ERP Final
32) ________ purchasing involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers. A) Spot B) Indirect C) Vertical D) Bulk
Answer: A
37) All of the following are current major trends in B2B e-commerce, except: A) Move to implement highly centralized supply chains to reduce risk. B) Growing emphasis on use of business analytics software (business intelligence) to understand very large data sets. C) Firms place a growing emphasis on rapid-response and adaptive supply chain rather than lowest-cost supply chains. D) Risks of far-flung global networks lead to an increase in regional manufacturing and supply chains.
Answer: A
4) Which of the following terms refers to the links that connect business firms with one another to coordinate production? A) supply chain B) B2B e-commerce C) vertical market D) horizontal market
Answer: A
40) Which of the following statements about cloud-based B2B systems is not true? A) Much of the expense of the system is shifted from the B2B network provider to the firm. B) B2B network providers charge customers on a demand basis. C) Network effects apply, enabling the spreading of costs. D) Cloud-based B2B data networks can be implemented in short periods of time.
Answer: A
5) Automated order entry systems: A) show goods from a single seller. B) increased the costs of inventory replenishment. C) are typically owned by the purchasing firm. D) no longer play an important role in B2B commerce
Answer: A
58) Which of the following is an example of an e-distributor? A) AmazonSupply B) PowerSource Online C) VWGroupSupply D) Elemica
Answer: A
6) Which of the following statements about EDI systems is true? A) They typically serve vertical markets. B) They are seller-side solutions. C) They evolved from private trading exchanges. D) They still play an important role in B2C commerce.
Answer: A
63) An ________ provides electronic catalogs that represent the products of thousands of direct manufacturers. A) e-distributor B) e-procurement company C) exchange D) industry consortium
Answer: A
64) An ________ primarily serves businesses that buy indirect goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium
Answer: A
65) E-distributors: A) make money by charging a mark-up on products they distribute. B) usually operate "private" markets. C) operate in vertical markets. D) focus on selling direct products.
Answer: A
70) WW Grainger is an example of a(n) ________. A) e-distributor B) exchange C) private industrial network
Answer: A
80) All of the following are forms of collaboration among businesses except: A) RFQs. B) CPFR. C) demand chain visibility. D) marketing coordination and product design.
Answer: A
12) All of the following are potential benefits of B2B e-commerce except: A) increased production flexibility. B) increased product cycle time. C) increased opportunities to collaborate with suppliers and distributors. D) increased visibility and real-time information sharing among all participants in the supply chain network.
Answer: B
14) Which of the following statements is not true? A) The Volkswagen Group manages almost all of its procurement needs via the Internet. B) VWGroupSupply.com is an industry consortium. C) VWGroupSupply can be accessed by suppliers via standard Web browser software and mobile devices. D) The Volkswagen Group developed VWGroupSupply using technology from a number of vendors.
Answer: B
25) Office supplies are an example of: A) direct goods. B) indirect goods. C) MRO goods. D) distributed goods.
Answer: B
28) An example of an indirect good in the fast-food industry is: A) mustard. B) paper napkins. C) beef. D) sugar.
Answer: B
3) Which of the following was the first step in the development of B2B e-commerce? A) Electronic Data Interchange (EDI) B) automated order entry systems C) computerized inventory databases D) digital invoices
Answer: B
38) All of the following are weaknesses of EDI except: A) EDI is not well suited for electronic marketplaces. B) EDI lacks universal standards. C) EDI does not provide a real-time communication environment. D) EDI does not scale easily.
Answer: B
41) ________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location. A) Having an adaptive supply chain B) Tight coupling C) Supply-chain management D) Materials requirement planning
Answer: B
46) All of the following are important trends in B2B e-commerce in 2015-2016, except: A) the growing emphasis on obtaining real-time data. B) industry demand for supply chain sustainability. C) generation and management of huge Big Data repositories. D) increase in regional manufacturing.
Answer: B
51) In the BYOD trend, employees are allowed or encouraged to: A) work from home. B) use their own mobiles and laptops. C) use mobile devices for work. D) bring work devices to the home.
