time.
c) Not all organizations accept credit cards.
d) It is more secure for the buyer to use the telephone than to complete a secure transaction on a computer.
e) None of these

Answer: d

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Medium

95) _____ are a payment mechanism that are similar to regular bank checks but are transmitted electronically,
with a signature in digital form.

a) Electronic checks
b) Electronic credit cards
c) Electronic cash transactions
d) Electronic wallets
e) Electronic debit cards

Answer: a

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

96) _____ use credit card numbers, transmitted electronically over the Internet, to pay for goods and services.
They are either unencrypted or encrypted, with coded data readable by an intermediary between the buyer’s
and seller’s banks.

a) Electronic checks
b) Electronic credit cards
c) Electronic cash transactions
d) Electronic wallets
e) Electronic debit cards

Answer: b

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

97) _____ are typically used for unplanned B2B purchases for amounts under $2000.

a) Electronic checks
b) Stored-value money cards
c) Purchasing cards
d) Smart cards
e) Person-to-person payments

Answer: c

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Rainer, Information System, Third Canadian Edition Testbank

Section Reference: 5.4 Electronic Payments

Difficulty: Easy

98) ______ are a form of e-cash that enable you to store a fixed amount of prepaid money and then spend it as
necessary.

a) Electronic checks
b) Stored-value money cards
c) Purchasing cards
d) Smart cards
e) Person-to-person payments

Answer: b

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

99) _____ contain a chip that can store information and be used for several purposes.

a) Electronic checks
b) Stored-value money cards
c) Purchasing cards
d) Smart cards
e) Person-to-person payments

Answer: d

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

100) _____ enable two individuals to transfer funds without using a credit card.

a) Electronic checks
b) Stored-value money cards
c) Purchasing cards
d) Smart cards
e) Person-to-person payments

Answer: e

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Easy

101) _____ are software mechanisms that provide security measures and convenience for electronic commerce
purchasing.

a) Electronic checks
b) Digital wallets
c) Purchasing cards
d) Smart cards
e) Person-to-person payments

Answer: b

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Easy

102) A _____________ is the right to use but not distribute software .

a) copyright
b) patent
c) intellectual property
d) open source

Answer: a

Learning Objective: Illustrate the ethical and legal issues relating to electronic commerce with two specific
examples of each issue, and describe how you would respond or react to the four examples you have provided.
Section Reference: 5.5 Ethical and Legal Issues in E-Business
Difficulty: Easy

103) Domain tasting is _____________.

a) illegal
b) legal
c) the same as cybersquatting
d) both A and C

Answer: b

Learning Objective: Illustrate the ethical and legal issues relating to electronic commerce with two specific
examples of each issue, and describe how you would respond or react to the four examples you have provided.
Section Reference: 5.5 Ethical and Legal Issues in E-Business
Difficulty: Medium
Rainer, Information System, Third Canadian Edition Testbank

104) Selling bogus investments and setting up phantom business opportunities are examples of ____________.

a) cybersquatting
b) domain name abuse
c) fraud on the internet
d) internet taxation

Answer: c

Learning Objective: Illustrate the ethical and legal issues relating to electronic commerce with two specific
examples of each issue, and describe how you would respond or react to the four examples you have provided.
Section Reference: 5.5 Ethical and Legal Issues in E-Business
Difficulty: Medium

105) The practice of using similar but not identical domain names is called _____.

a) domain spoofing
b) domain masquerading
c) domain tasting
d) cybersquatting
e) domain fraud

Answer: c

Learning Objective: Illustrate the ethical and legal issues relating to electronic commerce with two specific
examples of each issue, and describe how you would respond or react to the four examples you have provided.
Section Reference: 5.5 Ethical and Legal Issues in E-Business
Difficulty: Easy

106) _____ refers to the practice of registering or using domain names for the purpose of profiting from the
goodwill or trademark belonging to someone else.

a) Domain spoofing
b) Domain masquerading
c) Domain tasting
d) Cybersquatting
e) Domain fraud

