E-Business Test Bank - Turban - Chapters 1-9

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E-Business test bank - Turban - chapters 1-9

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Electronic Commerce 2012, 7e (Turban)
Chapter 1 Overview of Electronic Commerce

1.1 True/False

1) Electronic commerce is the process of buying, selling, or exchanging products, services, or
information via computer.
Answer: TRUE
Diff: 1 Page Ref: 4

2) Buying an e-book from Amazon is an example of partial electronic commerce.
Answer: FALSE
Diff: 1 Page Ref: 4

3) A brick-and-mortar organization performs its primary business offline, selling physical
products by means of physical agents.
Answer: TRUE
Diff: 1 Page Ref: 4

4) An extranet is a network that uses private corporate networks to link together multiple
intranets.
Answer: FALSE
Diff: 2 Page Ref: 5
AACSB: Use of information technology

5) Selling and buying electronically can be either business-to-consumer or business-to-business.
Answer: TRUE
Diff: 1 Page Ref: 6

6) Purchasing a computer from dell.com is an example of B2B commerce.
Answer: FALSE
Diff: 2 Page Ref: 6

7) Net-a-Porter buying merchandise from its designers is an example of B2B commerce.
Answer: TRUE
Diff: 2 Page Ref: 6

8) 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: 7
AACSB: Use of information technology

9) Today, over 90 percent of EC volume is B2C.
Answer: FALSE
Diff: 2 Page Ref: 8


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10) If a company purchases Godiva chocolates as gifts for its employees and has Godiva mail
them directly to the recipient, the company is engaged in B2B2C.
Answer: TRUE
Diff: 2 Page Ref: 8
AACSB: Reflective thinking

11) S-commerce refers to electronic commerce activities conducted on Facebook or influenced
by the site.
Answer: FALSE
Diff: 2 Page Ref: 11

12) Despite the failures of individual companies and initiatives, the total volume of EC has been
growing each year.
Answer: TRUE
Diff: 2 Page Ref: 11
AACSB: Use of information technology

13) The first generation of EC involves social networks, virtual worlds, and online transactions.
Answer: FALSE
Diff: 1 Page Ref: 13

14) E-commerce 2.0 is based primarily on blogs and corporate-sponsored collaboration.
Answer: FALSE
Diff: 1 Page Ref: 13
AACSB: Use of information technology

15) According to O'Reilly (2005), Web 2.0 Level 1 applications operate offline but gain features
from going online.
Answer: TRUE
Diff: 3 Page Ref: 14

16) Social networking is the execution of any Web 2.0 activity, such as blogging and/or having a
presence in a social network.
Answer: TRUE
Diff: 1 Page Ref: 15
AACSB: Use of information technology

17) By definition, enterprise social networks are public.
Answer: FALSE
Diff: 2 Page Ref: 16

18) Booking tickets on Facebook without leaving the social network is an example of enterprise
social commerce.
Answer: FALSE
Diff: 2 Page Ref: 16



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19) Major characteristics of the digital economy include obsolescence, digitization, and wars.
Answer: TRUE
Diff: 2 Page Ref: 19

20) Economic, legal, societal, and technological factors have created a highly competitive
business environment in which customers are becoming less powerful.
Answer: FALSE
Diff: 2 Page Ref: 22
AACSB: Reflective thinking

21) The financial crisis of 2008-2010 resulted in many companies going out of business or being
acquired by other companies.
Answer: TRUE
Diff: 1 Page Ref: 23
AACSB: Use of information technology

22) Political and government is an example of a societal business pressure.
Answer: FALSE
Diff: 3 Page Ref: 24

23) Rapid technological obsolescence is an example of a technological business pressure.
Answer: TRUE
Diff: 1 Page Ref: 24

24) Responses to environmental pressures may include activities that exploit opportunities
created by changing conditions.
Answer: TRUE
Diff: 2 Page Ref: 24

25) Efficient transactions, price comparisons for customers, and global reach are three major
capabilities that contribute to the growth of EC.
Answer: TRUE
Diff: 1 Page Ref: 25

26) Business model refers to the series of value-adding activities that an organization performs to
achieve its goals, such as making a profit, at various stages of the production process.
Answer: FALSE
Diff: 2 Page Ref: 26

27) A business model is a method of doing business by which a company can generate revenue to
sustain itself.
Answer: TRUE
Diff: 2 Page Ref: 26
AACSB: Use of information technology