Answer: B
59) Which of the following primarily serve horizontal markets? A) e-distributors and exchanges B) e-distributors and e-procurement Net marketplaces C) e-procurement Net marketplaces and industry consortia D) exchanges and industry consortia
Answer: B
60) Which of the following primarily deal with indirect goods? A) e-distributors and industry consortia B) e-distributors and e-procurement Net marketplaces C) exchanges and industry consortia D) exchanges and e-procurement Net marketplaces
Answer: B
66) An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis. A) e-distributor B) e-procurement Net marketplace C) exchange D) industry consortium
Answer: B
67) Which of the following is an example of an e-procurement Net marketplace? A) TheSeam B) Ariba C) Grainger D) SupplyOn
Answer: B
69) The Seam is an example of an ________. A) exchange B) industry consortium C) e-procurement Net marketplace D) e-distributor
Answer: B
7) B2B e-commerce Web sites: A) are a predecessor of industry consortia. B) tend to serve horizontal markets. C) are buyer-side solutions. D) are considered a type of EDI system.
Answer: B
78) ________ is another name for transorganizational business processes. A) Supply chain management B) Collaborative commerce C) B2B e-commerce D) Value chain management
Answer: B
79) Private industrial networks are direct descendants of: A) e-procurement Net marketplaces. B) existing EDI networks. C) independent exchanges. D) industry consortia.
Answer: B
81) Which of the following is not a typical barrier to the implementation of a private industrial network? A) It requires participating firms to share sensitive data. B) It requires the large network owners to give up some of its independence. C) It requires a significant investment of time and money. D) It requires a change of mindset and behavior of employees.
Answer: B
10) All of the following are potential benefits of B2B e-commerce except: A) lower administrative costs. B) lower search costs. C) lower price transparency. D) lower transaction costs.
Answer: C
13) All of the following have led to the development of outsourcing of manufacturing around the world except: A) technology. B) globalization of trade. C) environmental concerns. D) high levels of wage disparity between the developed and undeveloped worlds.
Answer: C
15) Supply chain ________ refers to differentiating a firm's products or prices on the basis of superior supply chain management. A) management B) simplification C) competition D) collaboration
Answer: C
17) The essential characteristic of ________ is that they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade. A) industry consortia B) exchanges C) Net marketplaces D) horizontal markets
Answer: C
26) The majority of inter-firm trade involves: A) spot purchasing of direct goods. B) contract purchasing of indirect goods. C) contract purchasing of direct goods. D) spot purchasing of indirect goods.
Answer: C
30) An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium
Answer: C
39) Which of the following is a method of inventory cost management that seeks to eliminate excess inventory? A) lean production B) sustainable production C) just-in-time production D) supply chain simplification
Answer: C
47) EDI document structures are defined by: A) a single international standards body. B) individual suppliers and buyers. C) industry committees. D) each purchaser.
Answer: C
49) ________ production is a set of production methods that focuses on the elimination of waste throughout the customer value chain. A) Green B) Sustainable C) Lean D) Just-in-time
Answer: C
61) Which of the following primarily deal with direct goods? A) e-distributors and independent exchanges B) exchanges and e-procurement Net marketplaces C) exchanges and industry consortia D) e-procurement Net marketplaces and industry consortia
Answer: C
8) Which of the following is another name for a private industrial network? A) industry consortia B) EDI system C) PTX D) net marketplace
Answer: C
9) Which of the following is the fastest growing form of B2B e-commerce? A) e-distributors B) exchanges C) private industrial networks D) industry consortiums
Answer: C
46) How long does copyright protection extend for corporate-owned works? A) 25 years B) 50 years C) 75 years D) 95 years
95 years
11) Which of the following is not one of the central challenges facing the online retail industry? A) lack of physical store presence B) consumer concerns about the privacy of personal information C) inconvenience in returning goods D) delivery delays
A
13) Which of the following statements is not true about the automobile and automobile parts and accessories online retail category? A) Most of the revenue in this category is generated from the sales of automobiles. B) Automobile manufacturers use the Internet to deliver branding advertising. C) U.S. franchising law prohibits automobile manufacturers from selling cars directly to consumers. D) Automobile retailing is dominated by dealership networks.
A
28) Which of the following is not a key industry strategic factor? A) synergies B) barriers to entry C) industry value chain D) existence of substitute products
A
3) Which of the following is not one of the seven major segments of the retail industry? A) electronics and computers B) specialty stores C) gasoline and fuel D) food and beverage
A
32) Which of the following is not categorized as an operating expense? A) the cost of products being sold B) marketing costs C) administrative overhead D) amortization of goodwill
A
33) Operating margin is defined as: A) operating income or loss divided by net sales revenues. B) operating income or loss divided by total operating expenses. C) net sales revenues divided by net income or loss. D) net assets divided by net liabilities.