Answer: d

Learning Objective: Illustrate the ethical and legal issues relating to electronic commerce with two specific
examples of each issue, and describe how you would respond or react to the four examples you have provided.
Section Reference: 5.5 Ethical and Legal Issues in E-Business
Difficulty: Easy

107) The device that Treat America installed on top of each of their machines communicates the following
pieces of data except:
Rainer, Information System, Third Canadian Edition Testbank

a) The amount of money in the machine at any given minute.

b) The amount of product inventory remaining.
c) Whether the machine had been moved.
d) The number of customers.
e) Whether the door had been opened after business hours.

Answer: d

Learning Objective: Provide a real-world application of e-business and e-commerce.

Section Reference: IT’s About Small Business: 5.2 Vending Goes Online
Difficulty: Easy

108) Companies use Web sites for all of the following reasons except:

a) To reduce operational and transaction costs.

b) To enhance their reputation.
c) To sell goods and services.
d) To reduce the amount of actual cash they need to deal with.
e) To induce people to visit a physical location.

Answer: d

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Easy

109) Which of the following is NOT a reason eBay was unsuccessful when it purchased EachNet?

a) eBay paid too much

b) eBay didn’t give enough power to local executives
c) eBay underestimated the competition from Taobao
d) all of the above are reasons eBay was unsuccessful

Answer: a

Learning Objective: Summarize the fundamental concepts related to e-business and e-commerce.
Section Reference: Case - e-Bay finds it’s a way into China
Difficulty: Medium

Question Type: Essay

110) Differentiate between pure and partial electronic commerce. Provide examples of companies in each
category.
Rainer, Information System, Third Canadian Edition Testbank

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

111) Discuss the various types of electronic commerce.

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

112) Differentiate between forward and reverse auctions.

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

113) Differentiate among sell-side marketplaces, buy-side marketplaces, and electronic exchanges.

Learning Objective: Describe the three business models for business-to-business electronic commerce, and
provide a specific example of each model.
Section Reference: 5.3 Business-to-Business (B2B) Electronic Commerce
Difficulty: Hard

114) Differentiate between electronic storefronts and electronic malls, and provide examples of each.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium

115) Discuss the reasons for E-commerce failures.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Medium
Rainer, Information System, Third Canadian Edition Testbank

116) Discuss the benefits and limitations of electronic commerce.

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Hard

117) Discuss the various business-to-consumer applications (e.g., e-tailing, electronic storefronts, electronic
malls).

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Hard

118) Discuss the various methods of online advertising.

Learning Objective: Discuss the five online services of business-to-consumer electronic commerce, provide a
specific example of each service, and state how you have used or would use each service.
Section Reference: 5.2 Business-to-Consumer (B2C) Electronic Commerce
Difficulty: Hard

119) Discuss the following electronic commerce business models and give examples of each type: online direct
marketing, electronic tendering system, name-your-own-price, find-the-best-price, affiliate marketing, and viral
marketing.

Learning Objective: Describe the six common types of electronic commerce; provide specific personal examples
of how you have used or could use B2C, C2C, G2C, and mobile commerce; and offer a specific example of B2B
and G2B.
Section Reference: 5.1 Overview of E-Business and E-Commerce
Difficulty: Medium

120) Describe the various types of electronic payments.

Learning Objective: Describe the four types of electronic payments, provide a specific example of each one, and
explain whether you would use each type.
Section Reference: 5.4 Electronic Payments
Difficulty: Hard

121) What is domain tasting? Should it be made illegal?

Learning Objective: Illustrate the ethical and legal issues relating to electronic commerce with two specific
examples of each issue, and describe how you would respond or react to the four examples you have provided.
Section Reference: 5.5 Ethical and Legal Issues in E-Business
Rainer, Information System, Third Canadian Edition Testbank

Difficulty: Hard
Rainer, Information System, Third Canadian Edition Testbank

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