Chapter 1 Overview of Electronic Commerce
1.1 True/False
1) Radio frequency identification (RFID) chips were used to prevent counterfeit tickets
and to ensure the safety of the athletes' food at the 2008 Olympics in Beijing.
Answer: TRUE
Diff: 2 Page Ref: 2
AACSB Standard: Use of Information Technology
2) Electronic commerce (EC) is the process of buying, selling, transferring, or
exchanging
products, services, and/or information via the Internet only.
Answer: FALSE
Diff: 2 Page Ref: 4
AACSB Standard: Use of Information Technology
3) EC can be conducted over the public Internet or privately-owned intranets.
Answer: TRUE
Diff: 1 Page Ref: 4
4) In the field, a sales representative writes notes with a mobile handwriting-recognition
computer immediately after a sales call. This can be viewed as an business-to-business
EC activity.
Answer: FALSE
Diff: 2 Page Ref: 5
,AACSB Standard: Reflective Thinking
5) From a service perspective, EC allow governments, firms, consumers, and
management to both cut service costs and improve the quality and speed of customer
service.
Answer: TRUE
Diff: 2 Page Ref: 5
AACSB Standard: Use of Information Technology
6) An extranet is a network that uses private corporate networks to link together multiple
intranets.
Answer: FALSE
Diff: 2 Page Ref: 7
7) An example of business-to-consumer (B2C) is when Dell provides customer service
online by collaborating electronically with its partners.
Answer: FALSE
Diff: 2 Page Ref: 7
,8) eMarketer estimated that retail e-commerce sales would decrease approximately 1.6
percent in 2009.
Answer: FALSE
Diff: 2 Page Ref: 7
9) Network infrastructures include cell phones and other electronic devices that are
located in various locations by telecommunications networks, including wireless ones.
Answer: TRUE
Diff: 2 Page Ref: 8
AACSB Standard: Use of Information Technology
10) The final participants in B2B transactions are consumers.
Answer: FALSE
Diff: 1 Page Ref: 9
11) When RetroMedia Inc. purchases Godiva chocolates as gifts for its employees and
has Godiva mail them directly to the recipient, RetroMedia is engaged in B2B2C.
Answer: TRUE
Diff: 2 Page Ref: 9, 10
12) Doing your banking on an iPhone is an example of m-commerce.
Answer: TRUE
Diff: 2 Page Ref: 11
AACSB Standard: Use of Information Technology
13) EC's future is now being shaped largely by the worldwide oil and financial crises.
Answer: FALSE
, Diff: 3 Page Ref: 13
AACSB Standard: Reflective Thinking
14) Despite the failures of individual companies, the total volume of EC has been
growing by 5 to 7 percent every year.
Answer: FALSE
Diff: 2 Page Ref: 13
15) E-commerce 2.0 is based primarily on blogs and corporate-sponsored collaboration.
Answer: FALSE
Diff: 1 Page Ref: 13
16) In effect, in a social network there are online and offline communities of people with
similar interests.
Answer: FALSE
Diff: 2 Page Ref: 17