A
35) Which of the following would not be considered a current asset? A) long-term investments B) cash C) accounts receivable D) marketable securities
A
37) For a quick check of a firm's short-term financial health, examine its: A) working capital. B) gross margin. C) long-term debt. D) cost of sales.
A
46) All of the following statements about Amazon are true except: A) Amazon failed to show a profit in 2015. B) Amazon Web Services is now a major part of Amazon's business. C) eBay can be considered a competitor of Amazon. D) Amazon continues to generate revenue primarily by selling products.
A
49) The term supply-push refers to: A) making products prior to orders being received based on estimated demand. B) waiting for orders to be received before building a product. C) channel conflict. D) multi-channel manufacturers who sell directly online to consumers.
A
53) Which of the following has the second-highest share of online retail sales? A) omni-channel merchants B) virtual merchants C) catalog merchants D) manufacturer-direct
A
6) All of the following were parts of the vision during the early days of e-commerce except the belief that: A) new, "first-mover" middlemen, with expertise in e-commerce, would force traditional intermediaries out of business. B) online consumers were rational and cost-driven. C) entry costs to the online retail market would be much less than those needed to establish a physical storefront. D) the cost of acquiring customers would be much lower.
A
61) All of the following services require extensive personalization except: A) financial services. B) legal services. C) medical services. D) accounting services.
A
64) In ________, all of a customer's financial (and even nonfinancial) data are pulled together at a single personalized website. A) account aggregation B) a financial portal C) integrated financial services D) EBPP systems
A
65) The Internet has resulted in lower search costs, increased price comparison, and lower prices to consumers for which insurance product line? A) term life insurance B) automobile insurance C) health insurance D) property and casualty insurance
A
66) All of the following statements about the online insurance industry are true except: A) the Internet has dramatically changed the insurance industry's value chain. B) websites of almost all the major firms provide the ability to obtain an online quote. C) Internet usage has led to a decline in term life insurance prices industry-wide. D) the industry has been very successful in attracting visitors searching for information
A
68) Craigslist is a player in which of the following online services markets? A) real estate services and career services B) insurance services and brokerage services C) travel services D) online accounting services
A
73) Which of the following has introduced a tool known as Consumer Alerts to inform readers when a review is likely to be fraudulent? A) Yelp B) TripAdvisor C) Angie's List D) TripExpert
A
79) Which of the following is not a major trend in the online recruitment services industry? A) disintermediation B) Millennials and GenX primarily use mobile devices to search for jobs. C) social recruiting D) hiring by algorithm
A
31) Which of the following is not one of the issues complicating the taxation of e-commerce sales? A) Taxes raised are used for different government purposes. B) Sales taxes and policies vary by state and country. C) Retailers legally only have to charge sales tax if they have operations located in the same state as a consumer. D) Small online businesses are unable to manage sales taxes to thousands of different jurisdictions.
A) Taxes raised are used for different government purposes.
53) All of the following statements about patents are true except: A) it is more difficult to obtain a copyright than it is to obtain a patent. B) the four types of inventions protected by patent law are machines, manmade products, compositions of matter, and processing methods. C) computer programs can be patented. D) in order to be patented, an invention must be nonobvious.
A) it is more difficult to obtain a copyright than it is to obtain a patent.
11) EDI began as a(n) ________ system. A) document automation B) document exchange C) invoice generation D) MRP
Answer: A
16) A(n) ________ market is one that provides expertise and products for a specific industry, such as automobiles. A) vertical B) horizontal C) indirect D) buyer-biased
Answer: A
24) The last step in the procurement process is: A) sending a remittance payment. B) sending the invoice. C) shipping the goods. D) delivering the goods.
Answer: A
29) An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment. A) exchange B) e-distributor C) e-procurement company D) industry consortium
Answer: A
31) The liquidity of a market is measured by all of the following except: A) price transparency. B) number of buyers and sellers in market. C) volume of transactions. D) size of transactions.
Answer: A
63) Which of the following statements about e-commerce surveillance is not true? A) Government agencies are one of the largest users of personal data gathered by commercial data brokers. B) Google discards search information after 12 months. C) The largest private-sector commercial data broker is Acxiom. D) Commercial brokers of personal data combine personal identifying records with legal records such as driving records and clickstream behavior.
B) Google discards search information after 12 months.
19) Few large firms today have Electronic Data Interchange (EDI) systems.
Answer: FALSE
71) Industrial consortia were the first form of Internet-based B2B commerce.
Answer: FALSE
72) E-distributors operate in vertical markets.
Answer: FALSE
74) Exchanges are closely tied to ERP systems used by large firms.
Answer: FALSE
83) A private industrial network is an independently owned online marketplace that connects many suppliers and buyers.
Answer: FALSE
84) Private industrial networks are usually owned collectively by the major firms participating in the network, while exchanges usually are created by a single sponsoring company.
Answer: FALSE
85) Operating on a global scale is one goal of collaborative commerce.
Answer: FALSE
75) Which of the following statements is not true? A) Price competition among online travel services is difficult as comparison shopping for better prices is easy. B) Online travel services are one of the few sectors in which extensive disintermediation has occurred. C) The ability of travel products and services to be commoditized is a significant factor in the explosive growth of the online travel services industry. D) The online travel services industry has gone through a period of consolidation
B
78) Which of these job recruitment sites is not a job listing aggregator? A) Indeed B) SimplyHired C) Glassdoor D) CareerBuilder
B
9) Which of the following categories generates the highest percentage of online retail revenue? A) computers and electronics B) apparel and accessories C) books/music/video D) automobile and automobile parts and accessories
B
23) What is the first step in the procurement process? A) negotiate price B) qualify the seller and its products C) issue a purchase order D) search for suppliers
Answer: D
27) All of the following are examples of direct goods in the auto industry except: A) sheet steel. B) shatter-resistant glass. C) rubber molding. D) desktop computers.
Answer: D
42) Cisco estimates that by 2016, mobile traffic will represent ________% of all business Internet traffic. A) less than 5 B) around 10 C) around 15 D) over 25
Answer: D
43) A(n) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems. A) EDI B) ERP C) CPFR D) SCM
Answer: D
44) Collaborative commerce systems: A) focus on structuring intra-firm communications. B) bring customers into the product development phase. C) provide open, competitive marketplaces. D) foster sharing sensitive internal information with suppliers and purchasers.
Answer: D
45) Which of the following is not a characteristic of the use of social networks in B2B e-commerce? A) It is typically unstructured. B) It helps develop a more personal relationship between participants in the supply chain. C) It enables participants to make decisions based on current conditions. D) They are always private
Answer: D
48) A(n) ________ supply chain is one in which the labor conditions in low-wage, underdeveloped producer countries are visible and morally acceptable to ultimate consumers in more developed industrial societies. A) sustainable B) ethical C) lean D) accountable
Answer: D
50) ________ is defined as the use of digital technologies to permit organizations to work together to design, develop, build, and manage products through their life cycles. A) SCM B) Social e-commerce C) EDI D) Collaborative commerce
Answer: D
62) Which of the following primarily involve long-term sourcing? A) e-distributors and exchanges B) e-distributors and industry consortia C) e-procurement Net marketplaces and exchanges D) e-procurement Net marketplaces and industry consortia
Answer: D
68) An ________ serves businesses that primarily buy direct goods on a contract purchasing basis. A) e-distributor B) e-procurement company C) exchange D) industry consortium
Answer: D
77) Walmart's global supply chain has been criticized for all of the following except: A) exploiting labor in underdeveloped countries. B) bribing officials. C) wasting energy. D) failing to be efficient.
Answer: D
47) Which of the following situations would not qualify for the fair use exception to U.S. copyright law? A) A professor clips a newspaper article just before class and distributes copies of it to his class. B) A journalist quotes a paragraph from a book in a review of the book. C) A student copies a photograph of his favorite band from a Web site created by the band's record label and places it on the student's personal Web site. D) Google posts thumbnail images of books in the Google Book Search Project.
C) A student copies a photograph of his favorite band from a Web site created by the band's record label and places it on the student's personal Web site.
65) Which of the following statements about social, local, and mobile privacy is not true? A) A single Facebook photograph can be used to identify the subject's social security number with the use of facial recognition software. B) iOS and Android apps funnel personal location information, photos, and address books to mobile advertisers. C) Google and Apple track and record how users interact with the apps on users' smartphones. D) To date, there is no legal prohibition of the collection and sharing of personal data sent through mobile phones.
C) Google and Apple track and record how users interact with the apps on users' smartphones
51) All of the following statements about the Digital Millennium Copyright Act (DMCA) are true except: A) the DMCA makes it illegal to circumvent technological measures to protect works. B) the DMCA makes Internet Service Providers (ISPs) responsible and accountable for hosting Web sites or providing services to infringers regardless of whether the ISP is aware of infringement. C) the DMCA requires search engines to block access to infringing sites. D) the DMCA allows libraries to make digital copies of works for internal use only.
B) the DMCA makes Internet Service Providers (ISPs) responsible and accountable for hosting Web sites or providing services to infringers regardless of whether the ISP is aware of infringement.
55) Amazon has a patent on: A) download-based sales. B) display of third-party advertisements in floating windows. C) one-click purchasing. D) hyperlinks.
C) one-click purchasing.
37) Which of the following is a core Fair Information Practices (FIP) principle? A) Choice/Consent B) Access/Participation C) Security D) Enforcement
Choice/Consent
39) Which of the FTC's Fair Information Practices (FIP) principles requires opt-in or opt-out policies to be in place? A) Notice/Awareness B) Choice/Consent C) Access/Participation D) Security
Choice/Consent
45) Which of the following protects original forms of expression in a tangible medium? A) trade secret law B) copyright law C) patent law D) trademark law
Copyright law
59) Registering a domain name similar or identical to trademarks of others to divert Web traffic to their own sites is an example of: A) cybersquatting. B) cyberpiracy. C) framing. D) metatagging.
Cyberpiracy
57) Registering a domain name similar or identical to trademarks of others to extort profits from legitimate holders is an example of: A) cybersquatting. B) cyberpiracy. C) framing. D) metatagging.
Cybersquatting
1) Which of the following is not a major trend in online retail for 2016-2017? A) Online retail remains the fastest growing retail channel. B) The average annual purchase of online buyers continues to increase. C) Online retailers place an increased emphasis on providing an improved "shopping experience." D) The number of online buyers begins to plateau.
D
10) All of the following are advantages of online retail except: A) lower supply chain costs. B) lower cost of distribution. C) ability to change prices. D) faster delivery of goods.
D
29) All of the following are strategic factors that pertain specifically to a firm and its related businesses except: A) core competencies. B) synergies. C) technology. D) power of customers.
D
42) Which of the following is not an example of a virtual merchant? A) Overstock B) Wayfair C) Rue La La D) Dell
D
47) All of the following are challenges faced by bricks-and-clicks firms except: A) coordinating prices across channels. B) handling returns of online purchases at retail outlets. C) building a credible website. D) building a brand name.
D
48) All of the following are challenges for catalog merchants except: A) high costs of printing and mailing. B) building a credible website. C) the need to bring staff in or manage new technology. D) building sophisticated order entry and fulfillment systems.
D
58) Service industry groups are categorized generally into two groups, those that provide transaction brokering and those that involve: A) retailing goods. B) personalization. C) information brokering. D) hands-on services.
D
59) Approximately ________% of the United States labor force is involved in providing services. A) 50 B) 60 C) 70 D) 80
D
63) Which of the following statements about online banking is not true? A) Top mobile banking activities include checking balances and bank statements and viewing recent transactions. B) Online and mobile banking transactions provide significant costs savings for banks. C) Millennials are adopting mobile banking at a much higher rate than those who are older. D) More people use a tablet for mobile banking than a mobile phone.
D
12) Which of the following is not one of the methods used by traditional retailers to develop omni-channel integration? A) online catalog B) online order, in-store pickup C) online supply-push D) online promotions for offline purchases
C
14) Approximately ________ retailers generate 90% of all retail e-commerce sales. A) 10 B) 100 C) 1,000 D) 10,000
C
2) The MOTO sector of the retail industry is most like the ________ sector. A) specialty stores B) general merchandise C) online retail sales D) consumer durables
C
34) What is another name for pro forma earnings? A) net margin B) operating income C) earnings before income taxes, depreciation, and amortization (EBITDA) D) generally accepted accounting principles (GAAP) earnings
C
36) Current liabilities are debts of the firm that will be due within: A) three months. B) six months. C) one year. D) two years.
C
39) Which of the following provides a financial snapshot of a company's assets and liabilities (debts) on a given date? A) working capital B) operating margin C) balance sheet D) gross margin
C
51) Which of the following occurs when retailers of products must compete on price and currency of inventory directly against the manufacturer? A) disintermediation B) localization C) channel conflict D) hypermediation
C
57) In the United States, the service sector accounts for approximately ________% of the United States GDP. A) 70 B) 75 C) 80 D) 85
C
60) Which of the following is not an example of a transaction broker? A) a stockbroker B) a real estate agent C) an accountant D) an employment agency
C
62) Which of the following best explains why the service sector is a natural avenue for e-commerce? A) The service sector is less geographically reliant and more globally oriented. B) The service sector has historically been more technology-reliant. C) Much of the value in services is based on the collection, storage, and exchange of information. D) It is not; services are difficult to translate to e-commerce because they rely on face-to-face communication and barter.
C
54) Which case was instrumental in paving the way for Internet business methods patents? A) Brown Bag v. Symantec B) State Street Bank & Trust Co. v. Signature Financial Group, Inc. C) Ford Motor Co. v. Lapertosa D) Ticketmaster Corp. v. Tickets.com
B) State Street Bank & Trust Co. v. Signature Financial Group, Inc.
76) Expedia owns all of the following except: A) Travelocity. B) Orbitz. C) TripAdvisor. D) CheapTickets.
C
8) In 2016, approximately what percentage of Internet users over the age of 14 made a purchase at an online retail store? A) 37% B) 57% C) 77% D) 97%
C
83) ________ is an on-demand service company focused on lodging. A) Uber B) Lyft C) Airbnb D) Task Rabbit
C
49) Downloading music tracks owned by record companies without paying for them is an example of a violation of: A) patent law. B) copyright law. C) trademark law. D) privacy law.
B) copyright law.
67) All of the following statements about the online real estate services market are true except: A) most people use the Internet to search for a home, but still use the services of a real estate agent to complete the purchase. B) real estate differs from other types of online financial services because it is impossible to complete a property transaction online. C) the primary service offered by real estate sites is a listing of houses available. D) the Internet and e-commerce have created significant disintermediation in the real estate marketplace.
D
7) All of the following have launched trials of Buy buttons except: A) Facebook. B) Pinterest. C) Instagram. D) Tumblr.
D
74) What is the largest sector of the online travel services market in terms of revenue? A) hotel reservations B) car reservations C) cruise/tour reservations D) airline reservations
D
82) Which of the following is not true about on-demand service firms? A) The growth of on-demand service firms is supported by the use of online reputation systems based on peer review. B) It is not likely that on-demand service firms will totally escape government regulation. C) On-demand service firms facilitate access to resources. D) On-demand service firms are a totally new phenomenon without precedent in the history of e-commerce
D
84) All of the following are terms used to describe on-demand service companies except: A) mesh economy. B) collaborative commerce. C) we-commerce. D) omni-channel commerce.
D
33) Which of the following statements about industry self-regulation regarding privacy is not true? A) OPA members are required to implement the OPA's privacy guidelines. B) The primary focus of industry efforts has been the use of online "seals" that attest to the site's policies. C) Industry efforts have not so far succeeded in reducing American fears of privacy invasion. D) The NAI's privacy policies have established the TRUSTe seal.
D) The NAI's privacy policies have established the TRUSTe seal.
48) All of the following are factors that will be considered in determining whether use of copyrighted material is "fair use" except the: A) nature of the work used. B) amount of the work used. C) market effect of the use. D) free availability of the work on the Web
D) free availability of the work on the Web
24) Which ethical principle asks you to consider the impact of your decision if the principles underlying your decision became an organizing principle of the entire society? A) the Golden Rule B) Risk Aversion C) the Slippery Slope D) the Social Contract rule
D) the Social Contract rule
27) Which of the following basic ethical concepts plays an important role in defining privacy? A) responsibility B) accountability C) liability D) due process
Due Process
62) The display of a third-party's Web site or page within your own Web site is called: A) cybersquatting. B) metatagging. C) framing. D) deep linking.
Framing
17) Which of the following e-commerce technology dimensions has the potential to reduce cultural diversity in products? A) richness B) interactivity C) information density D) global reach
Global Reach
35) Which of the following requires financial institutions to inform consumers of their privacy policies and permits consumers some control over their records? A) Freedom of Information Act B) Gramm-Leach-Bliley Act C) COPPA D) HIPAA
Gramm-Leach-Bliley Act
43) Which pricing plan charges fees to e-commerce firms based on the amount of traffic they generate? A) highway pricing B) cap pricing C) usage-based billing D) congestion pricing
Highway Pricing
19) What is the first step in analyzing an ethical dilemma? A) Define the conflict or dilemma and identify the higher-order values involved. B) Identify the potential consequences of your opinions. C) Identify the options you can reasonably take. D) Identify and describe the facts.
Identify and describe the facts
61) Critics have pointed out that the Chrome browser's Suggest button, which suggests queries based on search terms entered by the user, is in fact, a type of: A) worm. B) PUP. C) key logger. D) malware.
Key logger
22) Which ethical principle asks you to assume that virtually all tangible and intangible objects are owned by someone else unless there is a specific declaration otherwise? A) the Golden Rule B) the Slippery Slope C) the Social Contract rule D) No Free Lunch
No Free Lunch
38) Which of the FTC's Fair Information Practices (FIP) principles requires identification of the collector of data? A) Notice/Awareness B) Choice/Consent C) Access/Participation D) Security
Notice/Awareness
28) ________ is collected data that can be used to identify and locate an individual. A) A personal profile B) P3P C) Anonymous information D) PII
PII
52) Which of the following allows someone to obtain an exclusive monopoly on the ideas behind an invention for 20 years? A) copyright law B) trade secret law C) patent law D) trademark law
Patent Law
18) Which of the following is not one of the four basic principles shared by ethical schools of thought in western culture? A) accountability B) privacy C) due process D) liability
Privacy
32) Google's Gmail advertising has raised concerns about which of the following issues? A) privacy B) copyright C) trademark D) patents
Privacy
40) What is the FTC recommendation regarding choice as it relates to personally identifiable information (PII)? A) Require firms to have consumers affirmatively opt-in before PII is collected. B) Require firms to allow consumers to opt-out before PII is collected. C) Make collection of PII illegal. D) Require robust notice only before PII is collected.
Require firms to have consumers affirmatively opt-in before PII is collected.
26) Which ethical principle states that when confronted with an ethical dilemma, an individual should take the action that produces the least harm, or the least potential cost? A) the Slippery Slope B) Risk Aversion C) No Free Lunch D) the Collective Utilitarian principle
Risk Aversion
29) Which of the following tools can companies use to track user statements and views on newsgroups, chat groups, and other public forums? A) cookies B) digital wallets C) search engines D) shopping carts
Search engines
41) "Do Not Track" falls under which of the following principles in the FTC's new privacy framework? A) Privacy by Design B) Simplified Choice C) Greater Transparency D) Scope
Simplified Choice
16) Which of the following e-commerce technology dimensions creates greater opportunities for cyberbullying? A) richness B) interactivity C) social technology D) ubiquity
Social Technology
30) Which of the following can be used to record all keyboard activity of a user? A) shopping carts B) trusted computing environments C) spyware D) DRM
Spyware
21) Which ethical principle emphasizes putting oneself into the place of others and thinking of oneself as the object of the decision? A) the Golden Rule B) Universalism C) the Collective Utilitarian principle D) the Social Contract rule
The Golden Rule
25) Which ethical principle tells you that it is wise to assume perfect information markets? A) the Golden Rule B) the New York Times test C) the Social Contract rule D) the Collective Utilitarian principle
The New York Times test
23) Which ethical principle states that if an action cannot be taken repeatedly, then it is not right to take at all? A) Universalism B) the Slippery Slope C) the Social Contract rule D) the Golden Rule
The Slippery Slope
60) Registering the domain name goggle.com with the intent to divert Web traffic from people misspelling google.com is an example of: A) cybersquatting. B) typosquatting. C) metatagging. D) linking.
Typosquatting
42) Which of the following technologies allows you to send e-mail without a trace? A) anonymous surfing B) P3P C) anonymous remailers D) public key encryption
anonymous remailers
64) Which of the following is not one of the four stages of e-commerce governance? A) government regulation B) self-regulation C) privatization D) deregulation
deregulation
58) All of the following are data elements that are often gathered by e-commerce sites except: A) family member identities. B) photograph. C) location. D) address.
family member identities.
56) Disputes over federal trademarks involve establishing: A) underlying ideas. B) intent. C) piracy. D) infringement.
infringement
34) The sharing of a user's stored cookie information between Web sites and without the user's knowledge is: A) legal in the United States but illegal in Europe. B) illegal in the United States but legal in Europe. C) legal in both the United States and Europe. D) illegal in both the United States and Europe.
legal in the United States but illegal in Europe.
20) Which ethical principle states that, when confronted with an ethical dilemma, individuals should take the action that achieves the greater value for all of society? A) the Golden Rule B) Universalism C) the Collective Utilitarian principle D) the Social Contract rule
the Collective Utilitarian principle
44) What is the major reason that the Internet has such potential for destroying traditional conceptions and implementations of intellectual property law? A) the ability to make perfect copies of digital works at little cost B) the anonymous nature of the Internet C) the support for instant peer-to-peer communication D) the use of standards for file formats
the ability to make perfect copies of digital works at little cost
50) All of the following are possible penalties for violating the Digital Millennium Copyright Act (DMCA) except: A) up to ten years imprisonment for a first offense. B) fines up to $500,000 for a first offense. C) fines up to $1 million for a repeat offense. D) restitution to the injured parties for any losses due to infringement.
up to ten years imprisonment for a first offense.
36) A social consequence of the richness of Internet information is: A) an increase in shallowness. B) an increase in the ease of creating misleading information. C) very persuasive messages might reduce the need for multiple independent sources of information. D) an increase in vulnerability to hacking attacks.
very persuasive messages might reduce the need
30) The lower the ________ compared to revenue, the higher the gross profit. A) assets B) cost of sales C) gross margin D) operating expenses
B
31) Gross margin is defined as gross profit: A) minus total operating expenses. B) divided by net sales revenues. C) divided by cost of sales. D) minus net income.
B
38) ________ measures the percentage of sales revenue a firm retains after all expenses are deducted from gross revenues. A) Gross profit B) Net margin C) Operating margin D) Working capital
B
4) All of the following statements about the MOTO sector are true except: A) compared to general merchandisers, the transition to e-commerce has been easier for MOTO firms. B) the MOTO sector is also referred to as the specialty store sector. C) MOTO was the last technological revolution that preceded e-commerce. D) distribution of catalogs is one of MOTO retailers' biggest expenses.
B
43) Omni-channel merchants are also referred to as: A) virtual merchants. B) bricks-and-clicks companies. C) catalog merchants. D) manufacturer-direct firms.
B
44) Which of the following is a subscription-based retailer using predictive marketing and Big Data? A) Macy's B) Birchbox C) Dell D) Lands' End
B
45) Virtual merchants face potentially large costs for all of the following except: A) building and maintaining a website. B) building and maintaining physical stores. C) building an order fulfillment infrastructure. D) developing a brand name.
B
5) All of the following were factors that precipitated the growth of MOTO except: A) the national toll-free call system. B) the growth of the cellular phone industry. C) falling long distance telecommunications prices. D) the growth of the credit card industry.
B
50) All of the following are examples of the challenges that traditional manufacturers experience when using the Internet to sell directly to the consumer except: A) moving to a demand-pull model. B) high cost structures. C) developing a fast-response online order and fulfillment system. D) channel conflict.
B
52) Which of the following has the highest share of online retail sales? A) omni-channel merchants B) virtual merchants C) catalog merchants D) manufacturer-direct
B
18) B2B e-commerce Web sites tend to serve horizontal markets.
Answer: TRUE
33) MRO goods are also known as indirect goods.
Answer: TRUE
34) Purchasing managers are the key players in the procurement process.
Answer: TRUE
52) Highly centralized supply chains provide lower short-term costs, but higher, longer-term risk protection.
Answer: TRUE
53) Collaborative commerce has a much broader mission than EDI.
Answer: TRUE
54) Lean production is an extension of just-in-time production methods.
Answer: TRUE
73) Industry consortia are more focused on optimizing long-term relationships than independent exchanges, which tend to focus more on short-term purchasing relationships.
Answer: TRUE
82) Walmart is the largest purchaser of consumer goods in the world.
Answer: TRUE
15) Which of the following had the highest online sales revenue in 2015? A) Macy's B) Walmart C) Sears D) Target
B